Reply
Blogger
HiLine
Posts: 2,836
Registered: ‎10-19-2012

Is Discover too aggressive lately?

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Is Discover too aggressive lately?


HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


who cares? credit cards are my halloween candy :smileytongue: as long as they'll give it I'll eat it before it hits bottom of the bag :smileyhappy:


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Is Discover too aggressive lately?

@Distant LMAO!!

I think they are still pretty conservative on approvals minus the recons



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Blogger
HiLine
Posts: 2,836
Registered: ‎10-19-2012

Re: Is Discover too aggressive lately?


distantarray wrote:

HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


who cares? credit cards are my halloween candy :smileytongue: as long as they'll give it I'll eat it before it hits bottom of the bag :smileyhappy:


The implication is that you should eat the candies fast while they are running out! :smileywink:

Valued Contributor
creditnocash
Posts: 2,185
Registered: ‎07-23-2012

Re: Is Discover too aggressive lately?


HiLine wrote:

distantarray wrote:

HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


who cares? credit cards are my halloween candy :smileytongue: as long as they'll give it I'll eat it before it hits bottom of the bag :smileyhappy:


The implication is that you should eat the candies fast while they are running out! :smileywink:


so you mean next jan when i go on my app spree they wont auto approve me for a 12k limit when all my other cards are at 2k? shucks

Current: Discover Fico 689 7/14 Walmart Fico 682 7/14

Inquiries (24 Months): EQ 8 TU 5 EX 5 | Most Recent: 09/04/2013
2 Inquiries in The Last 12 Months


2014 Goals:
Lower Utility

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Frequent Contributor
RSCo
Posts: 472
Registered: ‎02-11-2013

Re: Is Discover too aggressive lately?


distantarray wrote:

HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


who cares? credit cards are my halloween candy :smileytongue: as long as they'll give it I'll eat it before it hits bottom of the bag :smileyhappy:


LOL.. uh huuuuuuuh!!

 

Citi Hilton Honors: $25,000 -- Amex PRG: $NPSL -- Citi TY Premier World: $9,880 -- NWFCU: $7,500 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,000 -- Discover IT: $5,000 -- AmexTrueEarnings: $5,000 -- Amex Gold Delta: $4,500 -- Pottery Barn: $4,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
Frequent Contributor
RSCo
Posts: 472
Registered: ‎02-11-2013

Re: Is Discover too aggressive lately?

They're giving out the full size brand name candy bars while the others are giving out fruit and fruit flies.... IF, they even answer the door at all...

Citi Hilton Honors: $25,000 -- Amex PRG: $NPSL -- Citi TY Premier World: $9,880 -- NWFCU: $7,500 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,000 -- Discover IT: $5,000 -- AmexTrueEarnings: $5,000 -- Amex Gold Delta: $4,500 -- Pottery Barn: $4,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
Regular Contributor
BlueNightStar
Posts: 181
Registered: ‎07-09-2011

Re: Is Discover too aggressive lately?


HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


I've been wondering the same thing. They gave me my highest limit yet - almost twice what I have on any other card. Of course I am grateful and know I will use it responsibly, but I don't think my credit report indicates that I am that responsible yet. That being said, I believe they needed to do change something to get the higher spenders and more profitable customers to apply for their cards. Low limits and mediocre rewards were not attracting the kind of customers that will earn them lots of money through swipe fees. There may be some fallout eventually, but I believe they also pay close attention to what their current customers do and will probably be quick to take action if someone appears to be getting too risky since their core business model has always been conservative.

 

That's why I am a big proponent of carrying a multitude of cards issued by various companies. It limits the fallout when companies change their policies.

 

 

Valued Contributor
Epcot
Posts: 2,777
Registered: ‎10-10-2012

Re: Is Discover too aggressive lately?

Between my wife and I, we have received 8 mailers to apply for the Discover IT card. And that is just in the last month! It is tempting, but I truly have no need for the card.

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 809 EX 774 TU 805
App free since 4/11/13
New Contributor
Chrysostom
Posts: 58
Registered: ‎04-15-2012

Re: Is Discover too aggressive lately?

[ Edited ]

@BlueNight


BlueNightStar wrote:

HiLine wrote:

Since Discover revamped their credit card products and introduced the It card, they've been giving away credit cards like Halloween candies. Does anyone else think that their strategy to expand market share may be too aggressive and they are taking too much risk that may lead to serious consequences in the future? 


I've been wondering the same thing. They gave me my highest limit yet - almost twice what I have on any other card. Of course I am grateful and know I will use it responsibly, but I don't think my credit report indicates that I am that responsible yet. That being said, I believe they needed to do change something to get the higher spenders and more profitable customers to apply for their cards. Low limits and mediocre rewards were not attracting the kind of customers that will earn them lots of money through swipe fees. There may be some fallout eventually, but I believe they also pay close attention to what their current customers do and will probably be quick to take action if someone appears to be getting too risky since their core business model has always been conservative.

 

That's why I am a big proponent of carrying a multitude of cards issued by various companies. It limits the fallout when companies change their policies.

 

 



No crap - Discover has me at a line that's moderate for my rewards cards portfolio ($3k), but still low enough that they don't get much of my business. It's been relegated to payments for gold and in-game currency in Android phone games for months now, because they have excellent customer service and a good fraud policy. (And, gold is usually a maximum of $99 - I don't have to watch UTL.) Beyond that, $3k is too low to use for most things without having to pay it off multiple times a month and watch utilization like a hawk. I don't have that problem with my other restaurant card, nor with my American Express cards (even though one Amex is only $4k, all I do is buy groceries with it). They turned me down for a CLI (EDIT: with "in-house consideration", I had them stop it before it went to a hard pull) not a week ago, too.

The Citi Forward actually only makes 4.1% on restaurants when redeemed for shop with points at Amazon, instead of 5% cash back (sorry, but 2.14 UR points don't match 4-5% cash back to me), but not having to worry about UTL if I happen to spend $600 on a meal (I'm a scotch connoisseur - Macallan 25 is where it's at - who drinks Trappist ales and tips big :smileywink:) within a week of statement's close is a big benefit.

I like Discover. They have better rewards categories than any other 5% rotating card (not counting the Cash+ as a rotator), their customer service is better than anyone else (even better than Amex, honestly), and I've never had a problem with their acceptance outside of NYC (where everyone takes Amex) and Western Europe (where everyone takes Visa/Electron and MC/Maestro, and only some places take Discover/Diners Club, and even less take Amex).

But, I think, getting back on topic, that Discover is becoming more conservative with limits (if such a thing is even possible) now that they're giving out cards more easily to just-scratching-prime borrowers - more cards with lower limits means equal exposure and limited risk for DFS. DFS still makes me money in the markets, though. More than AXP, less than JPM.



Goal: 760 by End of Year
Current Score: 714 TU (2-3/12); 681 EQ (2-3/12); 714 EX (AmEx Pull: 2-7/12); 777 VantageScore (2-3/12)
AmEx BCE ($4k) - AmEx SPG ($7.5k) - Amex PRG (NPSL) - Citi Forward ($7.6k) - Discover IT ($3k) - BankAmericard Cash Rewards ($5k)
Chase Freedom ($1k) - Chase Amazon ($3k) - PayPal Extras ($6k) - Cap One Cash ($0.5k) - Amazon Store ($2.5k)

Application-Free Since the 14th of the Second May of 2012.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+