topic Discover CLI Denial Questions in Credit Cards

Discover CLI Denial Questions

chwebb1 — Sat, 21 Dec 2013 18:38:23 GMT

Hello All,

I asked for a SP CLI on my Discover card to increase it to $2500. They denied me a request and sent me a letter. In the "Key Factors that affected your credit score" section, it included:

% of balance to credit limit too high on revolving accounts

Lack of recent installment loan information

On the % of balance to CL, my highest account is my Barclaycard Ring. The most I'll let that get to is $300/1000. I've read that Barclays likes to see 20-35% util for auto-CLI, and I'm going for that with them. All of my other accounts are well under 10%. I PIF Amex before the statement cut, and I let a $10 balance report on my Citi card. I'll also PIF Discover before statement cut. I don't use my BB&T card. Is it really grumbling that I'm using 30% on Barclays and the rest of my accounts are under 10%? Or could something else be generating that?

As far as the "Lack of recent installment loan", I've never had an installment loan. Would it be beneficial to me to look at getting one? I saw that DCU has a credit builder loan (https://www.dcu.org/loans/credit-builder.html). Should I look at getting that? I don't want to pay a higher APR than 8% no matter what I get since I have the Ring at 8%. Any thoughts on if it's necessary for me to get an installment loan?

Thanks in advance for the help.

EDIT:

According to CreditSecure, my total debt is $213, and my total limits are $13,800, leaving me with a 1% overall utilization.

Re: Discover CLI Denial Questions

09Lexie — Sat, 21 Dec 2013 18:57:16 GMT

I wouldn't pay too much attention to those canned reasons. Those are generic factors based on your CS. Discover is a more conservative lender and it's rare that they will meet cls based on your existing profile. They use their internal scoring to determine cls.

I would use your card, show a good PYT history and try again

Re: Discover CLI Denial Questions

Anonymous — Sat, 21 Dec 2013 19:19:31 GMT

Where did you read Barclayes likes to see 20-35% for auto CLI?

Re: Discover CLI Denial Questions

TravellingNomad — Sat, 21 Dec 2013 19:35:33 GMT

@09Lexie wrote:
I wouldn't pay too much attention to those canned reasons. Those are generic factors based on your CS. Discover is a more conservative lender and it's rare that they will meet cls based on your existing profile. They use their internal scoring to determine cls.

I would use your card, show a good PYT history and try again

i had my Discover card for over two years with a cl of $1.5K. i've had it where it was almost maxed out, carrying high balance, carrying low balance, and pif each month. then about a week ago i hit the luv button on their website to double my limit. the following day credit analyst called to ask some info and asked what i wanted the increase for. said for the balance transfer offer. then she started saying that she sees my perfect history with my Discover card. she also sounded off that she's glad to see that on all my credit cards i don't have any balance and the 2 that does have balances, i keep them low. she told me to just keep up the pattern and said she would approve me for a total cl of $5.5K.

so based on that conversation with the credit analyst, they like to see good payment record with their card.

Re: Discover CLI Denial Questions

FinStar — Sat, 21 Dec 2013 19:42:44 GMT

@09Lexie wrote:
I wouldn't pay too much attention to those canned reasons. Those are generic factors based on your CS. Discover is a more conservative lender and it's rare that they will meet cls based on your existing profile. They use their internal scoring to determine cls.

I would use your card, show a good PYT history and try again

Re: Discover CLI Denial Questions

B335is — Sat, 21 Dec 2013 22:07:12 GMT

@Anonymous wrote:
Where did you read Barclayes likes to see 20-35% for auto CLI?

It's lengthy, but you may want to read through this Barclays thread that contains tons of info with other myFico members experiences with Barclays:

Barclay CC Thread

In my own experience, their analysts have gone through my spending and balance patterns intricately when I've asked them to consider CLI or even recon a new card.

Re: Discover CLI Denial Questions

chwebb1 — Sat, 21 Dec 2013 23:55:35 GMT

@Anonymous wrote:
Where did you read Barclayes likes to see 20-35% for auto CLI?

