topic Re: Discover IT secured card question in Credit Cards

Discover IT secured card question

Anonymous — Fri, 26 Mar 2021 18:52:21 GMT

I'm not quite sure I understand how this card works. So I used 300 to get one. I used a bit, and then paid off that amount on February 2. A few days later it reflected in the available balance that I paid it and added it back. However I made another payment on March 17 and while it's reflected in my bank account and discover shows I paid it, my available balance hasn't changed yet.

I thought this worked like a credit card, where you just use the same limit and then pay it off. Especially since it added back to available credit after the first payment. Was I wrong, and you don't get this money put back?

Re: Discover IT secured card question

Mr_Mojo_Risin — Fri, 26 Mar 2021 22:29:58 GMT

A secured card works the same as an unsecured except for the deposit required.

I've seen on here other members report sometimes that it can take up to 10 days for credit to update.

Reasoning was the lender wanted to see a little payment history established.

I haven't experienced this personally, just passing on a probable reason.

Re: Discover IT secured card question

Anonymous — Fri, 26 Mar 2021 22:32:26 GMT

Thank you so much for taking the time to respond, I appreciate the information! I'm new to trying to fix my credit and appreciate the response.

Re: Discover IT secured card question

Mr_Mojo_Risin — Fri, 26 Mar 2021 22:56:45 GMT

This is the right place for you if you're trying to improve your credit profile.

Any question you have, there's someone here who can answer it.

I came here little over a year ago not knowing anything about credit. Had just got my 1st card from Capital One with a 300 SL. Long story short I now have almost 30K in credit because of everything I learned from these members here.

Stick around and check things out, if you have any questions just ask, someone is always willing to help.

Re: Discover IT secured card question

NotRalphKramden — Sat, 27 Mar 2021 18:37:12 GMT

@Anonymous wrote:
I'm not quite sure I understand how this card works. So I used 300 to get one. I used a bit, and then paid off that amount on February 2. A few days later it reflected in the available balance that I paid it and added it back. However I made another payment on March 17 and while it's reflected in my bank account and discover shows I paid it, my available balance hasn't changed yet.

I thought this worked like a credit card, where you just use the same limit and then pay it off. Especially since it added back to available credit after the first payment. Was I wrong, and you don't get this money put back?

Two possibly relevant items of interest:

Discover treats multiple payments in 3 days in a special way and may not update available credit for 8 days.

https://ficoforums.myfico.com/t5/Credit-Cards/Is-there-a-quot-workaround-quot-to-Discover-s-processing-limits/td-p/5067123

and from the card member agreement for the secured card:

"We may delay increasing your available credit by the amount of any payment that we receive for up to 10 business days"

I wasn't able to tell from your post if the first case applied, but there is usually a notice posted on the payment screen if you attempt to pay twice in the three day window.

For the second part, they say they can do that.

For the most part I had no trouble staying right with Discover, they are pretty up front about the rules.

As I said I don't know if this applies to you. Best of luck to you in your rebuild. I still have my Discover. Its my oldest card. I still think its a good one.

Re: Discover IT secured card question

designated_knitter — Sun, 28 Mar 2021 22:42:52 GMT

I haven't experienced this with Disco but when my Citi secured was first opened, they were constantly putting holds after payments. I would constantly have to call them up and we would do a 3-way call with my CU so that the CU could verify that the payment had cleared. Once we did that, Citi would release the hold.

Not sure if Disco would do the same thing but if you want the payment hold released, you might give that a shot.

Good luck.

Re: Discover IT secured card question

CreditCrusader — Sun, 28 Mar 2021 23:00:00 GMT

@designated_knitter wrote:
I haven't experienced this with Disco but when my Citi secured was first opened, they were constantly putting holds after payments. I would constantly have to call them up and we would do a 3-way call with my CU so that the CU could verify that the payment had cleared. Once we did that, Citi would release the hold.

Not sure if Disco would do the same thing but if you want the payment hold released, you might give that a shot.

Good luck.

Citi did this with DW's Meijer credit card, but in a quirky way.

We had used the card and made $200-400 payments for months...and then made a few small payments ($30-80) so that the zero balance would report. Well, Citi decided to place a 7-day hold on the...smaller payments, for reasons passing understanding...even though all of those payments had been made from the exact same checking account.

CCCs...<sigh>...