how to improve standing with new discover it

[Anonymous]

Well, I dropped the gardening hoe and applied for a discover card a couple of days ago after getting a mailer.  Never got a prequal before and decided to try.  I used the amazon site and put in the invitation code and was denied the 12-15% terms 14 mo 0 interest.  No amazon offer, either.  Bummed.  Decided to call to find out what was going on.  Apparently discover does this bait and switch thing a lot.  I got a counter offer for a 1K CL 22.99 % card with 6 mos 0 interest.  Since my eq was already pulled (now 9 inquiries), I grudgingly took the card.  Don't know what to do with it, really.  Seems to be a good cash back card.  Been using chase freedom 5% mostly and then switched to my new amex everday with a 15K limit and a 10K points/ $1000 spend offer 15 mo 0% interest.   So how do I use this discover card?  Double cash back, better credit line, lower interest, rotating 5%...confusing.  Could use some pointers here.   Thanks.

Fico 640-670

AMEX everyday $15K 19.99% after 15 mos (May 2015) 1991 MSD

NFCU cash rewards $10K 15.15% (Jan 2015)

Chase Sapphire Preferred $7K 15.99% (Jan 2015)

Chase Amazon Visa $1.5K 19.24% (March 2014)

Chase Freedom $1.2K 22.99 (June 2012)

Discover It $1.0K 22.99 (June 2015)

closed accounts: lots, 4 this year.  

46 late payments, some charge-offs on report, most before 2010, 2 lates in 2013 (30, 60 late) none since

income 50K, credit card utilization 4% (1000 on 0% interest AMEX card)

113K owed on Home Equity Line of Credit

Age: 54

[Hansenmol]

My advice: cancel it. It's obviously not useful for you right now. Perhaps later reapply and you'll get better starting terms and a better sign up bonus. 

[lord_kinbote]

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@Hansenmol wrote:

My advice: cancel it. It's obviously not useful for you right now. Perhaps later reapply and you'll get better starting terms and a better sign up bonus. 

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The bait and switch comment is laughable.  Keep the card and use for 5% categories.   With the recent SP cli's Discover has been gratiously handing out, you should be able to increase your CL in a short period of time.

[kdm31091]

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@Anonymous wrote:

Well, I dropped the gardening hoe and applied for a discover card a couple of days ago after getting a mailer.  Never got a prequal before and decided to try.  I used the amazon site and put in the invitation code and was denied the 12-15% terms 14 mo 0 interest.  No amazon offer, either.  Bummed.  Decided to call to find out what was going on.  Apparently discover does this bait and switch thing a lot.  I got a counter offer for a 1K CL 22.99 % card with 6 mos 0 interest.  Since my eq was already pulled (now 9 inquiries), I grudgingly took the card.  Don't know what to do with it, really.  Seems to be a good cash back card.  Been using chase freedom 5% mostly and then switched to my new amex everday with a 15K limit and a 10K points/ $1000 spend offer 15 mo 0% interest.   So how do I use this discover card?  Double cash back, better credit line, lower interest, rotating 5%...confusing.  Could use some pointers here.   Thanks.

Fico 640-670

AMEX everyday $15K 19.99% after 15 mos (May 2015) 1991 MSD

NFCU cash rewards $10K 15.15% (Jan 2015)

Chase Sapphire Preferred $7K 15.99% (Jan 2015)

Chase Amazon Visa $1.5K 19.24% (March 2014)

Chase Freedom $1.2K 22.99 (June 2012)

Discover It $1.0K 22.99 (June 2015)

closed accounts: lots, 4 this year.  

46 late payments, some charge-offs on report, most before 2010, 2 lates in 2013 (30, 60 late) none since

income 50K, credit card utilization 4% (1000 on 0% interest AMEX card)

113K owed on Home Equity Line of Credit

Age: 54

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There's no quick fix to improve your standing or terms. I think cancelling and reapplying is silly though. It's not like this is Chase where your limit and APR are basically stuck for eternity.

It's not really a bait and switch. Prequals are just that, prequals, the terms are not set in stone.

Show some good usage. Use it responsibly and pay it off. Discover does SP CLIs one you deserve them. Give it time and you'll be fine. It just won't be an overnight thing. But showing a good history will merit an improvement in the card. 1k is an okay enough limit to get some use out of Discover's 5% categories.

[Revelate]

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@akula wrote:

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@Hansenmol wrote:

My advice: cancel it. It's obviously not useful for you right now. Perhaps later reapply and you'll get better starting terms and a better sign up bonus. 

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The bait and switch comment is laughable.  Keep the card and use for 5% categories.   With the recent SP cli's Discover has been gratiously handing out, you should be able to increase your CL in a short period of time.

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+1.

My Freedom still has a 1K line but since it's capped at $1500 / quarter this hasn't really been a problem.  I can pay twice in a given month if needed, after which spending goes on a different card anyhow.  Discover works identically, if it weren't for the double bonus going on with Discover it wouldn't be a problem at all.  Now though with it's being a 2% default spender for roughly the next year could see the benefit to a higher limit but the CLI policy is pretty generous currently.

[takeshi74]

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@Anonymous wrote:

Apparently discover does this bait and switch thing a lot. 

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It's not a bait and switch.  If your credit doesn't qualify it doesn't qualify and offers always have language like this:

Customers with the best credit profiles receive the lowest rate. Other customers receive higher rates and may be offered an account with different rates or terms, including no introductory rates or rewards incentives.

It's your responsbility to read the terms of any offer.

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@Anonymous wrote:

Been using chase freedom 5% mostly and then switched to my new amex everday with a 15K limit and a 10K points/ $1000 spend offer 15 mo 0% interest.   So how do I use this discover card?

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What are you confused by?  If you've been using the Freedom the Discover it is quite similar.

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@Anonymous wrote:

46 late payments, some charge-offs on report, most before 2010, 2 lates in 2013 (30, 60 late) none since

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If you want better offers, limits, APR's etc then hit the Rebuilding subforum and see what you can do to address these.  Otherwise they are going to hold you down.

[ojefferyo]

I would use it pay it use it pay it, that's what it's for.

[Anonymous]

thanks for the feedback.  I will use it like the freedom which I have had for years...has treated me well...sorry about the whining ;-(

[Creditwiser]

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@ojefferyo wrote:

I would use it pay it use it pay it, that's what it's for.

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+1  My DW just receieved the same offer and SL as you did. 1k, while nothing to brag about  its enough to for her to put some recurring monthly bills on it , gas and some other relatively small expenses. Use it and pay it, rinse, repeat. You're in the door with them. PIF as often as you can and you should be good to go when requesting future CLI's.