Iroquois wrote:Someone said in one of the threads that if you use the card they will raise your limits. Now I find that perverse competitively (if its true). First if qualified there is little reason not to give the person what makes sense. Second is rewarding their intially stingeyness when in most cases there is a better card limit in the wallet from an issuer who took the time effort and risk to give you what made sense to begin with.
That was me; and it appears to be true. I stopped using my Discover Card back in late 2004 when I PC'ed my Citibank Platinum Select to the Dividend (better cash back). Discover gave me an auto CLI around 7/05 and I have not had one since. I only use my Discover Card during the 5% gas and grocery bonus period or when I want $20 by getting cash over at the grocery store instead of going to the bank. Prior to this, they gave me $1K increase every 6 months from 2/02-8/03 like clockwork. I am sure if I returned to using Discover as my primary card I would be up to $10K + within months.
Now, my sister had a Discover from 2004 that she never used. She filed bankruptcy in 2005 and did not include them and they did not shut her account down. After ber bky was discharged she started using the account again like it was going out of style and they gave her an auto CLI. This was just three months after her bky was discharged so it would be my guess that usage and payments are even more important than scores.
Therefore; it is my observation that Discover likes to see usage before giving out large credit lines. There are other banks and credit unions that do this as well and it does make sense. Why hand out $10K limits right off the bat not knowing how the customer is going to handle the account?
Overall, this past decade (2000-2010) elevated Americans' greed and excess to a new level. American's feel entitled and they want everything right away. Back when credit cards first came on the scene and through the early 1990s cards had relatively low limits, high APRs and typically they had an annual fee. The 2000's spoiled everybody into thinking that we deserve huge credit lines etc (and look what happened). I do believe that someone who has proven their worth with excellent management of their credit should be given perks like better rewards, higher limits and lower APRs. In all honesty, I never come (came) anywhere near my $8000 limit so why do I need more?
In a past career, I reviewed credit reports and I agree, the Discover limits are generally not as high as Chase, Citi, BofA etc. I also noticed some original Discover Card customers from 1986-1989 had some pretty small credit lines. But I also saw a few $15K-$20K limits as well. I will also say that Amex is generally terrible with initial credit lines-moreso than Discover. It is not uncommon for people with excellent credit to be approved for an Amex card with a $2K limit. Amex is better at raising them; however.
Discover is conservative, which is one of the reasons they avoided the meltdown of other banks during the Great Recession. They also don't have a lot of deposits to fall back on like the banks and they also were not able to do securitization to further hand out higher limits. Remember that the issuer has to have the money to loan out in the first place.
Of course, if you want a CLI, you can always ask for one. They also have a new CLI button on their website.