My First Credit Card

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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Brentus
 
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My First Credit Card

Postby Brentus » Fri Apr 18, 2014 11:01 pm

I recently got approved for the Discover IT card with a CL of $2500. After reading some posts, I'm starting to wonder if it was just luck I was approved.

I am 23, recent college graduate who just landed his first ever job (not in my field, but a job nonetheless) and wanted to begin establishing a line of credit. As I said this is my very first credit card. Credit Karma sets my credit at 696 (I have student loans and thats the extent of my credit history).


I have two questions:

1) Based on what I've said about my credit -- is $2500 a good starting credit limit?

2) I've read and seen that Discover tends to be pretty picky when picking their cardholders. Were they just being extremely generous with me?


MemberSince99
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Postby MemberSince99 » Sun Apr 20, 2014 7:12 am

1. I would say it's a terrific starting limit, consider you could have gotten a Cap One with a 500 limit that would give you one increase probably EVER and with no rewards and an annual fee to boot. I had higher scores than yours and that's what I started with. I doubt you could have done much better if that's what you are worried about.


2. Discover does seem to prefer people who have decent credit (though not great credit) and no really high limit cards. I've seen plenty of people with a few cards with your current limit or less get 8k to start from Discover. Now with my scores, they gave me 4.5k. So you can draw your own conclusions.


If you are just looking to validate what happened, feel free, and if ego stroking is part of that, stroke away, but you might as well just use it and after it's reported for 6 months on your reports, apply for something else if you are so inclined. Otherwise just enjoy.

CardySark
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Postby CardySark » Mon May 05, 2014 2:02 am

The Discover it was my first card too. It's actually my only card as of right now, but I'm in the process of applying for another. I would say that $2,500 is definitely a good starter limit. Mine was $1,000 but got bumped up to $1,500 after a few months of usage. I'm not sure about your situation, but when I applied I had zero credit history and what I consider very little in savings (about $900) and maybe $500 in checking. I also reported my income relatively low at 10k/ year since I had just started college and did not anticipate on working a lot. To answer your second question, while any issuer has to be picky when selecting cardholders (it's finally a law now), I would say Discover is somewhere in between your Capital Ones and Chase/ BofA entry level credit cards.

jrmsu
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Postby jrmsu » Tue May 06, 2014 8:00 am

Discover was also my first credit card. I got it at 25 with only a few small loans in my credit history. I got started with $4,000 but got a CLI within 6 months to $4,250.

Be sure to check out the ShopDiscover retailers. With some online retailers, you can get up to 25% cash back by paying with your discover card.
My Cards:

Discover It - $8,450 (9/13)
BankAmericard Cash Rewards Visa Signature - $5,000 (4/14)
Chase Freedom - $3,000 (5/14)
AMEX Hilton HHonors - $16,500 (6/14)


takeshi
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Postby takeshi » Wed May 07, 2014 8:15 am

Brentus wrote:1) Based on what I've said about my credit -- is $2500 a good starting credit limit?

2) I've read and seen that Discover tends to be pretty picky when picking their cardholders. Were they just being extremely generous with me?

I'll put it this way. My credit profile is pretty well established. My TU FICO is a few points from 800. Discover granted me $4,500 when I applied (though it was doubled after a few months at my request).

They do seem to have a trend of giving pretty good limits to those with decent but not great credit as stated above.

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nismoZtuner
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Postby nismoZtuner » Wed May 07, 2014 2:32 pm

Well my friend and I decided to apply for the IT card just to see what would happen.

Me- more history, higher score, less inquires.
Him- not so much credit history, low score, lots of inquires

Both reported the same wages!

Me- Instant approval $1,500
Him- He had to call since he was told to call a phone number was approved when he made the call with $2,500

To top it off 5-6 months later he was given a credit increase while i`m still stuck at $1,500
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

flan
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Postby flan » Sat May 10, 2014 9:34 pm

nismoZtuner wrote:Well my friend and I decided to apply for the IT card just to see what would happen.

Me- more history, higher score, less inquires.
Him- not so much credit history, low score, lots of inquires

Both reported the same wages!

Me- Instant approval $1,500
Him- He had to call since he was told to call a phone number was approved when he made the call with $2,500

To top it off 5-6 months later he was given a credit increase while i`m still stuck at $1,500


Have you asked for an increase? My experience has been that Discovers auto limits are stingy, but they've given hefty increases when I've asked for them. And it's a soft pull, or a declinable hard pull, so not much down side to asking.

MemberSince99
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Postby MemberSince99 » Sun May 11, 2014 6:04 am

nismo I'm curious does he carry balances?


Based on everything I've read, I don't know how they determine limits, but I suspect (and it's only a theory, could be totally wrong) that they tend to reward people who don't have a higher limit card, to hopefully earn their loyalty with their highest limit. I also suspect they tend to like people who carry a balance. I don't have enough evidence to make much of a case for the second item though I've seen enough posts I suspect there is something to the first item. So do you know if he's a balance carrier?

CC Deville
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Postby CC Deville » Sun May 11, 2014 7:32 pm

Discover was the hardest card for me to obtain. I was finally approved on the 4th try in 1999 with a $1,500 limit. It is now at $9,000 but I rarely use it.

So, yeah, 1st card, 1st try with $2,500 is pretty darn good.

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nismoZtuner
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Postby nismoZtuner » Tue May 13, 2014 2:38 pm

flan wrote:Have you asked for an increase? My experience has been that Discovers auto limits are stingy, but they've given hefty increases when I've asked for them. And it's a soft pull, or a declinable hard pull, so not much down side to asking.


Nope, I have not asked for a credit limit increase on my cards besides my BOA card which was a $1400 increase -
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22



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