It was actually on the Ring community site. It was in a blog post that was posted by one of Barclays employees.

Re: Discover CLI Denial Questions

Anonymous — Sun, 22 Dec 2013 02:41:35 GMT

Discover is kind of weird because they don't like it when customers ask for CLI. In my experience, they will denie your request and then auto CLI in a month or two.

Re: Discover CLI Denial Questions

chwebb1 — Sun, 22 Dec 2013 08:41:05 GMT

So you guys wouldn't look at getting an installment loan to try to make them happier?

Re: Discover CLI Denial Questions

longtime_lurker — Sun, 22 Dec 2013 08:46:18 GMT

I think your FICO (and clearly their internal scoring scale) is knocking your score down for not having one (10% types of credit for FICO). I don't know about DCU, but MSUFCU gives low interest rates on personal "signature loans", plus you prepay whatever you want and they just bump your due date by how ever many payments you put ahead...I know someone who took out 1,500 and the next day paid 1499 and left $1 to keep it open...but MSUFCU is SP happy, and will use previous HP's within 180 days so it was worth it for him.

IMO, I would see if DCU has

@chwebb1 wrote:
So you guys wouldn't look at getting an installment loan to try to make them happier?

prepayment penalties.

Re: Discover CLI Denial Questions

chwebb1 — Sun, 22 Dec 2013 09:00:02 GMT

@longtime_lurker wrote:
I think your FICO (and clearly their internal scoring scale) is knocking your score down for not having one (10% types of credit for FICO). I don't know about DCU, but MSUFCU gives low interest rates on personal "signature loans", plus you prepay whatever you want and they just bump your due date by how ever many payments you put ahead...I know someone who took out 1,500 and the next day paid 1499 and left $1 to keep it open...but MSUFCU is SP happy, and will use previous HP's within 180 days so it was worth it for him.

IMO, I would see if DCU has
@chwebb1 wrote:
So you guys wouldn't look at getting an installment loan to try to make them happier?

prepayment penalties.

Another stupid question. Does a store card count differently in FICO scoring than a credit card from a major bank (Amex, Discover, Barclays, Citi etc)? I've not been able to find a definitive answer for that. I've never had a store card, and I have considered getting a Target RedCard. But I'm not sure if it is necessary. If it wouldn't help my FICO, I probably won't do it.

Re: Discover CLI Denial Questions

daybreakgonesXe — Sun, 22 Dec 2013 09:07:45 GMT

@chwebb1 wrote:
@longtime_lurker wrote:
I think your FICO (and clearly their internal scoring scale) is knocking your score down for not having one (10% types of credit for FICO). I don't know about DCU, but MSUFCU gives low interest rates on personal "signature loans", plus you prepay whatever you want and they just bump your due date by how ever many payments you put ahead...I know someone who took out 1,500 and the next day paid 1499 and left $1 to keep it open...but MSUFCU is SP happy, and will use previous HP's within 180 days so it was worth it for him.

IMO, I would see if DCU has
@chwebb1 wrote:
So you guys wouldn't look at getting an installment loan to try to make them happier?

prepayment penalties.
Another stupid question. Does a store card count differently in FICO scoring than a credit card from a major bank (Amex, Discover, Barclays, Citi etc)? I've not been able to find a definitive answer for that. I've never had a store card, and I have considered getting a Target RedCard. But I'm not sure if it is necessary. If it wouldn't help my FICO, I probably won't do it.

Supposedly, it does help, but many have reported not that big of a score jump because of it. It may give you an extra 1-3 points to have a "store card" as opposed to "revolving" account, but nothing major. That part of the FICO scoring does not count much toward your score, compared to some other categories.

Re: Discover CLI Denial Questions

longtime_lurker — Sun, 22 Dec 2013 09:07:43 GMT

I believe it does, although I'm not sure.

This being said, all of my revolving accounts are in my siggy, and with an AAoA of 11 mo, 5 INQs (2 counting for score at time), and 2% util, Amex pulled a 762 EX FICO on me, so if it does, I don't think it hurts much. I don't see a lot of value in store cards - in fact I feel that if I opened one, I would become reckless and spend more than I was originally going to. I will add, however, that I have a student loan in deferrment (an installment loan), and then 3 personal loans paid as well.

