Yet another FICO story

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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Yet another FICO story

Postby MemberSince99 » Tue Jul 02, 2013 6:38 am

I read an account of a guy who claims to have gotten a 15k starting limit on his Discover IT, with a 667 EX score. I found that kind of hard to believe especially given Discover is an EQ puller for new apps. I wonder if some of these people just make this stuff up, I mean 15k for a mediocre at best score? I could see it for 100 points more, but 667 as we all know is just not that great.

He also said he has 3 charge offs from many years ago, which is probably part of the reason for the score.

I mean I hate to say it but it really seems like Discover is backwards in how they grant limits - guys like Sevenfeet with 20k and over limits they give 2k to, but a guy with charge offs and a low score gets the world.

I just don't know if I believe this, I know for all my cards they pulled EQ and I've read time and again that's who they pull for new apps.


hockeyplayr
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Postby hockeyplayr » Tue Jul 02, 2013 10:58 am

They pulled eq for me. If what I keep reading is true I think they I've higher limits to riskier clients so that they may end up getting interest for the rest of that persons life if they screw up and go nuts
Credit Scores: Equifax - 736 (October Fico) | Experian 726 (October Fico) | TU - 758 (October Fico)

Credit Lines: Diners Club 20k | Citi DC 9.1k | SDFCU 5k | Penfed 7k | Amex BCE - 10.5k | Chase Marriot - 5.2k | CSP - 6.5k |Discover IT - 9k | Sallie Mae 3.8k | Citi TYP - 3.5k | BOA 123 - 4.9k | Total Rewards 3.25k|

flan
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Postby flan » Tue Jul 02, 2013 7:57 pm

hockeyplayr wrote:They pulled eq for me. If what I keep reading is true I think they I've higher limits to riskier clients so that they may end up getting interest for the rest of that persons life if they screw up and go nuts


Possibly. The other thing to remember that Discover is sophisticated lender, in it to make money. You make money by lending it to people who pay interest, or who will have a high spend velocity, so even if they pay no interest, drive swipe fees to you. I didn't see a reported income, which would be relevant to the second point.

Also, FICO scores are less relevant to credit card lenders than the obsessives over on that other forum want to believe. FICO is a predictor of how well you paid in the past; there are other indicators that are supposed to do a better job of current and future term default. So you can be a better or worse risk to people looking at those indicators than your FICO indicates.

Also, there's a lot of work in figuring out the quantified risk of a potential customer. If you can reliably work out that you think a particular customer will burn you for $10k, but make you 30K first, he's a better customer than someone who will make you $10K over the same period.

(Of course, I"m sure lots of the stories at fico are made up...)

MemberSince99
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Postby MemberSince99 » Tue Jul 02, 2013 9:02 pm

The problem is how do you reliably work out that a particular customer will burn you for 10k after making you 30k?

Which leads to an unrelated subject but nevertheless....if anyone wants to get rich, just come up with a way to reliably predict which employees are going to be good and which are going to be bad. To my knowledge there really is no reliable way to predict this kind of thing. If there was all employers would want it. Oh sure they check your credit, your criminal history, your fingerprints with the FBI, your educational records, give you a physical, an IQ test, a psych exam, a personality test, check 15 years of address history and employment history, check your references, interview your neighbors, check if you're on the terror watch list, drug test you, and try to literally know every last detail of your life since birth (I'm not kidding you know) but you still cannot reliably predict this stuff, you can only play what you think are the odds. There is a LOT of money to be made for anyone who figures out a way to accurately determine this.

By the way I would have added give you a polygraph test, but I believe that's not legal. Eventually they'll make it legal but my biggest fear is what comes after that - legalizing torturing you during the "truth exam" to ensure you aren't lying.

Sevenfeet
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Postby Sevenfeet » Wed Jul 03, 2013 6:54 am

I saw that too. I have to agree with you on this one. Is it possible? I'm sure it is. But considering Discover's reputation and the experience of a lot of people in these forums with them, I'd be skeptical for sure.
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)

Jacksnow
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Postby Jacksnow » Wed Jul 03, 2013 6:59 am

I think you need to stay away from the Discover forum.. it can't be good for your blood pressure.


It's the reason why I stay away from the Gardening thread.

All I can get there is hate. Pure. hate.

MemberSince99
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Postby MemberSince99 » Wed Jul 03, 2013 7:03 am

Join us in the garden, Jacksnow, you'll love it. You will receive your very own seedling image with your posts (think Charlie Brown Christmas tree) and others will help you abstain from the terrible sin of applying for a credit card.

hockeyplayr
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Postby hockeyplayr » Wed Jul 03, 2013 1:03 pm

MemberSince99 wrote:Join us in the garden, Jacksnow, you'll love it. You will receive your very own seedling image with your posts (think Charlie Brown Christmas tree) and others will help you abstain from the terrible sin of applying for a credit card.


I originally thought the term garden is what people used when building credit. HOWEVER after reading that thread it makes me want to just kick any plants that may sprout out of the ground
Credit Scores: Equifax - 736 (October Fico) | Experian 726 (October Fico) | TU - 758 (October Fico)

Credit Lines: Diners Club 20k | Citi DC 9.1k | SDFCU 5k | Penfed 7k | Amex BCE - 10.5k | Chase Marriot - 5.2k | CSP - 6.5k |Discover IT - 9k | Sallie Mae 3.8k | Citi TYP - 3.5k | BOA 123 - 4.9k | Total Rewards 3.25k|

Jacksnow
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Postby Jacksnow » Wed Jul 03, 2013 4:44 pm

It was the same feeling I got after seeing Avatar, the irresistible urge to hurt plants.



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