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My first ever AA

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My first ever AA

Got a message from Discover about a credit line decrease from 2500 to 900. Reasons cited:
Bureau reports too many accounts recently opened
Bureau reports too many rev accts w/high bal to credit line ratio Bureau reports unsecured loan(s)

The high balances I understand (util has gone up In a short period of time)
BUT I don’t have any new accounts other than a car loan opened April, which I’m guessing could be the unsecured loan they mentioned as well?)

Anyway- I don’t really need this card.. should I pay the balance and close it? I’m wondering how much the decrease will hurt my score vs. closing it.

*forgot to mention that very recently I’ve received more than one Credit line INCREASEs on other accounts as well..
23 REPLIES 23
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Super Contributor

Re: My first ever AA

Sorry to hear about the CLD. I had many, too many to recite actually, while my balances came down from stratospheric to merely Everest proportions.  

 

I would advise against making any decisions right now. Discover has useful 5% categories and with time the account will likely grow again. The 0% Purchases APR is something you can request just over every 18 months, and this is about the only card that offers such a deal.  

 

Pay the balance down, pay all your cards on time of course. As your overall file improves with your debt management, this card can grow again.  Utilization on a FICO score is a temporary reduction. You probably have all the accounts you need for a while, so no apps should be necessary.  

 

Good luck!

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 2 of 24
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Super Contributor

Re: My first ever AA


@emily15 wrote:
I’m wondering how much the decrease will hurt my score vs. closing it.


A CLD in and of itself cannot hurt your Fico scores.  Now, if the CLD causes your utilization to increase across a threshold, your scores could drop a bit.  Have you determined your before/after [CLD] utilization?

Message 3 of 24
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Community Leader
Mega Contributor

Re: My first ever AA

This is the second cld from Discover ive read in past week. Uh ohSmiley Sad.
Message 4 of 24
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Mega Contributor

Re: My first ever AA


@AverageJoesCredit wrote:
This is the second cld from Discover ive read in past week. Uh ohSmiley Sad.

Well someone recently got a CLI from Discover didn't they, so they have to cut exposure elsewhere!

Message 5 of 24
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Community Leader
Super Contributor

Re: My first ever AA


@emily15 wrote:
Got a message from Discover about a credit line decrease from 2500 to 900. Reasons cited:
Bureau reports too many accounts recently opened
Bureau reports too many rev accts w/high bal to credit line ratio Bureau reports unsecured loan(s)

The high balances I understand (util has gone up In a short period of time)
BUT I don’t have any new accounts other than a car loan opened April, which I’m guessing could be the unsecured loan they mentioned as well?)

Anyway- I don’t really need this card.. should I pay the balance and close it? I’m wondering how much the decrease will hurt my score vs. closing it.

*forgot to mention that very recently I’ve received more than one Credit line INCREASEs on other accounts as well..

If you don't mind, please provide DPs so we know exactly what occurred.

 

  • FICO Scores
  • Number of new accounts in last 3 months, 6 months, 12 months
  • Individual and aggregate UT
  • AAOA
  • AoYA

IMO, I say no to closing the card. Why? It served you well until the CLD. This is just risk assessment on Disco's part and not personal. Suppose you get other CLDs, will you want to close those cards too? I hope not. I suggest two things: work on getting your UT down and don't apply for any new credit in the next 12 months. And you'll be in the driver's seat again.

 

GL2U



DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| NFCU CashRewards $30K || AmX Cash Magnet $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 6 of 24
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Super Contributor

Re: My first ever AA

There's no point in closing it out of anger. Any and all lenders do CLDs from time to time, and we're seeing more of this type of thing as the credit enviornment tightens up. The card still provides useful benefits so you would just hurt yourself by closing it. Discover isn't going to care either way.

Message 7 of 24
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Contributor

Re: My first ever AA

I wasn’t implying that I would be closing it out of anger..... I simply stated I don’t need the card. I use it for gas during the quarter that rewards 5% for gas and don’t use it much otherwise. They dropped my limit to 900 meanwhile I have chase and Bank of America cards with close to (or over) 10k limits. And the card I use the most is my Amex gold for groceries...
So yeah- my question was not because I would close it “out of anger” but more wondering if it’s worth keeping.
Also- of course discover isn’t going to care- no banks truly care about us 😂
Message 8 of 24
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Community Leader
Mega Contributor

Re: My first ever AA

Im sorry , its all my faultSmiley Sad

Ive disrupted too many lives with my Discover adventures, misadventures?

A card is only worth keeping if its worth it to YOUSmiley Wink. No amount of rewards or other peoples opinions will matter in the end because you are the one spending your money and managing your profile. We will always have our biased opinions based off our own experiences. Good luck on your decision.
Message 9 of 24
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Senior Contributor

Re: My first ever AA


@emily15 wrote:
I wasn’t implying that I would be closing it out of anger..... I simply stated I don’t need the card. I use it for gas during the quarter that rewards 5% for gas and don’t use it much otherwise. They dropped my limit to 900 meanwhile I have chase and Bank of America cards with close to (or over) 10k limits. And the card I use the most is my Amex gold for groceries...
So yeah- my question was not because I would close it “out of anger” but more wondering if it’s worth keeping.
Also- of course discover isn’t going to care- no banks truly care about us 😂

If it doesn't hurt your utilization (as mentioned above), there's no reason not to, but you've already stated you use the gas quarter at least - why not keep it?   At least Disco CB is easy to redeem.


EQ: 792 | EX: 785 | TU: 781 | Accounts: 2/6 4/12 10/24
Happy practitioner of AZE6or7or8
Message 10 of 24
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