Geez, now Discover sends me a competitive offer?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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MemberSince99
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Postby MemberSince99 » Sun Nov 17, 2013 6:52 am

Bottom line: They are one stingy lender. And I also found they are VERY inflexible as far as recons - they are probably the only lender less flexible than Citi.

Honestly giving a 2 or 2.5k limit to people with scores in the 750s-770s is kind of insulting when I read other threads on FICO where some guy with a 680 score and baddies on his reports got 8k.

Unfortunately I've seen enough of Discover and I don't see them in my wallet again. I won't say never, but I sure don't see any reason I would do it. I'd honestly try Cap One for a real limit first at this point.

And those who don't like what I wrote - it's the truth so too bad and enjoy your Discovers.


Sevenfeet
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Postby Sevenfeet » Sun Nov 17, 2013 7:31 am

Discover is good for one thing specifically....ShopDiscover. I wanted this card for a new computer and we ended up getting 6% cash back total on my wife's MacBook Air purchase without having to do anything special...pretty good deal really. And yes, their CL policies don't seem to have any kinds of consistency when you see other people with existing credit problems get larger deals.

What I'd really like from them at my year one anniversary is to reduce my interest rate from 20.99%. That is pretty insulting in my book since all my other cash back cards are 13.2% or less. I have the same issue with my US Bank Cash + card.
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)

flan
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Postby flan » Sun Nov 17, 2013 1:26 pm

Discover is in the business of making money. They do that by lending it to people who pay them back, and preferably pay them interest along the way. Credit scores are a modestly good indicator of the first part, it's a pretty poor indicator of the second, and to the extent it's an indicator, it's likely negatively correlated with score. Discover has been more profitable than average for the industry, and has lower than average default rates. During the worst of the financial crisis, they had much lower than typical rates. So they seem to be doing pretty well at it.

There's no point in giving big limits to people who won't use them. (The egos of people who brag about their credit limits is not a reason.) Give them to people who will make them money.

MemberSince99
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Postby MemberSince99 » Sun Nov 17, 2013 7:14 pm

Well it seems to me that baddies on your report are a definate indicator that in fact you have not paid your lender(s) back within the last 7 years, assuming it's not bogus, but the lender has no way to know if if they are legit or not and assumes they are.

So, sure it's great that someone is going to load that balance up and pay interest for a while, but if they get avalanched under debt by medical bills/job loss or some other reason and default, then it doesn't look so great to the bottom line.

But more power to them. The way I see it, creditors pretty much let you know what they think of you as a customer by the way they treat you, which includes limits, CLIs (or lack of), and whether they are willing to things that the front line CSRs tell you they don't do to keep you and keep you happy as a customer. Cases in point: Chase thinks little of me as I can't get CLIs on the CSP, and justifiably so since I burned them, but it's a fact I'm not their favorite customer. Associated, which is actually US Bank behind the scenes (Elan), is known to be YMMV when it comes to combining the limits on their cards. Some folks on FICO reported it was no problem for them, and others got refused flat out. I asked them to combine my cards and they refused. So I called to close them, and THEN after checking my spend (which they specifically mentioned) they were willing to combine them and close one card for me. So I would say that based on my never burning them and putting good spend on their card, they must at least like me somewhat since they were willing to do that.

My point is, you can pretty much figure where you stand with these guys. Some of us will be treated very well, others with indifference, and they flat out won't like a few of us. I've come to believe once you find creditors who like you, give them your business and don't worry much about the dislike or indifferent groups. That's why my CSP and Amex revolvers sit on top of my sock drawer and I only carry the Gold and my Associated and Duck cards with me these days. What comes around goes around, and sometimes if they don't see you as a profitable customer or potentially a profitable customer, they end up creating a self-fulfilling prophecy and that's what happens when we just go elsewhere. Gotta love the free market.

Sevenfeet
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Postby Sevenfeet » Sun Nov 17, 2013 10:32 pm

flan wrote:There's no point in giving big limits to people who won't use them. (The egos of people who brag about their credit limits is not a reason.) Give them to people who will make them money.


Stop trying to kill me with..you know, logic and reason. It's humiliating! :)
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

MemberSince99
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Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Mon Nov 18, 2013 6:32 am

Sevenfeet wrote:Stop trying to kill me with..you know, logic and reason. It's humiliating! :)


I would also say there's no point in giving toy limits to people who are beyond Cap One too - because they won't use them either.

flan
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Postby flan » Mon Nov 18, 2013 11:38 pm

Sevenfeet wrote:Stop trying to kill me with..you know, logic and reason. It's humiliating! :)


yeah, I know, it's more fun to rant and foam at the mouth because some bank's financial models say you're not going to make them money.

flan
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Joined: Tue Apr 09, 2013 10:16 pm
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Postby flan » Sun Dec 22, 2013 10:14 pm

Sevenfeet wrote:Stop trying to kill me with..you know, logic and reason. It's humiliating! :)


Something else reminded me that it's been a long time since I'd had any account change at discover. So I logged in, and asked for a credit limit increase. I misread the the instructions where you enter the amount of the increase -- they want you to enter the amount you're increasing, I put what the new limit would be. I figured a 50% increase was reasonable, but really asked for a 200% increase. I figured that out on the next screen, where they said "we can't approve you for the full amount", but could for rather more than I'd intended to ask for. I guess sometimes failing to read instructions pays off.

Something to keep in mind the next time membersincwhatever tells people discover won't grow: mine's gone up about 15 fold since the account was opened, and 3X this year.



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