Did you check Caps prequal site? Maybe you couldn've have gotten away from the secured route. As for Discover, gonna have to wait to see if a letter explains why it was closed. Go from there. There are other cards to go for. I know people have issues with them but there is Opensky and Credit one. I have had zero issues with them. Payment takes a bit to post and just as long for the available credit to report properly. Indigo card has a max of $300 limit but for the time its my daily user due to payments posting within a day or 2 and available credit reflectiving quickly as well. Those are my two cents. To balance out your report, you will need 3 card accounts and a loan. A secured/self lender loan will help with that. After that, continue cleaning up your report. Use the AZEO method on your cards and just let time be your find on AAoA and building duration on the card usage.
30 day post DC
60 days post DC
94 days post DC
@Anonymous wrote:
The Capital One was an easy one to get with. I set it up, paid the deposit, and received the card yesterday. Activated with no problem. Discover has been a different issue. Same process, paid the deposit, and received a request from them to sign a form to verify my identity with tax records (address verification?). Received the card quickly, but was told to wait to activate it until they’ve verified everything. Yesterday around noon the discover app said I could activate the card, so I did. At 10 pm I received an email from Discover that they made a business decision to close my account effective immediately. I called this morning and went through four different departments and no one could find a reason why it was closed. They assured me I would receive a check for my deposit and a letter that may explain more. They said it happens sometimes and it could have been an honest mistake.
Disco has been on this IRS 4506t kick lately - for the last 2 or 3 months. Several folks have had their accounts closed either because they ignored the request or authorized the verification but had their accounts closed anyway. It seems if your last 2 years of tax transcripts don't exactly match up with the income you've given Disco, they will shut you down. And income not matching could be for various reasons (joint filing, new employment, pay increase not yet reporting, etc.). I held an unsecured Disco card for a year and got hit with the request just a couple of weeks ago... I'm simply not comfortable sending that type of tax info to a creditor (and through Equifax no less) just to hold onto a card so I opted to close my account before they had a chance to; eventhough my income matched, I just don't agree, too invasive.
I'm sorry to you because Disco has one of the best secured cards available on the market and the company itself is a good one -- but asking for IRS verification for a secured card seems... extreme.
Anyway - you should have at least 3 cards to build a solid profile. So, for secured, you can try Citi secured and/or Bank of America and/or TD Bank (if you're in their footprint). TD is a good one too -- it offers rewards and will graduate to unsecured (Citi and BOA will also graduate). Once you have 3 cards, sit for a year and let them age. After they all pass the 1 year mark, you'll be good to go for an unsecured card.
Alternatively, you can keep your CapOne for 6 months - build that history, generate a score, and then see if you prequalify for an unsecured card.
@Anonymous wrote:
I honestly didn’t check their prequal page because I assumed with a thin file and two derogs I wouldn’t be approved,
You don't have a score, so you may have issues getting approved for an unsecured card (but approval is not impossible). A secured card to start is your safest bet so you're not racking up inquiries and denials so early on.
@Anonymous wrote:
I had read that three cards and one loan was the way to go, but was unsure if getting all the cards at once was better or not.
Yes, 3 cards and 1 installment is the best way to go; you can get them all at once but then you need to let them age (no new apps or inquiries for at least a year) so your scores fully recover. Getting them all at once is recommended because they'll age together and build a solid foundation so that when you app for new cards later, the new account won't drop your average age of accounts (AAoA) by much, reducing the point loss penalty.
These Discover 4506-T horror stories are freaking me out...I was hoping to get a secured card with them once I PIF a charge off I have with them..now I don't know. 
@Anonymous wrote:People only shout the loudest when they have something negative to say.
I feel like you're misreading the room a bit. Folks posting their experience as an FYI to others is not the same as having "something negative to say". Posts about Disco are overwhelmingly positive - but that doesn't negate the recent (mostly negative) experiences folks have had with these 4506T requests - which, btw, have been occurring much more frequently than anticipated. No one is discouraging others from applying - in fact, I've seen the complete opposite - even from those whom have had their accounts shut down - because the fact is, Disco is a great lender. I hope you never receive the request, and if you do and choose to comply, that all ends well -- but just because you have not, and may never, experience it doesn't mean you should dismiss that others have; nor does any of this mean the negative experiences are the only ones one should consider when deciding whether or not to do business.
@thornback wrote:
@Anonymous wrote:People only shout the loudest when they have something negative to say.
I feel like you're misreading the room a bit. Folks posting their experience as an FYI to others is not the same as having "something negative to say". Posts about Disco are overwhelmingly positive - but that doesn't negate the recent (mostly negative) experiences folks have had with these 4506T requests - which, btw, have been occurring much more frequently than anticipated. No one is discouraging others from applying - in fact, I've seen the complete opposite - even from those whom have had their accounts shut down - because the fact is, Disco is a great lender. I hope you never receive the request, and if you do and choose to comply, that all ends well -- but just because you have not, and may never, experience it doesn't mean you should dismiss that others have; nor does any of this mean the negative experiences are the only ones one should consider when deciding whether or not to do business.
Bingo. +1
