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:
Sometimes 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]
- 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