topic Re: Closing my secured discover card, will it really hurt my score? in Credit Cards

Closing my secured discover card, will it really hurt my score?

jkry — Wed, 28 Jun 2017 19:10:33 GMT

I opened the secured Discover credit card back in March 2016. $200 CL. I have been using it regularly and paying it down, maxing it out, paying it down. I really have not been trying keeping a balance for utilization reasons. Since opening that secured card, I have a Pentagon Federal platinum rewards, American Express Delta Gold, American Express Blue Cash every day, and I have also been given increases on my Quicksilver card and my Wells Fargo platinum. The $200 credit line really isn't helping for utilization reasons,as its so small and the customer service rep told me that the account was being reviewed every 26th day of the month. Blah Blah, Well I don't see it unsecuring anytime soon and I'm thinking about closing it. I do have a zero balance on the card now. Any opinions?

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 14:04:18 GMT

While I have no issues with closing cards, you've only had this one 3 months. There is a very good chance it could unsecured after the 7th statement and it will grow. I would just put a small recurring bill on it, like Netflix, and wait a few more months. But, ultimately, it's up to you.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 14:07:16 GMT

The only possible negative effect will be if your utilization "needs" that $200 of empty space to stay below 30%.

If your other accounts are in good shape balance-wise, then closing this one should not have any effect on your score.

The age of the account will continue to count in your average as long as the account remains in your report - ten years, for a closed credit card - and since it is in good standing, there is no fear of collections or anything appearing from it.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 14:50:45 GMT

@Justagirl73 wrote:
While I have no issues with closing cards, you've only had this one 3 months. There is a very good chance it could unsecured after the 7th statement and it will grow. I would just put a small recurring bill on it, like Netflix, and wait a few more months. But, ultimately, it's up to you.

The OP opened the card in 2016 ... so it's been a year and three months.

To the OP, I'm in the same boat as you ... I opened mine in April of 2016, and no graduation joy here for me either. I'm kicking around the idea of closing it and getting my deposit back, but haven't pulled the trigger on that yet. I don't really need it for UTI purposes, and it'll stay on our reports as a positive tradeline for 10 years ... so there's no harm in closing it for me. I guess I just hope it'll unsecure in the very near future.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 15:12:29 GMT

@Anonymous wrote:
@Justagirl73 wrote:
While I have no issues with closing cards, you've only had this one 3 months. There is a very good chance it could unsecured after the 7th statement and it will grow. I would just put a small recurring bill on it, like Netflix, and wait a few more months. But, ultimately, it's up to you.
The OP opened the card in 2016 ... so it's been a year and three months.

To the OP, I'm in the same boat as you ... I opened mine in April of 2016, and no graduation joy here for me either. I'm kicking around the idea of closing it and getting my deposit back, but haven't pulled the trigger on that yet. I don't really need it for UTI purposes, and it'll stay on our reports as a positive tradeline for 10 years ... so there's no harm in closing it for me. I guess I just hope it'll unsecure in the very near future.

Oops.....old age kicking in lol! Apparently I think is still 2016 😂

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 17:13:12 GMT

I just closed one of my secured cards and it had a higher limit (I added more to it over the years) and it didn't seem to hurt my score.

I also just opened two new secured cards.

You could also use the Credit Score Simulator on myFico and see what it says?

Re: Closing my secured discover card, will it really hurt my score?

austinguy907 — Wed, 28 Jun 2017 17:44:50 GMT

@jkry wrote:
I opened the secured Discover credit card back in March 2016. $200 CL. I have been using it regularly and paying it down, maxing it out, paying it down. I really have not been trying keeping a balance for utilization reasons. Since opening that secured card, I have a Pentagon Federal platinum rewards, American Express Delta gold, American Express blue cash every day, and I have also been giving increases on the Quicksilver card and my Wells Fargo platinum. The $200 credit line really isn't healthy for utilization of reasons, and the customer service rep told me that the account was being reviewed every 26th day of the month. Well I don't see it unsecuring anytime soon and I'm thinking about closing it. I do have a zero balance on the card now. Any opinions?

Ok, so things are obviously moving in the right direction if you're picking up other cards like AMEX.

You have a couple of options to get this to convert:

1. add some $ to the account to make it more "useable".... they allow up to $2500 on secured cards

2. put your netflix/hulu/prime/etc. on there and setup autopay and quit playing around with maxing/paying/etc.

If you do either or both of these then just make sure there's spend/payment each month to generate activity but, not too much to make them squirm. Quit applying for additional cards until it converts to prevent major changes to your CR's while you're under the microscope. Grab your fruity cocktail and pull up a seat on the beach until they make the switch. You already aged it over a year which is positive experience on your reports and throwing it away doesn't do you any good. There's plenty of people that started where you are right now ready to throw away the card. Sticking it out though got them a CLI at conversion and bloomed way beyond where they ever thought it would grow to 5 digit CL's.

Re: Closing my secured discover card, will it really hurt my score?

jkry — Wed, 28 Jun 2017 19:13:51 GMT

Thanks for the advice.... I dont need it for Utilization, since its such a small amount anyway. I called today, and the CSR said that she has seen account get un-secured up to 2-3 years. I wont wait that long.... I was also told that after 12 months, and no unsecuring, a current secured card holder could apply directly for an unsecured card. More than likely an Experian hard pull is what she said. Also, it would be a new account, new account number, and membership clock will start over. So your card printing would state the year you begin membership.... Someting for me to think about.

