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Discover It Secured

Auto Loans for ANY Credit Situation. Immediate Response.
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Established Member

Re: Discover It Secured

My scores are 500-580. I have 7 collections and of the 7, 2 are charge offs. I have no installment or revolving credit reporting yet. Signed up for MJC and got the 5k. Haven’t done NCD yet, have to wait till Friday.

So I have
Cap 1 500cl
Green dot 500 cl
MJC 5k
Self funding 1k

The above have all been done this past week

Message 11 of 20
Valued Member

Re: Discover It Secured

Thank you guys so much for your advice. I decided to go ahead and apply for the discover it secured. I was approved! I am so happy that I am on the road to improving my credit.
Message 12 of 20
Community Leader
Mega Contributor

Re: Discover It Secured

Congrats on your approval
Message 13 of 20
Established Contributor

Re: Discover It Secured

Congrats on the approval


Message 14 of 20
Community Leader
Mega Contributor

Re: Discover It Secured

@shala546  You should consider staring a thread in Approvals. If you include your scores and other info, it might help others decide with their applications 

Message 15 of 20
Valued Member

Re: Discover It Secured

Sounds like a good idea
Message 16 of 20
Valued Member

Re: Discover It Secured

Thank you
Message 17 of 20
Valued Member

Re: Discover It Secured

The initial hit, if any, on your score will be a few points if there is a hard inquiry. This, alone seems absurd since you are using your money.

 

I have read that it might be better to do some brief analysis in this case;  would the point increase be more if you took what you would have used for the security deposit, and used it to pay down a credit card or installment loan balance??  Also, it appears that someone - mortgage co - etc who might be scrutinizing a CR would not view a secured card favorably, even if it is current.  Unsecured is better than secured, as you know.  

 

Pros?                                           Cons?

 

Positive tradeline                    possible hard pull

May help credit mix                effects age of credit

Build payment history            small CL - no real impact to utilization        

                                                  

 

Starting Score: 600
Current Score: 650
Goal Score: 750


Take the myFICO Fitness Challenge
Message 18 of 20
Established Contributor

Re: Discover It Secured

I don't think most people who are looking at secured credit cards are expecting to apply for a mortgage in the next few months. Or at least, not usually hoping for prime rates. This is the rebuilding credit forum and secured cards are a tool used to rebuild credit. I dont have any long-term expertise, but from reading what people have said here and elsewhere, secured cards are calculated the same way in credit scores as non-secured cards. They may be less impressive to loan officers, but, that's a bridge to cross later.

 

As for whether it is better to use the money to pay down a debt instead, situations vary. For example, in my case, I have no debts to pay down. I just need credit lines. So, that is an easy choice for me to make. I have no idea the OP's specific situation, but there are cases where even someone with debt may be better off getting the card, so it can start aging.

 

To answer the OP: I applied for Discover It and got rejected when my scores were 625/520/520, and tried again (rejected again) when my scores were 635/580/580. My scores are now 667/656/652. I was preapproved today, but too chicken to click the button to apply for real. I have no idea why a secured card should be kind of hard to qualify for. In the meantime, I got a Primor card, which has a much worse reputation for customer service, but because it is my third card, I am not sure if I'd really benefit from Discover as a fourth card now. I could cancel the Primor if I got the Discover, but, key word "if."


FICO 8 scores are deceptively high. My profile is young with a lot of new accounts and even more inquiries from 2019. The Barclay AU card is not on TransUnion; and, Equifax has some old positive accounts from 2011 that are not on the other two. That is the reason for the variation in scores. No derogs. Over 5/24 until fall 2021.
Cards

Authorized user / Corporate / Auto loan

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 045/19-09/19 | 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.

Goals: Late 2020 - Ducks Unlimited card; scores in high 700s with inquiries aging. Long-term goal - Prime rate mortgage; able to qualify for most standard credit products.
Message 19 of 20
Established Contributor

Re: Discover It Secured

Due to this thread, I broke down and tried again, and this time, I was approved for the Discover secured card! Planning to close the Primor card (haven't received it yet and it hasn't even appeared on my credit reports yet, so I'm not losing credit age or hurting utilization percentage).


FICO 8 scores are deceptively high. My profile is young with a lot of new accounts and even more inquiries from 2019. The Barclay AU card is not on TransUnion; and, Equifax has some old positive accounts from 2011 that are not on the other two. That is the reason for the variation in scores. No derogs. Over 5/24 until fall 2021.
Cards

Authorized user / Corporate / Auto loan

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 045/19-09/19 | 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.

Goals: Late 2020 - Ducks Unlimited card; scores in high 700s with inquiries aging. Long-term goal - Prime rate mortgage; able to qualify for most standard credit products.
Message 20 of 20
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