Help me Learn How to use Discover IT

[Anonymous]

Hi! I’m new here! I’m currently in the process of rebuilding my credit so I can get a mortgage in the next year or 2. I have a credit score ranging from 637-660 depending on who it comes from. I had only one baddie on my report of $203 which I paid in full a couple weeks ago. After paying that in full, I disputed the debt with TU (told them it was paid in full). Woke up a week ago to it being completely removed from my report and TransUnion score jumped 87 points! In the process I applied for a Discover IT card. I was approved and gave a $200 deposite. I charged $35 for gas and now I’m trying to figure out the best way to pay that. I still don’t have a statement due date showing up. Is it better to pay the $35 now before my due date even posts? Or am I better off waiting for the due date to post and just paying the minimum? Thanks! I’m new to this and have no clue what’s best for my credit score.

[Remedios]

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@Anonymous wrote:
Hi! I’m new here! I’m currently in the process of rebuilding my credit so I can get a mortgage in the next year or 2. I have a credit score ranging from 637-660 depending on who it comes from. I had only one baddie on my report of $203 which I paid in full a couple weeks ago. After paying that in full, I disputed the debt with TU (told them it was paid in full). Woke up a week ago to it being completely removed from my report and TransUnion score jumped 87 points! In the process I applied for a Discover IT card. I was approved and gave a $200 deposite. I charged $35 for gas and now I’m trying to figure out the best way to pay that. I still don’t have a statement due date showing up. Is it better to pay the $35 now before my due date even posts? Or am I better off waiting for the due date to post and just paying the minimum? Thanks! I’m new to this and have no clue what’s best for my credit score.

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Dont pay just the minimum, that does not help you build credit. All it does it costs you money. Wait for the statement then pay in full. 

[Anonymous]

For using it, one figure out when it reports to the credit reporting agencies, give them call and see if they will tell you, also figure out what your due date is.

As for reporting purposes, you want to keep it under 30% ideally 10%. After it reports make sure you pay the balance in full each month to avoid interest.

[Anonymous]

Thank you. In the email I received upon approval it says this.

Your Discover it® Secured Credit Card should arrive within 3 to 5 days.



Important information about your account

Your Credit Line: $200
Payment Due Date: 14th of each month
Once you begin using your card, we will send your first statement.

I just received it and used it. So is payment due the 14th of this month? Or next? And as far as when they report. What exactly does that mean? Sorry, I’m learning 😫

[Anonymous]

I got more info from Discover! This is what I was told

Great question! I see your first statement will cycle on 4/19/19 and will continue to cycle the same day every month. This will also be the first time we report your activity to the credit bureau, but we have already reported you were approved for the card. Your first due date will be 5/14/19  and will continue to be that date every month after that. Does this help?

So as long as I pay it in full prior to the 19th, I’ll alwuas have a $0 balance reported?

[dynamicvb]

If this is your only card, then you don't want a 0 balance reported. Let it report around 5 dollars, but less than 9. Discover will report about 5 days after the statement cut. Just pay the 35 down to 6-7 bucks, then watch for your statement cut. Once you get the first statement cut then it will be the same. Discover will report the balance on the day of the reporting at the time, so you want to let it report before you pay it off.

Was the secured all they would give you? I would have thought with the mid 600's you could have gotten an unsecured. Can't do anything about that now as you have to have that one a year before you can get another Discover card. 

[Anonymous]

Thank you for the help! Shoot. After Discover just told me 4/19 will be the first time they are reporting to the credit agencies, I paid it in full. That was a mistake after reading your response. Should I charge something small for $5 so a balance is reported?

Yes, this is my only card. I don’t have a bad score, my issue is not having a credit history at all. I basically had that 1 collection on my report along with no credit history. I applied for another card prior to Discover It and that was the reason they gave for turning me down.

[dynamicvb]

Yeh, just make a small charge and let it sit. It may not report until the second statement cut( I've seen some people report 3 statements), but just to be safe I would leave a small amount just in case. Each profile is different so YMMV, but when I went from 0 revolvers reporting to 1, I saw about a 40 point jump and my wife got a 60 point jump.

[Anonymous]

Wow that’s a good jump! I’ll go buy a cup of coffee later and let it sit! Thank you!