topic Re: Can't request a CLI if you're under 21. in Credit Cards

Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 20:27:00 GMT

So I found out something interesting today. I always was given the option to request a CLI online since I opened my account, recently however, I saw I know no longer had the option. I called to see why this was and was informed that Discover had a recent policy change where you cannot request a CLI if you're under 21, period. They said they still do periodic reviews and can receive an auto CLI, but unless you're over 21 you can't actually request one whether it be online through your account, chat, or phone.

Anyone else heard of this recent change? I think it's a bit stupid (just turned 20).

EDIT: Apparently this is a new federal regulation not affecting just Discover. They said the only way to submit a CLI request would be to send a physical letter containing the request.

What I don't get, however, is that for new accounts, "writing" refers to mailing in a physical paper app OR submitting an app online. For some reason CLIs are only with physical letters though, online requests don't count.

The Discover phone rep even agreed it didn't make much sense, but assured me they're working on a way to fulfill CLI requests by other means than mailing a physical letter.

Re: Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 20:38:28 GMT

@Anonymous wrote:
So I found out something interesting today. I always was given the option to request a CLI online since I opened my account, recently however, I saw I know no longer had the option. I called to see why this was and was informed that Discover had a recent policy change where you cannot request a CLI if you're under 21, period. They said they still do periodic reviews and can receive an auto CLI, but unless you're over 21 you can't actually request one whether it be online through your account, chat, or phone.

Anyone else heard of this recent change? I think it's a bit stupid (just turned 20).

EDIT: Apparently this is a new federal regulation not affecting just Discover. They said the only way to submit a CLI request would be to send a physical letter containing the request.

What I don't get, however, is that for new accounts, "writing" refers to mailing in a physical paper app OR submitting an app online. For some reason CLIs are only with physical letters though, online requests don't count.

The Discover phone rep even agreed it didn't make much sense, but assured me they're working on a way to fulfill CLI requests by other means than mailing a physical letter.

I'm under 21 and discover has given me 3 CLI's. 2 of them were auto, and the last one I went from 1250 to 5000. HP of course... Citi has given me a CLI, along with Chase. I would call back and see if another rep has a different answer...

Re: Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 20:47:59 GMT

I receive this message from ge on my home design and brand smart account. However, no one else has ever said that to me. I I'm 20 and ge raised my Lowes card to 5k after approval.

Bofa however told me they needed a written request (could be done online).

Re: Can't request a CLI if you're under 21.

Jlu — Tue, 04 Sep 2012 20:50:58 GMT

And how is this legislation going to help and/or protect consumers? By limiting the credit of young people so that they cannot learn to handle large lines of credit extended to them based on their income & history? This is why I hate the nanny state this country has become lately. Let the free market decide what amount to extend to an individual or business.

Re: Can't request a CLI if you're under 21.

DaveSignal — Tue, 04 Sep 2012 21:01:57 GMT

It sounds reasonable to me. People under 21 generally don't make much money, don't have much credit history, aren't really settled down anywhere yet, and can easily get into trouble and destory their future for 7-10 years. Of course, this does not apply to everyone, but I am sure it is safer for most lenders and most 18 year-olds.

Re: Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 21:39:47 GMT

@Jlu wrote:
And how is this legislation going to help and/or protect consumers? By limiting the credit of young people so that they cannot learn to handle large lines of credit extended to them based on their income & history? This is why I hate the nanny state this country has become lately. Let the free market decide what amount to extend to an individual or business.

+1. Couldn't agree more. The Government has no business preventing qualified individuals from obtaining additional credit, especially on the basis of age alone.

Edit-Just my 2 cents.Everyone is entitled to their own opinion about the regulatory role of government in the credit world, of course.

Re: Can't request a CLI if you're under 21.

jamie123 — Tue, 04 Sep 2012 21:43:27 GMT

Quit with the free market bs already. We did have the free market and the CC companies destroyed many young peoples credit year after year. They loaned them more money than they could ever repay and many young people had ruined credit for years because of it. That is a fact. That was what happened in the free market.

The government isn't stopping you from getting credit, or the amount of credit you get. They are just ensuring that you aren't being preyed upon by the lenders.

I kind of like how the free market works in keeping young people off the road though. How do you guys like paying your sky high auto insurance rates?

Re: Can't request a CLI if you're under 21.

ajh5408 — Tue, 04 Sep 2012 22:11:48 GMT

This is simply false. The only case in which someone under 21 would need to submit a written request for a credit limit increase is if there is a cosigner on the account, and the cosigner is the one who has to agree to it in writing. Seems perfectly reasonable to me that if you get a credit card where someone else (likely a parent) is jointly liable, they should have to approve any increase to the credit limit.

