topic Discover cli in Credit Card Applications

Discover cli

Anonymous — Tue, 26 Mar 2019 06:18:11 GMT

Hello to you all.

I read on here about discover credit limit increase and how it was a soft pull. I submitted my request and I was denied and then received a letter about my credit limit being decreased.

As a result of a recent review, we have reduced the credit line on your Discover card account. Your account remains OPEN and you can charge up to your available credit line. As your situation changes, future account reviews may allow us to reconsider your credit line on this account.
We've taken this action for the following reason(s):
Bureau reports past or present delinquency Bureau reports insufficient credit history
Number of recent inquiries as reported by agency

These things are true but were also present upon my approval. Only addition was one new account and 2 inquiries. This now puts my utilization high and I’m sadden.

Should I call? Or leave well enough alone? My score is the same as when I applied. The only difference is a new account and inquiry.

Re: Discover cli

CreditRebuilder2020 — Tue, 26 Mar 2019 12:25:05 GMT

Discover is one tough cookie to figure out. I would say, leave it alone, keep your utilzations low and put some more time on a nice trip to the garden.

Since my secured card, went unsecured 6 months ago, I haven't been able to get them to give me a CLI. Even though I've had on-time payments for 20 months and kept really low balances (My card only has a $200 limit). My TransUnion FICO has gone up probably 120 points since I first got the card. Have had inquiries and opened cards, but it's all been part of my rebuild and have always kept low utilization, haven't missed a payment on anything in 2 1/2 years.

I've then read stories about people getting approved for Discover cards with low 600's FICOS and a bunch of inquiries. I don't get it!

Re: Discover cli

AverageJoesCredit — Tue, 26 Mar 2019 12:43:50 GMT

What was your previous limit? Discover doing cld is quite rare. How is your profile? Scores, baddies, etc.

Re: Discover cli

Anonymous — Tue, 26 Mar 2019 16:34:14 GMT

My credit limit was 13k. I had a balance transfer of 9k on the card. New limit is 9.5k.

My profile is spotty. I have some late payments and charge offs but nothing in the last 4 years.

My overall utilization is 38%. Nothing derogatory added since I applied and was approved. I’m happy they didn’t close my account. I just don’t want to pay it down and they shave it again.

I’m trying to take advantage of the zero interest but once the credit limit decrease hit my report my scores will tank. Maybe subjecting me to another decrease?

Re: Discover cli

Remedios — Tue, 26 Mar 2019 20:29:31 GMT

@Anonymous wrote:
My credit limit was 13k. I had a balance transfer of 9k on the card. New limit is 9.5k.

My profile is spotty. I have some late payments and charge offs but nothing in the last 4 years.

My overall utilization is 38%. Nothing derogatory added since I applied and was approved. I’m happy they didn’t close my account. I just don’t want to pay it down and they shave it again.

I’m trying to take advantage of the zero interest but once the credit limit decrease hit my report my scores will tank. Maybe subjecting me to another decrease?

I'd just continue paying as usual, especially with 0% promo, and hopefully that's the last you hear from them.

We dont really hear much about Disco doing balance chasing, so it's really hard to guess what happens next.

I'm sorry this happened to you

Re: Discover cli

Anonymous — Tue, 26 Mar 2019 23:12:46 GMT

@Anonymous wrote:
My credit limit was 13k. I had a balance transfer of 9k on the card.
My overall utilization is 38%.

Okay, so, let me see. You transferred 9K to a card with a 13K limit on it? That's something like 69% of your credit limit on that card. Was there a balance on the card already before you transferred? (for example, you had $1500 already on the card, then transferred, it would make it more like 80% of your credit limit.) Fico scores take into account your total credit limits across all cards, but individual card issuers might care more about the credit limits they've extended to you.

One thing I've observed in reading the forums, credit limit decreases (CLDs) can happen if you run the card up too close to the credit limit. The credit limit can "chase" you as you pay it down. Other people can provide data points on that, I'm sure. I don't know if you'd have to do this multiple times, or just once, or have other behaviors to trigger it. It wouldn't surprise me if it might be more common in thin files or young accounts. If you had balances on your other cards, maybe it made the card issuer nervous about your ability to pay it back if it happened again.

If this is the case with you, I wouldn't know how to stop them chasing the balance down, or having the CLD hurt your overall score. Someone with more experience will have to chime in on that one.

Re: Discover cli

Anonymous — Wed, 27 Mar 2019 01:27:38 GMT

Okay, so, let me see. You transferred 9K to a card with a 13K limit on it? Yes

That's something like 69% of your credit limit on that card. Was there a balance on the card already before you transferred? No there was no balance and I have had the card for 2 months.

Re: Discover cli

Anonymous — Wed, 27 Mar 2019 01:29:52 GMT

I appreciate the responses. I will update the thread if something else happens as I pay.