Discover Credit Limit Recycling & Increases
We are nine days into December, which means we are only about 22 days away from the end of the Discover Apple Pay 10% back promotion. If you are like me and have been a bit lazy with it, then you no doubt have much of your $10,000 limit in tact to spend. Of course, your credit limit might not be that high, so what should you do?
Credit Limit Cycling
Many banks allow you to cycle your credit limit more than once in a month. For example, if you have a $2,000 credit limit, you often can charge $2,000 and pay it off mid-month. When doing this your limit will return and you can purchase another $2,000. This isn’t generally an ideal behavior, but is normal enough that I haven’t had issues doing it from time to time.
I’ll have to admit that I have never cycled my credit limit with Discover, but have a lot of purchases coming up and may have to. I was talking with PDX Deals Guy about it and he confirmed with Discover it can take up to 8 days for your credit limit to return after a payment clears. It may be possible to get this cleared sooner by calling their “security department”, but that isn’t ideal. I would start forming a strategy now if you plan to cycle more than your limit before the end of the promotion.
Discover Credit Line Increase Request
If you have a low credit line on your Discover card, you may also want to request an increase. Thankfully Discover makes it very easy to do this and does not require a hard pull most of the time. Let me walk through the process and then we’ll revisit the hard pull issue a little later.
- To request a credit line increase, login to your Discover account and go to the “Account” drop down. Click “Credit Line Increase”.
- You are now on the credit line increase screen. On this page you will be asked to input your gross annual income, employer’s name and monthly housing payment. Notice the language on the bottom. Submitting this request will not cause a hard pull. If Discover feels they need more information, then they will prompt you before making the pull. When all of the information is complete, hit “Submit”.
- On the next screen you will see the amount of an increase that is being offered. If they need more information this is where they would ask for your consent to do a hard pull. In my case, a modest increase was offered. You can adjust the slider if you want less than the offered increase.
Coming up with a Discover Apple Pay strategy for the next few busy holiday weeks will probably be a good idea. Keep in mind that it takes some time for your credit limit to recycle, so don’t go into the last week thinking you will be able to spend 3X or 4X your limit. I am happy for my modest credit limit increase, even though it isn’t much. Since there wasn’t a hard pull I felt it was worth asking for. With a hard pull I wouldn’t have done it. Happy Apple Paying!