topic Re: Discover credit increase? in Credit Card Applications

Discover credit increase?

musicalmom — Thu, 30 Apr 2020 01:24:57 GMT

Hello all!

I've had this card since Oct 2018. The secured one with a limit of $200. I forget when it became unsecured and they sent my $200 back. I also can't remember if it was then that I got a credit increase to $1000. It's basically May and every month I try for an increase and get the "not enough experience with your card" decline.

Can anyone explain to me what that means and what I'm doing wrong? For a while, I would pay it off monthly. Then I thought they wanted a balance, so I left some on it. I can't figure it out for the life of me. I do not ever max it out. Usually under $500 is what I'll put on it. My DTI is 14% and I'm set to close on my first home at the end of June. I haven't ever called to ask, should I try that? My capital one card has had three credit increases and I think I got both around the same time. I'm just so confused! lol

Re: Discover credit increase?

hzynneb — Thu, 30 Apr 2020 01:31:56 GMT

I don't know if Discover is even giving out CLI at this time. I just requested one recently, and it was denied due to low usage. Same for my parents. I don''t think we have ever been deny a CLI by Discover before.

Re: Discover credit increase?

randomguy1 — Thu, 30 Apr 2020 02:19:58 GMT

Anecdotal but I'll add my DPs.

Ever since I've been eligible for a CLI since Oct/Nov I've received a cli just about every month except 2. This month was one of the denials.

Re: Discover credit increase?

KJinNC — Thu, 30 Apr 2020 03:32:39 GMT

I will explain why Discover does or does not approve CLI requests right after I explain the meaning of life and the origin of the universe. All I can say is good luck.

Re: Discover credit increase?

SweetCreditObsession — Thu, 30 Apr 2020 03:35:10 GMT

Discover admitted they would be more conservative in handing out credit due to losses associated with Covid-19 closures. They're not alone. See the Credit in the News MF forum for details.

Re: Discover credit increase?

musicalmom — Thu, 30 Apr 2020 03:35:48 GMT

LOL Thanks for the laugh. I feel like that's definitely the case.

Re: Discover credit increase?

Wavester64 — Thu, 30 Apr 2020 14:28:15 GMT

@hzynneb wrote:
I don't know if Discover is even giving out CLI at this time. I just requested one recently, and it was denied due to low usage. Same for my parents. I don''t think we have ever been deny a CLI by Discover before.

Was approved for a $500 CLI yesterday.

Re: Discover credit increase?

CreditCuriosity — Thu, 30 Apr 2020 15:19:55 GMT

Cap-1 and Discover are taking big losses more-so than Chase, Citi etc on a percentage basis during this time due to their target audience so Discover is going to be more tight are their losses % compared to other big banks will be higher. They are getting hit hard.. Heck even my Amex stock I own is getting pounded. No lender is avoiding huge charge-off accounts and alot more to come, so don't expect any real CLI's during this time..

Re: Discover credit increase?

TSlop — Thu, 30 Apr 2020 15:37:22 GMT

I did my first ever attempt at a CLI with them in February and went from $13k to $15.5k. I've been waiting until at least 3 months (May) to do it again, but I might wait 6 months. I know no one really knows how and why Discover does what it does.

I'm tempted to do it tomorrow in May since some people are getting declined due to not enough experience with the credit limit. Groceries is my biggest expense, so I may possibly be granted a CLI with the "high" recent spend from the first quarter (though I say "high," I only managed $68 out of the $75 max cashback). If I wait another 3 months, the spend will be a lot lower due to the virus; I've only put $22 on it the whole month of April since I'm not using any gas. The $22 was a Sheetz food purchase that actually ended up being 1% since I did it online for pickup (it codes as 5% in store).

Re: Discover credit increase?

Brian_Earl_Spilner — Thu, 30 Apr 2020 15:48:20 GMT

@CreditCuriosity wrote:
Cap-1 and Discover are taking big losses more-so than Chase, Citi etc on a percentage basis during this time due to their target audience so Discover is going to be more tight are their losses % compared to other big banks will be higher. They are getting hit hard.. Heck even my Amex stock I own is getting pounded. No lender is avoiding huge charge-off accounts and alot more to come, so don't expect any real CLI's during this time..

It's my understanding that they havent had any meaningful increase in delinquencies. Chase and amex are the ones being hit harder.

https://www.cnbc.com/2020/04/14/jpmorgan-just-revealed-it-thinks-a-lot-of-people-wont-pay-their-credit-card-bills.html

Re: Discover credit increase?

Anonymous — Thu, 30 Apr 2020 16:05:58 GMT

When got their card, I was approved for $3000.00, but it took 6 months to get my next increase, so to make a long story short. Pay on time, each month and pay your balance off if possible, and after 6 months your credit should be higher, then give it a try, one other thing, make sure the information you are entering matches your original approval...good luck.

Re: Discover credit increase?

KJinNC — Thu, 30 Apr 2020 16:57:07 GMT

It's not so much that it's difficult to get a CLI from Discover (well ... that too), as that there is no identifiable pattern to who does or does not get one, so it's hard to advise anyone on how to improve their odds, what their odds are, or how long to wait. Other than boilerplate advice like keep your balance under control, use the card, PIF.

