topic Re: Should I close my Discover Secured Card? in Credit Cards

Should I close my Discover Secured Card?

Anonymous — Fri, 01 Jan 2021 20:49:35 GMT

I got this card in August 2017 (40 months) immediately after my BK7 discharge. The credit limit is $2500. Since then, my scores have went from 500 to 675 EQ, 673 TU, and 652 EX. I put approx 15k annually in spending through this card. It seems however that it won't graduate for any reason. I have no collections, no recent late payments, pay off my cards every month, and the only things that could be considered bad about my credit profile are the BK7 and a high number of inquiries from car shopping.

im debating on closing it. Will it hurt my score at all if I do? How long has it taken for others who have closed to get their security deposits back?

Re: Should I close my Discover Secured Card?

AndySoCal — Fri, 01 Jan 2021 22:39:42 GMT

I would call Discover Card and ask them if this card can be graduated. I do not if a backdoor number would be better to use than the normal customer service number. You will need to talk to Discover anyways if you decide to close the account and it cannot hurt. I presume you have other credit card account(s).

Made a slight change in my response.

Re: Should I close my Discover Secured Card?

CramEiko — Fri, 01 Jan 2021 21:14:38 GMT

@AndySoCal wrote:
I would call Discover Card and ask them if this card can be graduated. I do not if a backdoor number would be better to use than the normal customer service number. You will need to talk to Discover to close the account and it cannot hurt. I presume you have other credit card account(s).

I would think to call. Maybe they will have some kind of retention offer for you?

Good Luck!

Re: Should I close my Discover Secured Card?

AndySoCal — Fri, 01 Jan 2021 22:41:57 GMT

@CramEiko

I made a slight change in my original response . The OP will need to talk to Discover anyways if the OP decides to close the account. My original response did not say quite what I wanted to say

Re: Should I close my Discover Secured Card?

KJinNC — Fri, 01 Jan 2021 22:43:27 GMT

Trying to figure out Discover's thought process is like asking a cat to explain Dali paintings. Some things are simply not possible for humans to understand and the Discover decisioning process is one of those things.

You wouldn't lose points for closing a card, except in a couple of situations. One is that you get a small scoring bonus if you have three or more open cards, so if this took you from three to two, you might lose a few points. The other is that if it significantly increases your utilization percentage, you might lose points. If neither of those is the case, you wouldn't lose points for closing it. Closed positive accounts stay on your credit for ~10 years.

When you close a secured Discover, I think they wait about an extra month to make sure no mystery charges show up, and then send you a check for your deposit. I don't remember exact timeline. It isn't super fast, but it will show up eventually, probably 2-3 months after you close the card, if I remember correctly.

If you want to have a Discover, just not a secured one forever, you can check Discover prequalification to see if you could open a new, unsecured card. You might think "why would they give me an unsecured card if they won't unsecure my secured card?" but bear in mind, it doesn't have to make sense, it is Discover.

JMO, good luck!

Re: Should I close my Discover Secured Card?

joltdude — Fri, 01 Jan 2021 23:31:29 GMT

Check Discover for a Prequal...... consider apping for a second, unsecured Discover ...... close the secured one ....

Yes, you can be approved for an unsecured Disco while holding a secured disco as long as it's been a year since issued and it clearly has

you might be able to encourage it to graduate but it's technically an automated process not a human one and they will say they can't do anything but there has been anecdotal reports of a few people noticing their card graduating shortly after nagging

-j

Re: Should I close my Discover Secured Card?

Remedios — Fri, 01 Jan 2021 23:56:08 GMT

For me, it's impossible to answer your question without knowing what other cards you have.

There is a chance this might be the best card you have, or it might be not so useful to you.

You are putting a decent amount of spend through it, so there has to be a reason why.

Secured or not, you should be getting same rewards as unsecured.

Discover does "postpone" graduations when there is significant increase in HPs and new accounts, so maybe reevaluate at later time, when your inquires age somewhat if nothing happens graduation wise.

