Compare & Apply for a Personal Loan Online

I would encourage you to consult with an experienced bankruptcy attorney. Settling is a discussion I generally encourage having with Discover between and days delinquent. You need not provide any collateral or guarantee. No Blackout Dates — fly any airline, stay at any hotel. We adhere to strict standards of editorial integrity. Your mindset is often better that way.

Resolving Discover credit card debt after months of not paying.

Comparing Discover Card Offers

Discover offers reward credit cards, online banking, home equity loans, student loans and personal loans. Check your rate with no impact to your credit score. Get an unsecured, personal loan from a trusted lender with no origination fees. Apply online today. When you need to borrow, you might consider a credit card or a personal loan. Credit cards are ideal for short-term expenses that you can pay off in a month, while personal loans are best used for.

How it works

About the author

I am sooo very excited. I have come from being a low-score, non-credit individual to an individual who has been given another new beginning!!

All thanks to The LORD for leading me to you and to you for being so unselfish with sharing your knowledge! Received the card exactly 14 days later. Best of luck with everyone trying to build or repair their credit. There have been some anecdotal reports of late graduations …. Some have been at the 13th month mark and some at 15mo.. If its later than that,, somethings spooking Discover and you may want to ask them at that point, or even consider closing it if by then other banks have courted you….

I love my Discover card. It has really helped my score improve. I love improving my score! I wish everyone the best! Good luck in happy rewards hunting. I just applied and got approved after taking your advice over a month ago and opening a Visa account with my Navy FCU! I wonder if the physical card usually shows Secured or not or even looks different at all for these type of cards. I own 2 Capital One cards: Hey jess,the card looks just like a regular discover.

I have a Horrible credit score. Hi Felisha — This is a tough question because Discover will also look at your credit report, consider your income, etc. The other factors they consider employment stability, credit report, etc. Thanks for sharing that. Hi Beverly, quick question my current credit score with Transunion is and with Experian. I know they are still very low but do you think it would be worth trying to apply for the unsecured cc with discover or should i not risk it and just apply for the secured cc?

I suggest calling Discover and apply over the phone. That way, a rep can tell you if the score meets their cutoff for an unsecured card. Your approval will also depend on other factors, such as employment, items on your credit report, and so on. I received my card a week ago.

Thanks to you too Beverly! Today, I decided to take the bait and applied for the card. I was surprisingly approved! Hi Leo — Congrats! That will help you stay within your means. Leo, I love this community, too. I plan to use this card in place of my debit card to earn the cash back. I had been using my Capital One Quicksilver One card in a similar fashion paying the balance off in full every two weeks.

I think I finally figured credit out, LOL. Do not borrow more than you can afford and keep utilization down to a minimal. I have noticed that transactions seem to post a lot slower than with CapitalOne though. So far, so good. I hope they graduate me early. I plan to just put reoccurring debts like gym membership, Netflix, etc on there instead of allowing that to hit my debit card.

Since this is a good trade to have on your report I am looking forward to graduation. Hi D — You have a great plan! Since you already have an unsecured card, that will help you graduate with Discover. Congrats on being approved for that card, by the way. Discover is very picky. D, Discover will consider graduation after 1 year. I also had a in brach pre-approval at TD Bank. I took TD up on their offer after I was rejected from Chase.

I was recently approved by Chase for their excellent AARP Rewards card after opening checking and savings, setting up direct deposit, and setting up a monthly reoccurring transfer into savings. I did all of that immediately after they rejected me. It payed off 4 months later. Opening 2 cards in the same week from banks that both pull Experian seemed unlikely for someone with 11 months on their credit report.

I was surprised, however, when I was approved immediately. My next step is Chase Freedom. This card will have to wait 6 months though. I would be remissed if I failed to mention all of this success started with a blog by someone named Beverly Harzog.

I guess one junky makes another. Thanks Beverly, for your great work. Maybe they have a secured card as well. Be warned though, the application process is a bit or more confusing if you live outside New Mexico. Hello how are you doing today I would like to ask a question, if I am approved for a secured credit card is it better to pay the deposit amount that they asked for or would it be better for me to pay more of a deposit? So I figured out I should go with Wells Fargo or discover it for my next secured credit card.

