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.
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?
This is the second cld from Discover ive read in past week. Uh oh.
Well someone recently got a CLI from Discover didn't they, so they have to cut exposure elsewhere!
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.
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.
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.
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.