topic Re: Will I qualify for the Discover IT secured card? in Credit Card Applications

Will I qualify for the Discover IT secured card with no credit history?

Ack226 — Thu, 15 Jun 2023 18:30:39 GMT

I have a decent income and net worth but zero credit history. I haven't taken out a loan in 20 years and nothing shows up on my credit report - good or bad.

My income is from self-employment so I don't have an "employer" per-se. But I can prove good income over the past multiple years via tax returns if needed.

I'd like to get some rewards points and credit history going, so I'd like to apply for my first card and the Discover IT secrured card seems like a good bet.

I'd really like to avoid a rejection so don't want to apply if I'm unlikely to be approved.

What are my chances of being accepted for this card with zero credit history?

Re: Will I qualify for the Discover IT secured card?

BigBS — Thu, 15 Jun 2023 18:19:33 GMT

Not sure how reliable it is these days, but did you try the Discover pre-approval site?

Re: Will I qualify for the Discover IT secured card?

Ack226 — Thu, 15 Jun 2023 18:32:41 GMT

@BigBS wrote:
Not sure how reliable it is these days, but did you try the Discover pre-approval site?

The discover pre-approval site says I'm pre-approved for the "Discover IT cash back card" and the "Discover IT Gas and Restaraunts" card. I assume these are different versions of the same secured card with different rewards?

The pre-approval is encouraging but I'm hoping to hear from others who were fully approved with zero credit history before I pull the trigger and apply.

Re: Will I qualify for the Discover IT secured card?

Brian_Earl_Spilner — Thu, 15 Jun 2023 18:37:13 GMT

Discover is one of those lenders that are ok with thin files. If you can prove income through the IRS, you shouldn't have any issues. As for the possible wasted inquiry, they're just inquiries. Plan out an application roadmap and they won't matter.

Re: Will I qualify for the Discover IT secured card with no credit history?

GZG — Thu, 15 Jun 2023 18:46:56 GMT

@Ack226 wrote:
I'd really like to avoid a rejection

honestly, you really have no reason to avoid rejection

you don't really have a file yet, so by time you start getting approvals to generate a file, inquires you plan out now, even if it's a lot of them, will have fallen off anyway. If you need 10 inquries to get 3 cards, they'll be gone in 2 years and nobody will have cared to begin with. although with a proper roadmap, I doubt you'll be rejected that many times.

Discover being willing to offer you an unsecured card is a really good sign and is likley to be an approval, you may have to be willing to let them to see your tax returns though based on your file/reported income

I would also consider Chase's new Freedom Rise card, this card literally exists for your situation

https://creditcards.chase.com/cash-back-credit-cards/freedom/rise

If I was you, what I would do:

1. See if I qualify to join Navy Federal

2. Check Capital One pre-approval and see if they would give me a savor one

3. come up with a plan with a list of several cards (2-3) you might want Discover/Cap1/NFCU/Chase/where you bank/CU's

4. let the apps rip, and be willing and ready to offer identity documents/income proof/tax returns etc.

Re: Will I qualify for the Discover IT secured card with no credit history?

Brian_Earl_Spilner — Thu, 15 Jun 2023 18:48:45 GMT

If you're set on a secured card, you may want to check out us bank. Wish those options were around when I was rebuilding

Re: Will I qualify for the Discover IT secured card with no credit history?

Ack226 — Thu, 15 Jun 2023 18:50:53 GMT

@GZG wrote:
honestly, you really have no reason to avoid rejection

you don't really have a file yet, so by time you start getting approvals to generate a file, inquires you plan out now, even if it's a lot of them, will have fallen off anyway

Discover being willing to offer you an unsecured card is a really good sign and is likley to be an approval, you may have to be willing to let them to see your tax returns though based on your file/reported income

I had assumed that if I apply and am rejected then the hard inquiry would make me even less likely to be approved for other cards I might try for. Is that not the case?

Thanks for pointing out that my Discover pre-approvals were for unsecured cards! I didn't realize that. I assumed that all of the "Discover IT" cards were secured. Now I see that there are both types and it looks like I was pre-approved for the unsecured version.

Now I'm wondering if I should go for secured or unsecured. I had been planning to put down the full $2500 deposit for the secured to have a higher credit limit to make it easier to run all of my purchses through the card. I assume that with the unsecured version I'd get a much smaller limit to start. Is there any good reason to go for the unsecured version instead of the secured version if I don't mind putting down the deposit?

Re: Will I qualify for the Discover IT secured card with no credit history?

GApeachy — Thu, 15 Jun 2023 18:51:56 GMT

I wouldn't do it. If not taking the pre-approved offer(s) from Disco (assuming that those offers aren't for secured.... I mean they'd say SECURED!!!...hahaha and scream SECURED!!!! every time you whip it out.) then you're better off going to your local bank and app'ing for the first card there. Speak to your Branch Manager and get his/her advice if hp's really are a big deal to you. But don't do the secured route if at all possible. SECURED!!!!!!!!! hahahaha, i'm just bugging

Like mentioned above, I'd go for the Disco offer and snatch up that cash back. Oh Good Luck deciding but hp's really aren't a big deal. Rejection is only in the eye of the beholder. Trust me, we get over it real quick and learn something along the credit way like which FI's love ya or hate ya or is on the fence about ya.