I'm sure it's based on criteria coded in software, but the effect that customers see appears random.

Re: Discover credit increase?

CreditCuriosity — Thu, 30 Apr 2020 17:22:53 GMT

@Brian_Earl_Spilner wrote:
@CreditCuriosity wrote:
Cap-1 and Discover are taking big losses more-so than Chase, Citi etc on a percentage basis during this time due to their target audience so Discover is going to be more tight are their losses % compared to other big banks will be higher. They are getting hit hard.. Heck even my Amex stock I own is getting pounded. No lender is avoiding huge charge-off accounts and alot more to come, so don't expect any real CLI's during this time..
It's my understanding that they havent had any meaningful increase in delinquencies. Chase and amex are the ones being hit harder.

https://www.cnbc.com/2020/04/14/jpmorgan-just-revealed-it-thinks-a-lot-of-people-wont-pay-their-credit-card-bills.html

Yes saw that article and many others as well many banks are up'inig their reserves for charge off's/losses. My personal opinion is Cap-1 and Discover will get hit harder as more of a sub-prime card although not always the case.. So people are likely to default on these cards imo, but time will tell how much pain each bank is going to take. On the opposite side of the arguement with disover people tend to carry more balances than with chase so maybe they will offset some of their possible losses wiith interest people will pay vs. amex is more-so a PIF type of crowd/lender. As mentioned Amex is taking a beating and could show you my Amex portfolio to prove it, but prefer not to look at my investments currently or makes me shed a tear. .. Although better than what it was 3 weeks ago!

Re: Discover credit increase?

KJinNC — Thu, 30 Apr 2020 17:41:57 GMT

I don't think of Discover as sub-prime, though maybe it is. In my mind, it is the quintessential middle-class American card. I have not done research on it. I am not sure it's easier to get a Discover Card than to get, say, Amex Delta Blue or Citi Double Cash.

Cap One does have the Platinum and Platinum Secured, which is territory that Amex and Chase ignore, and Citi and Discover dabble in.

Re: Discover credit increase?

CreditCuriosity — Thu, 30 Apr 2020 18:02:44 GMT

@KJinNC wrote:
I don't think of Discover as sub-prime, though maybe it is. In my mind, it is the quintessential middle-class American card. I have not done research on it. I am not sure it's easier to get a Discover Card than to get, say, Amex Delta Blue or Citi Double Cash.

Cap One does have the Platinum and Platinum Secured, which is territory that Amex and Chase ignore, and Citi and Discover dabble in.

Discover caters to both sub and prime markets hence the comment where-as citi legacy, chase, amex, etc.. not so much. Discover is a decent card as long as one doesnt care what their limit might start out at and if they will ever get a CLI, etc.. It works for alot of people. I can say I havent used mine in about 6 months, but have way to many other cards. Time to do a 1 dollar reload on amazon to let them know i am still alive . Discover double cash back is really nice as well for the first year. I am not slamming on it as works for some certainly, but other cards have way more of my heart than discover. Anways getting abit off subject myself for that i am sorry

Re: Discover credit increase?

Remedios — Thu, 30 Apr 2020 19:44:01 GMT

I havent asked Disco in a while, and I wont, because my limit on it is hard to justify during rosey economy times, and card hasn't been used since June

I got another 0% promo from them, I paid some medical bills, fully expecting at least a fraud alert or something , but they went through just fine. 🤷‍♀️

Re: Discover credit increase?

Anonymous — Fri, 01 May 2020 06:54:27 GMT

I get what you're saying.... I don't see Discover as a subprime lender either but they do have various cards for people depending on where they're in their credit journey. Whether you're a student (student card), someone with little to no credit history, poor history (secured card) or someone who has successfully gone through a rebuild or has great scores but fewer cards (IT cash back, chrome, Miles).

The latter was me.... Discover IT Cash back was my first Prime card with a high starting limit right out of the gate. Because of this, other lenders followed suit.

@KJinNC wrote:
I don't think of Discover as sub-prime, though maybe it is. In my mind, it is the quintessential middle-class American card. I have not done research on it. I am not sure it's easier to get a Discover Card than to get, say, Amex Delta Blue or Citi Double Cash.

Cap One does have the Platinum and Platinum Secured, which is territory that Amex and Chase ignore, and Citi and Discover dabble in.

Re: Discover credit increase?

Anonymous — Fri, 01 May 2020 06:55:55 GMT

As for the credit line increases.... it's so hit or miss with them. Some speculate that the COVID 19 has them limiting the increases.

It took me a solid 6 months to get my 1st increase with them and my most recent was in March of this year. Nothing since.

Re: Discover credit increase?

Gladius — Fri, 01 May 2020 11:42:43 GMT

I just recently received an automatic CLI from Discover last month from $4000 to $7300. My balance is around $2500. I have just been paying the minimum for the past year and haven't used the card at all in a year.

Re: Discover credit increase?

Anonymous — Fri, 01 May 2020 16:54:35 GMT

Discover is giving out a few CLIs. I requested one in early April and they gave me a $1500 increase.

I didn't even use that card for four months but I did make a $3k charge around that time and paid it off slowly. I was just paying off my remaining $130 balance, hit CLI and Disco gave me a little CLI love.