To build your credit score, you can just do minimum deposit. Really the only reason to do more these days would be just for quality of life convenience: My current FICO is between My FICO at that time at In less than 4 months, my score went up by 40 points.

I am planning on applying because the limit is higher than the deposit I think , but I had too many inquiry recently. Hello everyone, its very comforting to know that I am not alone in this rebuilding journey.

Thank you Beverly for this awesome site! As I google more questions about anything that has to do with rebuilding, it always gave a link to your website. Now its my turn to share my story. Let me just say that my credit score is very poor. At and Gone down couple of pts cause I just got approved for capital one secured last week A repo from 5 yrs ago, 3 late car payments.

Total of 30thou on debt infiniti car finance already included. I cant tell you how ecstatic I am. Long story short, there is hope!! I figured it shouldnt matter how much your deposit is wether it be the min.

Or max to be approved. Hope this helps others like me out there. You gotta start somewhere, regardless the situation. What if you are approved, and have the card for sometime and never get approved to go unsecured? Is it hard to close I know this is a no no or get your deposit back?

I have heard horror stories about other cards and folks not being able to get their money back if they wanted to close the card. Even if they have your money as a deposit, it is still one of the best rewards credit cards on the market. Just spend what you can afford and pay your balance in full each month, on time, and they will graduate you eventually.

They have amazing customer service, so I doubt they would play with you by not rewarding a responsible card holder. I have a question: Just got approved last week. This card is now available to apply for directly and I gotta say for a secured card, the process has been a pain in the rear. I make a fairly decent income, I do have a couple of other credit cards some secured which I got to improve credit, since then got a couple that are not secured , have an established credit history, own my home.

In the past, I applied for Discover and was declined. When I found you could apply for the secure card directly, I decided to go for it. I did the application online, it immediately asks you for your checking account which has to be in your name , I completed all the info and submit. Additionally, the onscreen message tells me that I need upload something confirming my address, e.

DL, state ID, utility bill. I gotta tell you, for a secure card that reports as secured, I do not find that it is worth it. I am already forking over my cash to FUND the card, so it is not like they are taking any type of financial risk here.

I did upload the requested info and trial deposits took around 24 hours to appear in my account and another 24 for them to reverse the trial deposits. After doing all of this, I still have no idea what the deal is. Wells Fargo was far less painful, I opened an account online, completed app online, funded the account and voila! Done and not reporting as a secured card.

Quite a process for someone to go through just to voluntarily give them some money that they will hold in jail as collateral. My fascination for Discover has officially hit the skids.

I received my Discover it secured card this week….. The application process that you described must be a case by case scenario; I applied online, submitted checking account and routing info for the security deposit, and the following screen said Congratulations! Your discover card will be funded and mailed within 14 days. Instant approval, and I did receive the card about 11 days after application submission.

We have the same scenario. I have had this account opened since June , and have always paid my payments on time. Hopefully I graduate this June!! Interesting that you have said this! Only, though, I was asked to verify even more information e.

Just wondering …what was your outcome? When I initially tried to fund the account with just entering my log-in credentials for my bank account, it was unsuccessful, so I was asked to input my routing and account info for trial deposits. Once I uploaded that image, I received a confirmation number and an email saying that once the information was processed, I would be contacted by a banking specialist within business days to confirm my account opening.

I was never actually contacted, but a few days later my opening deposit was charged to my checking account, and two days after that I called and the robot informed me of my account balance, which was exactly what it was supposed to be. I actually had to go through the same verification process.

Could be cause I did it on a Sunday but I was called Monday morning to verify my info and the funds came out two days after. Just called to make sure everything was ok and the rep said it will take days to finalize my account and send my card. Jayme, it sounds like they had a problem confirming your identity.

