Discover IT Secured (Pre-approved)

MichWolverines1983 · ‎08-09-2021

So, as some may already know, I'm still new to building credit and to these forums. I have been pre-approved for the Discover IT Secured Card and plan on opening that account within a week or so. I do have a few questions;

1. The minimum deposit is $200 but I obviously want a higher credit limit than $200. My Capital One Secured is $209 and I wasn't aware of adding more to my deposit within the first thirty-five days to increase my credit limit. Does the same apply to Discover IT Secured? How long after submitting my application and being approved to I have to keep adding to my deposit?

2. I've been reading the sweet spot may be $1,500 so when I graduate I will get a credit increase that may be higher than what the secured card may allow?

3. I've read that Discover may request more info about income verification like previous years taxes. Unfortunately, my income has been random and very low for the previous two years and have only now started to increase. What effect will this have on my application and approval odds?

Anonymous · ‎08-09-2021

1. You can increase your Discover secured limit anytime you would like up to $2500. That is their limit cap on their secured cards. Over 8 months I started with $300. Increased limit to $700, then $1500, and finally $2500 all within 4 months of account opening. I graduated and got an increase of $200 making my total limit $2700.

2. I can't speak for the sweet spot because it's very much a YMMV situation based on your use and credit profile. Especially what your credit profile shift is like during the time you have the secured card. Of course I've read on here where people with $200 down get up to a $1500 line upon graduation. Others not so large. And many of us at $2500 have only received a $200 boost or none at all. I wouldn't say there's a sweet spot. But it can be a pain to get an increase from them for some. The way I saw it- I wanted to get a decent cash back match for my first year and I wanted a limit I could actually use upon graduation. Therefore I went up to $2500. The ball is in your court.

3. I have read they request the 4560-T, but I am unsure what prompts this.

Anonymous · ‎08-10-2021

Discover secured has its value. Since you are building, it may be worth your while to look into having a parent add you as an AU, if possibble.

MichWolverines1983 · ‎08-10-2021

Well, I'm happy to announce that I was approved for the Discover IT Secured Card. I put down $200 today but will be adding much more (I was thinking $2000 within a few months time) over the next few months to get my credit line higher. I unfortunately took a two point dip in my score (651 to 649) but that's okay. This is what I needed and one step closer to where I want to be. Thanks for any all help on this forum.

draychi · ‎08-10-2021

Yea, that 2 point dip is nothing compared to getting that relationship started with Discover. Grats on the approval.

mycreditscoreisfair · ‎08-11-2021

+1 to @Anonymous.

I'll just add that increasing your credit limit is a good idea. I'm kicking myself for not doing it even though I planned on it. My secure card just graduated to $1,000 at the 7th statement mark. I initially had a $400 deposit and never added to it. I was definitely expecting $1,500, worst case scenario, and it bit me.

I did have one payment returned in March, I think, because I scheduled it from an old bank account. That's the only thing I can think of that could have negatively affected my account or credit since then. Otherwise, my scores have increased 80-100 points across the bureaus since I've had the card.

They've never asked me about my income since I applied.

Starting score (January 2020): 454 (TU)
First goal (December 2020): 580 (TU)
Second goal (August 2021): 670 (TU)
Current scores: 679 (TU), 665 (EQ), 658 (EX)
Current goal: All three bureaus over 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today

Anonymous · ‎08-11-2021

Congrats ! Very good to hear. Good bank to grow a relationship with. Yoor secured card likely started as a Discover Chrome which is 2% cash back for dining and gas up to the first $1000 on purchases (I think) and 1% unlimited on all other categories.

you can call after receiving your card and ask to product change it to the 5% cash back categories card which would maximize your cash back for the first year. Check their website to see the 5% quarterly categories and if it's right for you, ask for that product change upon activating your card.

best of luck and mind you, not everyone graduates after their 7th statement. But most do.

MichWolverines1983 · ‎08-11-2021

Thanks guy. Being new to credit and finding this forum has been extremely valuable and I'm so glad I found this forum. As for increasing my line of credit, I put down $200 initially just to open the account but will be adding much more to the deposit/line of credit over the next few weeks. Can I do that through the app or do I have to call? Actually, I will be adding about $300 - $500 in a few weeks to increase my credit limit.

Anonymous · ‎08-11-2021

@MichWolverines1983 wrote:
Thanks guy. Being new to credit and finding this forum has been extremely valuable and I'm so glad I found this forum. As for increasing my line of credit, I put down $200 initially just to open the account but will be adding much more to the deposit/line of credit over the next few weeks. Can I do that through the app or do I have to call? Actually, I will be adding about $300 - $500 in a few weeks to increase my credit limit.

You will have to call them and increase it over the phone. There is a credit limit increase option in the app that will give you the phone # or just call the # on the back of your card. They still review your request each time you request to add to your secured limit. They do it instantly and withdraw the funds same day as well.