How can I get a credit limit increase on my Discover?

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MaxDSP

Lifer
May 15, 2001
10,056
0
71
Ive had this Discover Classic for 16 months or so, and Ive charged ar least $2,000 on it through that time. I recieved a letter yesterday that said my APR had been lowered from 19% to 12.9% or something. For all these months, Ive paid my monthly bills in full, and always on time, but I still have the same $1,000 credit limit I had March 2001, when I got the card.


On the other hand, my Associates Visa, which I got April 2001, had a limit of $500 when I first got it. After several months, I automatically recieved an increase to $1000, and a couple of months ago, they upped it again to $1500.

For both cards, Ive always paid on time and in full, and Ive split my purchases fairly eavenly between the two. If I call Discover and ask for an increase, that would count against my credit rating right?
 
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PsychoAndy

Lifer
Dec 31, 2000
10,735
0
0
asking for a credit increase will not.

if what i heard from various urban legends, having someone check your credit rating will.

AFAIK, they will probably look at their "in house" reporting insofar as your payment history and other stuff. i wouldnt sweat it though.
 
M

MaxDSP

Lifer
May 15, 2001
10,056
0
71
Originally posted by: yakko
Have you tried asking them what the procedure is?
Click to expand...

can't say I have



Andy, Ive heard from other people that asking for limit increases will count as credit hits.
 
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bozo1

Diamond Member
May 21, 2001
6,364
0
0
Asking for a credit increase will not hurt your rating. Credit card companies routinely check their customers credit history to see how they are doing with their other creditors, to see if they want to bump your credit line, etc. These inquiries do not count against you.
 
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bizmark

Banned
Feb 4, 2002
2,311
0
0
w/ my Discover card (also Classic), I originally had a credit limit of $1000, like you. I got my card in March of 2000. Like you, I payed my monthly bills in full and on time every month. Then, one day, randomly, I got a $300 increase. This was sometime between January 2001 and November 2001. Sorry, I know that's a big interval, but I can't seem to find my statements from that period :eek: And, just last month, I got another $300 increase, without asking for it. So, in 2 years and 4 months, I got two automatic increases.

If you need the credit limit bump, call them up and ask for one. I think you can do it online too. If you don't really need it, wait for a couple more months, and see if you get one automatically. My latest one may have been triggered by the events below:

A month or two ago, the disparity between my Discover's APR (currently at a kickass 10.74% - some fixed percentage plus prime) and my only other credit card's APR (GM Card, was fixed 16.99%) just became absurd, so I called them up and couched it in terms like it'd be in their best interest to lower my APR ("Well, I simply don't have any reason to use it right now since my other card's APR is so much lower....") They were nice about it and got me down to something like 13.74% variable, which I think is much more reasonable. (GM Card is currently offering new members a 15.49% variable APR and it was absurd that I had been a member for 2 years and my APR was higher than the highest APR they offer to new members.)

So when they checked my credit rating at GM Card, it might have rung some bells at Discover, leading to my latest increase. Who knows.
 
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Zugzwang152

Lifer
Oct 30, 2001
12,134
1
0
On another note: I requested and GOT an increase on my Visa card. It started out as a basic 500 limit, but after 9 months and a few thousand dollars of purchases, I called their customer service number, and asked for a limit increase. They did a live credit update, asked a few basic income questions, and then gave me an increase to $2500 right over the phone! :D
 
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quxio

Junior Member
Nov 10, 1999
23
0
0
Discover is really different from other credit card companies when it comes to increasing your limit. A year or two after I got mine, I asked for a credit increase to buy computer parts for a new computer. They denied my request, but three months later, they increased it from $1,000 to 1,500. Go figure. Now my Mastercard is a different story. I hardly ever use it and it's limit shot up from $500 to like $10,000 in 3 years. With Discover, I believe the limit is set based on how much you use the card and how close you get to the limit. I could be wrong though.
 
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fr

Diamond Member
Oct 10, 1999
6,408
2
81
If you have a Citibank credit card, just log onto your account online. In the customer service section, you can request a credit limit increase online. I did mine and it said it could increase it another $1,000 no problem without any credit checks or questions. I just pressed the OK and it was done.
 
O

OneSyberTroop

Banned
Feb 18, 2002
285
0
0
As a former employee of discover, I can tell you exactly how to do it - easy as pie.

Call them 1-800-discover. Tell them you'd like to do a balance transfer(you arent going to, so dont worry). They will be like "o00oh yay ok!" cuz they get commission from BT's as I used to. So, pick a number - be reasonable. How high do you want your limit? Decide on a reasonable and feasible number, say $3k....I dunno, your call.

rep: thank you for calling discover this is ______, can I please get your account number?
you: 6011-XXXX-XXXX-XXXX
rep: Thank you sir. Also, can I please either verify by your mothers maiden name or your social security number?
you: sure blah blah blah
rep: Ok sir, how can I help you?
you: I would like to do a balance transfer
rep: Ok sir, you have $XXX available credit, what accounts would you like to transfer?
you: Oh, well unfortunately I will need to transfer more than that.........
rep: Ok sir, let me see if we can get your limit increase, this wont take but a minute
you: sure thanks
*listen to them slap keys and wait for the slow ass comps*
rep: Ok sir we got your credit up to XXXXX
you: Im sorry but my wife just said she was unsure about the transfer, we will call back later. Can I have your name so we can give you the credit?
rep: b0o0oh0o0o I wont be here later *crying cuz no commission* but any other rep at 1-800-discover can help you sir.
You: awesome! Thanks for your help!
rep: *continues crying as her boss yells at her because she didnt hit her BT goals*


