Why does Discover feel the need to snitch?

Anonymous · ‎08-22-2016

Discover...

You lint licking, tattle tales.

So for this month Discover has sent out 2 (TWO) balance increase notifications to my credit report, not including what my statement cut with at the beginning of month.

Granted Discover has NEVER been my primary card, but Im trying to get a worthy CLI out of them... I actually think Im scaring them instead.

I honestly have not actively used the card for over a year. I was running a BT through it so I wasnt putting any additional charges through the card. For the past 5 months I have used the card for NOTHING not even a BT. So honestly Discover went from seeing AT MOST $500 being charged to my account in 2014. To now about 500 a week. So I can see the reason they wouold get nervous, but gosh.

Anyway. Discover lost my vote a very long time ago when they start refusing to give me CLI's. After these next 2 months of using it as primary card (this month and Sept.) they will be sock drawed indefnitely.

Take that Discover.

#TeamAMEX

northface28 · ‎08-22-2016

What?

RCFL · ‎08-22-2016

So, you're saying that you did balance transfer from your other cards to your Discover card? I don't see a problem there though - Discover, like other creditors, they report your balance to the credit agencies.

Anonymous · ‎08-22-2016

So, if I understand correctly...

-you've run at most $500 through the card since 2014

-and then suddenly for this quarter you've been running $500 per week through it?

From the bank's perspective your spending habit has changed suddenly. They are warning other banks... maybe they suspect some type of fraud?

And also, how does running $500 total through the card in 2 years warrant a credit limit increase?

#TeamDiscover

Anonymous · ‎08-22-2016

@Anonymous wrote:
So, if I understand correctly...
-you've run at most $500 through the card since 2014
-and then suddenly for this quarter you've been running $500 per week through it?
From the bank's perspective your spending habit has changed suddenly. They are warning other banks... maybe they suspect some type of fraud?

And also, how does running $500 total through the card in 2 years warrant a credit limit increase?

#TeamDiscover

I apologize for my lack of clarity. I though it was a good explanation. But hopefully this does a better job.

Discover was actually my first card. Both my income and spending were less when I initally got the card. My monthly spend was about $500. So every month I was apporximately putting $500 through the card (give or take). Which most of the time I paid in full.

However in 2015 I switched primary use to another CC because my limit was higher and for me, the benefits were better. During this time, as my income changed and understanding of credit changed, so did my spending habits. So as of now im putting about 1k- 2.5k on whichever card I deem as primary for the month. For this month and september that will be Discover. In the hopes of a CLI.

The reason for this post, is my overally frustration with discover. Im actually surprised that they are even reporting multiple times throughout the month becuase its never happened with Discover or any of my other lenders. Im not sure if this is something that is normal or not. (As of now, it just seems like they are snitching)

But I also do understand that they might be wary because they havent seen this type of usage from me. I just didnt know lenders can and do report multiple times throughout the month.

UncleB · ‎08-22-2016

@Anonymous wrote:

The reason for this post, is my overally frustration with discover. Im actually surprised that they are even reporting multiple times throughout the month becuase its never happened with Discover or any of my other lenders. Im not sure if this is something that is normal or not. (As of now, it just seems like they are snitching)

But I also do understand that they might be wary because they havent seen this type of usage from me. I just didnt know lenders can and do report multiple times throughout the month.

There are other threads that mention Discover doing mid-cycle reporting.

Synchrony is also well-known on here for mid-cycle reporting, and I've read that Chase does mid-cycle reporting if the balance is PIF.

Here's some other threads with more details (there are actually quite a few):

http://ficoforums.myfico.com/t5/Credit-Cards/Chase-Mid-Cycle-Reporting/td-p/4042168

http://ficoforums.myfico.com/t5/Credit-Cards/Discover-mid-cycle-reporting-again/td-p/1604846

http://ficoforums.myfico.com/t5/General-Credit-Topics/Mid-Cycle-Reporting-Policies/td-p/4548414

Edit: Can't spell

Anonymous · ‎08-22-2016

Well, you have a new pattern of spending now due to higher income, so they're gonna keep an eye on you and warn other creditors. It's all good, homie

ways2go · ‎08-23-2016

Synchrony will report two days after reporting. I had that happened. I paid my card off, they reported after the monthly statement cut, I paid my family's phone bill. The next day they reported that charge.

takeshi74 · ‎08-23-2016

@Anonymous wrote:
So for this month Discover has sent out 2 (TWO) balance increase notifications to my credit report, not including what my statement cut with at the beginning of month.

Why does it matter? If you're paying it off quickly it will update on the following cycle. If you're carrying then they would have reported anyway.

@Anonymous wrote:
Anyway. Discover lost my vote a very long time ago when they start refusing to give me CLI's.

You have only your credit profile to blame. Your credit profile and income are the primary considerations for what limits and CLI's you qualify for with any creditor. If you're not getting CLI's then you need to address the creditor's concerns with your credit profile.

@Anonymous wrote:
And also, how does running $500 total through the card in 2 years warrant a credit limit increase?

One has nothing to do with the other despite the common assumption that usage leads to CLI's. I've had 5 digit CLI's on cards with no usage. My Discover received a number of CLI's with little to no usage. The card I use the most has never seen a CLI. Don't assume that usage and CLI's are directly related.

Again, it's primarily a matter of what one's credit profile and income qualify for against the product's underwriting criteria at time of consideration.

Anonymous · ‎08-23-2016

@Anonymous wrote:
So, if I understand correctly...
-you've run at most $500 through the card since 2014
-and then suddenly for this quarter you've been running $500 per week through it?
From the bank's perspective your spending habit has changed suddenly. They are warning other banks... maybe they suspect some type of fraud?

And also, how does running $500 total through the card in 2 years warrant a credit limit increase?

#TeamDiscover

I have to agree, although $500 is a tiny credit line, they could've at least increased it 50% for the first two, six- month periods automatically, which is standard for those who have accounts in good standing. If you don't use a card very much, after a certain period of time, the creditor has no reason to give you a credit line increase. Creditors want to see you run up your balance to near the limit and then they'll increase your limit so you'll have a higher chance of carrying a balance. Carrying a balance = interest/money made for them.