topic Re: Is Discover entering the sub-prime world? in Credit Cards

Is Discover entering the sub-prime world?

unknown_entity — Sat, 29 Mar 2008 00:00:59 GMT

This site would lead one to believe that a Discover card can be had by most anyone. This was posted on a thread before so here is the link...(you can change the name of the card in the address and get different Discover cards to view.) Notice the credit levels like Cap One has. I looked at all the tabs and the rates and fees increase with the "lower tier" cards.

http://www.discovercard.com/motiva/rates.html

Re: Is Discover entering the sub-prime world?

unknown_entity — Sat, 29 Mar 2008 00:08:03 GMT

If anyone tries the "needs improvement" or "I don't know" catagory and gets approved, please let us know. The "I don't know" catagory seems to have lower fees and the button says "apply at these rates".

Message Edited by unknown_entity on 03-28-2008 08:08 PM

Re: Is Discover entering the sub-prime world?

haulingthescoreup — Sat, 29 Mar 2008 00:16:43 GMT

This site got kicked around several months ago; thanks for bringing it back!

I'm really skeptical that you could get a true Discover card with these lower scores. But Discover does have a business relationship with HSBC, and if you apply for a Discover and are declined, you will be offered the HSBC ("Direct Rewards") Discover card instead.

If the presence of the "needs improvement" category is a way of sucking in consumers who will then be shunted to the back-up card, then I'm pretty disappointed in Discover!

Re: Is Discover entering the sub-prime world?

unknown_entity — Sat, 29 Mar 2008 01:18:57 GMT

Yeah, now that you say that, I can see what they do...they turn you into HSBC bait.

Re: Is Discover entering the sub-prime world?

fused — Sat, 29 Mar 2008 02:56:11 GMT

Ah yes! The old bait-and-fry!

Re: Is Discover entering the sub-prime world?

FICOfit — Sat, 29 Mar 2008 03:03:04 GMT

I got a true Discover More card with my scores (in siggy below). Not a huge CL, but a true Discover, nonetheless. I have discussed this in the "Discover" thread.

Re: Is Discover entering the sub-prime world?

fused — Sat, 29 Mar 2008 03:04:34 GMT

argonne wrote:

I got a true Discover More card with my scores (in siggy below). Not a huge CL, but a true Discover, nonetheless. I have discussed this in the "Discover" thread.

Having a true Discover card helps complete any CC portfolio.

Re: Is Discover entering the sub-prime world?

unknown_entity — Sat, 29 Mar 2008 03:21:24 GMT

I might get approved with my present scores but I think I'm gonna wait for a bit.

Re: Is Discover entering the sub-prime world?

haulingthescoreup — Sat, 29 Mar 2008 03:32:22 GMT

I really, really like holding off until I KNOW that they want me. That way, if something goes wrong, I can tell myself, "Well, those idiots!"

Re: Is Discover entering the sub-prime world?

Anonymous — Sat, 29 Mar 2008 14:20:00 GMT

Maybe Discover is actually LOOKING at what's in the cr, you think?

I applied for a Discover in July 2007, with higher scores than I have now. Only back then I had 3 med collections and a charge off. And I was declined then. After cleaning up the cr's by getting the 3 ca's and the c/o deleted, the cr looked a lot better & I applied early this month and was approved as well.

Just an observation. Funny thing is that last July they pulled EXP...this time they pulled TU.

Re: Is Discover entering the sub-prime world?

Anonymous — Thu, 03 Apr 2008 03:03:13 GMT

I took the bait even though I figured I would be offered an HSBC. And of course I was ... A Direct Rewards with only a 300.00 and an annual fee of $59.00. Now as an aside, I do in fact have 3 HSBC cards including one MC, one Disc Network and one Orchard! I know this discussion comes up alot about how many HSBC cards you can have.

I will call HSBC tomorrow and ask them to add that 300.00 limit to my othe Disc Network. They did it for me that last time I got that scrawny 300.00 limit. I had to fight to get the 59.00 annual fee removed. At this point, I will gladly take the additional credit line and just pay the 59.00 to avoid the headache I got the last time fighting with them. If they combine the limits, it will make it all the more easier to ditch Orchard a month before their annual fee is due this summer.

