Discover Secured CLI?

[Anonymous]

hi all

I was wondering how often can i increase my credit limit for my secured discover it card. I want to increase $100 to $200 a month but not sure if this would be a problem with discover. It has become my daily card for everything so i need to get my limit up, just cant do it all in one shot. 

[Anonymous]

If your GOAL is to build credit, so that CL's aren't 'this' much of an issue and you aren't even bothered with this type of nonsense.

IMO don't worry so much about pushing up this one Disco card....again in IMO it's the wrong tactic

I'd prefer you take that cash and ADD another TL to your CR vs trying to chase reward points etc

Look like these instead of trying to grow ONE acccount...using that SAME money

you could have 2 or 3 TL's reporting on your report (and establishing 2/3 relationships with various lenders) all AGING at the same time.

Ppl constantly IMO miss the VALUE of have 3 accounts vs just ONE ,especially as a builder/rebuilder (which is mostly WHY one has a secured card in the 1st place, right?)

OK which is better algorithm wise

A) One Discover account with a (now) $1000 CL built over time with increasing deposits but still just 10 months of age or

B) Three accounts even with lower CL but all reporting ON-TIME payments and great LOW util

Although human EGO may like the LOOK of the larger ONE account...the algorithm sees MULTIPLE accounts managed and paid on time

Bottom line at month # 12...I believe example B) will be more like ly to obtain better offers are no lower CL's than A)

I know the human 'mind' THINKS the bigger the secured limit the more IMPRESSIVE but in reality the file is still YOUNG

Based upon that a THICK young file with multiple accounts managed is a 'better' or a LESS risky file than one so THIN as to have just 1 account reporting.

Now later when the file is 'grown' CL's may become more important but at the seedling stage MORE reporting accounts IMO is more valuable.

Not to mention by 'dating' 3 suitors vs 1....even internal offers are more pleniful including SP CLI's and graduations from secured status....there are too many reasons

to spread in around IMO

One $1000 CL CC is less valuable in building than having

1) $500 +

2) $300 +

3) $200

________

Same $1000 total CL's but 3 account reporting (and possibly growing) makes more sense...just keep debt ratios low and payments on time

[creditguy]

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@Anonymous wrote:

If your GOAL is to build credit, so that CL's aren't 'this' much of an issue and you aren't even bothered with this type of nonsense.

IMO don't worry so much about pushing up this one Disco card....again in IMO it's the wrong tactic

I'd prefer you take that cash and ADD another TL to your CR vs trying to chase reward points etc

Look like these instead of trying to grow ONE acccount...using that SAME money

you could have 2 or 3 TL's reporting on your report (and establishing 2/3 relationships with various lenders) all AGING at the same time.

Ppl constantly IMO miss the VALUE of have 3 accounts vs just ONE ,especially as a builder/rebuilder (which is mostly WHY one has a secured card in the 1st place, right?)

OK which is better algorithm wise

A) One Discover account with a (now) $1000 CL built over time with increasing deposits but still just 10 months of age or

B) Three accounts even with lower CL but all reporting ON-TIME payments and great LOW util

Although human EGO may like the LOOK of the larger ONE account...the algorithm sees MULTIPLE accounts managed and paid on time

Bottom line at month # 12...I believe example B) will be more like ly to obtain better offers are no lower CL's than A)

I know the human 'mind' THINKS the bigger the secured limit the more IMPRESSIVE but in reality the file is still YOUNG

Based upon that a THICK young file with multiple accounts managed is a 'better' or a LESS risky file than one so THIN as to have just 1 account reporting.

Now later when the file is 'grown' CL's may become more important but at the seedling stage MORE reporting accounts IMO is more valuable.

Not to mention by 'dating' 3 suitors vs 1....even internal offers are more pleniful including SP CLI's and graduations from secured status....there are too many reasons

to spread in around IMO

One $1000 CL CC is less valuable in building than having

1) $500 +

2) $300 +

3) $200

________

Same $1000 total CL's but 3 account reporting (and possibly growing) makes more sense...just keep debt ratios low and payments on time

---

OP did not say this was their only account, OP simply wants to raise their limit so they can push through more spending on their discover card because they prefer it for everyday spending. This has nothing to do with building a credit profile, just increasing a limit. To OP just chat with a rep and they will let you know how often you can increase your limit. I don't believe there is a limit on how many times you can do it. 

[Anonymous]

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@creditguy wrote:

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OP did not say this was their only account, OP simply wants to raise their limit so they can push through more spending on their discover card because they prefer it for everyday spending. This has nothing to do with building a credit profile, just increasing a limit. To OP just chat with a rep and they will let you know how often you can increase your limit. I don't believe there is a limit on how many times you can do it. 

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You are correct the OP didn't mention it per se that's why I used the term 'if your goal is' right up front......

Also, shared that it was IMO that chasing 'rewards' for daily spending wasn't worth the effort and again IMO there isn't any upside.

And in fact the downside is self-training of over using CC's 'just b/c'

Using a secured CC as a glorified debit card for 'daily spending' gets the OP where? 

In my book, it fosters the 'wrong' idea towards zero upside....that's why I suggested something of value...'if' indeed the OP was bent on escaluating the use of

'dead' deposit money..

Again, IMHO 'if' one were doing that...why not get as much bang for the 'spend' as possible vs just dumping more 'locked away' cash just cause?

[creditguy]

I get what your saying and don't disagree, but OP is just trying to build up a relationship with discover. They are getting discover rewards while they are spending so it is more than just a glorified debit card. When the card graduates then op will get their money back and have an unsecured discover that may grow even larger so it's not all a futile effort. But yes I get your point and understand it's just an opinion and I value your contributions, that's what cool about this forum.

[Anonymous]

Agreed @creditguy

Love the forum and everybody spining there POV (and yours is one I look forward to all the time

[Anonymous]

What is the impact the Discover card reports as secured vs. credit card?

[Anonymous]

There isn't any 'impact' with regard to a card reporting as 'secured' or not....the computer doesn't CARE!

Human beings care but the scoring model only sees

on time payments &

the debt ratio / the CL

So during the stage in which one has 'secured' cards the point is to grow a file and a file grows with a history of again:

on-time payment history and

low debt usage

Don't get lost in the sauce of the 'label' on the card used to ride your way to better credit...it all works.

[Anonymous]

I have multiple secured cards at the moment. I am just trying to increase my limit to be able to use it more often while making less payments. At the same time i am hoping when it comes time to unsecure my limit will be the same limit they unsecure it for. Also my discover doesnt show as secured on my credit report, it just shows as individual.