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Auto Discover CLI!

Senior Contributor

Re: Auto Discover CLI!


tracynva wrote:

Maybe Discover is relaxing their requirements a bit.  I just applied for and received a Discover More card with a $1K CL with a 6mo intro APR of 3.99%.  They did a hard inquiry.  I have "fair" credit that I have been working to improve.  My scores from myfico are TU: 645 and EQ: 631.  I have 2 90 day lates from 3/08 and 2 unpaid collections from 3 yrs ago that I am trying to negotiate with the CA for a PFD.


Welcome to the forums! 

 

Congratulations, and take care of that Discover card!

 

Did they tell you what your regular purchase APR will be?

Message 11 of 31
Valued Member

Re: Auto Discover CLI!

Like TracyinVA, I am also rebuilding and was approved for Discover Open Road 1K in July 09 with TU >700 (currently 692, but in July closer to 652).   I use mainly for gas, make more than 1 payment a month, and just got an auto-cli to $1350!!   I'm tickled as a 3 month auto-cli was TOTALLY unexpected, just hope they continue!!   I know my credit is improving all the time, have every intention of that continiuing as well....
EQ Fico - 677 CCT - 712
TU Fico - 692 CCT - 665
EX Fico - ??? CCT - 698
Message 12 of 31
Established Member

Re: Auto Discover CLI!

When I spoke with Discover on the phone, the CSR stated my regular purchase APR would be 11.99% but when I got the card in the mail, the paperwork indicates 18.99%.  I'm not getting too worked up over it right now because I will PIF...before my monthly statement closes.

 

I have to learn to control my spending so I cannot carry balances on my credit cards (my current mantra).  I still have other cards that I'm working diligently to pay off.  It is a slow and painful process, but I'm rapidly changing my obsession from spending to becoming debt-free. 

 

These boards are a tremendous help!!


Starting Score (6/9/09): TU 610 | EQ 600
Current Score (04/12/2016): TU 820 | EQ 816
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Message 13 of 31
Senior Contributor

Re: Auto Discover CLI!

18.99% is consistent with the rest of your situation. 11.99% is not. If you go to this link:

 

     http://www.discovercard.com/more/rates.html

 

and click on the "Need Improvement" tab I think you will find the terms you were approved under.

 

This is a great coup for you! Congrats again!

Message 14 of 31
Frequent Contributor

Re: Auto Discover CLI!

tracynva,

The good news is that based on your spending patterns, Discover may or may not automatically decrease your APR.

I sifted through my old statements for my Discover More card and found that on my 7th statement, they reduced my Purchase APR from 18.99% F (on initial approval) down to 8.99% F, and it has been sitting at that rate ever since.

Treat the card well and you may find a pleasant surprise in just a few months' time as well.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 15 of 31
Valued Contributor

Re: Auto Discover CLI!

I just received a rate increase from 13.49% to 18.24% the month before they raised my credit line from $10,000 to $15,000 so don't expect a rate decrease in this environment.

 

I have been mostly PIFing with most recent month $6018 so I doubt spending pattern will get you a rate increase.

 

Just PIF and the rate won't matte.

Message 16 of 31
Frequent Contributor

Re: Auto Discover CLI!

I have always PIF my Discover card, although I was always very conservative with utilization. Utilization with the card has always been less than 10%. I'd venture a guess that Discover likes to see enough usage of their card, but not over-usage, in justifying rate decreases. In your case, GregB, even with your new $15000 credit line, a $6k balance pegs you at 40% utilization, something Discover might see as too high risk to be offering rate decreases.

I am also a firm believer that the criteria for APR rate decreases and CLIs are different. CLIs might have a higher weight on your spending patterns, whereas APRs might be based on perceived risk. In your case, GregB, you may have gotten the CLI to $15k as a result of your heavy spending on the card. On the other hand, your heavy spending on the card may have pegged you at too high of a risk to justify a lower APR.

In regards to heavy spending yielding CLIs, I should say though that it's not a requirement - at least not with Discover. I have spent no more than $10 in the past three months on my Discover More card, and yet that small usage was enough for them to justify giving me an unsolicited, unrequested $250 CLI from $3750 to $4000. Small CLI, I know, but a CLI nonetheless.

Of course I'm no expert, and the above is just my interpretation and my speculation. GregB, you make a good point though: in this climate, issuers may not be as willing to offer rate decreases as they once were.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 17 of 31
Senior Contributor

Re: Auto Discover CLI!

And I was increased from 9.99% to 14.25% very recently (which I am none to happy about and have yet to discuss with them). I was decreased to that 9.99% from 11.99% earlier. The only thing they could have a problem with is not making enough money off me - but they did make some. I have been letter perfect with them and everybody else for years and have a five digit CL from Discover as well.
Message 18 of 31
Established Member

Re: Auto Discover CLI!

I was just happy that Discover deemed me worthy of a card at all.  18.99% is actually my second best APR at this point.  Most of my cards are in the mid-20% range.  Citi is the only other card that has agreed to lower my rate (10.24%)  I love Citi!!  They also gave me a small CLI last month from $600 to $1500.

 

This month with the new Discover card, the Citi CLI, and the payments I am putting toward my other cards, I expect my overall utilization to go below 35%.  I'm hoping for at least a small bump in my scores.  I'm planning to ask them all for an APR decrease in another 6 months.  It never hurts to ask!

 

One thing I've noticed about the Discover card...it takes a while for the transactions to post.  I paid my car insurance with it 5 days ago just to use the card.  I want to pay it off now but my account still shows a 0 balance.  I just keep checking and waiting.


Starting Score (6/9/09): TU 610 | EQ 600
Current Score (04/12/2016): TU 820 | EQ 816
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Message 19 of 31
Frequent Contributor

Re: Auto Discover CLI!

Transaction is taking a long time to post because of your car insurance company. They may have just done a test charge to see if the card was active and then got lazy and simply haven't actually charged your card yet.

I once bought groceries from Albertsons and the charge didn't post for three weeks. It is not Discover's fault.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 20 of 31