You will get your Discover it Secured Credit Card deposit back before closing your account, once you pay your balance in full. You should receive your deposit refund within two billing cycles plus 10 days of doing so. Any unpaid balance will be subtracted from your security deposit refund.
There’s a possibility you will get your Discover it Secured Credit Card deposit back while your account is still open, if you use the card responsibly. After the first 8 months of account activity, Discover will review your account on a monthly basis to determine if you’re eligible for a refund.
People with bad credit can usually graduate from a secured card to a decent unsecured credit card after 12 to 18 months. But it depends on what you do in the meantime, not to mention how badly damaged your credit is. Making on-time payments every month you have a secured card will help speed things up, as will using only a portion of your credit limit.… read full answer
When the time comes, the switch from a secured card to an unsecured credit card usually happens in one of three ways.
Here’s how to go from a secured to unsecured credit card:
Get a better card, then close your account: The secured card’s issuer will refund your deposit, minus any unpaid balance, when you close your account.
Accept a credit-limit increase: If the bank that issued your secured card reviews your account and likes what it sees, it might offer you a higher credit limit. This would convert your secured credit card to a partially unsecured card. But everything else would stay the same. And you wouldn’t get your deposit back at this time.
Ask for a refund: Your existing account stays open in this scenario, but it becomes fully unsecured because you get your deposit back. It will be returned via check or statement credit.
You can monitor your credit-building progress for free on WalletHub, the only site with free daily updates to your credit score and report. When your credit score reaches “fair” territory, you’ll know you’re ready for an upgrade, if you haven’t been offered one already.
The Discover Secured Credit Card’s requirements for approval are straightforward and fairly easy to meet, even with bad credit. Discover it Secured merely requires a bank account, some income to balance out any debt and a lack of bankruptcy in your history.
As a result, the Discover Secured Card’s approval requirements are more relaxed than any other Discover credit card’s. And it’s a great choice for either rebuilding bad credit or building credit from scratch.… read full answer
Still, approval isn’t guaranteed. So it’s worth taking a closer look at the factors that could lead to rejection before you apply.
Here are the Discover Secured Credit Card’s requirements:
A bank account. You use this to pay the security deposit. And you’ll need to be able to deposit at least $200 to be approved.
Some form of income. This isn’t that huge of a factor, as Discover has your deposit as collateral if you don’t pay them back. But Discover does say you can be denied if your income is too small.
As little debt as possible. You can definitely have debt and still get approved for this card, but having an overwhelming amount might disqualify you.
No pending bankruptcy. You can get approved with a completed bankruptcy on your credit report, but not if it’s still pending.
So the Discover Secured Card’s approval requirements aren’t all that high, but there’s still always a possibility of rejection. That’s why I recommend checking your credit score and report before you apply, to get a better grasp of your situation. And don’t forget that if you do get rejected, you can ask for reconsideration by calling Discover at 1-800-347-2683.
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