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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Sevenfeet
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Geez, now Discover sends me a competitive offer?

Postby Sevenfeet » Mon Mar 18, 2013 4:21 pm

Toward the end of my app spree last month I applied for a Discover IT card and was granted. But I was less than thrilled with the terms. Only a $2500 CL (all but one of my cards are $20K or higher) and the interest rate was an ugly 20.99%. All of other are from 9.99% to 15.24% and my Chase is sitting at prime(!). So imagine my surprise to see a Discover IT offer addressed to me today offering a 12 month/0% deal on balance transfers and purchases but then settling in for a long term rate of 12.99%.

Seriously guys? Why offer me a nice deal now versus a month ago? And is there anything I can do about this? (it's kinda late)
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)


DavidNY
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Postby DavidNY » Mon Mar 18, 2013 5:20 pm

Unless you're carrying a balance the APR is moot.

That Discover "offer" is weak, though I guess you could throw some charges on it and pay the minimum for a year. Really not much you can load on to a $2.5K card even if the offer was better.

Sevenfeet
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Postby Sevenfeet » Mon Mar 18, 2013 7:44 pm

Well it was the principal of the whole thing. I thought that even at the end of an app spree that I shouldn't be looking at an interest rate like that with 12 years of no baddies my file (I was upset at US Bank for this too). Also, $2500 for a PIF card might be ok normally but I had intended on buying a $3000 Mac from the Apple Store (through ShopDiscover) on it immediately. And I might need to buy a new TV too and park it on a card with no interest for a while.

So I called Discover. I had already tried to recon with them last week but the front line person refused. This time I was armed with the offer and got to a manager. He said, "well those offers usually have a range of rates based upon your credit history" and I said, "no, not this time. It's 12.99%...period. That's the offer you invited me to solicit." So he's asked me to scan the offer and send it to him. I did along with a nice cover letter because I really want them to reconsider me for the CL too.

I'll find out tomorrow. It should be an interesting outcome.
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)

DavidNY
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Postby DavidNY » Mon Mar 18, 2013 8:00 pm

12.99% is pretty good for Discover. They lowered my APR from 18.99% to 17.99% and sent a letter to make sure I was aware of it.

Gamma
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Location: Los Angeles, CA

Postby Gamma » Mon Mar 18, 2013 9:06 pm

DavidNY wrote:12.99% is pretty good for Discover. They lowered my APR from 18.99% to 17.99% and sent a letter to make sure I was aware of it.

Is that a variable or fixed interest rate?

Sevenfeet
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Postby Sevenfeet » Tue Mar 19, 2013 8:17 pm

OK, I finally heard from Discover today. The bottom line is that they won't help me because of the strict policy surrounding the Discover IT product. Basically they won't consider a credit limit change for 6 months and a interest rate change for the first year, even though this very same company sent me a better offer three weeks after I signed up for the Discover IT. They do have some flexibility on the older Discover More product, but not the Discover IT.

Needless to say, this flies in the face of Discover's vaunted customer service. There needs to be some flexibility in the policy for situations like this, but I imagine no one thought something like this would happen. Ironically I was encouraged to apply again using the new offer and perhaps I would see the rate of 12.99% I was looking for. Apparently you are allowed to own more than one Discover card. I still think this is silly, but I suppose it's a possible way out.

Since my app spree last month, my credit scores have begun to recover (I applied for the Discover on a day my FICOs were fairly depressed). My Equifax FAKO began at 755 and dropped as low as 719 before rebounding to 735. I expect it to increase again when my balance transfer away from BofA finally are reported. Next month I intended to purchase a new computer with the Discover card. At that time, I may use the offer to see if I get a better deal from Discover. If I do (and I'm also looking for a better CL than just $2500), then I can cancel the old card and go forward. The downside is yet another hard pull on Equifax.
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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Location: WI

Postby MemberSince99 » Tue Mar 19, 2013 8:25 pm

I know better. I've read both here and on the FICO forum that they selectively give CLIs to some folks at 3 months, auto CLIs mind you. They just won't do it for you (or me either).

All I can say is, we need to remember that, and give them the appropriate amount of business in return. I have no problem running everything but one small recurring monthly charge through my other cards since that's how they want to play it. I'd suggest you do the same.

Sevenfeet
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Postby Sevenfeet » Tue Mar 19, 2013 9:45 pm

Good point. Well, I'll make a decision on this when I'm closer to making my purchase decision. Honestly, I'm not about the veer off my gardening plan for my other cards just to make a point with Discover...at least not right now. It is makes sense to use them, I will. If not, then I won't.
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)

Sevenfeet
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Posts: 532
Joined: Thu Jan 17, 2013 7:20 pm
Location: United States

Postby Sevenfeet » Sun May 12, 2013 11:41 am

An epilogue. As some of you know, after applying and receiving a Discover IT card back at the end of February, I was pretty annoyed by the meager terms ($2500 CL, 20.99% APR). I had received a mail in offer a few weeks later with much better terms and I was encouraged by a Discover CSR to app again. But what the CSR failed to tell me was that any new app within 6 months would be turned down regardless. So I wound up waisting an inquiry. When I chewed out the CSR about the goof, they looked at my file and said "You have really good credit!"

What I didn't realize at the time was that he was looking at the score FICO/Equifax returned for me on the first app. Drum roll please....

778!

I'm happy that this was the highest credit score I've ever seen for me and closest to my long term goal of 800 (it's lower now thanks to the app spree aftermath). But it makes me even more pissed at Discover who saw that score come their way and gave me terms worthy or someone 80 points lower. In three weeks the Haswell-based laptops should hit the market and I was planning on buying one for my wife's new business. The plan was to use Discover mainly because I'm still in a 0% interest period with them until next spring. But I'm going to have to hold my nose when I use it. Discover is still not one of my favorite companies to work with. I'd not use it at all were it not for the fact that I like using other people's money at no interest rate more.

Flame off.
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)

Sevenfeet
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Centurion Member
 
Posts: 532
Joined: Thu Jan 17, 2013 7:20 pm
Location: United States

Postby Sevenfeet » Sat Nov 16, 2013 11:19 pm

An update on an old thread...it's been 9 months with the Discover IT and as some know around here, I was less than thrilled with the initial CL...only $2500 when most of my other cards were over $9000 (with 4 in the $20k+ range). But Discover has been nominally raising my CL every quarter, if slowly. First was $250, then $750 and tonight an additional $500, which brings the total to $4000. So while I haven't been happy with the amounts, they are the only card lender of mine that is automatically doing CLIs without asking.

Who knows, maybe at 1 year I might get another grand. Watch this space.
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)



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