topic Re: Discover: Alternative Offer ??? in Credit Cards

Discover: Alternative Offer ???

Underh20 — Mon, 25 May 2009 23:50:06 GMT

On May 2nd I applied online for a Discover "More" card, which would have been my first Discover card, and received the 30-day message. Expecting to be declined, just before the holiday weekend I received a letter from Discover and figured it would just be the "We're sorry, but ..." line.

Reading the letter I was susprised that they said they could not approve me for what I originally applied for, but please call them as they had an "alternative offer" for which I am qualified for.

I didn't think Discover negotiated card application approvals or had "alternative offers." I thought they were basically a "Yes, we want you" or a "No, drop dead" kind of card issuer.

Any ideas what their alternative offer could be?

Re: Discover: Alternative Offer ???

wmarat — Tue, 26 May 2009 00:00:00 GMT

HSBC Discover.

Re: Discover: Alternative Offer ???

Underh20 — Tue, 26 May 2009 00:02:59 GMT

Is that card any good?

Annual fee?

Credit limits?

Re: Discover: Alternative Offer ???

wmarat — Tue, 26 May 2009 00:06:42 GMT

Depenends. I was offered this card with $29 AF, declined and was approved for Discover More a year later.

I do not have this particular card, but have another HSBC card and not so happy with HSBC as a lender.

Re: Discover: Alternative Offer ???

llecs — Tue, 26 May 2009 00:22:05 GMT

Both DW and I appd with FICOs in the mid to high 600s for a Discover. We were counter-offered for these two cards and regretfully accepted. The reporting is OK. I'm not sure what our AF is, if any (probably is one), and we both are stuck at $300 CL. Regretted getting it. It is DW's lowest CL and my second lowest (gee thanks, Target). The card is fine. Online administration is great. Just regret it because of the low CL (others had higher CLs) and it killed our AAoA.

Re: Discover: Alternative Offer ???

Underh20 — Tue, 26 May 2009 01:22:31 GMT

I agree that HSBC generally sucks. I don't understand why HSBC in Hong Kong isn't bad, but HSBC in the US is, IMO, subprime.

Anyhow, if I call the number Discover gave me on their counter-offer, is approval for the HSBC Discover automatic or does it entail another hard pull?

Re: Discover: Alternative Offer ???

Lyythine — Tue, 26 May 2009 02:40:18 GMT

Well, HSBC stands for Hong Kong and Shanghai Banking Corporation...

To make it short... here is my take on HSBC after living/working in Hong Kong for a little over a year.

HSBC is one of three banks that can print/distribute money in Hong Kong/Macau. That being said, without getting into actual numbers, it has holdings of at least 33% of all revenue in that principality - which, since it is the largest of the three banks that back the currency, it probably holds more than 33%. So, It can do whatever it wants and have absolutely no repercussions. It simply does business elsewhere to gain excess cash on hand. As a corp, it could care less about operations in the US - it currently holds almost all of its assets in Hong Kong, paying no taxes as it is technically, backed by the chinese government but yet has no oversight by the chinese and operates solely as its own entity.

In short. It doesnt need anyone else, therefore, we are left with a crappy corporation selling crappy products with no intention of making them better.

Please keep in mind that I have several accoutns with them, as well as 2 credit cards each with over 10k limit. I opened both of these while living in Egypt, and they are not US based cards, so that is why I still have them. If I had a US based card with them, I would most likely have kicked it to the curb many years ago.

Re: Discover: Alternative Offer ???

Underh20 — Tue, 26 May 2009 03:19:02 GMT

@Lyythine wrote:
Well, HSBC stands for Hong Kong and Shanghai Banking Corporation...

To make it short... here is my take on HSBC after living/working in Hong Kong for a little over a year.

HSBC is one of three banks that can print/distribute money in Hong Kong/Macau. That being said, without getting into actual numbers, it has holdings of at least 33% of all revenue in that principality - which, since it is the largest of the three banks that back the currency, it probably holds more than 33%. So, It can do whatever it wants and have absolutely no repercussions. It simply does business elsewhere to gain excess cash on hand. As a corp, it could care less about operations in the US - it currently holds almost all of its assets in Hong Kong, paying no taxes as it is technically, backed by the chinese government but yet has no oversight by the chinese and operates solely as its own entity.

In short. It doesnt need anyone else, therefore, we are left with a crappy corporation selling crappy products with no intention of making them better.

Please keep in mind that I have several accoutns with them, as well as 2 credit cards each with over 10k limit. I opened both of these while living in Egypt, and they are not US based cards, so that is why I still have them. If I had a US based card with them, I would most likely have kicked it to the curb many years ago.

Excellent analysis!

I have HSBC Hong Kong and also China credit cards and they are definitely prime -- very hard to get in fact. Yet in the US they are definitely subprime. Seems really strange.

The only reason why I'd even consider an HSBC US card is because it's cheap and easy to pay them from Hong Kong or China. Otherwise, I'd avoid them like I would one of the other scumcard operations like First Millenium.

Re: Discover: Alternative Offer ???

Anonymous — Tue, 26 May 2009 04:33:43 GMT

Personally I have been happy with my HSBC cards besides HSBC Discover. I was gonna close this crappy card but decided to wait until it gets close to 2 years. With my other HSBC cards my lowest CL is $3500 and I get a CLI every 4 Months. I thought I read somewhere that they were gonna get rid of that card.

Re: Discover: Alternative Offer ???

Anonymous — Tue, 26 May 2009 17:58:08 GMT

I've had the HSBC Discover (Direct Rewards) for almost 3 years. It's boring, in jeopardy of being kicked to the curb, and overall kind of bland -- but I keep it to help w/ util. It does have an AF. It started at 1k and now sits at 1.5k -- wheeee. I believe I rec'd a pre-app in the mail for the card. About 18 months after rec'ing this card, I cold app'd for a Discover More. I got it w/ a 1.1k line, increased w/ a hard to 3.5k at 7 months and then to 4.5k w/ a soft at a year.

~~I have another HSBC card -- Union Plus MC that I've had for 5.5 years. It started at 1.5k and is now at 6k, no AF.~~

Scratch that -- I just rec'd a letter in the mail today that they've closed my account. I called, elevated to a supervisor and was told I could reapply. I told him I would NEVER apply for another HSBC product. The closure letter cited:

DEROGATORY PUBLIC RECORD OR COLLECTION
DELINQUENCY

Uh huh.. Okay, back in 2004, you betcha.

Ironically, I also rec'd a letter in the mail from the HSBC Discover that my acct may have been compromised. Oh gee, fun. I think it might be time to close this acct, too.

Message Edited by WhirledPeasPlease on 05-26-2009 01:58 PM

Re: Discover: Alternative Offer ???

Underh20 — Tue, 26 May 2009 22:34:58 GMT

I called the number that was on the letter that Discover sent me concerning their counter-offer and fully expected the card would be an HSBC Discover. It wasn't.

After going through the security and identity verification process, they approved me for a normal Discover card, but the rate was slightly different from the one on the Website when I applied. Instead of the 10.9% (or whatever it was), I was offered a rate 3% higher, but everything else about the original offer remained the same. Since I have never not PIFed, they could put the rate at 1,000% for all I care. The important thing is that there is no annual fee.

The initial application was a hard pull from EQ, but when talking with the lady on the phone I get the distinct impression that while talking with her she also pulled EX and TU. I'll check Chase ID later on to verify.