![]() To graduate to an unsecured credit card, your overall financial life needs to be in good order-not only your secured credit card account.įor example, say that you have a Discover it® Secured Credit Card and a credit card from a different bank or issuer, if you consistently make the required payments for your Discover it® Secured Credit Card on time, but miss a payment on your credit card with the other issuer, your missed payment could affect your ability to graduate from a secured to an unsecured card with Discover. If you have any other credit card accounts, debts, loans, or monthly bills, make sure to pay those bills on time. Paying your bills on time every month that you have your secured credit card, and managing your secured credit card account responsibly as well as all your other loans, can help you graduate to an unsecured credit card.Īlong with paying bills on time for your secured credit card account, you also need to manage the rest of your finances responsibly. Since your payment history carries the most weight in calculating your FICO® Score, being late with credit payments can be a big problem. If you’re building credit history for the first time, you probably don’t have a lengthy credit history or much of a credit mix, so this means that the other factors-like your payment history-are even more important to your FICO® Score. New Credit, approximately 10 percent: How recently you have applied for new loans or credit cards.Credit Mix, approximately 10 percent: What different types of debt you have, such as a mortgage, installment or car loans, retail accounts, and credit cards.Length of Credit History, approximately 15 percent: How long you have been borrowing money.Amounts Owed, approximately 30 percent: How much total debt you owe and the amount of available credit you are using.Payment History, approximately 35 percent: How long a track record you have of paying your past credit accounts on time. ![]() Hopefully, your secured credit card usage has made a positive impact on your credit.Īccording to, your FICO® Score (which ranges generally from 300 to 850) is determined by evaluating five categories, weighted in the following percentages for the general population: ![]() Your FICO® Score 2 is one of the factors that many credit card issuers may look at when deciding whether you’re ready to graduate from your secured credit card. Instead, you would have to apply for a new unsecured card. 1 Some secured credit cards don’t offer the option of graduating to an unsecured card. With the Discover it® Secured Credit Card, you can upgrade to an unsecured card after six consecutive on-time payments and six months of good status on all of your credit accounts. With some that allow for graduation, it can take between several months to a couple of years depending on a few factors, including where your credit score was when you got the secured credit card and the policies of that specific credit card issuer. Whether you can graduate from a secured credit card to an unsecured card can vary among credit card issuers. Credit card issuers will look at your secured credit card usage for a period of time to determine if you’re managing your credit responsibly. Secured credit card graduation depends on your credit card issuer and on demonstrating that you can be trusted with more responsibility. So, what does it take to graduate from your secured credit card? How to graduate from a secured to an unsecured credit card ![]() Graduating means that you keep your card, but your security deposit is returned so that your credit card becomes an unsecured card credit card. With some creditors, you could potentially get approved to “graduate” to an unsecured credit card. By setting up a secured credit card account, you use a small refundable cash deposit to build your credit history. Getting a secured credit card can be a valuable option to help build your credit. Your credit card issuer may graduate you to an unsecured card automatically, but some card issuers don’t offer graduation from a secured to an unsecured card. Monitor your credit report to find any issues that may hurt your credit score Building a credit history with your secured credit card may help you graduate to an unsecured card. ![]()
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