You see once a rep increases your limit, they cannot go back and change it. Nor can they access your rates so they cant backstab you ;)
Ahhhhhhh nice release the tricks of the trade from those bungholes ;)
 
O

OneSyberTroop

Banned
Feb 18, 2002
285
0
0
The increase does not hurt your ratings. If they say "it must be run past our increase analysts", they pull a report and take 3 pts off your credit :/
 
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dude

Diamond Member
Oct 16, 1999
3,192
0
71
For AMEX, this can be done online. I did it once for the hell of it and got a measly $700 increase (my limit is 7,000).
I believe I did this for my MBNA mastercard online too.

I never had a problem with a credit increase before. Nor have I had any problems calling them up asking for a lower rate.
 
M

MaxDSP

Lifer
May 15, 2001
10,056
0
71
The majority of you say it will not cause any harm to just ask for it (with the exception of OneSyberTroop, but thats only if they say it needs to be run past their "increase analysts")


I think I have n option in my Discover Online account where I can ask for a credit increase. I'll go ahead and do it, and also pay off my $300 bill :eek:
 
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bozo1

Diamond Member
May 21, 2001
6,364
0
0
If an existing creditor reviews your credit history, it does not count against your score. This is known as an account management inquiry.

From TransUnion's website:

What types of credit reports are there?
There are two types of credit reports: a consumer version and a business version.

Consumer Version
A consumer version of a credit report lists all inquiries, including promotional inquiries and account management inquiries. Only the consumer can access this version of their credit report. Creditors do not have access to this version.

Business Version
A business version of a credit report is an abbreviated version of the consumer version. The business version does not contain promotional inquiries or account management inquiries.

What types of inquiries are there?
Inquiries on your record that do not appear on the business version of your credit report are promotional inquiries or account management inquiries. Both promotional and account management inquiries are not counted as official inquiries.

Promotional Inquiries
Vendors query our database based on a set of parameters and receive mailing-address information for individuals matching their criteria. These vendors are not viewing your report. They just want to give people who meet their parameters a firm offer of credit or insurance.

Account Management Inquiries
Credit grantors who have permission to review the credit report of their accountholders may do so on a periodic basis. These are not counted as official inquiries.

Why are promotional and account management inquiries excluded from my credit report?
In the credit lending industry, the more inquiries you have on your credit report, the less favorable you look to a creditor. The perception of multiple inquiries is that you are seeking a large amount of credit and are either in debt or are putting yourself in a situation of too much debt.

The FCRA protects consumers from being penalized for inquiries that they did not initiate or request. For this reason, promotional inquiries and account management inquiries are not included on the business version that creditors with a permissible purpose can obtain.
 
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hoihtah

Diamond Member
Jan 12, 2001
5,183
0
76
get married.

tell them you're preparing for a wedding.
they'll up it to the max.
 
RossMAN

RossMAN

Grand Nagus
Feb 24, 2000
78,866
367
136
Every credit issuers has different procedures for increasing limits. It will not directly "hurt" your credit rating but it will have two impacts which could be interpreted as negative down the road:

1) They may or may not do a credit inquiry, this really isn't a big deal unless you've had 3 or more per year. If it's just 1 or 2, don't sweat it. Should drop off after 1 year.
2) Your limit will be higher (assuming it's approved) so your potential to charge everything to the max increases.

If everything you've said is true, I don't see any harm in requesting a credit increase. If you are declined they will send you a letter stating the reasons, if this happens please do 4 things:

1) Read the letter and try to act upon all the decline reasons, far too often people receive decline letters (esp ATers I've noticed) but don't act upon the reasons they were declined.
2) You are entitled to a free copy of your credit report with that decline letter, please do request your free copy, check everything on the credit report, if it's wrong file a dispute to get it cleared up and removed.
3) DO NOT apply for any new credit or credit increases for at least 1 year.
4) Continue to make on time payments.
 
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AdamDuritz99

Diamond Member
Mar 26, 2000
3,233
0
71
Well, I just want to thank everybody here for letting me find out that it doesn't effect my credit. I never asked to increase b/c I want to buy a car sometime soon and I don't want to hurt my credit. Well since it doesn't hurt to look ask for the increase, I did ask. I just got 1000 increase. :D Now my 500 debt doesn't look so bad. Hmmm, maybe I should splurge a little and buy something. :cool:

:D

peace
sean
 
M

MaxDSP

Lifer
May 15, 2001
10,056
0
71
Well, a little coincedence happened today. I recieved a letter in the mail that said that my Visa credit limit has been increased again from $1500 now to $2000. This is the my third increase from Visa, without even asking for it.


Anyway, Ill call Discover up tomorrow and follow the steps RossMan outlined above in case I get denied. I remember last year when I applied for an AMEX Blue for tudents, I was denied, because I had 2 new credit cards or something. I remember that I had a month or so to request a copy of my credit report free of charge, but I didnt act on it. Thanks for the tip Ross.


 
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