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Discover Secured Graduation?

Iusedtolurk
Established Contributor

Disco Secured Opportunity To Unsecure At 8 Months

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.

 

 

 

Message 581 of 589
KJinNC
Valued Contributor

Re: Disco Secured Opportunity To Unsecure At 8 Months

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!


FICO Resilience Index: 66. Cards: 16/24, 1/12, 0/6. Accounts including loans: 19/24, 2/12, 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 582 of 589
mosessta
New Member

Re: Disco Secured Opportunity To Unsecure At 8 Months

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.  

Message 583 of 589
tbann
Valued Member

Re: Discover Secured Graduation?

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.

Message 584 of 589
lilmorgan28
New Member

Re: Discover Secured Graduation?

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

Starting Score: 615
Current Score: 620
Goal Score: 700


Take the myFICO Fitness Challenge
EQ: 615 EX: 621 TU: 629 as of 6/20/18
Message 585 of 589
SoGameOver
New Visitor

Discover Secured Graduate

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

Message 586 of 589
tbann
Valued Member

Re: Discover Secured Graduate


@SoGameOver wrote:

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


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.

Message 587 of 589
SoGameOver
New Visitor

Re: Discover Secured Graduate

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.

Message 588 of 589
SatanFlower69
Frequent Contributor

Re: Discover Secured Graduate

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

DiscoSecured.png

AAOA: 3 yrs 8 mo | UTIL: 8% | FICO 8: TBD 05/2021
Discover it Secured (5% Categories) $1500
Citibank Wayfair MasterCard $4500
Capital One Quicksilver Visa $1200
Message 589 of 589
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