Canceling new barely used card?

[Anonymous]

Not really sure where you are at in your credit building but i wouldnt cancel it.

I had a discover card start at 3.5k and in about 18 months i got it to 32k all with soft pull increases.

I literally was hitting the CLI button after every statement.

http://ficoforums.myfico.com/t5/Credit-Card-Approvals/Discover-CLI-The-road-to-32k/m-p/4842730

Thats a thread with plenty of data points if you interested in reading about how i got the card to grow.

I love discover and literally im a big advocate for them. It may not be for you thats up to you to decide but i would defintely at bare minimum just throw it in the sock drawer

Whatever you decide good luck.

[Anonymous]

It's kind of silly when you think about the monster credit limits that Discover hands out (or perhaps USED to hand out) since it's a rotating category card. 

I bet if you took a poll of how many dollars someone put through their Discover card in Year 1 compared to what they put through it Year 2, you'd see that the Year 1 spend was WAY higher.  For me, it's probably a difference of about 10X. 

Discover must recognize this from their account data.  If they know that someone is going to drop their spend in Year 2 significantly, be it 2X less, 5X less, 10X less, etc. it really doesn't make much sense for them to allow people to grow their cards to monster limits in Year 1.  But, that's exactly what they allowed to happen.  Basically they are putting themselves out there (taking on unnecessary risk) handing out $30k-$50k limits to people that may be only putting a few hundred or at most a few thousand dollars per cycle through their card once Year 1 is over.

[Anonymous]

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@Anonymous wrote:

Hello

I have a Discover It card that I have only had for 6 months and I have used it twice and paid it down but honestly it's just not for me. I find no use the CL is low ($1,000) I am really thinking of canceling it...

What happens if I do?

How will it affect more score? And what will it say on my report?

Thanks everyone!!!

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Discover is pretty good about giving CLI once you start building a relationship with them. Personally, I'd keep it, use it for the 5% categories, and work on getting CLIs down the road.

[Anonymous]

In addition, the double cashback promo also applies to cashback earned through Discover Deals which can create some great opportunities.

[driftless]

OP - what are your other cards?

[BronzeTrader]

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@Anonymous wrote:

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@BronzeTrader wrote:

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I would keep it since it has the quartley 5% rewards. 

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And, since the OP is still in Year 1, it's quarterly 10% rewards right now.

Discover for the first year is a great card.  After that, it's a mediocre card.  It's really all about those 5% categories after Year 1.  That being said, having a super high CL on a 5% rotating category card isn't very useful for anything outside of utilization padding.  I think most people would be fine with a $5k limit on their Discover card or so when it comes down to it.

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I still enjoy my 10% quarterly now.   But it ends in November.  Hope to cash in the $150 by then...

[MAZDA3]

I’d just keep Discover and work on getting soft pull CLIs. I started at $1500 in 2015 and am up to $10k. Discover customer service is great, Discover Deals can be lucrative sometimes, and 0% or 4.9% balance transfer offers seem to always be available if you need them.

I am these days on the lookout for cards that offer a “freeze” feature. Discover, Citi, and NFCU offer this. All of my unused cards are frozen. One less opportunity for the bad guys to buy groceries with my cards.

[MAZDA3]

Oh yeah, Discover will also lower your APR after a certain time as well.

[JustBPatient]

Just to echo what others have said.  Discover is a terrific company to deal with in general IMO.  Second, double cash back first year, discover deals, soft pull CLI's and attractive BT offers if you need them.  And really even though big lines are nice, for a rotating card, 5k is really sufficient.  Good luck whatever you decide.