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Valued Contributor
chnceit
Posts: 1,524
Registered: ‎08-17-2008

Re: Discover Habbits?

I find that Discover likes usage and reward you by giving big CLI. So dont worry they are not an AA type of company IMO


$100K in Credit
Last Credit Card App: 11/16/13
Member
cim
Posts: 20
Registered: ‎04-26-2012

Re: Discover Habbits?

I got a Discover around June of last year with 5500 CL. I ended up getting close to maxing on it since I have 0% until this June just to take advantage of the free float. Discover has rewarded me with two auto CLI during such time and now I'm at 7000 CL.  I've since paid it all off just to keep my util down but what this taught me was that Discover liked that I was really using the card. 

Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Discover Habbits?

kudos to you! That should def'ly help you out then!!

 

Effective debt management is what credit is about!


joeyh2007 wrote:

youngandcreditwrthy wrote:
Just make large payments as you mention!
I actually charged a $2000 car related item on my Amex BCE last month an no aa yet! Consider this though:

How much will your new auto loan affect your dti?

This new auto loan could prevent Discover from offering a future cli.

Good luck :-)

This car loan payment is $75 more than my previous car loan and I've seriously lowered my credit card debt recently so dti should stay the same in terms of my monthly obligations.


 

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Frequent Contributor
SwampSystems
Posts: 358
Registered: ‎06-25-2012

Re: Discover Habbits?

[ Edited ]

joeyh2007 wrote:

So my question is how does Discover respond to large purchases that may take 3-6 months to pay off?


They like it, because they are a credit card company, and interest is how they make their money.

 

My Discover More started out with a $500 limit. For the first year of having the card, I kept it completely maxed out and only paid the minimum payment. I received an auto-CLI at 6 months and again at 9 months (and promptly maxed out the increased limits as well). Fast forward to the future, when my credit profile and income had improved significantly, and during a manual CLI reconsideration, a Discover underwriter actually asked me why I went from paying only the minimum to paying the card off in full.

 

GE did the same thing to me --- I kept my Walmart store card completely maxed out for a long time, and they continued to give me auto CLIs. People who face adverse action from carrying a large balance were probably already considered a high risk when their accounts were opened. As long as you keep making that minimum payment, and as long as they keep making money from the interest, the creditors are happy.

Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: Discover Habbits?


SwampSystems wrote:

joeyh2007 wrote:

So my question is how does Discover respond to large purchases that may take 3-6 months to pay off?


They like it, because they are a credit card company, and interest is how they make their money.

 

My Discover More started out with a $500 limit. For the first year of having the card, I kept it completely maxed out and only paid the minimum payment. I received an auto-CLI at 6 months and again at 9 months (and promptly maxed out the increased limits as well). Fast forward to the future, when my credit profile and income had improved significantly, and during a manual CLI reconsideration, a Discover underwriter actually asked me why I went from paying only the minimum to paying the card off in full.

 

GE did the same thing to me --- I kept my Walmart store card completely maxed out for a long time, and they continued to give me auto CLIs. People who face adverse action from carrying a large balance were probably already considered a high risk when their accounts were opened. As long as you keep making that minimum payment, and as long as they keep making money from the interest, the creditors are happy.


GE loves it becuse their interest rates are CRAZY!!! lol

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Frequent Contributor
SwampSystems
Posts: 358
Registered: ‎06-25-2012

Re: Discover Habbits?


ryanbush wrote:

GE loves it becuse their interest rates are CRAZY!!! lol


 Barclays and Capital One like it too. Creditors have a finite amount of credit to extend to all of their customers. They would rather extend it to more profitable customers.

Established Contributor
Cadillac-XTS
Posts: 1,837
Registered: ‎08-20-2012

Re: Discover Habbits?

+1

Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: Discover Habbits?

the question is do they make more money off interest or swipe fees for people that PIF every month and are relatively low risk

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Established Contributor
dodgeball
Posts: 761
Registered: ‎10-16-2007

Re: Discover Habbits?

I think they really dont care as long as you manage your account in a adult like matter, IE not sitting on your credit limit month in and month out. I worked for them and they didnt seem to like people who sat at the limit for months paying the min. Just screams I cant pay my bills.

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