Any solution for Discover not allowing CLI?

[FinStar]

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@Anonymous wrote:

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@FinStar wrote:

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@Anonymous wrote:

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@FinStar wrote:

It appears you're already doing some positive things with the card by placing the majority of the spend on it so it's likely just a matter of time.  This card is fairly young given you just received this less than 6 months ago?  Now, some accounts can qualify for a CLI after 90 days but not all accounts do - it's all profile driven.  There's a reason that Discover may have started out that low from the get-go.  Some folks may get impatient and go for a HP CLI (since that's always an option), but what is often seen for accounts with similar CLs is not a very good outcome (i.e. maybe another $500 extra?) so the HP may not be worth it.

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Thanks for your response, Fin.

I completely agree that a HP wouldn't be worth it. The thing is, is that Discover doesn't even give me the option to HP!

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So, was this one of the last cards you obtained during your recent approvals within the last few months?   It's possible that based on SP (AR) + any other internal scoring criteria that they may feel you have sufficient tradelines at this stage.  How many accounts have you opened in the last 12 months?  Are you an AU on any cards?  What are your total CLs?  Is your income higher or lower than 50K?

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I, myself, have opened only the three cards in my sig in July. AU on multiple cards with a lot of CL...maybe that's why? I'm AU on two discover cards totaling $30k already.

Total CL is in my sig, the three cards. Reported income is above 50k.

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That could be it.  Sometimes it can be a blessing and a curse if the AU exposure is not balanced proportionally with your profile let alone the income you provided.  Discover also wants to see how you handle the actual individual tradelines under your own name.  Sometimes when you "piggyback" like that it tends to have unexpected outcomes if you're just starting out.  While you're scores may be pretty decent, they're mostly created artificially based on the AU history attributed by those accounts where you're not the primary accountholder.  So, if other methods have not yielded much outcome, the only thing that would help is time.

[Anonymous]

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@FinStar wrote:

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@Anonymous wrote:

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@FinStar wrote:

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@Anonymous wrote:

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@FinStar wrote:

It appears you're already doing some positive things with the card by placing the majority of the spend on it so it's likely just a matter of time.  This card is fairly young given you just received this less than 6 months ago?  Now, some accounts can qualify for a CLI after 90 days but not all accounts do - it's all profile driven.  There's a reason that Discover may have started out that low from the get-go.  Some folks may get impatient and go for a HP CLI (since that's always an option), but what is often seen for accounts with similar CLs is not a very good outcome (i.e. maybe another $500 extra?) so the HP may not be worth it.

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Thanks for your response, Fin.

I completely agree that a HP wouldn't be worth it. The thing is, is that Discover doesn't even give me the option to HP!

---

So, was this one of the last cards you obtained during your recent approvals within the last few months?   It's possible that based on SP (AR) + any other internal scoring criteria that they may feel you have sufficient tradelines at this stage.  How many accounts have you opened in the last 12 months?  Are you an AU on any cards?  What are your total CLs?  Is your income higher or lower than 50K?

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I, myself, have opened only the three cards in my sig in July. AU on multiple cards with a lot of CL...maybe that's why? I'm AU on two discover cards totaling $30k already.

Total CL is in my sig, the three cards. Reported income is above 50k.

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That could be it.  Sometimes it can be a blessing and a curse if the AU exposure is not balanced proportionally with your profile let alone the income you provided.  Discover also wants to see how you handle the actual individual tradelines under your own name.  Sometimes when you "piggyback" like that it tends to have unexpected outcomes if you're just starting out.  While you're scores may be pretty decent, they're mostly created artificially based on the AU history attributed by those accounts where you're not the primary accountholder.  So, if other methods have not yielded much outcome, the only thing that would help is time.

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So should I remove my AU cards to reveal my true credit standing?

[kdong1996]

As others have said, since your score is artificially inflated, time would be key here. Removing your AU accounts would do more harm than good as your scores would drop and if Discover is manually reviewing your CLIs they'd basically be seeing the exact same thing-minus the AU accounts.

Discover is more of a judge a book by it's contents rather than by it's cover type. I started off with 3k (I later got approved for an Amex ED for 19k a month later lol.) I didn't get my first CLI until I had the card for 6 months (I had both, SP and HP CLI options available) even then it was only for a measly 1k. But now that I've had the card for a year, it's my second highest limit all through SP CLIs. Since your willing to wait, I'd give it another few months, while it will be frustrating managing a $500 limit, with time it will most certainly pay off.

[Anonymous]

Discover is a little weird. They weren't willing to give me a CLI when they were handing them out like candy, but DW, who had basically no credit history, got a much higher SL and a couple CLIs from them. I just get the "need more experience" line. I did try calling over the summer, but all the CSR could do was read that line and tell me that it meant I wasn't elligible yet.

