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Mega Contributor
Posts: 15,436
Registered: ‎04-09-2011
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Re: Is Discover too aggressive lately?

Well I guess im getring the fruit flies then with this toy CL!

Cmon Discover give some luv this month!



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Regular Contributor
Posts: 181
Registered: ‎07-09-2011
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Re: Is Discover too aggressive lately?


Chrysostom wrote:

@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 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.



You are the kind of customer they want and I believe they are trying to attract. Have you tried for a CLI within the last month or so? I cannot believe they gave me such a high limit, it makes me wonder what other databases (if any) they use for their approvals. I know there are a multitude available for purchase and if they happened upon one that tracks what you charge in addition to your monthly bills, I would probably win the prize for online shopping. Even though a lot of it is for necessities, it might appear that I have a high disposable income and like to shop, obviously utilizing a CC for online purchases.

 

I find it interesting that DFS makes you good money in the markets. I do think they have a solid history of a sound business model.

 

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: Is Discover too aggressive lately?

Discover has been doing very well in attracting savings deposits from existing members,  this increases their amount of liquidity and allows them to offer higher limits to existing cardmembers, and to offer credit to new members.

 

I see nothing wrong with their position... Their reports to shareholders indicate less defaults than other major CC issuers due to brand loyalty


Starting Score: 08/29/2011 TU 671 EQ 674
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Posts: 58
Registered: ‎04-15-2012
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Re: Is Discover too aggressive lately?

7.07% return for DFS year to date. It was up to 16.48%, but they went down about $2 (out of ~$40 per share) about a week ago.

It'd probably be a camera finish between me and you if they stumbled across the How-much-does-this-man-buy-from-Amazon database.


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)
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Epic Contributor
Posts: 22,720
Registered: ‎10-23-2007
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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, and maybe I'll change my tune when I find out my partners new limit BUT as of so far they still seem to be on MUCH lower CL's then most and SMALL CLI... They are just doing a better job of offering things people want in rewards and trading them in... I especially love the Amazon link for using rewards insntalty!

and USA Based is a big seller for those of us that seem to be in touch with our creditors more than others! :smileytongue:

Fico Scores: EQ- 662 DCU., TU 704 Best Buy, EX 700 Chase (1/5/15)
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Regular Contributor
Posts: 181
Registered: ‎07-09-2011
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Re: Is Discover too aggressive lately?


Chrysostom wrote:

7.07% return for DFS year to date. It was up to 16.48%, but they went down about $2 (out of ~$40 per share) about a week ago.

It'd probably be a camera finish between me and you if they stumbled across the How-much-does-this-man-buy-from-Amazon database.


I need to look into DFS. Thanks for the info.

 

I can't remember what I did before Amazon and online shopping in general. Probably got more exercise actually walking through a store and lugging heavy packages into the house. I remember reading an article about a year ago (and can't for the life of me find it) that there is some kind of database somewhere that can track your purchases.

Valued Contributor
Posts: 1,339
Registered: ‎09-11-2012
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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? 


Seems like everytime when a company promote something, it's a bit easier to obtain. I see a lot of $500 approval.

 

They even gave me one with 14 inq on TU.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
New Contributor
Posts: 58
Registered: ‎04-15-2012
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Re: Is Discover too aggressive lately?

[ Edited ]

webhopper wrote:

Discover has been doing very well in attracting savings deposits from existing members,  this increases their amount of liquidity and allows them to offer higher limits to existing cardmembers, and to offer credit to new members.

 

I see nothing wrong with their position... Their reports to shareholders indicate less defaults than other major CC issuers due to brand loyalty



Indeed. Their extremely good customer service and loyalty incentives probably help, too. Discover fans (average credit card users more than points hounds) are more loyal to Discover than even to Amex, and average credit card users outnumber points hounds probably 500-to-1. Points hounds are ridiculously loyal to Amex, to the point that some still try to defend MR as worth something, claiming, even on this forum, "it's designed for high spenders, that's why no one sees a benefit". I'm a high spender and I cancelled my PRG, because it frankly wasn't worth putting $30k spend on it to get the bonus points (which barely cover the AF) when there are so many better cards with lower annual fees that give a much better return to put $30k of spend on. Yeah, if you spend $30k on airfare in a year, the PRG is probably worth it, if MR ever gets decent airline partners again.

The loyalty to DFS is why I invest almost 8% of my money with them, a good chunk of the 30% I have in financial institutions (the rest split between V, MA, AXP, JPM, and C), along with my 50% in tech, 10% in oil (mainly COG), and 10% in precious metals (which have paid off negatively in a big way this past year).

EDIT: "They even gave me one with 14 inq on TU."

I got my Amex SPG with something like 29 inquiries on Experian, which they pulled. Due to the nature of my business (and moving constantly), I always have about ~24-36 inquiries in the past rolling 24-month period which show on my CRs, from a low of maybe 22 on TU to a high of maybe 40 on EQ. They still give me credit, although I don't know why - I imagine I've taken the full 10% hit that's possible to take for having massive amounts of inquiries. I also think that most banks don't give nearly as much of a crap about inquiries as is commonly supposed, especially if you have excellent credit along every other metric (Barclay's being one exception: they wouldn't budge if I had more than 3 inquiries in 6 months - even Citi, which is often called "inquiry-sensitive" - approved me with 19 INQ on TU).

Auto notes (and probably mortgages, I don't own a house, I don't do real estate) are an exception to this, because when I financed my BMW ($36k) a month ago with 25-odd inquiries on my report (about half for Verizon, ATT, and utilities, and about half for credit), they weren't able to get me anything lower than 7.99% on a 36-month loan. Which is bad.


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)
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Frequent Contributor
Posts: 473
Registered: ‎02-11-2013
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Re: Is Discover too aggressive lately?

I called them and submitted mine over the phone, they hooked me up with a 5K limit, my partner got 10K..  Seem to get better CLs when applying over the phone..

Citi Hilton Honors: $25,000 -- Chase Sapphire Preferred: $25,000 -- Amex PLat: $NPSL -- Amex Everyday Preferred: $10,000 -- Citi TY Premier World: $16,800 -- NWFCU: $7,500 -- Chase Amazon Rewards: $7,000 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,400 -- Discover IT: $8,000 -- AmexTrueEarnings: $10,000 -- 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
New Contributor
Posts: 58
Registered: ‎04-15-2012
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Re: Is Discover too aggressive lately?

Damn, I guess they do. Do you realize how rare a $10k Discover limit is? Discover only goes to $15k, even if you have an 850 FICO, 990 VS, and make capital gains faster than you can write $1000 checks to spend them.

I've never even heard of a $10k Discover limit in real life. $5k is considered excellent for Discover in any case - there being dozens of individuals that have $25k here, $23k here, $24.9k here, and $3.6k on Discover. Congratulations!


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.

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