Disco has never had a qualm about me or dh being self employeed....not many do that I can think of.

Re: Will I qualify for the Discover IT secured card with no credit history?

GZG — Thu, 15 Jun 2023 18:56:59 GMT

@Ack226 wrote:
@GZG wrote:
honestly, you really have no reason to avoid rejection

you don't really have a file yet, so by time you start getting approvals to generate a file, inquires you plan out now, even if it's a lot of them, will have fallen off anyway

Discover being willing to offer you an unsecured card is a really good sign and is likley to be an approval, you may have to be willing to let them to see your tax returns though based on your file/reported income
I had assumed that if I apply and am rejected then the hard inquiry would make me even less likely to be approved for other cards I might try for. Is that not the case?

Thanks for pointing out that my Discover pre-approvals were for unsecured cards! I didn't realize that. I assumed that all of the "Discover IT" cards were secured. Now I see that there are both types and it looks like I was pre-approved for the unsecured version.

Now I'm wondering if I should go for secured or unsecured. I had been planning to put down the full $2500 deposit for the secured to have a higher credit limit to make it easier to run all of my purchses through the card. I assume that with the unsecured version I'd get a much smaller limit to start. Is there any good reason to go for the unsecured version instead of the secured version if I don't mind putting down the deposit?

the secured card 'graduates' into the underwhelming gas card instead of the 5% rotating category card, so I'd rather deal with a $700 5% card than a $2500 secured card that won't fit into your setup 1-2 years from now because you'll be able to do much better

US bank secured might also be a really good choice, I have no idea if they like thin/empty files, but I would have no problems putting down $2500 on either of their really good secured cards Cash+ and Altitude Go

I wanted to, but didn't want the rejection and as a result, I had two pointless cards I've since closed.

and yes, inquires are technically bad, but your file is literally nothing, so, it's not meaningfully bad in any way that's likely to change anybody approval decision

Re: Will I qualify for the Discover IT secured card with no credit history?

Brian_Earl_Spilner — Thu, 15 Jun 2023 20:50:29 GMT

@GZG wrote:
@Ack226 wrote:
@GZG wrote:
honestly, you really have no reason to avoid rejection

you don't really have a file yet, so by time you start getting approvals to generate a file, inquires you plan out now, even if it's a lot of them, will have fallen off anyway

Discover being willing to offer you an unsecured card is a really good sign and is likley to be an approval, you may have to be willing to let them to see your tax returns though based on your file/reported income
I had assumed that if I apply and am rejected then the hard inquiry would make me even less likely to be approved for other cards I might try for. Is that not the case?

Thanks for pointing out that my Discover pre-approvals were for unsecured cards! I didn't realize that. I assumed that all of the "Discover IT" cards were secured. Now I see that there are both types and it looks like I was pre-approved for the unsecured version.

Now I'm wondering if I should go for secured or unsecured. I had been planning to put down the full $2500 deposit for the secured to have a higher credit limit to make it easier to run all of my purchses through the card. I assume that with the unsecured version I'd get a much smaller limit to start. Is there any good reason to go for the unsecured version instead of the secured version if I don't mind putting down the deposit?
the secured card 'graduates' into the underwhelming gas card instead of the 5% rotating category card, so I'd rather deal with a $700 5% card than a $2500 secured card that won't fit into your setup 1-2 years from now because you'll be able to do much better

US bank secured might also be a really good choice, I have no idea if they like thin/empty files, but I would have no problems putting down $2500 on either of their really good secured cards Cash+ and Altitude Go

I wanted to, but didn't want the rejection and as a result, I had two pointless cards I've since closed.

and yes, inquires are technically bad, but your file is literally nothing, so, it's not meaningfully bad in any way that's likely to change anybody approval decision

You can call in a month after getting the secured car and pc it to the normal 5%. At that point you'll earn the 5% and it will graduate into the normal 5%.

Re: Will I qualify for the Discover IT secured card with no credit history?

Ack226 — Thu, 15 Jun 2023 22:08:41 GMT

Thanks for the advice everyone! I was just approved for the Discover IT Cash Back card (unsecured) with a $500 credit limit. I'm excited to start building up some credit.

I'd like to run as much of my spending through it as possible to max out the cash back. I can spend as much as I like on it with no problems as long as I pay it off every few days and never let the outstanding balance exceed $500, correct?

Re: Will I qualify for the Discover IT secured card with no credit history?

BigBS — Thu, 15 Jun 2023 22:14:30 GMT

Congrats on the approval and remember they match your rewards for the 1st year! Hasn't been mentioned, but I have seen approvals in the past where they asked for POI after the fact. With heavy use and solid payments, you should be able to get a CLI relatively soon, as well.

Re: Will I qualify for the Discover IT secured card with no credit history?

GApeachy — Thu, 15 Jun 2023 22:42:36 GMT

Yay You! Welcome to Discover and your your first credit milestone!

Come back here often so these fine peeps can help you strategically tweek your credit profile along the way.......lots of tips & legit tricks you're gonna wanna know. 👏🍻👏

Re: Will I qualify for the Discover IT secured card with no credit history?

KH-Underbat — Fri, 16 Jun 2023 01:01:28 GMT

As the OP has indicated their application was approved, this thread is now locked.

Congratulations!