What's Going on with Discover?

Discussion in 'Credit Talk' started by LadyC, Dec 4, 2000.

  1. LadyC

    LadyC Well-Known Member

    A relative of mine with horrible credit applied dor a Discover card about 6 weeks ago, through one of those solicitations that they send to virtually everyone. Well anyway, she new that she wasn't going to be approved for the card, she just mailed it off for the hell of it. Today she receives a letter from them, congratulating her on her approval, and that they are behind on sending out the cards due to their overwhelming response. The letter also had her account number on it, so she called the automated system and found ou that they had given her a 1500 limit. My question is what's going on here. We have established that a few of the BIG GUNS (ie, Citibank & Chase) have gotten into the Subprime market, but Discover. Has any heard anything about Discover relaxing their credit guidelines that much.
    When I say that my relative credit his horrible,(recent late pays, current 90days past due, 3 recent charge offs---bottom line, nothing is up to date but the car paymment and it has been reported 30-60 days past due) that's what I mean. All of this bad credit is from this year.
    Any insight??????????
     
  2. S.D.

    S.D. Guest

    RE: What's Going on with Disco

    Maybe it's because he's showing that he HAS credit as opposed to NO credit. Who knows... these credit card companies are something else...
     
  3. roni

    roni Well-Known Member

    RE: What's Going on with Disco

    I had a feeling about Discover myself LadyC. My next door neigbor and cousin got a solicitation in the Fall. Also I got one, which is a joke cause they are my only legitimate charge off on my credit report. It is scheduled off next year but still I shouldnot have gotton a soliciation period. But nevertheless, my neighbor and cousin's credit is "jacked"(terrible). But I couldnot apply to them because I was already on their list....even though I paid the charge off. I dont suspect they are as laxed as Citi but they could be opening the doors just a little like Chase.

    roni.
     
  4. mj

    mj Well-Known Member

    RE: What's Going on with Disco

    My partner had a Discover that got charged-off back in 93 ... went to several collections companies, then someone bought it for $.03 on dollar. That company went bust, but Discover kept reporting it as a sold charge-off until the 7 years ended earlier this year.

    He accepted a solicitation for a card when they called (just for the hell of it) ... and he got a Platinum card w/$10k limit.

    Go figure.

    I hate this card, though, because their B-S teasers, while great up-front, quickly go to 15.9%. Once that happens -should you have a 2nd or 3rd balance xfer on the account -all your payments (even big over-payments) go to the low interest rate stuff 1st. You never touch the higher rate balance.

    Chase is much better - if they offer a promo rate, it applies to existing balances as well.
     
  5. roni

    roni Well-Known Member

    RE: What's Going on with Disco

    Honestly, I dont really want a discover card.
     
  6. jason

    jason Well-Known Member

    RE: What's Going on with Disco

    Why so concerned that Discover is "now" subprime? They have always been and have had some of the lowest credit standards. That is how they flooded the market when their card was introduced in the mid 80's--they had to get the numbers to convince merchants to sign up for the novus network. Not until they introduced the platinum card did they raise the standard a little. However, they still have a very high charge-off and delinquency rate because their credit standards are not that strict--or should I say, they have always been subprime.
    Morevover, carrying a Discover card has never been impressive or prestigeous---they never had a gold card and look how long it took them to come out with a platinum card.
     
  7. Sorin

    Sorin Well-Known Member

    RE: What's Going on with Disco

    Yep, Discover seems pretty easy to get. I got my 6k Platinum when my history was 10 months old... applied for the hell of it and surprisingly enough, got it.
    The other accounts i had at the time were around 1k limits... and I suppose having this one at 6k encouraged MBNA to give me about the same 2 months later...
     
  8. mj

    mj Well-Known Member

    RE: What's Going on with Disco

    Sorin-

    And that's how you play the game... nicely done!

    A friend of mine at Macy's (the Premier/Visa division) told me flat-out that they base your limit on what you already have ... kind of like "if xxx gives you $5k, so will we."

    I suspect other issues are of the same thinking.
     
  9. GEORGE

    GEORGE Well-Known Member

    RE: What's Going on with Disco

    MJ REALLY???

    MY MBNA AMERICA IS >$30,000, BUT DISCOVERCARD IS STUCK AT $13,000!!!
     

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