topic Re: LOL @ Discover - Thanks a lot! in Credit Cards

LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 12:56:16 GMT

Partner and I opened a joint Disocver card 2 weeks ago (mistake) and they gave us a measly $500 limit. We used it twice, charged up to $350 and paid in full and closed it. What a joke, considering our limits SEPARATELY are $3,000 - $10,000 each! The card was probably open 2.5 weeks in all. I wake up today to Discover reporting as OPEN new acct, with a $350 balance, and a 10 pt score drop!! I was furious....al;though I did just PIF a few days ago, so I'm sure processing has something to do with that. Again, open for 2.5 weeks! Why cant my AMEX with huge CLs report that fast!

So the score drop is not due to AAofA being affected b/c I've opened quite a few new accounts this month, and I check my AAofA each time one posts and the calculation is the same within 1 month or so as variance. Usually the exact same (here on myFICO). It obviously is due to the small @ss limit Discover gave us, and showing 70% UTIL on it!! My overall UTIL is still decent at 33% and will be well uner 15% when AMEX's report.

Anyway, should I call and dispute this or just let it report next month as closed and $0 bal, no longer being a factoring account and no longer showing the 70% UTIL on one card? Discover will never get my business again -- first the insult with the paltry CL and then the "promise" it wont report, only to show up today and hurt my score. Aside, my scores are all 690s now, and partner is 720s-740s. FICO 8s. Thanks all!

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 12:59:26 GMT

It's aggravating, I know, but as many have said and I am sure you know, your score will recover when reports are updated.I am not sure about calling. Perhaps others have advice about that. So sorry this happened to you, though.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 13:01:47 GMT

Any reason why you opened a joint account with Discover?

They gave me a $500 limit and 4 months later AmEx gave me a $21 k limit.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 13:02:09 GMT

Unless you plan on applying for something major (car loan/mortgage) I don't think it's a big deal right now. It will report correctly soon enough & then your scores will go back to where they should be.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 13:10:18 GMT

Um. Doing a dispute now would be a waste of time for such a low dollar value, and since you opened an account and closed it after only 2.5 weeks, isn't your score going to take a hit anyway?

I know you were expecting to get a card with a higher limit but... well, it would've been worth it to just a ask them to increase the limit.

Re: LOL @ Discover - Thanks a lot!

taxi818 — Fri, 20 Nov 2015 13:22:12 GMT

Nothing yet worry about. I don't understand the obsession with the limit. I have gotten many cards with 500 limits. And all with in a year reached thousands. If you value the relationship a specific limit is meaningless. No card is a card to do everything. Honestly op I would have never took a card that required as joint account. I'm used to being denied and they just toll in ft me. I move on.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 13:24:05 GMT

Tried a CLI. They said no dice until 6 months minimum. Forget it!

And to the third poster- my score didn't take a hit due to the new account as mentioned I checked AAofA - no change. I don't think FICO has a score change specifically for a new account - I think you see a dip due to a change (if any) in AAofA. It dipped due to showing 70% UTIL on such a small limit. Discover I loathe you.

On another note, at least other cc companies seem to show love

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 13:45:53 GMT

@Anonymous wrote:
Tried a CLI. They said no dice until 6 months minimum. Forget it!

And to the third poster- my score didn't take a hit due to the new account as mentioned I checked AAofA - no change. I don't think FICO has a score change specifically for a new account - I think you see a dip due to a change (if any) in AAofA. It dipped due to showing 70% UTIL on such a small limit. Discover I loathe you.

On another note, at least other cc companies seem to show love

You're probably right about the score change being caused by the high utilization but the account did affect your AAoA. By definition if you add any account it will affect your AAoA so it's entirely possible that caused a bit of the score drop.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:26:33 GMT

why are you blaming discover? it's your fault honestly. you gripe about the most trivial things i have ever seen. why spend $350 of your $500 on THAT discover instead of your other two? and what? you expect them not to report? come on man get realistic.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:41:00 GMT

It's not that I didn't expect them to report oh judgmental one. It's that I didn't expect them to report 2 weeks in while there hasn't even been a full billing cycle.

Seriously with some of you people. Do you have lives or jobs, you take the time out of your day to read a post, insult someone or their post? Get a job or six!!! Utterly ridiculous that people utilize this site to attack people and their choices. I wish there was a block button but ignore works too !

To all the others thank you for input.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:46:06 GMT

Let's keep this under the FSR guidelines. Try to make your point without being insulting.

http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/td-p/2905196

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:46:52 GMT

350/500 isn't scored the same as 3500/5000. The points loss was the new hp, new account. I used to go way high on toy limit cards with no effect.

Give it time.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:48:57 GMT

Ford guy -- not sure about that because the HP was weeks ago on a different bureau (so far score drop only noted on Ex) and two other new accounts this month did not cause a drop and a balance reported was near 0$. I think FICO still looks at individual cards regardless of CL

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:51:11 GMT

i just don't feel like i was being insulting? this person constantly complains about discover but i have yet to see where discover makes a mistake with their profile? sometimes the realm of reality is unfathomable. enjoy your day and good luck in the future.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:55:14 GMT

I just don't see why one would take time out of their day to post something non constructive. If I want to complain about discover in 500 threads, that is my prerogative. But Thank you kindly. You as well. :-)

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:56:07 GMT

Its mathematical impossible that adding an additional acct had no change to the AAoA. And it will continue too for as long as it reports (usually 10 years). Although it is possible that the change wasn't significant enough to effect your score.

In any case, even if there was something to dispute the effect will no longer have any impact by the time its been resolved.

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:59:16 GMT

So my score will rebound naturally in about a month Open? I have a lot of positive changes coming to my reports soon anyway including overall UTIL dropping way down, when AMEX reports and 30 day baddies (2 yr old) removed on GW!

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 15:59:43 GMT

Less than 2 yr old** baddies

Re: LOL @ Discover - Thanks a lot!

Anonymous — Fri, 20 Nov 2015 16:05:46 GMT

Yes as soon as the acct reports 0 any effect from utilization will rebound. I think it may also be possible the inquiries have certain thresholds, say 1 to 5 has less impact than 5 -10 but I'm only theorizing on that part.

Re: LOL @ Discover - Thanks a lot!

-Cal- — Fri, 20 Nov 2015 16:17:20 GMT

Is your credit perfect? Or are there any negative items on your reports? How many inquiries within the past 6 months? 12 months? New accounts within the past year? Seems like with your score, Discover saw something risky so they gave you an option for a joint account with a low limit to mitigate their risk while still establishing a new relationship.

I also don't think the 350/500 is accounting for the full 10 point drop, unless your file is extremely thin. There could be other events that has happened between now and the last time you've seen a notification which caused your score to drop. The monitor definitely isn't perfect and it only reports when certain events happen. For example my EX score dropped 4 points this week when a balance decreased on one of my accounts. Something else most likely happened in the interim to cause that to drop.

I agree with another poster's perspective of people should value the relationship with the creditor more than the limit. My credit certainly isn't perfect so I would have been happy with a $500 limit with Discover because I would be able to take advantage of the lucrative cashback offers and Discover Deals. My wife started off with a toy limit less than $1k. Less than a year later she was already above $10k with a few $4k+ SP CLIs.

I don't really understand the prima donna mentality with starting limits.