Researching Discover It Secured Card? Duane here with how to build credit TV
and in this video I'm going to talk to you about how I maximize using my
discover it secured card. But before we get started I have a quick message.
Once again my name is Duane with how to build credit TV. This channel offers 100%
free information about how to build credit, how to get cash back actual cash money
from using credit cards, as well as credit card reviews. So if this sounds
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Alright so you got your discover it secured card and you're wondering how you can
maximize your discover it secured card. Well for me what I did was I initially
opened my account with $1,200. I deposited $1,200 with Discover Card
because I wanted to try to maximize the credit line and then went up to $2,500
but let's say you got started and you have $200. The first thing that I would
advise you to do is to know exactly when you're closing date is so in other words
when does your statement balance come out or when do you get your actual
statement. Like for example for me my statement closing date is the 16th every
month and my statement's sent to me on the 17th and then my payments normally do
like the 11th of the next month. So knowing that I know that if I'm spending
money on my credit card I know exactly when my closing date is
and I want to make certain that I'm below 10% on my credit utilization for
my credit card. So if you have a credit limit of $200 all that simply means is
you really don't want to be well for me I want to maximize the credit
utilization category of my credit score so I don't want to be more than 10%. So
if I have a $200 dollar credit limit I don't want to have more than $20.00 on
my account when the statement is closed okay so what that means is you can use
your credit card as much as you want you can charge it up even all the way up to
you know 199 dollars but the statement closes on the 15th you want to make sure
that your balance is around 20 dollars or less. And so that way you're getting
the max amount of points for the critical utilization which makes a 30%
of our credit score. Okay that's a huge chunk. So that's what I would do that
would just suggest that you your card how however you would like but
when every your your closing date is coming up coming up you want to make
sure you either pay it all off or you want to pay everything off except for
like 20 bucks. Okay because 20 bucks is 10% of $200. You may want to consider
putting some of your reoccurring monthly charges on your credit card. Now I know
if your credit limit is $200 you may not have a lot of wiggle room but if you're
trying to maximize using your credit card and just using it like you would
use your debit card in that way you're not you know putting purchases on your
credit card that you're not paying off every single month. I pay my credit card
balance off every single month maybe once a week I'd make a payment to my
credit card because I use the credit card a lot. So you want to make sure that
you're just putting your everyday expenses on the cards so you're using it
you're being very active and more importantly you're paying it off every
single month. Try not to hold the balance on the card there is no benefit in
having a balance on the card because you're going to be paying interest. Like
for example I've earned over $300 like 350 in cash back and I have paid zero
interest. Okay so there's no benefit in having a balance on your credit card and
I would suggest that you do the same do not have a balance because you're going
to be paying interest and it just doesn't make sense to be paying interest.
You definitely want to make sure to take advantage of the cashback that you're
gonna be earning with this card you're going to be earning 2% on gas and dining
or restaurants and so you want to make sure you know you get gas with the card
for sure you definitely want to make sure you use your Discover it secured card
to pay for food. And then you get 1% back on all other purchases one of the cool
things about discover that they did for me and they made me this for you as
well if you give them a call is they actually transferred me from that
current cash back reward program which is the 2% on gas and restaurant and 1%
on everything else. They actually transferred me from that to the discover
it reward program which was 5% on certain
categories. Now that may seem tricky but you
really get a bigger bang for your buck when you change to that when you get 5%
back on certain categories. I was kind of skeptical at first but once I got my
feet wet and I really understood how this worked it made a lot of sense
because if I'm gonna get 5% back on certain categories like,
let's say the category let's say it was gas gas what would be one of the things
that I could get 5% back on. If I spent 40 dollars a week on gas like 5% back on
that would actually be $2 okay that's gonna be a lot more than getting
2% back on the same amount that I'm spending on gas which would be $40 right.
So it's to your benefit if you're interested in doing that you may want to
give discover a call up and see if they'll allow you to change to that
reward program. They did for me and so they've been may as well for you or they
might as well for you. I'm pretty sure they would do that they just kept
telling me hey you know that once you switch you're not gonna be able to go
backwards and so on and so forth. And I was fine with that because I was very
aware of the cashback that I was about to earn. So that's what I would suggest
these are just a couple of the tips that I use to maximize using my discover it
secured card and I thought that that might be helpful if you're looking to
get started with Discover Card and you're looking to maximize getting the
cash back with this card. Thank you so much for watching this video, as always
be sure to like, comment and subscribe. Until next time take care and be blessed.
Peace!
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