topic Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit? in Credit Card Applications

Should I apply for a Discover IT MILES just to have a larger overall credit limit?

kudosalert — Sat, 15 Jun 2019 18:53:16 GMT

I have a BOA Mastercard and Travel Rewards card (opened 10mo and 2mo) (1k/3.2k CL). That's the extent of my credit file. Fico 740. Should I apply for the Disco Miles card just to have a larger overall limit? Would this help build my score/pad my file a bit more so perhaps another year or two down the road I can apply for a card with the benefits I'll actually use (Amex Plat/Chase Reserve).

* I've narrowed it down to the Disco because of no AF, no FX fee, and supposed to grow quickly.

* I've had an Amex Blue previously but it was over 10 years go and it was paid/closed in good standing. There are some Amex cards to consider but I dont want to open two cards in the same year (DISCO/AMEX) because I want to maximize any cash backs/benefits with 1 card.

I'm based outside the US where the acceptance of Disco is limited. Even airlines dont accept it. I would have to get creative to be able to put some spending on the card. I currently utilize about 20% of my other cards and pay in full each month.

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

Anonymous — Sat, 15 Jun 2019 19:35:27 GMT

If you can find places to use it for the 3% back for the first year then yes. Otherwise if you don't pre-qual for it then pass on it if it's going to be a hassle to use it wherever you are.

Growing quickly is relative to the individual not generally. Some have gotten the card and over 3-5 years still under 5K. Others have gotten it and in less time exceeded 50K.

In general 3+ cards are ideal but, having your only 2 cards with BOA is risky. Diversification should be your focus not just padding.

You might run into an issue getting approved using an international address as well.

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

kudosalert — Sun, 16 Jun 2019 02:17:36 GMT

I'm pre qualified for the Disco cards. Still have my home in the US so that's not a problem. Finding places to use it so CL will grow is another issue.

Maybe I'll get an Amex instead. At least with those I can use to book my flight more easily.

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

Anonymous — Sun, 16 Jun 2019 15:32:55 GMT

It's not a matter of spending to get it to grow.... you can put your netflix on it or whatever to grow it. The point of it is being able to maximize the 3% earn rate for the first year. If you're just aiming to grow it to be your largest card and don't care about the potential bonus $ at the end of the year then get it and throw a monthly bill on it and setup autopay.

Then go ahead and get your Amex for flights as you noted. Which amex are you considering and why?

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

AverageJoesCredit — Sun, 16 Jun 2019 16:27:56 GMT

If your goal is to get a Discover card, any Disco card might do as you wont get a larger limit based on it being a Miles card. I would recommend getting a card you can actually utilize right now if you feel a Disco card wont be widely accepted where you are. As stated , the first year with Disco is super importsnt if you want to max rewards. If that doesnt matter and you are looking to just diversify your portfolio, i see no problem adding a Discover to your overall profile.

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

kudosalert — Mon, 17 Jun 2019 03:50:37 GMT

I guess I'm trying to do a bit of everything right now. Grow credit limit/bring down utilization on each card and maximizing rewards. Monthly I put about 2k of spends on my card (would do more but there's nothing like Plastiq in the area). With one card limit at 1k and the other at 3.2k, I'm utilitizing both of them at a higher % than I would like. After seeing your comments I dont think I should get the Disco since I wont be able to maximize year 1 bonuses.

Any thoughts on the Amex Hilton Honors? There's no AF/FX fee which is a bonus for me. I'm a cheap hotel business travel kind of guy. Would rather spend the money else where on my trips so any points or perks earned would probably be saved towards a personal vacation. Hilton around my area are any where from 30,000-100,000 points per night. None of them look exciting haha. It is a free stay for no annual fee. I would have to just put my usual monthly spend on it to get the reward. Any chance you can PC from Hilton Honors to something else in the future or are you stuck with the card?

Re: Should I apply for a Discover IT MILES just to have a larger overall credit limit?

Anonymous — Mon, 17 Jun 2019 04:35:01 GMT

I always advocate not locking into a particular program hotel or airline.

You get more bang for your buck getting "status" with the other cards like Platinum. While Platinum isn't the best earner for MR's it's a good bump in statuses and has transfer partners for airlines like the Gold does. Anything that earns MR's can be a perk for travel related expenses.

ED/EDP/Blue/Green/Gold/Platinum all earn MR's

The problem I have w/ hotel/airline cards is they don't earn more than 1ppd outside of their own expenses. Sure you get 10X points when spending on property or flight but, you get 1X on everything else. Now, if you don't mind picking up several specific cards and only use them for those purposes then it's fine. You can only go so far though with those types of cards unless you're putting a ton of $$$ through them consistently.

Just something to think about when selecting your options.