You can thank the federal government for the restrictions they place on card issuers for that. Even a Walmart debit card can be a pain in the button when they have issues with that. Maybe WF pulled from a different credit bureau. I remember having to answer a few questions when I applied as well. I hope it worked out for you. This card has been very rewarding for me. Does anyone know can you change the design or color of the Discover It secured card like you can the regular card?

Yes you can, you even can ad authorized users and they can chose their own card design. I received mine 10 days ago and added my wife as authorized user, she decided that she want to go with a flower on a red background for her card design. She received her yesterday. It reports monthly as secured. After the card graduates, it updates and is no longer reported as a secured card. Some people are also approved for a credit limit increase after graduation.

This is helpful, thank you. Tasteful simplicity in page design is classic, and appreciated. Hi John — Ah, thanks. That is so sweet! When it comes to explaining credit cards, simplicity rules. I applied for a Discover Card a few weeks ago. The system prompted me to open a joint account. I called and asked a rep about the secured card.

This application has been slated for a joint account. So, since I already dinged my hard inquiry count. Should I reapply in hopes of being approved? Any information is greatly appreciated! If necessary, ask to speak with a supervisor. Just say you meant to apply for the secured card and wonder if you can apply for that card, but avoid another credit check. Hey, this is worth a try. Do it soon, though. I applied for the Discover secure card today. I was surprise how easy it was to apply.

My secure discover has has finally arrived today! I now have a wells fargo secure and a capital one secure. All i need to do now is follow the rules from beverly here on the forum.

On august of last year i was at from equifax and trans. Hi Dave — Thanks for the heads-up! I just updated this review and gave you a shout-out.

So I tried applying for a card today and was declined and received no counter offer for the secured card. I am a little upset. I have 38K in my savings account. I called Discover and they said they are no longer doing the secured card. Has anyone else been able to get a second chance with discover?

Maybe third time is a charm? Hi Samantha — Dave is correct. I just updated this review to reflect that. You can apply directly for the secured version. The link is near the top of the review. Hope this works out for you. Hi all, I applied just now and was denied?! What reason did they give you? You might want to look at my list of ranked secured cards if you need a card soon.

See my response to Sandra just up above. I included a link to my list of secured cards if you want to try another issuer. I have been hearing reports that Discover is going to let folks apply directly for the Secured Card in the beginning of It also said I could increase my limit after the first statement cuts. Super excited to have Discover in my wallet as my 1st credit card after bankruptcy!! I recently applied for bankruptcy approx months ago, applied for the Discover Chrome secured card just today and was declined right away.

I called maybe reps before hand to informed them that I have a recent bankruptcy about 6 months ago. The reps say that they will always encourage everyone to apply regardless. Now, since my credit has been ran as a Hard Inquiry, what do I do, keep trying and lowering my score every time until I get something to rebuild my credit with?

I have only 1 bankruptcy for a chase card balance of 33k. Other than having bankruptcy my first time and no bills living with my mom, I feel I should have been approved. Or atleast warn people being hitting their credit. So, my first piece of advice from my lawyer was to get a secured credit card.

In the past it was reporting as a regular revolving account. Hi Jonathan — Thanks for confirming this. I just changed the review to reflect this new reality.

I totally understand why this bothers you. And the truth is that it might impact a few lender decisions. But as I added to the review, I think it also has the potential to impress a lender. Anyone who is willing to make a deposit and jump through all the hoops to rebuild credit is likely to pay on time.

But again, I understand your disappointment. I just wanted to share my story for those interested in applying for this card. I applied for my card and was offered the secured version in January, Initially, I was not able to increase my credit line. As of today, you are now able to increase your credit line.

The card initially reported as unsecured, it now reports as secured. All of my scores are between Pay on time, pay in full if you can. I had 8 collections on my credit report in January, I am now down to 2 collection accounts. Best of luck to all who are rebuilding. This is a great card to have! My card graduated a week after my one year anniversary and I received a check for my deposit return.

Then pay the rest after I receive the statement but before due date. I have been receiving unsecured pre-approvals from CapitalOne and promptly shredded them CapitalOne is the reason why I canceled all my credit cards and had to start over from scratch.

