topic Re: Discover card - low credit limit in Credit Card Applications

Discover card - low credit limit

SouthJamaica — Tue, 10 Mar 2015 18:49:21 GMT

Was enthused that I got approved for a Discover IT card, until I 'discovered' that my credit limit is only $1k, while I just got a card from Cap One with a 20k limit.

Any recommendations as to what my strategy should be for an increase? Should I expect an automatic CLI after a while, or apply for a CLI after a certain period of time, or just forget about it?

Re: Discover card - low credit limit

Anonymous — Wed, 11 Mar 2015 03:57:57 GMT

@thebeckerman wrote:
Was enthused that I got approved for a Discover IT card, until I 'discovered' that my credit limit is only $1k, while I just got a card from Cap One with a 20k limit.

Any recommendations as to what my strategy should be for an increase? Should I expect an automatic CLI after a while, or apply for a CLI after a certain period of time, or just forget about it?

Use it often, get near your limit, make big payments (PIF preferable)

That and or BT's for at least half your CL and repayment within 3-4 months. Or you could take another HP if you feel you deserve a bigger CL now.

Re: Discover card - low credit limit

Anonymous — Wed, 11 Mar 2015 13:32:50 GMT

Discover increased my CL after 3 months. Hold the card and PIF, then try for a SP CLI in 3 months. They're known for being a relatively conservative organization.

Maybe just use the card for the rotating categories or online purchases? $1000 is enough for anything but large things like rent/mortgage.

Re: Discover card - low credit limit

joedtx — Wed, 11 Mar 2015 15:29:51 GMT

@Anonymous wrote:
Discover increased my CL after 3 months. Hold the card and PIF, then try for a SP CLI in 3 months. They're known for being a relatively conservative organization.

Maybe just use the card for the rotating categories or online purchases? $1000 is enough for anything but large things like rent/mortgage.

Re: Discover card - low credit limit

uswala — Wed, 11 Mar 2015 15:56:53 GMT

See my post here on my experience with them:

http://ficoforums.myfico.com/t5/Credit-Card-Applications/Discover-IT-approval-but-low-limit/m-p/3854370/highlight/false#M44114

Re: Discover card - low credit limit

Themanwhocan — Thu, 12 Mar 2015 01:17:06 GMT

2013 first year with Discover It

Feb: Discover was one of my original unsecured cards. They started me at $2000.

Jul: I had to accept a HP if I wanted a CLI. They increased my limit to $3000.

Nov: I had to accept a HP if I wanted a CLI. They increased my limit to $5000.

2014 second year with Discover It

May: Using automated phone system, I was finally offered a SP CLI. Limit now $6000

Sep: Using computer, requested $1500. Granted via SP. Limit now $7500

Dec: Using automated phone system, SP increase of $1000. Limit now $8500

My experience was HP required first year, SP available after that. Was it worth it to use the HP? Yes. HP only affect your FICO scores for a year. 2013 saw a 150% increase due to HP CLI, whereas 2nd year saw 70% increase. And I never wish that I had used fewer HP during 2013 so that i could now brag, or something. You get to use a certain number of HP each year, but you don't get to hoard them for the future. Could I have used the HP to obtain more cards? Well, look at the first image, I DID obtain good cards.

I feel using HP to gain credit limit is all a part of your strategy. Some cards you can get HP via SP, so that should also be a part of your strategy, so that you can strategically use a few HP for the other cards that may need it. And don't do app sprees too close together, the more you hurt your initial credit limits, the more HP you may need to bring them back up, whereas if you had waited a few months you might have started much higher.

That average spend line is about $200, and its that high due to that large 4th quarter 2014 spending ( I threw the rent and such on the card). Note that in 2014 BEFORE the 4th quarter spending, i didn't do much more than spend enough to keep the free FICO scores coming yet as I stated I had 3 SP CLI requests granted. yes, you need to use the card, but you certainly don't need to overuse it, in order to qualify for a credit increase. Just use it a lot in quarters that you find the 5% useful, and use it a tad bit otherwise, keep your FICO score up, and you'll do fine. Just have patience.

Re: Discover card - low credit limit

SouthJamaica — Fri, 13 Mar 2015 21:22:43 GMT

Thanks

Re: Discover card - low credit limit

SouthJamaica — Fri, 13 Mar 2015 21:23:58 GMT

For some reason I wasn't allowed to view the post you linked

@uswala wrote:
See my post here on my experience with them:

http://ficoforums.myfico.com/t5/Credit-Card-Applications/Discover-IT-approval-but-low-limit/m-p/3854370/highlight/false#M44114

Re: Discover card - low credit limit

SouthJamaica — Fri, 13 Mar 2015 21:25:34 GMT

Thanks for the advice

Re: Discover card - low credit limit

Anonymous — Sat, 14 Mar 2015 05:20:43 GMT

Is it better to call for a cli or try on line. My card was opened on December 7th with a $500 limit . I charged it up to $387 by early Jan, paid it down to $250 last statement, and paid it off this statement which closed today.

How much should I ask for? I have a $5000 Am Ex a $1500 Bloomingdales, and my au accounts highest limits are $3750 and $2000.

Re: Discover card - low credit limit

Themanwhocan — Sat, 14 Mar 2015 16:58:34 GMT

@Anonymous wrote:
Is it better to call for a cli or try on line. My card was opened on December 7th with a $500 limit . I charged it up to $387 by early Jan, paid it down to $250 last statement, and paid it off this statement which closed today.

How much should I ask for? I have a $5000 Am Ex a $1500 Bloomingdales, and my au accounts highest limits are $3750 and $2000.

You might as well call and see if the system will give you something, if not it will forward you to someone and you can ask them (but you'll know it is likely a HP if you have to talk to someone). If you don't want to risk a HP after only 3 months, you can always hang up quickly when the system says it needs to connect you with an agent.

But as I said, i wasn't able to get any increases via SP during my first year. You might have better results.

Re: Discover card - low credit limit

Anonymous — Sun, 15 Mar 2015 04:41:53 GMT

I may wait it out. My AmEx is 61 days on the 22nd and I have a prequal Quicksilver I got in the mail which expires on the 25th. Waiting for my bureaus to update which will put my utilization under 30%.

Don't want to risk a potential thousands of dollars for what may be a paltry cli if any and get a hp to boot

Re: Discover card - low credit limit

Anonymous — Sun, 15 Mar 2015 04:50:44 GMT

Weird? I got an auto CL after 3 months with them. Starting CL was 5.5k. I would wait a bit and see if they give you an auto CL.

Re: Discover card - low credit limit

Anonymous — Sun, 15 Mar 2015 05:03:57 GMT

I beat the clock out on the CLI here recently and saw a $200 SP CLI. Didn't have to use up a TU HP at all.

I wonder if that $11 BT had anything to do with it.