Re: Should I close my Discover Secured Card?

LP007 — Tue, 05 Jan 2021 07:25:39 GMT

Naw Cuz. Don't be going around closing 3yr history. You can't get those 3 yrs back. Call them cats and ask them what the problem is.

I still don't know why I sat like a dear in headlights after my late '11 BK. Didn't get my 1st SCC until 2014.

I should have opened a $1000 savings account in 2012 and asked them for a 1% APR loan against my savings account. Took that G and opened another bank's savings account and repeated it. Then take that G and open one at a third bank. Slowly pay off 3 new loans that I created and watch them report.

Probably could have gotten an unsecured card from those banks after a year. Who knows.

Re: Should I close my Discover Secured Card?

collics — Tue, 12 Jan 2021 04:46:04 GMT

@LP007 wrote:
Naw Cuz. Don't be going around closing 3yr history. You can't get those 3 yrs back. Call them cats and ask them what the problem is.

I still don't know why I sat like a dear in headlights after my late '11 BK. Didn't get my 1st SCC until 2014.

I should have opened a $1000 savings account in 2012 and asked them for a 1% APR loan against my savings account. Took that G and opened another bank's savings account and repeated it. Then take that G and open one at a third bank. Slowly pay off 3 new loans that I created and watch them report.

Probably could have gotten an unsecured card from those banks after a year. Who knows.

"Naw cuz"

bruh

Re: Should I close my Discover Secured Card?

GApeachy — Tue, 12 Jan 2021 12:23:13 GMT

Perhaps to keep your card open and get your money back.....

-call them and ask if you can get a cld. (see if that's possible- if not, quit reading HERE)

If they can cld.....

That might, could trigger the Graduation (wishful but possible thinking)

You'd get your $$$$ back

You'd keep this card active vs. your closing it.

Move on and use this card lightly until Disco grants its' unsecuring.

Good Luck either way.

Re: Should I close my Discover Secured Card?

Anonymous — Tue, 12 Jan 2021 15:49:40 GMT

@LP007 wrote:
Naw Cuz. Don't be going around closing 3yr history. You can't get those 3 yrs back. Call them cats and ask them what the problem is.

Closing a card doesn't cause you to lose its history.

I would like to know from OP what other cards he has along with their ages before really making a recommendation.

Re: Should I close my Discover Secured Card?

Anonymous — Tue, 12 Jan 2021 16:01:33 GMT

Citi secured and capital one quicksilver both for around a year.

Re: Should I close my Discover Secured Card?

kidink1911 — Tue, 12 Jan 2021 21:36:39 GMT

I understand but I would say stick with it. My Discover IT card just unsecured this month after almost 4 years of being secured at $500.

Trust me it will happen for you plus you don't want to close that good payment history down.

And when it does unsecure you will be rewarded with a double limit and your secured money back!!

Re: Should I close my Discover Secured Card?

LP007 — Tue, 12 Jan 2021 23:16:30 GMT

@Anonymous wrote:
@LP007 wrote:
Naw Cuz. Don't be going around closing 3yr history. You can't get those 3 yrs back. Call them cats and ask them what the problem is.

Closing a card doesn't cause you to lose its history.

I would like to know from OP what other cards he has along with their ages before really making a recommendation.

I see what you're saying, but closed accounts do fall off in the future. That's where my thought process was leaping: the whole picture. I just had a closed student loan fall off my history, and TU dropped 6 points because of it. Still waiting to see the EQ & EX drops.

Yeah, bigger picture, not just short term.

Re: Should I close my Discover Secured Card?

KJinNC — Wed, 13 Jan 2021 00:53:26 GMT

Who knows what your credit situation will be like in ten years. Unless you close most of your accounts now and don't open new ones for years, it probably won't greatly affect your credit at that time. Wouldn't worry much about it. JMO.