I went into my bank today to make a withdrawal and was informed of a pre-approval with them which I accepted. Hi Steve — Thank you so much for the information! Chase is a tough cookie. Exactly 14 days from when i gave them my banking info. Im hoping itll come sooner…. I hope all goes well and im excited to see it. I have my utilizaiton down to 34 percent which was quite a bit of Holding back on my part.

I love to spend. But i also love to pay its wonderful to pay with credit and to pay credit and see that available balance go up. I made terrible credit choices as an 18 year old before the Credit card act and all that.

In fact it was right before so the banks were milking money from everyone. As of today im at Transunion worse for the others. I have 4 years history but only 2 are good. When those collections come off ill have years of good payment history and low spending. I plan to have about 30, more in credit by 5 years from now actually next FEB i plan to open thousands worth of secured cards and one secured loan for the mix so hopefully with a lot of revolving credit that has been aging for at least 4 years and then my collections falling off no inquires im really hoping at that point in my score will be where it should be forever lol.

I appreciate this site its been a godsend for lesrning and hesring feedback on credit programs. I like that beverly doesnt shun the money making cards like first premier. U dont really recommend them but dont tell others to stay away. I have a first premier card and its been flawless although my wife had numerous problems with them.

I love that ur so real about all of this and u also understand where we all are. I got approved for the Discover IT Secured card as well. I applied and funded it on OCT 27th, two days later they took the funds from account. After you get that letter about Two days later you should receive an email saying they mailed your card out.

They say 3 to 5 days to arrive by mail. I should have mine before Wed next week. Anyways it appears it takes 14 days total including weekends. This card should hopefully un secure in about 12 months or so depending on how much your credit file has improved.

A credit line increase could be in the works too when your deposit is returned. Best of luck to those that apply. Hi Anthony, you have a good plan but what someone told you about collections was misinformation.

You CAN get them removed sooner. If they are still outstanding you can work with the collectors to get them removed sooner. Research pay for delete. If you have already payed them off you can still get them removed, but in a different way. You have to write a letter to each credit bureau asking them to confirm the accuracy of the collection.

Do this for each individual collection separately. Do a little research on how to word a letter. What happens is the credit bureaus will send letters to the collectors and ask them to confirm that the information is correct.

You have to write these letters every month one for each collection, to all 3 credit bureaus. There are also credit cleaner groups that will do this for you for a fee. Paying for delete is kind of a shady practice. Credit bureaus and collection agencies are bound by contract to follow the rules.

But I never recommend going to the credit cleaner groups. I know too many consumers who have lost money and gotten no results. But the option to dispute the item was available all along. They are also expensive and do things that you can do yourself for free. I found paying the original creditor when you can, is a lot better than dealing with some of the bottom feeder collection folks. Got them all deleted. I also went the route of a non-profit Debt Management Repayment plan for some that were a little larger, that made any collection attempts cease, made life more peaceful, no more anxiety about the bills.

It was almost like a debt consolidation without having to take out another loan. The collection accounts start to lose their negative impact after two years. If the accounts are wrong or inaccurate in some way, you can dispute it and try to get it removed.

Congrats on getting the Discover card! Best wishes to you as you rebuild your credit. It takes time and patience, but you can do it! I have wanted a Discover card forever and that was the one I could never get but now thanks to you and your correct information I was able to get it. Thanks and have a very Blessed Day! I did this with all 4 medical collections and my credit score went up the next month. Must have check number and amounts you paid in full with your online disputed.

I have heard that Discover is going to allow you apply directly for their Secured Card beginning in January. Although I could not confirm this with Discover directly, I have reason to believe they are heading in that direction.

Hi Dave — Thanks for mentioning this. I do hope they make it easy to apply for the secured card. I just closed my secured Discover card account after four months. When I closed the account, I was informed my deposit will be refunded, but not for two billing cycles. I absolutely plan to apply for the unsecured version, with better rewards, once my credit score is worthy.

