Is Discover card worth it if...?

Question

I am pre-approved for $25,000. I know this can be less depending on credit history but I never used Discover card before. No lectures on credit cards. I have three Visas, however, they are only credit limits of $3000. Will having a Discover card with a higher credit limit help my credit history? This is the only reason why I want the Discover. Thanks.

Answer 1

Your credit score will immediately drop a bit once you accept the card, HOWEVER: your credit score will begin to rise dramatically within 90-days and continue shooting up because of the increase in your available revolving credit.  Once you actually start to carry a balance on it though, your score will drop.  How much depends on the size of the average daily balance.  Now matter how you look at it, your score will go up.  My advice is to take the card and just don't use it...EVER.  Use the other cards.  Remember: If you accept the Discover and then ever cancel it, your score will drop a lot due to the high limit of $25,000.

Answer 2

If you already have three cards i wouldn't get anymore. What the credit companies look at is your amount of credit u have vs the amount you have on them. In addition not many places actually take discover cards so.....

Answer 3

yeah that would be good for your credit later on, but you need to keep it under a 35%. so with a $25,000 credit limit, you could only use $8,750. That would keep your credit good. and never miss a payment. but i don't really know too much about discover. i rarely see any places that accept discover cards.

maybe try to check if your visa's will increase your credit limit before applying for the new credit card.

Answer 4

Your FICO score is generally optimized by having two to three revolving lines with balances ALWAYS under 30% of the limits for the revolving lines and a retail revolving line plus one fixed loan, .

A credit card is a revolving line. A retail revolving line is a department store card. A fixed loan can be a car loan.

Above that, you will not impact your FICO score in a major way, although this depends on some other variables including the age of the credit, the time since you've applied for it, the length of time between applications for new credit.

The FICO algorithm is a moving target. They change the criteria all the time.

Answer 5

I wouldn't do it unless you are sure you can pay off the balance each month.  Having a limit that high might be too much temptation.  

Answer 6

RUN FOR YOUR LIFE!  Do not do that to yourself!  Please don't!