topic Re: Is Discover Like Cap 1? in Credit Cards

Is Discover Like Cap 1?

MarkintheHV — Sun, 19 Sep 2021 21:30:43 GMT

I know Cap1 seems to hold credit lines to a certain limit if you got the card with less than perfect credit, even after your credit improves they wont break that ceiling (I know I have one stuck at $7.5k and they will not increase it for anything).

I had a discover card that had an initial credit line of $5.5 (still had my BKs on it) and even though I ran everything through that card, and pif every month, they would not give me a CLI. Does anyone know if Discover limits your cli based on your credit report when you got the card, or will they recognize improved credit and CLI based on that? I am wondering if I should apply for another discover card since my BKs are gone from all my reports? My other cards have CLs between 18k-35k.

Re: Is Discover Like Cap 1?

CreditCuriosity — Sun, 19 Sep 2021 21:33:39 GMT

Discover tends to not bucket near as much as Cap1 on their cards being they will grow with tainted credit when approved with spend and time. Cap1 will grow as well, just alot more slow.

Re: Is Discover Like Cap 1?

JNA1 — Sun, 19 Sep 2021 22:21:16 GMT

I have had a Discover It card since 11/18 (my first major card) that was stuck at the $5500SL until earlier this month when they gave me a $1500 CLI to $7000. I ran almost $40K through my card in the first year and have perfect payment history on it. I'm in the same boat as you being that my oldest card is my lowest limit card.

It's been my experience that Discover does seem to bucket cards for some people, although a lot of people never saw that with their cards. The code I got for more than 2 years was "not enough experience at current credit line". I SD'd the card for months and the reason changed to "Not enough use in current month(s)." I made a fairly large purchase to take advantage of 5% PayPal quarter and let it report with a little over $1000 on it. I asked a few weeks ago, and they finally granted me the $1500 CLI. They recently gave me a 0% for 12 offer, so I'm going to stretch out this balance into payments, so hopefully I'll get another in a few months.

Re: Is Discover Like Cap 1?

SoCalGardener — Sun, 19 Sep 2021 22:40:25 GMT

@MarkintheHV wrote:
I know Cap1 seems to hold credit lines to a certain limit if you got the card with less than perfect credit, even after your credit improves they wont break that ceiling (I know I have one stuck at $7.5k and they will not increase it for anything).

I had a discover card that had an initial credit line of $5.5 (still had my BKs on it) and even though I ran everything through that card, and pif every month, they would not give me a CLI. Does anyone know if Discover limits your cli based on your credit report when you got the card, or will they recognize improved credit and CLI based on that? I am wondering if I should apply for another discover card since my BKs are gone from all my reports? My other cards have CLs between 18k-35k.

Based on my experience, they do recognize improved credit and grant CLI requests. I've written about my Discover card numerous times; here's the short version: I inherited it from my mom; they transferred it to my name when she died; because my credit wasn't great at the time, they had to dramatically cut the CL my mom had. That was in 2013.

My scores these days range from the very high 700s to the high 820s (depending on balances I'm carrying).

Somewhere along the line they spontaneously increased my CL, and then it just sat there. Every time I hit the love button and tried to get a CLI, I was immediately denied. I even wrote a thread about it! Then, like magic, three days after posting my thread, I hit the love button and got a nice CLI. It's still not as high as the original limit, but at least it's back in 5 figures. So, yes, it's definitely possible.

Re: Is Discover Like Cap 1?

Grizzly1 — Mon, 20 Sep 2021 12:56:55 GMT

My Discover Chrome is basically bucketed even though I spend quite a bit with it and pay everything off right away. My score on my first statement in 2019 was 554 and in that time has gone up to 662. I've hit the love button at least a million times and every time I've been denied, each time a different reason listed in the following letter.

Re: Is Discover Like Cap 1?

JL276 — Mon, 20 Sep 2021 14:10:35 GMT

Disco can bucket a card but I would guess it's more rare than Cap 1. My old roommate from college had a disco $1,250 limit, after 5 years he got a CLI. Disco was his first card at 18 and his scores were low.

Although it wasn't a secured card, they didn't even offer him the 0% BT offer for a year (with that low limit it would have been useless) and he got the highest APR.