CC companies (and their CSRs) using the CARD Act as an excuse/punching bag is nothing new.

Re: Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 22:16:26 GMT

For the record, I would like to prefice everything I am about to say by stating that I am 23. Accordingly, this legislation has no bearing on me either way.

I kind of figured that there would be a negative backlash to what I said which is why I edited the contents of my earlier post. I understand why the card act is in place, as well as the fact that the people it is intended to help are generally not the type of people who post on these forums. Generally speaking, most people on here are not being preyed upon

I also understand that many (but not all) people who post on these forums have had credit issues in the past, and for various reasons. For many of these individuals, these issues most likely transpired in early adulthood. For this reason, many posters on this forum support support card act type legislation, which theoretically would help prevent young individuals from making mistakes that many people on these forums have already made in the past. I get it, I really do.I just think it should be up to the individual to succeed or fail based on their own decisions.

The card act has also had a negative effect on many people, particularly people on these forums. For example, I've seen alot of people who have tried to pc to higher AF amex cards on these forums, only to betold by amex that they cannot do so for 12 months due to card act legislation

In a nutshell, I think this is why the card act is such a polarizing issue, particularly on these boards given the dichotomy between posters on these types of forums that I've discusssed above

@jamie123 wrote:
Quit with the free market bs already. We did have the free market and the CC companies destroyed many young peoples credit year after year. They loaned them more money than they could ever repay and many young people had ruined credit for years because of it. That is a fact. That was what happened in the free market.

The government isn't stopping you from getting credit, or the amount of credit you get. They are just ensuring that you aren't being preyed upon by the lenders.

I kind of like how the free market works in keeping young people off the road though. How do you guys like paying your sky high auto insurance rates?

Re: Can't request a CLI if you're under 21.

Jlu — Tue, 04 Sep 2012 22:32:41 GMT

@jamie123 wrote:
Quit with the free market bs already.

People with this point of view should be required to read the literary works of Friedrich Hayek before being allowed to state such socialistic statements.

If you're in the US you should consider moving to China, North Korea or Cuba where they share your opinion.

Re: Can't request a CLI if you're under 21.

Anonymous — Tue, 04 Sep 2012 22:40:28 GMT

Just for clarification: Those saying they have gotten CLIs from Discover or other CCCs in the past has no relevance to this discussion. After speaking with several CSRs at Discover, this is apparently a very new regulation they have to follow. If you received a CLI a month ago, great, but that doesn't add anything to this thread.

I spoke with numerous phone and chat reps and all gave me identical answers (not copy and paste responses), which leads me to believe this is real and accurate and not just one CSR not having a clue.

If you're under 21 and want to open a new account, you have to apply via a paper mail app or online for Discover. You cannot app over the phone.

If you're under 21 and want a CLI, you have to submit your request in writing, period.

If you're over 21, you can do either of the two above without any restrictions, online, phone, mail, etc.

EDIT: Please note other CCCs may be different. Apparently Discover said "written request" can encompass online requests, however, for them supposedly, they online CLI request option doesn't fall under that, so currently they cannot offer it. Other CCCs may fulfill the written requirement and still allow those under 21 to submit a CLI request online. You cannot do them over the phone though.

If you want to test, call Discover or any other CCC if you're under 21 and ask for a CLI, they'll tell you they can't do it over the phone.

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 01:11:47 GMT

Wow I have never seen this one... So you can fight for your country, die for your country ? Can't drink a beer ? Or ask for a CLI ?

the means by which that are asking people under 21 to do this is kinda idk 1990's I am sure in no time they will reword the online CLI to become written request tho... All online apps for new credit ARE written request ...

Laissez-faire

I don't think the government should be doing this... Well I can agree I think some CCC can pray on ALL card members. They don't hurt people... Or young people, young people hurt them self. Knowing that just BC your CL is 10,000 and knowing what you can pay back or 1000 for that matter. CCC offer a chance to all of us to build something to help us get more favorable terms or larger and larger purchases cars and homes... If the government wants to limit the risk of young people make a course in school about credit and apply it nation wide... I mean I think having younger people JUST read the forums here would BE much more effective then just limited CLI to written request.

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 03:16:45 GMT

@jamie123 wrote:
Quit with the free market bs already. We did have the free market and the CC companies destroyed many young peoples credit year after year. They loaned them more money than they could ever repay and many young people had ruined credit for years because of it. That is a fact. That was what happened in the free market.

The government isn't stopping you from getting credit, or the amount of credit you get. They are just ensuring that you aren't being preyed upon by the lenders.