Hell even though it is 11 here, I think I will just give them a call right now and get it over with.

Message Edited by RecoveringMyLife on 04-02-2008 08:03 PM

Re: Is Discover entering the sub-prime world?

Heavy-Handed — Thu, 03 Apr 2008 05:40:55 GMT

Appd for Discover More after receiving an invite via mail - declined but approved for HSBC's Direct Rewards Plat Discover - CL $2,500 with 16.99% APR and no annual fee

Re: Is Discover entering the sub-prime world?

Anonymous — Thu, 03 Apr 2008 05:55:08 GMT

Heavy-Handed wrote:
Appd for Discover More after receiving an invite via mail - declined but approved for HSBC's Direct Rewards Plat Discover - CL $2,500 with 16.99% APR and no annual fee

Holy cow that's a high CL for that card!! Congrats!!!

Re: Is Discover entering the sub-prime world?

Anonymous — Thu, 03 Apr 2008 15:40:29 GMT

That's what I thought too Peas when I read that.

Congrats H.H. !

Re: Is Discover entering the sub-prime world?

jackg — Thu, 03 Apr 2008 16:18:19 GMT

Heavy-handed,

I too rcvd. in the mail an invite for the More card, I applied on line and was told that I qualified for the Direct Rewards, did I want it? I said OK.

About a week later I rcvd the card with a $5,000 CL and it's being reported to the CRA's by "Direct Merchants Bank", can anyone explain that?

Re: Is Discover entering the sub-prime world?

Anonymous — Thu, 03 Apr 2008 16:53:09 GMT

Maybe HSBC and D.M.B. is paying Discover to forward apps to them that don't meet Discover's criteria? Just a theory

Re: Is Discover entering the sub-prime world?

ficonovice — Thu, 03 Apr 2008 17:14:10 GMT

Discover like most cards offers just about something for everyone (one way or the other). I've always been amused that Discover is considered very prime here. I know it wasn't always considered a good card and in my mind it's still on the fringes of prime. Nowhere near Chase, Citi or BOA....but I know many of you here will respectfully disagree..

Regarding Direct Merchants Bank, I got the card when my scores were low and the card was (and still is) reasonable. Several CLI's and no problems at all with them. Mine now has a cl of $5,500 (started with $500). I have a 0 balance and don't use it anymore, but it's a good card that will grow with you...

Re: Is Discover entering the sub-prime world?

NICKI183 — Sun, 06 Apr 2008 22:29:39 GMT

I too have the Discover Direct Rewards card w/a $300 CL. I felt a little jittery and applied again at the Discover website and got. ' Your approved for a Discover Direct Rewards Card" It stated that it was a limited offer and there would be no more credit checks and the only thing I had to do with selectYES at the bottom. It also said the card would come next week. Odd.

Now I am going to have two Direct Rewards Cards. I will wait and try at the end of this year to see if Discover likes me yet! LOL

Re: Is Discover entering the sub-prime world?

haulingthescoreup — Sun, 06 Apr 2008 22:34:11 GMT

@jackg wrote:

Heavy-handed,

I too rcvd. in the mail an invite for the More card, I applied on line and was told that I qualified for the Direct Rewards, did I want it? I said OK.
About a week later I rcvd the card with a $5,000 CL and it's being reported to the CRA's by "Direct Merchants Bank", can anyone explain that?

jackg, if you got that good of a CL on the HSBC Discover, I'm surprised that you didn't get the real thing!

But my understanding is that the HSBC Discover reports as Direct Merchants Bank. Can you tell on the fine print of your T&C who the issuing bank really is? (My guess is that it's HSBC.)

Re: Is Discover entering the sub-prime world?

Heavy-Handed — Mon, 07 Apr 2008 02:47:30 GMT

Nice CL there JackG. I'm happy with my $2,500 CL with 0% BT for 10 months and a 16.99% APR. I know there are many out there with a genuine Discover product with under $2.5k CL and marginal BT rates.

HSBC appears to have different tier levels for this product. I've read some folks get approved with a $59 AF no BT offers and higher APR's.