The what you think will happen this year (2016) thread

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Nixon
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Re: The what you think will happen this year (2016) thread

Postby Nixon » Mon Jan 25, 2016 8:04 am

kdm31091 wrote:
CarefulBuilder14 wrote:
4ktvs wrote:It seems like Discover wants more sub prime customers by allowing people to app online for there secured product with out hoping for a counter offer after trying to get a unsecured product.

Maybe with interest rates on the rise banks now are more interested in gaining sub prime customers who are more likely to pay interest on there cards.

It's not purely for subprime customers. Discover was previously very uneasy with thin-file applicants.


Discover is definitely conservative. There are people on MF who have many cards and can't get Discover to save their lives, or they got a Discover with a tiny limit so they bash Discover whenever they get a chance.

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Vattené
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Re: The what you think will happen this year (2016) thread

Postby Vattené » Mon Jan 25, 2016 11:06 am

I doubt they'll change the basic structure of 5% on rotating categories, but I could see smaller/sneakier nerfs like lowering the quarterly cap to $1,000, more niche categories, or cutting more of the "fringe" card benefits. The It is Discover's main, flagship product, and I suspect a major cut like that would hurt Discover. It's easier for a lender like Amex, Citi, etc. to make obvious cuts because they have a portfolio of heavily marketed cards. Discover has other offerings, but the It is by far their biggest product.

As a percentage of revenue, Discover does make more from interest than many other lenders. That may help insulate the It from nerfs...but of course nothing is safe.
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CarefulBuilder14
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Re: The what you think will happen this year (2016) thread

Postby CarefulBuilder14 » Mon Jan 25, 2016 11:18 am

Discover lacks the acceptance of V/MC and the (no longer deserved, but nonetheless real) luxury image of Amex. These obstacles are significant, and I think Discover has to continue to offer things of value (good rewards, customer service, APRs, etc.) if they want to remain more than a balance transfer card.

In that sense, I think Discover doesn't have much room to nerf the card.
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kdm31091
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Re: The what you think will happen this year (2016) thread

Postby kdm31091 » Mon Jan 25, 2016 11:27 am

I think the above is correct. The most likely scenario is probably a gradual nerfing of 5% categories (which we have seen in general with many 5% cards). Perhaps the cap would be lowered, too, although some quarters it may not matter much (while some may, I doubt most people are even close to $1500 a quarter in gas).

Discover is a great lender IMO -- good rewards, good customer service, flexible with APR over time, etc. Their only major failing in my book is the lack of easy tracking of rewards on a per-transaction basis, and let's be honest, that's a nitpick that a general consumer probably doesn't give a crap about. I agree also they have to compete with Amex's "luxury" status which at this point is far from deserved but is what it is.

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Re: The what you think will happen this year (2016) thread

Postby 4ktvs » Mon Jan 25, 2016 12:40 pm

kdm31091 wrote:I think the above is correct. The most likely scenario is probably a gradual nerfing of 5% categories (which we have seen in general with many 5% cards). Perhaps the cap would be lowered, too, although some quarters it may not matter much (while some may, I doubt most people are even close to $1500 a quarter in gas).

Discover is a great lender IMO -- good rewards, good customer service, flexible with APR over time, etc. Their only major failing in my book is the lack of easy tracking of rewards on a per-transaction basis, and let's be honest, that's a nitpick that a general consumer probably doesn't give a crap about. I agree also they have to compete with Amex's "luxury" status which at this point is far from deserved but is what it is.


I have never really thought much of Amex and just about anyone with a clean report can get one.

A lot of Discovers fight has to do with there own image. Many people I have run into think more places take Amex than Discover! I had thought they were on equal ground for places that would take it until I looked into it myself.

I agree they are a great lender with many perks and I really like the fact they really do have 24/7 US based customer service.

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Re: The what you think will happen this year (2016) thread

Postby JonE » Mon Jan 25, 2016 12:56 pm

kdm31091 wrote:I think the above is correct. The most likely scenario is probably a gradual nerfing of 5% categories (which we have seen in general with many 5% cards). Perhaps the cap would be lowered, too, although some quarters it may not matter much (while some may, I doubt most people are even close to $1500 a quarter in gas).

Discover is a great lender IMO -- good rewards, good customer service, flexible with APR over time, etc. Their only major failing in my book is the lack of easy tracking of rewards on a per-transaction basis, and let's be honest, that's a nitpick that a general consumer probably doesn't give a crap about. I agree also they have to compete with Amex's "luxury" status which at this point is far from deserved but is what it is.


Example: I drive a Fiat 500. Every time I fill up it tops out about $22, with prices being so low lately my last fill up was $19. No way am I hitting the $1500 quarterly limit. However I could have a life change in the not too distant future that could put me in a situation of needing a bigger car (or SUV I'm hoping) with AWD. That might change things a tad, but I still don't see hitting $1500 unless prices rise dramatically.
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Re: The what you think will happen this year (2016) thread

Postby Nixon » Mon Jan 25, 2016 1:50 pm

Why are you guys hoping for decrease in caps? Masochists, I swear!
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kdm31091
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Re: The what you think will happen this year (2016) thread

Postby kdm31091 » Mon Jan 25, 2016 1:55 pm

Nixon wrote:Why are you guys hoping for decrease in caps? Masochists, I swear!


I'm not hoping for it, just saying some quarters it wouldn't be an issue (for me). But other times it's nice to have the bigger cap, like for home improvement.

Of course, no cap at all would be nice but that's not gonna happen.

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Re: The what you think will happen this year (2016) thread

Postby 4ktvs » Sat Jan 30, 2016 1:54 pm

So it's starting to look like the fed might chicken out on the rate hike. But I hope they don't and I would like to see the rate go over %1 by the end of the year. It has been long overdue as right now we are at the floor and have no where to go if the system goes largely into default again.

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Re: The what you think will happen this year (2016) thread

Postby Nixon » Sat Jan 30, 2016 2:33 pm

4ktvs wrote:So it's starting to look like the fed might chicken out on the rate hike. But I hope they don't and I would like to see the rate go over %1 by the end of the year. It has been long overdue as right now we are at the floor and have no where to go if the system goes largely into default again.


I hope they don't.

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