I think that the Discover it Secured credit card is one of, if not the best secured credit card currently on the market and they continue to improve it. Recently they confirmed that this card can graduate to a regular Discover it card after twelve months and they’ve just sent out secured messages to cardholders about another new positive change.
Starting May 13th, 2015 cardholders will be able to add additional funds to their security deposit which will automatically increase their credit limit. They are also adding a new page to your monthly summary which includes your Security Deposit Account balance and any changes that have been made to this balance. Here is the message they sent out to cardholders (thanks to michikade from myFICO forums):
This is great news for cardholders, often when people are first getting started on the road to rebuilding credit they don’t have a lot of spare money for their security deposits, if funds cannot be added then they are stuck with a small credit limit which can effect their FICO score (due to high utilization). This change is great as it allows cardholders to add funds whenever they can to increase their credit limit.
It’s good to see that Discover are committed to creating a secured credit card that doesn’t suck. My only gripe with their product at the moment is that it’s not possible to apply for this card directly, you have to apply for the regular Discover it and if you’re denied only some will be offered the chance of the secured Discover it. Hopefully this will eventually change and you’ll be able to apply for this product directly. Because frankly a no annual fee, no application fee secured credit card with a good rewards program and a free FICO score that graduates and can have funds added to the security deposit is a very attractive offering.
Hat tip to michikade from myFICO forums
Fyi, if you use the app to pay your bill after you pay it will read : Warning, if you pay more than your bill it will increase your credit limit. So, I’m assuming after you pay your bill then pay again it will be applied to your credit limit.
I attempted this yesterday and was denied the ability to add to my security deposit. It was very upsetting because I really enjoy the reward benefits but yet have to make multiple payments a month to be able to keep my $400 credit limit open. When I opened this account, I had the option to add any amount of deposit I would like but only had $400 available to deposit. Since opening the card, my credit has improved greatly (over a 50 point score increase). I am baffled as to why I was denied the increase for my deposit even though the option was available at the beginning. There is not a place online regarding the security deposit online and I have yet to get my monthly statement. I have the feeling that there are going to many unhappy customers denied the ability to increase the deposit. My debt to income is at a reasonable level as well so I know this isn’t a factor. I would like to know if anyone has been approved for this yet.
I’d try contacting them again as you should definitely be able to do this, if you try again and can’t add to your credit limit please send me an e-mail to [email protected] and we’ll see if we can sort this out or not.