I also don't think opening an account that you won't use for the sole purpose of helping your FICO is the best move - my friend and I'm sure many others have, but I see little point in having a credit line that served no purpose. Just my .02

Re: Discover CLI Denial Questions

Anonymous — Sun, 22 Dec 2013 09:23:14 GMT

@chwebb1 wrote:
So you guys wouldn't look at getting an installment loan to try to make them happier?

I absolutely would NOT add more debt to my finances just to get a CLI! You are currently gardening for nearly another year - That is good time for you to figure out what helps your CCs grow for you. Some people get auto CLs from Discover pretty regularly - the rest of us have to plead and take HPs and such. I fall in the latter category with my increases coming only when I told them I wanted to make large BTs. I have decided that CLI are not worth HPs - especially as they are a matter of want more so than need. Like a lot of others - I am learning to favor the cards I get the most reward out of - whether that means an auto CLI or some cashback or points - etc.

As for Barclay - Of all of the banks I have been with that I have asked to consider CLIs - (Cap 1, HSBC, Discover, Barclay) Barclay has been THE BEST! In fact, other than asking for a couple before I even got my first Barclay card nearly 2 years ago, I do not bother even asking; they have come automatically at about every 6 months. Discover and Barclay are the only two banks on that list that I deal with now - the others being new accounts - Citi - Chase - and a CU, and once again - I am not bothering to ask for CLIs, I will just make greater use of any card that serves my needs in given situations. Also, as frustrating as it can be to wait on auto CLI's or soft pull CLI's, I think doing so is the best way to see for yourself what it takes to get them on each account.

I think some of the replies in this thread speak to what I am saying - You just have to find out for yourself - I do not think there is one surfire formula to securing CLIs from a bank - http://ficoforums.myfico.com/t5/Credit-Cards/Discover-CLI-always-a-HP/td-p/2667353

Re: Discover CLI Denial Questions

chwebb1 — Sun, 22 Dec 2013 09:33:51 GMT

@Anonymous wrote:
@chwebb1 wrote:
So you guys wouldn't look at getting an installment loan to try to make them happier?
I absolutely would NOT add more debt to my finances just to get a CLI! You are currently gardening for nearly another year - That is good time for you to figure out what helps your CCs grow for you. Some people get auto CLs from Discover pretty regularly - the rest of us have to plead and take HPs and such. I fall in the latter category with my increases coming only when I told them I wanted to make large BTs. I have decided that CLI are not worth HPs - especially as they are a matter of want more so than need. Like a lot of others - I am learning to favor the cards I get the most reward out of - whether that means an auto CLI or some cashback or points - etc.

As for Barclay - Of all of the banks I have been with that I have asked to consider CLIs - (Cap 1, HSBC, Discover, Barclay) Barclay has been THE BEST! In fact, other than asking for a couple before I even got my first Barclay card nearly 2 years ago, I do not bother even asking; they have come automatically at about every 6 months. Discover and Barclay are the only two banks on that list that I deal with now - the others being new accounts - Citi - Chase - and a CU, and once again - I am not bothering to ask for CLIs, I will just make greater use of any card that serves my needs in given situations. Also, as frustrating as it can be to wait on auto CLI's or soft pull CLI's, I think doing so is the best way to see for yourself what it takes to get them on each account.

I think some of the replies in this thread speak to what I am saying - You just have to find out for yourself - I do not think there is one surfire formula to securing CLIs from a bank - http://ficoforums.myfico.com/t5/Credit-Cards/Discover-CLI-always-a-HP/td-p/2667353

You're right. It's dumb to pay interest to make Discover happy. I just wish I could use their card more. I like the rewards and customer service. Paying it multiple times per month is rather obnoxious, so I just use my Amex and Citi since they gave me reasonable CLs for my purposes. If I could get the CL up to at least $3000, I'd definitely use it a lot more. Their loss, I guess. I currently just use it for the bonus categories.