topic Re: Discover Secured Question in Credit Cards

Discover Secured Question

Anonymous — Thu, 31 Aug 2017 17:41:47 GMT

I opened my Discover secured card about 6 months ago. my 6th statement will cut on 9/10. i opened the account with $500.00. i was thinking of adding another $500.00 to the card but i had some questions regarding that.

1. will it make my card unsecure later if i add more funds to it?

2. OR should i use the $500.00 to open a secured BOA card so i can get in with BOA? (i hear they unsecure pretty quickly too)

Re: Discover Secured Question

Anonymous — Thu, 31 Aug 2017 17:51:18 GMT

I don't think adding another $500 would make your card unsecured, but it would increase your spending power by another $500. Why not just wait for your 7th statement and see if they would graduate the card as what many here says. Once you graduate you should be able to request for regular limit increases. I'd put that $500 elsewhere like a secured loan perhaps, if you are trying to build a credit profile, that would be a good way of investing your money towards.

Re: Discover Secured Question

Anonymous — Thu, 31 Aug 2017 17:55:55 GMT

I just don't want to add the $500 and it take longer (like another 7 months) to unsecure. I know it won't soled the process up. Just don't want it to extend it

Re: Discover Secured Question

Anonymous — Thu, 31 Aug 2017 18:07:32 GMT

I don't think it slows the process down, so as long as you are paying off your balances on time. And keeping your usages low, then you are likely to graduate then to unsecured. I would only add another $500 if you feel like you need more cushion to your currentl limit to help with utilization. But it stays secured until they decide to graduate it. I started with a Capital One secured card as well, but did not feel the need to increase my deposit. Just watch and let your scores grow and you can either apply for an unsecured card if you are ready for one or as suggested, take a personal secured loan to help optimize your Fico scores, that's if your goal is to improve your credit profile

@Anonymous wrote:
I just don't want to add the $500 and it take longer (like another 7 months) to unsecure. I know it won't soled the process up. Just don't want it to extend it

Re: Discover Secured Question

Anonymous — Fri, 01 Sep 2017 00:34:15 GMT

1) Hold on to the additional $500 ( what to do with it, if anything will depend on some additional info)

A) Is the Disco the only reporting TL on your profile,
do you have a score?
*The scoring model generally needs 6 reporting cycles to score new profiles ( read that as more like 6-8, due to differences in different cut off and data updates per 3 separate CRAs...6 on the nose isn't a real life practical scenario, I like to just add 45-60 days to be more realistic)

2) That being said...IF the GOAL is really credit score/profile manipulation and building...I teach my students to build it deep and wide from the beginning.

IMO there are 2 better options for an additional $500 in dual usage of savings/deposit 💰

#1
If the profile does NOT have an installer (car, student, personal loan) let's go ahead and create one ( to maximize a bump in the credit mix section and add a positive account that'll report positive for a decade after it's closed)

Take the $500/blue to the CU, have them immediately issue a $500 SSL (again, adding an installer TL to the masterpiece report we're about to build, quickly)

With the $500/red 'loan' proceeds one can thicken their profile by opening say that BoA secured with $300 and say a $200 Citi secured...

So now the sane $500 has helped add 3 new TL's

Now my masterpiece of a credit profile has

Disco
BoA Visa
Citi M/C &
Loan
Reporting...= Ideal with regard to Risk scoring 3 revolvers & 1 installer

All with very decent, solid lenders ( not bottom feeding no names btw)

Anyway, allow THAT to report 6-8 months

( Yes, there is a small payment regarding the SL but really it's moving rocks from the front yard to the back yard, as the deposit/loan 💰 is being held now by BoA and Citi ( they'll give it back, can't be needed, calm down Skippy) the overall total out of pocket is the scratch paid the 'borrow' ones 💰 via the SSL (which normally amounts to, what $30-$40 bucks) well worth the bump, the diversity and history one gets to FEED into the credit profile...well worth it = no brainier

Re: Discover Secured Question

BurgeoningHope — Fri, 01 Sep 2017 06:54:44 GMT

So long as you've been using it responsibly - using it, keeping it paid down for low util, paying on time - you should get your deposit back in another month-ish. It worked for my husband, who has a number of derogs. Once you get your deposit back, you might want to sit on it for a rainy day, to make sure all of your lines are paid on time and stay at low util. Or if you're following Gemini's wise advice you could add it to the share-secured loan proceeds and open one of the cards with a higher limit.

You're doing the right things to be well on the way to getting where you want to be! Congratulations!

Re: Discover Secured Question

Anonymous — Fri, 01 Sep 2017 07:23:53 GMT

Thanks and great info @B Hope

It should be pointed out that no matter what YMMV
especially true when comparing a thin brand new as a baby's bottom profile vs an older returning profile such as more like with @b Hope's hubby...

I just like to tamp down expectations and briefly explain a bit because ppl get lost in this
"Hey but the OTHER person got.... within these timeframe etc"

Which is one of the reasons I inquired about what else was going on within the OPs overall profile.

At lot of conventional wisdom goes out the window in lending ....a rebounder who lost two $500k mortgages in the past may find a willing lender before his twin brother whose NEVER shown a history of making mortgage payments....

Street or neighborhood logic may say why not lend the the brother whose never lost a house, he seems like a better risk
Lenders see it as ' He's Baaack...' we've seen him make X amount of payments before wheels feel off he CAN do it he HAS done it...that other brother = total wildcard = somebody 1st not me

Re: Discover Secured Question

Anonymous — Sat, 02 Sep 2017 13:41:38 GMT

I got unsecured after statement #7. I had $600, then the auto-CLI took me to $2.5k.

While I don't have a definitive answer to your original question, I do wonder if adding more now would hurt your auto-CLI. Would they say "insufficient experience at current limit" since you will likely only have said limit for 1-2 months?

Re: Discover Secured Question

Anonymous — Sat, 02 Sep 2017 14:10:49 GMT

Good to see your @grasshopper, been awhile☺

Generally, I don't like to get too much into the Algebra or Calculus of nonsense CYA 'reason' codes off crap denials...and the ole
"Insufficient experience...blah, blah, blah"

Fits the category of nonsense NOT worth the confusion of a new to credit builder, it's one of those LOST in the weeds, red herring, keep 'em guessing and off my chest moves perfected by big business, adopted by many.

Basically, ignore that nonsense as it's a mental trick bag, not worth much concern....it's a chick telling a dude she can't make the date because she's washing her hair = a crap blow off...
Don't waste time on how much TIME you should've given her between hair washes...it's simply a blow off, not a 'real' matter of contention... just a not now, red herring.

This advanced crap IMO a new to the game player doesn't even need to concern themselves with...
IMO you train players to keep their heads down and keep playing... sometimes the results come back BIG win like @grasshopper with $2.5k, in a few months...other times it's a grind out win, but one doesn't win w/o proper play and technique JMO 😉