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My question is Online tesco shopping Discover Card/visa security password? Thanks for any answer or 2. My other question... This is an idea I came up with. It's a little off the wall, and maybe even against some sort of credit agreement, but I could see this attracting a lot of consumers.. |
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Good question... I dunno what is the answer to that question. I'll do some poking around and get back to you if I got an good answer. You should email the people at Discover Card as they probably could assist you..
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Why would a Discover card company do this? They use FICO to help figure out if they should give you a credit card. This defeats FICO..
Seems like shooting ones self in the foot, doesn't it?.. |
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However, several major lenders will "cut you off".
Cut limits to available credit, or raise your interest. Rate beyond your means to pay if you exceed a. Preset percentage of your "limit." In this market, I'd. Worry about any amount beyond 30% of my limit.. If (say) Chase gave me a limit of $10000, but cut me. Off if I charged $3000, I'd day the real limit is $3000. No matter what number they give to FICO.. ER.. |
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What is a CCC had two limits. A Hard and a "soft" You could go over the "soft" but when your bill came you had to pay 100% of that. If you failed to make that payment the card was frozen and then closed if you could not bring the soft down below the limit the next month...
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It would be fraud. A $5000 credit limit is not a $50000 credit limit...
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Fraud against whom?.
Would the CRA's care enough to pursue it? I'm sure they could word it in a way that would cover them... |
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First, lenders would have no motivation to give a credit limit to someone that would not have the ability to access that full amount. They want to give limits more reflective of the customer's activity..
They can't set an arbitrary amount and report it to the bureaus when it is not the actual amount being allocated to said borrower - that number reflects the lender's actual reserves. Yes, it is fraud.. And that being said, the lender is not in the biz of making customer's credit reports appear more favorable..... This post has been edited by. TrevorHere. : 18 January 2010 - 12:57 PM.. |
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+1 to the idea that it would be absurd for an issuer to undermine Fico. They've used it to allocate billions in risk...
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You taliking like people with.
AMEX. Cards who are denied a sale and are not even close to their credit limit???. Or. Told to make a payment on a "CHARGE" card and they have not even spent much more than a few $1,000's. "IF" they won't even let you spend $5,000 on a $50,000 limit...they already have a FALSE limit.. |
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Anyone who can't control their spending except by a hard limit imposed by the bank really should not be carrying a Discover card at all. No matter what sort of limiting system is in place, the banks are going to find ways to punish those who can't voluntarily stay under it..
This post has been edited by. Mk_378. : 18 January 2010 - 01:50 PM.. |
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If they punish you for going over 1/3 of your limit,.
Then 1/3 of your limit. Is. Your limit.. ER.. |
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WHY DO THEY EVEN GIVE MORE THAN.
$200. We could all have 300+ cards that way (just don't tell. BOB. ). This post has been edited by. GEORGE. : 18 January 2010 - 02:11 PM.. |
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The credit limit is supposed to be the amount of credit that is to be extended to you. If you are only allowed to use $5000, then your credit limit is $5000, and reporting anything else is simply a violation of the FCRA, IMO. Additionally, FICO is meant to be a score that calculate the risk of a particular person defaulting in the next 24 months based on statistics... if everyone started having utilization under 10%, then utilization would not be treated so highly in future versions of FICO, since it would be determined that utilization doesn't mean anything anymore...
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