Banking Tips and Tricks: Discover Bank
by S Beez on Jul 15, 2020
Welcome back to my Banking Series! Hopefully, you were able to catch the first email I sent out about Navy Federal. If you didn’t catch it look out for the recap email. I have had many people tell me about their success in becoming a Navy Federal Credit Union Member and getting approved for CLOCs and Credit Cards. I am glad that people found the information valuable and took action so quickly. Higher credit scores, higher credit limits, and more investments all 2020 💪
This email is about Discover Bank. Discover has my favorite credit card and it has nothing to do with the credit card rewards. Discover is a game-changer that many people have been sleeping on. It’s time for me to wake you up. You can use Discover to help build your financial foundation if you play it smart. If you want more information about what should make up your financial foundation you can check out my book Financial Starter Kit.
Purchase my Financial Starter Kit HERE.
Some of these tips and tricks you may have already known about some you may have not been aware of.
If you are interested in signing up for Discover and taking full advantage of the tips and tricks below.
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Let's get started!
Tip #1 - Discover IT Secured Credit Card
The Discover IT Secured Credit Card is a good card for people who are starting out to build credit. I suggest that everyone starts out with a secured credit card first just to build discipline. Discover allows cardholders to upgrade to an unsecured credit card after about 7-8 months. Keep in mind that it can take longer depending on your card usage. If you want to learn about how to build credit check out my Financial Starter Kit HERE.
Tip #2 - Discover IT Cash Back Rotating Categories
I think that the Discover IT is one of the best no annual fee credit cards. It offers 5% cashback with rotating categories every quarter. Paying an annual fee for a cashback card never makes sense, so you want to go with free cashback cards with the best categories. Here are Discover’s categories for 2020. Keep in mind that for the Grocery category Walmart, Target, and bulk stores like Costco, Sam’s Club, and BJs are not eligible for the 5% cash back.
Tip #3 - Soft Pull Credit Limit Increases
Discover is one of the few banks that give Credit Limit Increases through soft pulls. When you are looking to increase your total credit limit a soft pull is what you want. No need to take any credit hits for trying to increase your limits and decrease your utilization. As long as you don’t get a message asking for them to do a credit report check you are good to hit the credit limit request button. My card limit has increased from $5,000 to $24,500 over the past 5 years. Hopefully, Discover shows you love and gives you a nice credit limit increase. You want a high credit limit for the best service that Discover offers.
Trick #1 - Discover 0% APR 12 month Balance Transfers
So hopefully you kept reading, if not, then those people missed out on the best service that Discover has to offer 😂. Discover offers UNLIMITED 0% APR 12 month balance transfers (3% transfer fee). These balance transfers are offered every single month, depending on your credit. These balance transfers are POWERFUL. They allow you to borrow money for FREE.99 on your own terms and you essentially become your own bank. I have been using these balance transfers since 2015 and I love them. So why would you need a balance transfer? Maybe you need to borrow some money for a short amount of time or maybe you want to use the money for a short term investment. CAUTION: I don’t recommend people to borrow money from credit cards for investments, but I know a lot of entrepreneurs and real estate investors do, so proceed at your own risk.
So you may be wondering how you take advantage of this.
You can do a bank transfer directly from the credit card into your bank account.
You can use one of the balance transfer checks that discover sends you in the mail.
If you read my first email about high credit limits from Navy Federal, you can transfer over a balance from your Navy Federal card to the Discover IT card through the balance transfer.
To initiate the balance transfer electronically you go to Manage -> Credit Options -> Balance Transfers. Complete the balance transfer form then wait 7-10 business days for the transfer to complete.
You now have 12 months of interest free money. Make sure that you are able to pay back the balance in FULL before your 12 month 0% APR ends.
Trick #2 - Credit Limit Increases every 30-90 Days
If you decide to take advantage of the balance transfers you will want to have a high credit limit. Discover allows users to request credit limits every 30-90 days depending on your card usage. If you do a balance transfer for more than 50% of your total credit limit it will hurt your credit score, so you want your limit to be as high as possible. It won’t be the end of the world if you go above 50% utilization, but it is best to keep your utilization below 30%.
Hopefully, you found these tips and tricks useful. Stay tuned for the rest of the emails in my Banking Tips and Tricks Series.
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