![]() We typically process your refund in 2-3 business days based on your delivery preference. When you qualify to upgrade to a standard, ‘unsecured card’, Discover will also consider you for a credit line increase. Monthly reviews may be delayed if you change your payment due date. “Good status” means: (1) your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies for the six months prior to our review and (2) your Discover Secured Card is not in a prohibited status at the time of our review, including, but not limited to: closed, revoked, suspended, subject to tax levy, garnishment, deceased, lost/stolen, or fraud. ![]() We will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles on all your Discover accounts including any loans, and you’ve remained in “good status” on all credit accounts you are responsible for whether they are Discover accounts or not. Getting your deposit back:Monthly reviews start your seventh month as a customer. It’s important to stay in control of your personal finances by using available tools (think payment reminders, account alerts), that help maintain your financial discipline once you have an unsecured credit card. Unsecured credit cards make it easier to spend compared to Secured Credit Cards: Credit lines tend to be higher, and creditors are more likely to increase your available credit the longer you own the card and demonstrate responsible use. Unsecured credit cards take more discipline than secured cards ![]() ![]() To make sure you keep your balances in check, set up account balance alerts and automatic payments. If your credit utilization ratio is too high, your credit score may be negatively affected. To maintain good credit - and perhaps help your credit score even more - keep your overall balances as low as possible. New accounts will lower your average account age, which could have a larger effect on your credit score if you are new to credit. Resist the temptation to jump at every credit card offer promising free cash, bonus points, complimentary airfare, and low interest rates. While it can be flattering to see these pour in, keep in mind that opening several credit cards in a short time frame may cause lenders to perceive you as a riskier borrower. Now that you have established credit, you might notice an uptick in the amount of pre-approved card offers you receive. Here are three simple tips that build on those habits that can help you graduate from a secured to an unsecured credit card: Avoid opening multiple credit cards at once You’ve already demonstrated creditworthiness, which can help open up more financial opportunities in the future. How to use your new unsecured credit card to build credit If you have a Discover it ® Secured Credit Card, Discover will review your account after seven months to consider whether you can graduate to an unsecured card and to get your security deposit back. Many secured credit card issuers let you convert to an unsecured account. You’ll need to use your secured credit card long enough to build enough credit history to qualify for an unsecured card. How long does it take to go from secured credit card to unsecured? It’s also very important to pay your bills on time, because missed or late payments will likely negatively affect your credit score. This is because having a lower debt utilization is considered positive by FICO ® credit scores. Use your card regularly but try to keep the amounts you charge to a small percentage of your credit limit. Using your secured credit card responsibly may allow you to graduate to an unsecured credit cardīefore you can go from a secured credit card to an unsecured card, you need to demonstrate that you use credit responsibly. Learn the steps to demonstrate responsible use of your secured credit card, and how to make the switch to an unsecured card. Starting with a secured card usually means you have little or no credit history, or you are working to rebuild your credit history. 1Ĭhanging a secured credit card to an unsecured credit card is a serious financial accomplishment. With Discover, you could be considered for an unsecured card as soon as seven months after opening your secured card. Keeping your credit utilization low on your secured card is key to proving your creditworthiness. Starting with a secured credit card may help you build credit and qualify for an unsecured card later.
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