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

[jkry]

 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? 

[Anonymous]

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. 

[Anonymous]

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.

[Anonymous]

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@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. 

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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. 

[Anonymous]

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@Anonymous wrote:

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@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. 

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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. 

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

[Anonymous]

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?

[austinguy907]

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@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? 

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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.  

[jkry]

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. 

[austinguy907]

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.

[Anonymous]

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.