Re: Closing my secured discover card, will it really hurt my score?

austinguy907 — Wed, 28 Jun 2017 19:51:00 GMT

I wasn't really talking about your overall utilization but this card specifically.

So, last year they changed the conversion process to start reviewing at the 7 month mark and not the old 12 month rule.

Many long time holders of secured cards with Disco hitting 18-24 months or even longer started to convert to a regular card.

The utilization portion of your $200 card was to increase your limit with an additional deposit if you didn't want to micromanage it for daily use or even for a slightly larger purchase.

Holding onto the card and waiting it out isn't going to kill you if you follow the previous post of putting a monthly bill on there and using autopay. If you do that and just wait them out you'll get your check in the mail and a CLI out of the deal and more points on your score in the meantime.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Wed, 28 Jun 2017 23:03:27 GMT

Mine had been secured about as long as yours. It could be a total coincidence, but I added $300 to it for a limit total of $500 and the next month it unsecured.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Thu, 29 Jun 2017 00:27:03 GMT

If it doesn't have a annual fee then why cancel it? Just SD it or use it more and hope it unsecures.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Fri, 30 Jun 2017 05:15:49 GMT

OP what are your FICO scores? If they're not above 670 I wouldn't expect you to get unsecured even if you've had it over a year.

Re: Closing my secured discover card, will it really hurt my score?

MyLoFICO — Fri, 30 Jun 2017 10:56:45 GMT

Mine unsecured 2 months ago after 13 months secured and it still sits today with a 200 CL in my safe. I won't use it anymore. It will close itself from non use or get a CLI. I won't wait for either. I used it all the time too. Like you, i have better cards now. In my opinion, sock drawer it or close it. Discover seems to have problems with secured -> unsecured and CLI's these days.

Re: Closing my secured discover card, will it really hurt my score?

joltdude — Sat, 01 Jul 2017 13:04:42 GMT

Really wonder if discover stretched out the time between CLIs with the secured cards (and pretty much everyone)..... Wonder if you have to wait at least 91 days after it becomes unsecured now to get a CLI... or even possibly a 6 mo cycle just like the APR reductions

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Sat, 01 Jul 2017 17:20:43 GMT

I opened up my discover secured card last April and it unsecured seven months later. My credit scores improved quite a bit though during that time so it appears to be more of a credit score thing and less about time but who knows. I probably shouldn't have been secured in the first place but I applied for it thinking I couldn't qualify for the regular IT card. My scores improved from the 660's to 690-700's. good luck OP! *edit* after they unsecured my card in Dec of 2016 they bumped up my credit to 500. I immediately asked for a cli and got doubled to 1000. Just last month I got an auto Cli to 1700. So they appear to work on a six month cycles.

Re: Closing my secured discover card, will it really hurt my score?

austinguy907 — Sat, 01 Jul 2017 16:50:17 GMT

@joltdude wrote:
Really wonder if discover stretched out the time between CLIs with the secured cards (and pretty much everyone)..... Wonder if you have to wait at least 91 days after it becomes unsecured now to get a CLI... or even possibly a 6 mo cycle just like the APR reductions

I think whatever stomach bug Disco had is now flushed from their system as I spotted the fabled Disco Unicorn the other day. I think the wait is clearing from their systems since they produced a brand new baby 2-day message for another user.

Re: Closing my secured discover card, will it really hurt my score?

Anonymous — Sat, 01 Jul 2017 17:23:40 GMT

Mine is coming up on the 6th statement in a few days. I’m pretty much assuming it’s going to be a while yet, I’ve been using it less and less anyways. Interestingly, they are softing me like crazy and it steadily increases. I don’t know if they don’t like what they see or not. It’s odd seeing them soft me like a week straight every month plus other random days. 🤔

Re: Closing my secured discover card, will it really hurt my score?

austinguy907 — Sat, 01 Jul 2017 17:58:45 GMT

SP'ing you is a good sign that someone's paying attn to your profile in anticipation of the 7th month conversion. Disco is a less is more type of situation for most profiles. I used the crock pot method with them for 2 years now and got 10X SL out of them in CLI's. When it comes to eyeing up the SP's though.... A watched pot doesn't boil! Find something else to concentrate on

Re: Closing my secured discover card, will it really hurt my score?

jkry — Sat, 01 Jul 2017 20:12:28 GMT

Myfico scores Equifax 668 Transunion 669 Experian 644

I am just going to wait it out for now... I do have a Paid Tax lien on my Equifax report ( I have never NOT paid my taxes) The state made a mistake, and now they wont remove it. 7 Years ago I over collected unemployment by 675 dollard, and the state re routed my tax refund to satisfy the debt. I agreed to them using my tax refund, but no one ever disclosed to me that it would put a lien on my taxes REFUND to re route it to the department of labor. Otherwise, I would have just paid it, I had the money to do it. So furious, so I am hoping that the new rules for fico and tax liens will help. Until then, Ill just wait keep hoping for it to unsecure on its own.

** I DID fill out the "check my offers" on Discovers website, and the screen came up with a " How does your credit stack up" screen with a comparison chart to other cards on the market, and a big button that says apply now.... .Didnt actually say that I was prequal of preapproved... Do they normally say true PreQual on that form?

Not sure how to post a screenshot of it here.

Re: Closing my secured discover card, will it really hurt my score?

austinguy907 — Sat, 01 Jul 2017 20:19:06 GMT

Here's how to assess your odds with Disco:

23.x%+ = mostly a denial

3% spread say 15-18% = likely an approval

single APR = approval