MemberSince99 wrote:I've given more thought to that question than I should since it totally baffled me. The logical reason I come up with is - profitability. They must feel they will make more money by giving a big limit to someone who carries a balance
Don't forget, Discover issue two versions of the card. There's a prime version, and near-prime version. (And, actually, I have reason to believe they have some more subtle variations beyond that.) The 'near-prime' version has worse interest rate spread (still over a big range, though, with a low end lower than what I have on my solidly-prime account, not that I ever pay credit card interest, and a high end approaching 30%.); the near-prime card has a higher minimum interest charge, and higher minimum payements. There may be some other differences, but I'm not going to go through the sample t&c to find them.
I expect that a lot of the high limit low score people have a decent income, and so will put a fair bit of spend on the card. And they're likely to pay interest, which is very profitable for he card issuer. I don't doubt the "we're giving them more credit than they have anywhere else" is part of Discover's calculation, and I don't doubt they're adverse to a quick adverse action, it they think they need it.