He was approved for 8k on his 2nd Disco and got regular increases and lowest APR. No increases on his first and they would only lower his APR on it by half a point at a time. Buckets happen, it seemed time helped more than score improvements or spend in his case.

Re: Is Discover Like Cap 1?

KJinNC — Mon, 20 Sep 2021 18:32:32 GMT

We know that Cap One buckets.

What Discover does is not knowable or comprehensible by mankind.

Discover will give you a CLI or they won't. Other than paying your bills on time, there is no community understanding of why they do or do not grant CLIs and how they arrive at CLI amounts.

This does not mean they won't give a CLI, just that there's no way of predicting. On the bright side, you can request it any time, and it's SP. Good luck!

Re: Is Discover Like Cap 1?

MeN5 — Mon, 20 Sep 2021 19:16:26 GMT

I feel like they have put my card in a bucket since it started as secured my credit is over 100 pts higher perfect history and still I get little to no increase but I claiming it next increase will substantially higher or I'm going to close it and move on!

Re: Is Discover Like Cap 1?

FireMedic1 — Mon, 20 Sep 2021 20:49:04 GMT

If Discover loves you. You got it made. They are very jealous. Use them before all others especially during a reuild and she opens the door. So yes Disco beats Cappy. Especially when it comes to CLI's. Cap1 is stuck with many at $100 recently.

Re: Is Discover Like Cap 1?

joltdude — Tue, 21 Sep 2021 00:40:40 GMT

Discover like Cap One uses ABS (Asset-Backed Securities) ... i.e.. Bucketing.. but for Miss Disco, it seems there are more soft limits than hard limits... meaning you can usually get out of the bucket eventually given scores and time... And as others have already said, put her in the front of the line for use during a rebuild .... seems to be jealous of others ... theres some truth to the it moniker... they want to be a daily driver... Its what got me to the overly generous limit i have today.. (in my case it was building vs rebuilding credit )

https://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Card-Asset-Backed-Securities-ABS-and-why-some-subprime/td-p/5083619

-J

Re: Is Discover Like Cap 1?

Taurus22 — Tue, 21 Sep 2021 02:06:01 GMT

And just to add to Option #2.....if you feel a level of inconsolable impatience, and have a HP to spare, ( as long as it's been a year between) you could open that 2nd Discover, get an additional year of Cashback Match, then afterward merge the 2 cards into a single larger CL. That way you get extra rewards and that CLI you're wanting, indirectly. Just sayin'....

Re: Is Discover Like Cap 1?

Anonymous — Tue, 21 Sep 2021 03:45:13 GMT

If your CL at Capital One is at $7,500 then you are not bucketed. There is something on your CR that is holding you back from getting an increase at Capital One. It could be a large CL at another bank etc. Instead of trying for a CLI at Capital One you stand a much better chance at just getting a new card from them with no AF.

Thanks

Mark

Re: Is Discover Like Cap 1?

Anonymous — Sat, 25 Sep 2021 02:01:41 GMT

I started with my IT card in 2017 at $1600 and sat there until late 2020. I changed careers to enjoy my life, but took a $70k salary cut. That said to say my ability to PIF changed. My first CLI was $500 in late 2020/early 2021, then another $500 a couple months following. Just last week, in a fit of insomnia, I decided to hit the button and got a $2k increase to $4600. I keep getting balance transfer offers, but don't have a need for them.

I should add that my personal finances have changed drastically - I went from 30+% util. to 0-1%. Discover now has a higher limit than Cap1 QS1 that has had auto CLI. I pushed the love button with Cap1 yesterday after my last statement and was approved for $500 increase on my $3650 CL. I declined. Disco seems to grant a CLI every 2 months. Cap1 every 6.

Re: Is Discover Like Cap 1?

Anonymous — Sat, 25 Sep 2021 02:05:35 GMT

I should also add that I have been utilizing the categories every quarter. I maxed my cash back for the current quarter sometime in late August. I've PIF'd for at least 10-12 months now, while maxing out the categories. Oct-Dec is Amazon, Walmart.com, and Target.com. Amazon alone could be max'd in my sleep and I'll hit the button again in November.