topic Canceling Discover secured card and applying for unsecured? in Credit Cards

Canceling Discover secured card and applying for unsecured?

Anonymous — Thu, 04 Oct 2018 03:15:43 GMT

I recently cleaned up my credit history and brought my score up to 727. Before I did that, I applied for several credit cards and got rejected by all except for a discover it secured card. I've only had it a month. I was just approved for an HSBC credit card, so I'd rather use that card to build my credit. I see that my credit report will show that the discover card is a secured card, which I would think reflects poorly on me. I know that the discover it secured card can graduate to unsecured after several months, but I could probably use my HSBC card and get my score up over 750 in a few months and apply for a discover unsecured card and get that sooner than if I wait for their graduation process. So is there any reason I shouldn't close out this secured card right now?

Re: Canceling Discover secured card and applying for unsecured?

aircobra — Thu, 04 Oct 2018 03:29:55 GMT

@Anonymous wrote:
I recently cleaned up my credit history and brought my score up to 727. Before I did that, I applied for several credit cards and got rejected by all except for a discover it secured card. I've only had it a month. I was just approved for an HSBC credit card, so I'd rather use that card to build my credit. I see that my credit report will show that the discover card is a secured card, which I would think reflects poorly on me. I know that the discover it secured card can graduate to unsecured after several months, but I could probably use my HSBC card and get my score up over 750 in a few months and apply for a discover unsecured card and get that sooner than if I wait for their graduation process. So is there any reason I shouldn't close out this secured card right now?

Opening an account and then closing it soon after reflects more poorly than a secured card ever could (not that a secured card even reflects poorly). You've also taken an HP for it, so it makes little sense to close it. I also don't think Discover will let you open a new account (I know with a current open account, you have to wait a year for it to have been open before apping for another). And if that is the case, you're probably going to get it to graduate before a year if you use it responsibly.

Re: Canceling Discover secured card and applying for unsecured?

kerplunk — Thu, 04 Oct 2018 03:34:59 GMT

I wouldn't close the Discover card. Discover is a great company, and they will likely automatically convert it to a non-secured card in 6-8 months of having the card.

Re: Canceling Discover secured card and applying for unsecured?

howellco2 — Thu, 04 Oct 2018 08:36:53 GMT

The secured card does not reflect poorly it would hurt your credit worse to close it

Any way I had the secured card 300 limit in 10 months was upgraded to unsecure and they bumped line up to 2k 6 months later with out asking I'm now at 5k