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Auto Discover CLI!

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creditwherecreditisdue
Senior Contributor

Re: Auto Discover CLI!


@tracynva wrote:

Maybe Discover is relaxing their requirements a bit.  I just applied for and received a Discover More card with a $1K CL with a 6mo intro APR of 3.99%.  They did a hard inquiry.  I have "fair" credit that I have been working to improve.  My scores from myfico are TU: 645 and EQ: 631.  I have 2 90 day lates from 3/08 and 2 unpaid collections from 3 yrs ago that I am trying to negotiate with the CA for a PFD.


Welcome to the forums! 

 

Congratulations, and take care of that Discover card!

 

Did they tell you what your regular purchase APR will be?

Message 11 of 31
jkfaria
Valued Member

Re: Auto Discover CLI!

Like TracyinVA, I am also rebuilding and was approved for Discover Open Road 1K in July 09 with TU >700 (currently 692, but in July closer to 652).   I use mainly for gas, make more than 1 payment a month, and just got an auto-cli to $1350!!   I'm tickled as a 3 month auto-cli was TOTALLY unexpected, just hope they continue!!   I know my credit is improving all the time, have every intention of that continiuing as well....
EQ Fico - 677 CCT - 712
TU Fico - 692 CCT - 665
EX Fico - ??? CCT - 698
Message 12 of 31
tracynva
Established Member

Re: Auto Discover CLI!

When I spoke with Discover on the phone, the CSR stated my regular purchase APR would be 11.99% but when I got the card in the mail, the paperwork indicates 18.99%.  I'm not getting too worked up over it right now because I will PIF...before my monthly statement closes.

 

I have to learn to control my spending so I cannot carry balances on my credit cards (my current mantra).  I still have other cards that I'm working diligently to pay off.  It is a slow and painful process, but I'm rapidly changing my obsession from spending to becoming debt-free. 

 

These boards are a tremendous help!!


Starting Score (6/9/09): TU 610 | EQ 600
Current Score (04/12/2016): TU 820 | EQ 816
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Message 13 of 31
creditwherecreditisdue
Senior Contributor

Re: Auto Discover CLI!

18.99% is consistent with the rest of your situation. 11.99% is not. If you go to this link:

 

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

 

and click on the "Need Improvement" tab I think you will find the terms you were approved under.

 

This is a great coup for you! Congrats again!

Message 14 of 31
andyaycw
Frequent Contributor

Re: Auto Discover CLI!

tracynva,

The good news is that based on your spending patterns, Discover may or may not automatically decrease your APR.

I sifted through my old statements for my Discover More card and found that on my 7th statement, they reduced my Purchase APR from 18.99% F (on initial approval) down to 8.99% F, and it has been sitting at that rate ever since.

Treat the card well and you may find a pleasant surprise in just a few months' time as well.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 15 of 31
GregB
Valued Contributor

Re: Auto Discover CLI!

I just received a rate increase from 13.49% to 18.24% the month before they raised my credit line from $10,000 to $15,000 so don't expect a rate decrease in this environment.

 

I have been mostly PIFing with most recent month $6018 so I doubt spending pattern will get you a rate increase.

 

Just PIF and the rate won't matte.

Message 16 of 31
andyaycw
Frequent Contributor

Re: Auto Discover CLI!

I have always PIF my Discover card, although I was always very conservative with utilization. Utilization with the card has always been less than 10%. I'd venture a guess that Discover likes to see enough usage of their card, but not over-usage, in justifying rate decreases. In your case, GregB, even with your new $15000 credit line, a $6k balance pegs you at 40% utilization, something Discover might see as too high risk to be offering rate decreases.

I am also a firm believer that the criteria for APR rate decreases and CLIs are different. CLIs might have a higher weight on your spending patterns, whereas APRs might be based on perceived risk. In your case, GregB, you may have gotten the CLI to $15k as a result of your heavy spending on the card. On the other hand, your heavy spending on the card may have pegged you at too high of a risk to justify a lower APR.

In regards to heavy spending yielding CLIs, I should say though that it's not a requirement - at least not with Discover. I have spent no more than $10 in the past three months on my Discover More card, and yet that small usage was enough for them to justify giving me an unsolicited, unrequested $250 CLI from $3750 to $4000. Small CLI, I know, but a CLI nonetheless.

Of course I'm no expert, and the above is just my interpretation and my speculation. GregB, you make a good point though: in this climate, issuers may not be as willing to offer rate decreases as they once were.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 17 of 31
creditwherecreditisdue
Senior Contributor

Re: Auto Discover CLI!

And I was increased from 9.99% to 14.25% very recently (which I am none to happy about and have yet to discuss with them). I was decreased to that 9.99% from 11.99% earlier. The only thing they could have a problem with is not making enough money off me - but they did make some. I have been letter perfect with them and everybody else for years and have a five digit CL from Discover as well.
Message 18 of 31
tracynva
Established Member

Re: Auto Discover CLI!

I was just happy that Discover deemed me worthy of a card at all.  18.99% is actually my second best APR at this point.  Most of my cards are in the mid-20% range.  Citi is the only other card that has agreed to lower my rate (10.24%)  I love Citi!!  They also gave me a small CLI last month from $600 to $1500.

 

This month with the new Discover card, the Citi CLI, and the payments I am putting toward my other cards, I expect my overall utilization to go below 35%.  I'm hoping for at least a small bump in my scores.  I'm planning to ask them all for an APR decrease in another 6 months.  It never hurts to ask!

 

One thing I've noticed about the Discover card...it takes a while for the transactions to post.  I paid my car insurance with it 5 days ago just to use the card.  I want to pay it off now but my account still shows a 0 balance.  I just keep checking and waiting.


Starting Score (6/9/09): TU 610 | EQ 600
Current Score (04/12/2016): TU 820 | EQ 816
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Message 19 of 31
andyaycw
Frequent Contributor

Re: Auto Discover CLI!

Transaction is taking a long time to post because of your car insurance company. They may have just done a test charge to see if the card was active and then got lazy and simply haven't actually charged your card yet.

I once bought groceries from Albertsons and the charge didn't post for three weeks. It is not Discover's fault.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 20 of 31
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