[takeshi74]

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@Anonymous wrote:

I have all of their criterion and their letter still states lack of experience, which I think is absurd.

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@Anonymous wrote:

Is there anything I can do?

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Nope. It doesn't matter if you think it's absurd. You're the borrower. They're the creditor. They determine the underwriting criteria and your credit and income do not qualify. All you can do is work on addressing their concerns. Lack of experience indicates to me that you need to put in the time and responsible usage.  There is no quick fix.

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@Anonymous wrote:

For both of my two other cards, I RARELY use them. Discover is my go to card, and that's why I have placed about $8,000 of my spend on this card since mid July. I think the experience portion is covered, as I PIF and also pay into my account so I can actually use this card. 

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Don't rely on usage despite how often it is suggested here.  Usage and experience are two entirely different things.

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@Anonymous wrote:

I am just curious as to why Discover won't provide me with a higher one, compared to the other lenders I use. Perhaps it is their conservative nature? 

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Two things:

1. Creditors vary in their underwriting criteira.  "Creditor A gave me $X" is irrelevant to Creditor B.  Creditors do not simply match limits and they do not simply hand out CLI's in exchange for time.  Your limits, both initial and increases, are determined by what your credit profile and income qualify for when they are assessed by the creditor and based on the creditor's own criteria.

2. Your credit isn't static.  In your case you're fairly new to credit.  While all 3 cards in your signature were approved on the same day it's probable that Discover wasn't the first and if that's the case then when they performed a hard pull they say your credit seeking activity (hard pulls from other creditors).  That, combined with your extremely young profile is seen as significant risk factors.  That's why it was approved with a $500 CL.  The CL itself indicates that there are concerns with your credit profile.

Don't assume that assessment of your credit indicates that a creditor is "conservative".  It takes much more than just one data point to determine any trend.  Any creditor will be cautious at a certain point and even "generous" creditors can issue small limits and denials.  Conversely, "conservative" creditors can issue high limits.  It's not about generosity or stinginess.  It's about risk assessment and the creditor is only half of the equation.  One's credit and income are the other part and they play a major role in all this.

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@Anonymous wrote:

Geez....that is horrible considering your other cards in your signature.

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Again, don't rely on the "high limits beget high limits" meme.  I've had 30 and 25K cards for a while and have had approvals since then that were extremely low (for me).  Again, creditors do not simply match limits and recent activity has an impact on your credit profile.

[NRB525]

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@Anonymous wrote:

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@FinStar wrote:

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@Anonymous wrote:

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I, myself, have opened only the three cards in my sig in July. AU on multiple cards with a lot of CL...maybe that's why? I'm AU on two discover cards totaling $30k already.

Total CL is in my sig, the three cards. Reported income is above 50k.

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That could be it. 

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So should I remove my AU cards to reveal my true credit standing?

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Please clarify how many AU cards, which cards, and CL?

I'd be inclined to get one of the Discover AU cards removed, just to see how that impacts your score.

As to "not enough time" Discover would be looking at the actual use on this card. As noted earlier, you are doing it right, paying often, using the card heavily. Since, with the AU accounts, it does not impact your score too much, I'd be inclined to keep PIF this card after each heavy usage. Discover will get used to you and a CLI will be along in due time. It's only been a few months. Both with Discover and with credit cards in general. Credit building is a marathon. Ask your AU card holders how long it took them to build up to those limits. It wasn't months

[dragontears]

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@Anonymous wrote:

Long story short, I've been wanting a CLI from Discover as it is my go to card. I need a cli for my holiday shopping paired with their cashback rewards (gift cards/friends/family), and I only have a $500 CL.

I just doubled both of my limits in my sig 3k->6k on cap one, 5.5k->10k on amex. However, Discover still won't budge.

I have all of their criterion and their letter still states lack of experience, which I think is absurd.

For both of my two other cards, I RARELY use them. Discover is my go to card, and that's why I have placed about $8,000 of my spend on this card since mid July. I think the experience portion is covered, as I PIF and also pay into my account so I can actually use this card.

I also have a solid CS, ranging from 750-770 according to my FICO scores provided by Discover. Income is well above $50,000. 

Does anyone have any experience with this?

Disclaimer: I am not rushing to get a higher CL. I know I have limited credit experience. I can wait. I am just curious as to why Discover won't provide me with a higher one, compared to the other lenders I use. Perhaps it is their conservative nature? 

Is there anything I can do?

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Just as a reference point, I did not get my first CLI from discover until 9 months.

With the reason they gave you there is a very simple fix: time. As others have said, your personal credit file (not counting AUs) is less than 6 months old you need more time pefore the lender will trust you with higher limits.