topic Be careful. Discover line cl'd in Credit Cards

Be careful. Discover line cl'd

traveler2005 — Fri, 15 Jan 2016 06:01:52 GMT

Checked my account today my credit line was decreased from 2000 to 1180 for to many inquiries and new accounts. Just thought I would throw that out there

Re: Be careful. Discover line cl'd

Anonymous — Fri, 15 Jan 2016 14:35:57 GMT

How many inqs and new accounts did you have?

Re: Be careful. Discover line cl'd

takeshi74 — Fri, 15 Jan 2016 15:03:38 GMT

Any creditor can take adverse action for risk that exceeds the creditor's risk tolerance. "Inquiries and new accounts" is always "inquiries and new accounts for your credit profie". Impact is never just about one or more factors but one's credit profile and how the factors impact the profile. While you may have been CLD'd for X inquiries and Y new accounts, a stronger/thicker profile may not have and could have even handled more inquiries and accounts.

Re: Be careful. Discover line cl'd

Discover2016 — Fri, 15 Jan 2016 21:36:00 GMT

OP, Didn't you also have an issue last month where an old collection or judgment was re-aged by accident? Was that resolved? Maybe that also contributed?

Re: Be careful. Discover line cl'd

pipeguy — Fri, 15 Jan 2016 20:40:36 GMT

@takeshi74 wrote:
Any creditor can take adverse action for risk that exceeds the creditor's risk tolerance. "Inquiries and new accounts" is always "inquiries and new accounts for your credit profie". Impact is never just about one or more factors but one's credit profile and how the factors impact the profile. While you may have been CLD'd for X inquiries and Y new accounts, a stronger/thicker profile may not have and could have even handled more inquiries and accounts.

Absolutely true ! I have a very thick file, and I don't worry at all about inquiries which I also have a lot of. Do I get turned down for certain cards once in a while? yes for inquiries, but I get just about anything I apply for and I've got way more revolving credit than I need. Note too, that if a lender hit me with a CLD or AA for something I did outside their account, such as apply for another card - I'd close that card in a second. I understand that many people do not have this advantage, but if you create a long credit history and pay your bills on time keeping spending within proper levels, you gain an advantage because you are in control not begging for acceptance.

Re: Be careful. Discover line cl'd

Anonymous — Fri, 15 Jan 2016 16:10:04 GMT

@pipeguy wrote:
Absolutely true ! I have a very thick file, and I don't worry at all about inquiries which I also have a lot of. Note too, that if a lender hit me with a CLD or AA for something I did outside their account, such as apply for another card - I'd close that car in a second.

I too have a thick file and lots of credit, but I wouldn't do that necessarily. That's making it personal rather than a business decision. You can make a business decision back. I would decide if the card is still useful to me after the CLD/AA (where "useful" also takes into account other cards I could get in that space) , and if so, would keep it.

Re: Be careful. Discover line cl'd

Anonymous — Fri, 15 Jan 2016 18:46:09 GMT

@Anonymous wrote:
@pipeguy wrote:
Absolutely true ! I have a very thick file, and I don't worry at all about inquiries which I also have a lot of. Note too, that if a lender hit me with a CLD or AA for something I did outside their account, such as apply for another card - I'd close that car in a second.
I too have a thick file and lots of credit, but I wouldn't do that necessarily. That's making it personal rather than a business decision. You can make a business decision back. I would decide if the card is still useful to me after the CLD/AA (where "useful" also takes into account other cards I could get in that space) , and if so, would keep it.

Earning 5%+ cash back is a pretty good response to AA!

Inquiries and new accounts may often be a legitimate denial reason, but AA definitely seems to primarily hit customers who were/are borderline for a card in the first place. I don't see a lot of reports of issuers taking major AA on someone with a thick, clean file.

I see some AA threads and ask myself, "how did that person get ever approved in the first place?" This isn't an extreme example of that, though.

Re: Be careful. Discover line cl'd

Anonymous — Fri, 15 Jan 2016 20:39:10 GMT

@Anonymous wrote:
@Anonymous wrote:
@pipeguy wrote:
Absolutely true ! I have a very thick file, and I don't worry at all about inquiries which I also have a lot of. Note too, that if a lender hit me with a CLD or AA for something I did outside their account, such as apply for another card - I'd close that car in a second.
I too have a thick file and lots of credit, but I wouldn't do that necessarily. That's making it personal rather than a business decision. You can make a business decision back. I would decide if the card is still useful to me after the CLD/AA (where "useful" also takes into account other cards I could get in that space) , and if so, would keep it.
Earning 5%+ cash back is a pretty good response to AA!

Inquiries and new accounts may often be a legitimate denial reason, but AA definitely seems to primarily hit customers who were/are borderline for a card in the first place. I don't see a lot of reports of issuers taking major AA on someone with a thick, clean file.

I see some AA threads and ask myself, "how did that person get ever approved in the first place?" This isn't an extreme example of that, though.

Me too.

Re: Be careful. Discover line cl'd

pipeguy — Fri, 15 Jan 2016 21:12:05 GMT

@Anonymous wrote:
@pipeguy wrote:
Absolutely true ! I have a very thick file, and I don't worry at all about inquiries which I also have a lot of. Note too, that if a lender hit me with a CLD or AA for something I did outside their account, such as apply for another card - I'd close that card in a second.
I too have a thick file and lots of credit, but I wouldn't do that necessarily. That's making it personal rather than a business decision. You can make a business decision back. I would decide if the card is still useful to me after the CLD/AA (where "useful" also takes into account other cards I could get in that space) , and if so, would keep it.

I work in a business where folks call all day cussing you out and telling what an idiot you are, depending on the news cycle, I don't make things "personal", to me its all business. Again, I have a lot of revolving cards/credit so if a lender all of a sudden sees me as a risk because I apply for a different cards (I'm a sucker for sign up cash and zero percent promotional periods), and balance chases me or does a major APR increase, I just say okay we don't need each other and close the card. Can't say its happened in a while and I might change my tune if its a card I really like, but to me at least, inquiries without any other reason like high growing balances or minimum payments across the board, are not a reason for an unaffected lender to AA/CLD my account "if" they want my business.

Re: Be careful. Discover line cl'd

Bman70 — Fri, 15 Jan 2016 21:20:30 GMT

Another "be careful - if you have a judgement, collection, lein, foreclosure, and lots of inquiries, you might get CLD" thread..

JK, but it would be nice to have more details before getting wary of Discover.

Re: Be careful. Discover line cl'd

traveler2005 — Sat, 16 Jan 2016 00:28:42 GMT

I got the card in around April. Started out with 1000 limit had sp cli up to 2000. Yes last month Equifax changed my file date of a judgement from 11/1/2009 to 12/1/2015 the judgement was paid way back when and should fall off in 11/2016. Equifax has not been updating my report since October 2015. Don't know why. So that could have scared discover also. I have disputed the date and sent copies of the satisfied judgement so it can be changed. I also have discover miles card. So far they have left that one alone.

Did some car shopping for my daughter they pulled my credit 6 times a couple of months ago. Opened a Amazon store card and second cap one venture card in the last month. Utilization is about 25% at this time.