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Discover Secured Card?

Re: Discover Secured Card?

Thank you for the advice. I'm a little confused by what you mean about product-changing to the 5% rotating card. Is it a different type of secured card?

Message 11 of 27
KJinNC
Valued Contributor

Re: Discover Secured Card?

If you look at the Discover site, they have several card varieties. The one you will get is something like 2% on gas and restaurants, 1% on everything else. It is a pretty good card. But, they also have one that is 5% on one or two categories each quarter, 1% on everything else, which can be better if you plan it out right. They also have their miles card, which personally I'd skip.

 

Any Discover can be changed from any reward structure to any other reward structure. This applies to secured and unsecured cards. Making this change has no bearing on whether it's secured or unsecured. It doesn't reset the clock to unsecure or anything. Let me know if I didn't explain it well, and good luck!


FICO Resilience Index: 66. Cards: 14/24, 0/12, 0/6. Accounts including loans: 17/24, 1/12, 0/6. At first accidentally, later deliberately, I used what I call the "thick-start" build method, which leads to heavy credit-seeking for a while with the goal of coming out of it without needing to build a thin profile for years. There are pros and cons. Thread describing method
Cards (oldest to newest)

Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $104,100, not counting the AU card. The AU card brings the total to $129,100. In March 2019, card CLs totaled $0.
CU and bank memberships: Coastal Credit Union, member since 1987, direct deposit; PenFed, member since 2019; Navy Federal, member since 2020; USAA, member since 2020; Chase Bank, member since 2020.

Closed but still on reports: American Express Delta Gold, $1,000, 09/19-10/20 | American Express Hilton Aspire, $3,100, 09/19-12/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Note: My signature is updated frequently, and updates appear on all instances of my signature including on old posts.
Message 12 of 27
Janus
Senior Contributor

Re: Discover Secured Card?

I have a Family mamber who is an AU on several of my accounts, and about 8 months ago got a $600 secured Discover card to build credit in his own name. This month it graduated and they increased the limit to $2,500, and it wasn't even used all that much or close to the limit.

I was a bit worried for him due to some of the recent stories about ID verification and 4506-T requests causing hiccups on the process, but they didn't request any of that. 

 

He was so excited that he immediately apped with Amex and Citi and got decent SL for his profile. Though he probably should have held off a while longer until Disco had reported the new limit for a few months. 

 

So I was surprised at how quickly he was able to add cards with a very thin profile and being new to credit, so soon after aquiring the secured Discover card.

 

Good luck on your credit journey!






Message 13 of 27

Re: Discover Secured Card?


@KJinNC wrote:

If you look at the Discover site, they have several card varieties. The one you will get is something like 2% on gas and restaurants, 1% on everything else. It is a pretty good card. But, they also have one that is 5% on one or two categories each quarter, 1% on everything else, which can be better if you plan it out right. They also have their miles card, which personally I'd skip.

 

Any Discover can be changed from any reward structure to any other reward structure. This applies to secured and unsecured cards. Making this change has no bearing on whether it's secured or unsecured. It doesn't reset the clock to unsecure or anything. Let me know if I didn't explain it well, and good luck!


I think I understand. It only affects the rewards system? Is that what you're saying?

Message 14 of 27

Re: Discover Secured Card?

That's very encouraging. Thank you. I was really worried about tax forms and verifications and things because it seemed like people did the verifications and then their card got closed. It didn't make any sense and I didn't want to get my hopes up. I probably won't breathe easy until I have the card and it's activated bc it seems like the "hiccup" can happen at any point between deposit and card activation.

Message 15 of 27
KJinNC
Valued Contributor

Re: Discover Secured Card?


@IcantThinkofAdecentNAME wrote:

I think I understand. It only affects the rewards system? Is that what you're saying?


Yes, exactly. Discover is unusual in this. The secured card is really the same as the unsecured card, except how the deposit and credit limit work. The rewards structure is independent of secured/unsecured.


FICO Resilience Index: 66. Cards: 14/24, 0/12, 0/6. Accounts including loans: 17/24, 1/12, 0/6. At first accidentally, later deliberately, I used what I call the "thick-start" build method, which leads to heavy credit-seeking for a while with the goal of coming out of it without needing to build a thin profile for years. There are pros and cons. Thread describing method
Cards (oldest to newest)

Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $104,100, not counting the AU card. The AU card brings the total to $129,100. In March 2019, card CLs totaled $0.
CU and bank memberships: Coastal Credit Union, member since 1987, direct deposit; PenFed, member since 2019; Navy Federal, member since 2020; USAA, member since 2020; Chase Bank, member since 2020.

Closed but still on reports: American Express Delta Gold, $1,000, 09/19-10/20 | American Express Hilton Aspire, $3,100, 09/19-12/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Note: My signature is updated frequently, and updates appear on all instances of my signature including on old posts.
Message 16 of 27
Divine_Winds
New Member

Re: Discover Secured Card?

I got my discover secured card when I started my credit rebuild and I will say Discover has been great to me. I put $1500 on the card, and used it responsibly for about 8 months at which point they graduated it to the discover it chrome unsecured card and sent my deposit back. A few months later, I requested a credit line increase and got an increase from 1500 to 3700! Plus it's one of the only secured/credit builder cards to give you reward cash back which is always nice even if it's not a lot.

Message 17 of 27

Re: Discover Secured Card?


@Divine_Winds wrote:

I got my discover secured card when I started my credit rebuild and I will say Discover has been great to me. I put $1500 on the card, and used it responsibly for about 8 months at which point they graduated it to the discover it chrome unsecured card and sent my deposit back. A few months later, I requested a credit line increase and got an increase from 1500 to 3700! Plus it's one of the only secured/credit builder cards to give you reward cash back which is always nice even if it's not a lot.


Thank you for your response. What do you see as responsible use? Does Discover want me to spend a lot each month and pay it off before it's due or would they rather I spend a small amount each month? Do you think it makes a difference?

Message 18 of 27

Re: Discover Secured Card?

6/22: applied

 

6/24: money was withdrawn and I also got        an email saying withdrawal was initiated on 6/22.

 

6/27: I called and they said the funds were still showing as pending. they also said I wouldn't get an email about it I would just get the card once the funds cleared.

 

6/30: application status changes to "congrats" message and says be on the lookout for the card. Still says that today and I still haven't received an email.

 

Does anyone know how long it takes after the congrats status to actually receive the card? I guess they were serious when they said they wouldn't email me.

 

 

 

 

 

 

Message 19 of 27
MP15_556
New Contributor

Re: Discover Secured Card?

When I got my secured Discover it was 2-3 weeks before I received my card.  

Message 20 of 27
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