Discover Secured Graduation?

[Iusedtolurk]

I'm helping a friend improve their credit. After 4 1/2 months got them 4 Revolvers 1 ssl.

Increased V3 from (Trans/Equifax/Ex) 517/524/600 to 640/644 /642.   They haven''t generated Fico scores yet.

One cc is a secured Disco (Seems lately 1 year was the benchmark for unsecuring and getting a CLI).... and noticed  this was added to their account:

1

Starting at 8 months, we do automatic reviews to see if we can transition you to an account with no security deposit. 

2

If you qualify, we will let you know and will return your security deposit back by mail within 5-7 business days. You keep the same card, account number, rewards and benefits.

3

If you don't qualify, we will continue to conduct automatic monthly reviews to see if we can transition you to an account with no security deposit.There is nothing you need to do except continue to use your credit card and all other loans responsibly.

I'm making sure they do everything right and in 8 months possibly get unsecured and maybe a bump in CL. I was lucky and started with an Unsecured w/1000 sl and a cl bump to 2000 after 1 yr 2 month so haven't dealt with the Unsecured cc.

[KJinNC]

Yes, that is correct, and you can find lots of datapoints about these cards "graduating" to unsecured on this board. While I was typing this, a moderator combined your thread with an existing one; skim prior pages for DPs. My Discover card graduated right on time in December 2019. Opened in May 2019.

As for doing everything right ... this is Discover, so who knows really ... all I say really say is pay your bills on time (not just Discover but especially Discover) and keep balances under 10% if possible or at least under 30% if at all possible. Beyond that, Discover's decisioning process can drive you insane if you try to figure it out.

If the card does become unsecured, they will mail a check for the deposit in a couple of months - this is not a super fast process, because they hold it in case any late charges appear. They will probably give a modest bump in credit limit. Formerly secured cards do not grow rapidly in credit limit, in general. My Discover card is my oldest card and my smallest card.

YMMV. Good luck to your friend!

[Anonymous]

Hi all, figured I'd share my DPs as I was graduated last night, three days after my 7th statement cut. 

My original deposit was for the full $2500 in July 2020.  My TU score at the time was ~660 and EXP was around 640-650.  I probably only ran about $100-$250 per month through the card, never approaching my CL and basically always paying charges off as soon as they posted.  I often let the card report a zero balance or something like $20.  In October 2020, I accidentally missed a payment by a day or two.  During the 7-month period, I applied for and was approved for an Amex green card (which I regret getting, but that is another story).  My scores increased slightly to EXP 675 and TU 673 after successfully getting a collection removed.  

Last night I got an email asking me to confirm how I'd like to have my deposit returned.  My CL was also increased from $2500 to $3000.  

I've been really happy with Discover and their service.  I chose their secured card because of this very attractive opportunity to get the deposit returned, and they did not disappoint.  

[tbann]

Just adding a data point.

Discover IT Secured

Opened 4/23/20 initially with $200CL and bumped it up to $1000CL a couple months later.

Used the card off and on some months maxing it out and paying it off multiple times in the billing cycle and some months only charging 20 or 30 bucks total.  Some months let $0 balance report and some I let a balance report. Always PIF.

10th Full statement cut on 3/2/21.  On 3/5/21 around 11pm I received the email that my card has been unsecured and CLI to $1800.

Current FICO 8s are EX-745 EQ-771 TU-775.  Clean files.

[Anonymous]

Good Morning All,

So Opened my card on Dec 8th 2018.

SL $600

Paid off Every Month, been frustrated as my other post mentioned

Agent Said the issue was I never let a balance report.

Jan & Feb both had Balance.

This Morning Received an E-mail that stated:

"Congratulations! Thank you for being a great customer"

Good news, Morgan!
We're returning your security deposit.

Because you've shown responsible account management, you're getting your security deposit back. You should receive the check in the mail in 5-7 business days.
Nothing else changes with your Discover it® chrome card. You keep the same account number, the same rewards, and the same credit line.

This Forum was very helpful over the last year. Thank You All

[Anonymous]

When You Graduate Do You Get A New Card Like Move To Cash Back Or Anything Like That?

[tbann]

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@Anonymous wrote:

When You Graduate Do You Get A New Card Like Move To Cash Back Or Anything Like That?

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All other terms of the account stay the same and you continue using the same card.  The only thing that changes is that the account is no longer backed by a deposit.

[Anonymous]

sounds like i should have try the discover with out the secured than capital one did gave me the unsecured platinum with a CL $1000 i am only 20 so look like i got to wait 8 months + and keep the same card 😒 yikes but whatever thanks.

[Anonymous]

Popping in to share, hopefully this is helpful.

Noticed the app alert asking for address confirmation then received an email about being on the right track a couple days after 6th statement cut. Looks like it'll graduate soon, hopefully. 

-Started with $200, bumped up to $1500 a few weeks later. 

-Put about $2500 through it. Let a couple statements cut with $50 or less. $0 balance at 6th statement.

-Initial score was around 602 but they pulled EQ, last update TU was 655. EQ is clean now so low 700's, TU still has one collection listed from 2018

[Anonymous]

I hope this is in the right place! I am writing today cause I've seen a lot of people talking about "how long until I graduate"... I started my credit repair journey September 8, 2020. It started with the discover secured. 500$ deposit. 

I have had 6 statements and after my 6th I woke up the next morning (today) to an email to return deposit faster. No email yet stating graduation but I see CL was raised to 1500$ and I'll receive deposit in 3 days.

I paid my balance in full several times a month. On average I charged 1k a month with some months as high as 1.6k (with a 500$ SL, never going over that before paying) So, it is possible to graduate BEFORE your 7th statement. I never left a balance. (Credit scorecard per discover is only 604 and started at 559 for everyone asking if score matters)

Good luck to everyone following this path of credit redemption. I hope it can help some people achieve their goals faster.