So some months ago, I got a pre approval in the mail. This was either before I got my first cc or right after. It stated an APR between 16.49-19.49%
Fast forward several months, Am I better off doing a fresh app for Discover IT, or going with their pre-approval offer and hoping they might adust the APR lower due to my increased FICO, among other factors?
Here is where I'm at now (taken from my other topic):
"I have FICO scores of 741 EF, 741 TU, and 766 EXP respectively. I currently have a cc with a CL of 2k (through my credit union - first cc). I have never been late on a payment and utilize an avg of 8-9%. I have 2 installment accts (student and auto loan - never been late on those also) and have had the cc for about 5 1/2 mo. I'm not looking to apply for a new credit card right away but I will be soon due to me moving states and I want to up my overal credit limit and in turn, lower my credit utilization even further (aside from boosting my score) -- and the fact that my bank doesnt have branches where I'm moving so I want to move to a more mainstream network with more flexibility, (Chase, Citi, Discover etc.) and I want to start earning rewards (I drive and dine out a lot). I'll still obviously keep my current acct open and use it once in a while but I dont want it to be my main one for the reasons I stated above.
I gross about $38k a year from a couple sources, and I'm reletivily young (23).
The only neg factor in my reports is a short history (avg 2 1/2 years). and my student loan is a bit high according to the reports ($16k). Everything else looks good. No collections, no late payments. Nothing."
I dont remember what my exact scores were then but they were somewhere between 690-702 I think and I had just started the job I am now so I was just getting financially comfortable again.
I just checked and my offer is still there.
What do you suggest I do?
That letter really means nothing now. Discover is guessing what they will approve you for on the reports they get. You will still need to apply and then they will tell you what they are comfortable doing for you. You could still be denied. lA letter with an approval with a set percentage rate would be solid. But there would probably be a set date to respond, usually a couple of months.
Go to Disover's preapproval site and see whhat they are offereing now. It could be the same or maybe better. I doubt if you would get a lower offer if you have been doing well with your credit.
Any reason you want Discover besides the letter they sent you? If not, then go to the other banks' website and check their prequalified offers also, if you want reassurance. Apply for the card you want and that fits your spending. Don't get me wrong, there is nothing wrong with Discover, but don't pick a card because they sent you a letter, pick a card that make the most financial sense for you.
A denial here and there is not that bad. Appling every month and using an hard pull would be bad. I recently applied for a card I wanted, didn't think I had the credentials to get it. But I figured one or two hard pulls won't hurt me much. I was wrong, not about the hard pulls, but that I was approved for the card.
Yeah I know I've sought other offers and have gotten others in the mail it's just that I'm leaning towards DC because i've heard nothing but good things from some of my friends who had them, they're 100% US based customer service, free overnight for card replacement, the freeze it feature, and the Cashback rewards/categories and perks that go along with it like discover deals etc.
I look at the letters in the mailbox as they're interested in you for a reason. I got the pre-app from Discover several times before taking the bait. I didn't bother putting in any codes or anything and cold apped. I one of their lowest rates at the time and an instant approval.
Now, on the other side I got a pre-app from Citi for some card at a 17.xx% rate while having scores in the 830's.... Citi might be great for some but, the low opening limits seems to be a trend so they got shredded.
Chase gives pre-apps in my online account for 19-21% and I have a slate that just dropped in the last year from 22% to 17% so, why take out another one for a higher rate?
BOA sends plenty of junk mail too. Some of the options don't seem too bad but, I'm not interested in dealing with them again.
The best thing to do is do the research and figure out what matches you and isn't being pushed from the banks. They have massive marketing budgets and will lure you into something that just won't happen. Asking around here can be vital in stalking that card that you want. There's about 10 diff cards around here that are always talked about depending on the day of the week. There are lesser known gems though as well that might be a good fit. Objectives and priorities are going to be a personal decision though.
At this point I'm 98% sure to go with Discover (I've done a hell of a lot of research believe me and not just with Discover)
Well, if Discover is what you want, then go for it. Like I said, the letter doesn't mean anything. They will pull your credit report and give you what they think is a good offer.
Yeah the letter really has nothing to do with my decision lol I'm gonna cold app it.
Go for it..
And if youve read around here.. Dont be dissapointed in the starter CL or even APR... Both are negotiable and can change/grow not too far down the road..