Secured Discover It (or Chrome)?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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CarefulBuilder14
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Secured Discover It (or Chrome)?

Postby CarefulBuilder14 » Thu Aug 28, 2014 5:17 pm

I've heard vague comments about people who get declined for a Discover It or Chrome managing to get 'the secured version'.

Are the secured cards actually issued by Discover Bank? Or are they only issued by unrelated banks that just use the Discover network?

I can't find any mention of secured cards on Discover's website, but there are a few threads mentioning them on myfico.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when


darkguy2
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Postby darkguy2 » Thu Aug 28, 2014 9:18 pm

I have not heard of them but a easy way to find out is to contact Discover.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

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CarefulBuilder14
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Postby CarefulBuilder14 » Thu Aug 28, 2014 9:52 pm

That did occur to me, but it might have been a card they offered years ago or something but no longer offer. The CSR I'd get might not have been around then (though could ask a coworker).

I got one Discover CSR who had never heard of 'Fair Isaac'. He had a good attitude but still had a lot to learn!
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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otter
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Postby otter » Fri Aug 29, 2014 2:05 pm

CarefulBuilder14 wrote:I've heard vague comments about people who get declined for a Discover It or Chrome managing to get 'the secured version'.

Are the secured cards actually issued by Discover Bank? Or are they only issued by unrelated banks that just use the Discover network?

I can't find any mention of secured cards on Discover's website, but there are a few threads mentioning them on myfico.


That's a good question... part of the problem is the secured card market changes quickly because it's not really all that lucrative- most of the big banks have alternated between offering one and not offering one. As someone who has done the build/rebuild thing several times, I know the secured market well. Currently Wells Fargo and BoA offer a secured card and advertise it. Citi offers one but you have to go into the branch to find out about it. Chase used to offer one. Actually I had a Chase secured card at one time (offered after a decline). I soon found out it was not a real Chase card- Chase licensed their name to a third party to slap on the card and it would never graduate. If you asked anyone at Amex if they've ever offered them, they'd deny it, but I know for a fact Amex has had a few secured revolvers they've tested over the years.

Discover? I've heard they've tested them before, but don't know much about that. I know there used to be a secured card called the Matrix Discover Card which was issued by a third party and ran on the Discover network. Discover actually pulled the plug on them because their fees were worse than First Premier. It's one thing for Visa or Mastercard to allow scum issuers like First Premier; it's another thing for Amex and Discover to license sub-sub prime issuers who charges outrageous fees. To the average person, Discover or Amex network card = Discover or Amex the company. Proof of that is people on fico who post that they've had a Dillards Amex card for five years and just got an Amex charge card... they don't understand why it's not backdated! And I'm sure when GE/WalMart decided to switch their cards from Discover to MC, Discover probably didn't make a serious effort to get back their business. Discover probably got plenty of complaints from people wondering why their WalMart "Discover" card phone calls were being answered by "Peggy".

But to answer your question, yes there is currently a secured Discover card but you won't find anything on the Discover website about it. The only way you can get one is to be declined and be offered it shortly afterwards in the mail. Some declined appplicants get it, most don't. Discover is probably doing what they've done in the past... seeing how financially feasible it is and then based on that, they may offer it on a wider scale or scrap it again. It is issued by Discover not by a third party issuer like my Chase Secured Card was years ago, because it offers the same rewards and allows log-ins at the discover website. From what I've heard, it won't graduate. Of course a week from now, this information could be all wrong.. nothing stays the same in the secured card market.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Aug 29, 2014 3:10 pm

otter wrote:But to answer your question, yes there is currently a secured Discover card but you won't find anything on the Discover website about it. The only way you can get one is to be declined and be offered it shortly afterwards in the mail. Some declined applicants get it, most don't.


Okay, if Discover is trying to keep the trial run with the secured IT a secret, that might explain it. The fees on the Matrix Discover definitely are rough. And I can see how people might assume all Discover / Amex network cards were issued by the Discover Bank / Centurion Bank.

My take on Discover is that they want to be the main card for people who just want basic rewards and good service. They also want to be the favorite card for people with a bad credit past but who have made major strides improving their credit - and still have a balance to transfer over. That might explain the big IT limits you see with some people.

Edit: And most college students may become big spenders or small balance-carriers, so I can see how a student card makes them money. Maybe they just don't want the high frequency of customer complaints and other headaches from secured clients that would take up the CSRs time.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



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