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Contributor
mmmmmm
Posts: 156
Registered: ‎06-01-2012

Can't request a CLI if you're under 21.

[ Edited ]

So I found out something interesting today.  I always was given the option to request a CLI online since I opened my account, recently however, I saw I know no longer had the option.  I called to see why this was and was informed that Discover had a recent policy change where you cannot request a CLI if you're under 21, period.  They said they still do periodic reviews and can receive an auto CLI, but unless you're over 21 you can't actually request one whether it be online through your account, chat, or phone.

 

Anyone else heard of this recent change?  I think it's a bit stupid (just turned 20).

 

EDIT: Apparently this is a new federal regulation not affecting just Discover.  They said the only way to submit a CLI request would be to send a physical letter containing the request.

 

What I don't get, however, is that for new accounts, "writing" refers to mailing in a physical paper app OR submitting an app online.  For some reason CLIs are only with physical letters though, online requests don't count.

 

The Discover phone rep even agreed it didn't make much sense, but assured me they're working on a way to fulfill CLI requests by other means than mailing a physical letter.

New Contributor
MGTR420
Posts: 73
Registered: ‎01-13-2012

Re: Can't request a CLI if you're under 21.


mmmmmm wrote:

So I found out something interesting today.  I always was given the option to request a CLI online since I opened my account, recently however, I saw I know no longer had the option.  I called to see why this was and was informed that Discover had a recent policy change where you cannot request a CLI if you're under 21, period.  They said they still do periodic reviews and can receive an auto CLI, but unless you're over 21 you can't actually request one whether it be online through your account, chat, or phone.

 

Anyone else heard of this recent change?  I think it's a bit stupid (just turned 20).

 

EDIT: Apparently this is a new federal regulation not affecting just Discover.  They said the only way to submit a CLI request would be to send a physical letter containing the request.

 

What I don't get, however, is that for new accounts, "writing" refers to mailing in a physical paper app OR submitting an app online.  For some reason CLIs are only with physical letters though, online requests don't count.

 

The Discover phone rep even agreed it didn't make much sense, but assured me they're working on a way to fulfill CLI requests by other means than mailing a physical letter.


 

I'm under 21 and discover has given me 3 CLI's. 2 of them were auto, and the last one I went from 1250 to 5000. HP of course... Citi has given me a CLI, along with Chase. I would call back and see if another rep has a different answer...

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Established Contributor
CruzImperial
Posts: 863
Registered: ‎07-04-2012

Re: Can't request a CLI if you're under 21.

I receive this message from ge on my home design and brand smart account. However, no one else has ever said that to me. I I'm 20 and ge raised my Lowes card to 5k after approval.

Bofa however told me they needed a written request (could be done online).
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Jlu
Posts: 569
Registered: ‎06-12-2012

Re: Can't request a CLI if you're under 21.

And how is this legislation going to help and/or protect consumers? By limiting the credit of young people so that they cannot learn to handle large lines of credit extended to them based on their income & history? This is why I hate the nanny state this country has become lately. Let the free market decide what amount to extend to an individual or business.

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DaveSignal
Posts: 2,040
Registered: ‎07-29-2011

Re: Can't request a CLI if you're under 21.

It sounds reasonable to me.  People under 21 generally don't make much money, don't have much credit history, aren't really settled down anywhere yet, and can easily get into trouble and destory their future for 7-10 years.  Of course, this does not apply to everyone, but I am sure it is safer for most lenders and most 18 year-olds.

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OptimasPrime
Posts: 348
Registered: ‎08-17-2012

Re: Can't request a CLI if you're under 21.

[ Edited ]

Jlu wrote:

And how is this legislation going to help and/or protect consumers? By limiting the credit of young people so that they cannot learn to handle large lines of credit extended to them based on their income & history? This is why I hate the nanny state this country has become lately. Let the free market decide what amount to extend to an individual or business.


+1. Couldn't agree more. The Government has no business preventing qualified individuals from obtaining additional credit, especially on the basis of age alone.

Edit-Just my 2 cents.Everyone is entitled to their own opinion about the regulatory role of government in the credit world, of course. 

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jamie123
Posts: 738
Registered: ‎03-22-2012

Re: Can't request a CLI if you're under 21.

Quit with the free market bs already. We did have the free market and the CC companies destroyed many young peoples credit year after year. They loaned them more money than they could ever repay and many young people had ruined credit for years because of it. That is a fact. That was what happened in the free market.

 

The government isn't stopping you from getting credit, or the amount of credit you get. They are just ensuring that you aren't being preyed upon by the lenders.

 

I kind of like how the free market works in keeping young people off the road though. How do you guys like paying your sky high auto insurance rates?



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ajh5408
Posts: 98
Registered: ‎04-13-2012

Re: Can't request a CLI if you're under 21.

This is simply false. The only case in which someone under 21 would need to submit a written request for a credit limit increase is if there is a cosigner on the account, and the cosigner is the one who has to agree to it in writing. Seems perfectly reasonable to me that if you get a credit card where someone else (likely a parent) is jointly liable, they should have to approve any increase to the credit limit.

 

CC companies (and their CSRs) using the CARD Act as an excuse/punching bag is nothing new.

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OptimasPrime
Posts: 348
Registered: ‎08-17-2012

Re: Can't request a CLI if you're under 21.

[ Edited ]

For the record, I would like to prefice everything I am about to say by stating that I am 23. Accordingly,  this legislation has no bearing on me either way. 

 

I kind of figured that there would be a negative backlash to what I said which is why I edited the contents of my earlier post. I understand why the card act is in place, as well as the fact that the people it is intended to help are generally not the type of people who post on these forums. Generally speaking, most people on here are not being preyed upon:smileywink:

 

I also understand that many (but not all) people who post on these forums have had credit issues in the past, and for various reasons. For many of these individuals, these issues most likely transpired in early adulthood. For this reason, many posters on this forum support support card act type legislation, which theoretically would help prevent young individuals from making mistakes that many people on these forums have already made in the past. I get it, I really do.I just think it should be up to the individual to succeed or fail based on their own decisions. 

 

The card act has also had a negative effect on many people, particularly people on these forums. For example, I've seen alot of people who have tried to pc to higher AF amex cards on these forums, only to betold by amex that they cannot do so for 12 months due to card act legislation

 

In a nutshell, I think this is why the card act is such a polarizing issue, particularly on these boards given the dichotomy between posters on these types of forums that I've discusssed above


jamie123 wrote:

Quit with the free market bs already. We did have the free market and the CC companies destroyed many young peoples credit year after year. They loaned them more money than they could ever repay and many young people had ruined credit for years because of it. That is a fact. That was what happened in the free market.

 

The government isn't stopping you from getting credit, or the amount of credit you get. They are just ensuring that you aren't being preyed upon by the lenders.

 

I kind of like how the free market works in keeping young people off the road though. How do you guys like paying your sky high auto insurance rates?


 

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Jlu
Posts: 569
Registered: ‎06-12-2012

Re: Can't request a CLI if you're under 21.


jamie123 wrote:

Quit with the free market bs already.


People with this point of view should be required to read the literary works of Friedrich Hayek before being allowed to state such socialistic statements.

 

If you're in the US you should consider moving to China, North Korea or Cuba where they share your opinion.

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