I kind of like how the free market works in keeping young people off the road though. How do you guys like paying your sky high auto insurance rates?

The truth is none of the credit card companies that lended credit swiped those cards for them. A 50 year old can put themselves into the same debt a 20 year old can. That is what happens when you spend money you do not have the ability to pay back no matter what the circumstance is. But, just because the bank gave you the credit line did not mean you had to max it out. I think we learned in the 2nd grade numbers can go negative if you subtract more than you have.

As for auto insurance, I never minded working a part time job to pay for my auto insurance. It allowed me to make a living, go to school to educate myself, and become an independent adult. I've worked ever since I was 11 years old, saved a lot of money and even ended up purchasing a home because of it at the age of 25 (50% downpayment).

The fact is, people who are responsible with money and credit lines they are given will never have an issue no matter how much credit is given. Those that are not responsible financially... well they dig a deep hole. BUDGET BUDGET BUDGET!!!!!!

Re: Can't request a CLI if you're under 21.

Jlu — Wed, 05 Sep 2012 03:24:58 GMT

^+1,000,000,000,000,000

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 04:13:30 GMT

I guess this new "regulation" was put in to place after Saturday.......

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 04:15:29 GMT

@Anonymous wrote:
I guess this new "regulation" was put in to place after Saturday.......

Did you try for another CLI, MGTR?

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 04:18:01 GMT

I called Saturday with a number a chat representative gave me and did a soft pull CLI. Of course it came back needing more information. But again, they allowed me to do it... On the other hand, American Express wouldn't allow me to apply over the phone because I wasnt 21...this was awhile ago.

Re: Can't request a CLI if you're under 21.

jamie123 — Wed, 05 Sep 2012 04:18:04 GMT

So following your line of reasoning these other things should be allowed:

Smoking anywhere you want.

Driving without seat belts.

Selling cars without air bags or safety standards.

Kids riding in cars unrestrained.

Driving without insurance.

Etc, etc, etc.

The government steps in when enough people get hurt and the free market stops working for the best interests of society as a whole.

Do we all have to be hurt in an auto accident before the government mandates air bags and seat belts?

Finances are the same. Banks and other financial institutions have been regulated since the Great Depression. (Bank Caused) Look what the banks did to us in 2006-2008 with the Great Recession. (Bank Caused.) That's what happens when you loosen their regulations a bit too much. The free market worked real well in 2006-2008 with the banks didn't it? As long as you could breathe you could get a mortgage. Don't you think the entire American economy was affected by banks lending money they shouldn't have?

Re: Can't request a CLI if you're under 21.

Anonymous — Wed, 05 Sep 2012 04:28:46 GMT

@jamie123 wrote:
So following your line of reasoning these other things should be allowed:

Smoking anywhere you want.

Driving without seat belts.

Selling cars without air bags or safety standards.

Kids riding in cars unrestrained.

Driving without insurance.

Etc, etc, etc.

The government steps in when enough people get hurt and the free market stops working for the best interests of society as a whole.

Do we all have to be hurt in an auto accident before the government mandates air bags and seat belts?

Finances are the same. Banks and other financial institutions have been regulated since the Great Depression. (Bank Caused) Look what the banks did to us in 2006-2008 with the Great Recession. (Bank Caused.) That's what happens when you loosen their regulations a bit too much. The free market worked real well in 2006-2008 with the banks didn't it? As long as you could breathe you could get a mortgage. Don't you think the entire American economy was affected by banks lending money they shouldn't have?

Please forgive me if this comes off as a bit obtuse, but what does any of the above have to do with not being able to request a cli if one is under the age of 21?

Re: Can't request a CLI if you're under 21.

jamie123 — Wed, 05 Sep 2012 04:49:56 GMT

Nobody said you couldn't request a CLI. You just have to do it by mail.

Do you think somebody might want to put a damper on an impulsive decision by a teenager?

How about this scenario?

4 students sitting in a dorm trying to figure out where they are going to go out on a Saturday night because they don't have enough money. One of them says, "Hey I'll just try getting a CLI on my card! Bingo it worked! Time to party!" (Wow, that was a bad credit decision.)(Next month...Mom, Dad I need some money!)

That scenario will not work now. They will have to plan a little further ahead! A few years ago you didn't have to worry about this happening because nobody could get CLI inside of 60 seconds.

Some regulations are put in place to protect society as whole. When students default on their credit cards it affects society as a whole. It is actually very similar to the mortgage crisis the banks lent us into. We did it to ourselves but they were more than happy to sell us the ammunition.