This comment seems very weird to me. What were the rewards for your Discover card? You do have to sign up for these bonuses, but they send me alerts as soon as they become available for activation about a month before they become available. These rewards are identical to the unsecured rewards.

Secured Credit Cards are for building credit and canceling them hurts your average age of credit and that hurts your score.

Thanks to you I now am a proud card-holder of the Discover it Chrome secured card. I originally was counter-offered this card back in June, but I declined it because at that point in time I was not ready to get back into the world of credit. I was counter-offered the secured card again and this time I gladly accepted.

I was approved after sending in a bank statement. The card took exactly 14 days weekends included to arrive. Thank you very much for posting the review of this card! I applied for the regular unsecured card, invited to apply for the secured version. Thank you so much! Thank you so much for the plethora of extremely resourceful information. After being denied from Bankamericard and Capital One. I have a budget and a plan.

Hi Beverly … An update. Discover now reports this card as a secured credit card on my credit report. I have had this secured card since March and they always reported it as a regular card until this month. Seems a policy changed. Seems strange that if I want to get a secured card for what ever reason, Discover do a credit check and require excellent credit. I am putting up the money and the cost and risk would be low because they would have my money. The whole point of secured card for most people is building up their credit score.

Why the excellent credit? I have to say this article was VERY helpful. Thanks Beverly and everyone!! Hi Guy Building Credit I love your name! This card will really help you while you work on your score.

Hi, I have a few questions. I saw that review here and apply for the secured credit card and graduated in 10 month. Now i got the offer with the new miles card and got and my fico score is i started with score the trick is pay full balance and not spend a lot.

How long did it take you to go from score or even get to ? I want to say to everyone trying to get approved or have been gotten approved for the Discover IT secured card. It has been a blessing for me and my credit. I love it very much. I keep my ratio low very good and pay off balance every month. This is best secured card to have to rebuild my credit. I really believed it will become unsecured in 12 months. I am work very hard to make that happen.

I wish everyone luck as well. I wanted to Thank you Beverly for your website I so happy I found it. I recently received my Discover IT secured card.

Also, how soon, or how quickly can one pay their card off completely and still have it report to the bureaus? Do I have to wait until close to the due date, or at least until my bill shows a due date? I know this is a fairly new card, I believe came out sometime last year. During a part of last year I was in life transitions and fell behind on payments for 3 months. I was in the same situation with a past bankruptcy and was declined for the Discover card.

Just keep on applying every other month and eventually they will offer you a secured card if you do not still qualify for a unsecured card. I received my offer today via email and will surely get the secured card. Bottom line is do not give up keep on applying and be diligent in your other card payments if you have such Good luck!!!!!! I applied for the regular Discover card a few month back. I was offered the secured Discover it instead. Discover used my Trans union Fico score which at the time was close to Customer service is always awesome.

This is the Best secured card to me. Anyone who wishes to be approved for this card must apply for the regular card first. I am so happy I found this site. After many years of irresponsibility,I am trying so hard to clean up, and get credit. I was thrilled to be offered the secured card after being turned down for the unsecured card.

Banks usually do not approve Personal Loans for people with credit scores below I have a decent salary package. However, the bank rejected my Personal Loan application.

What can I do now? You might be having many loans outstanding. The possible solution is to bring in a co-borrower. Your working spouse can join as a co-borrower. You can also try to reduce your existing liabilities by closing some of your loans.

You might have an adverse credit score. Check your credit report and go through it in detail. There can be errors in your report. Dispute them if necessary and take the steps needed to rectify your credit report. Remember, you need a minimum credit score of to to be eligible for a Personal Loan. What is the difference between foreclosure and part-prepayment?

Foreclosure is the situation where the borrower wishes to close the entire principal outstanding before the completion of the tenure of the loan. Part-prepayment is when the customer does not close the entire loan but attempts to repay a portion of the outstanding amount.

Some banks have a lock-in period when you cannot foreclose the loan. What are the minimum and maximum loan amounts offered by banks? Generally, the minimum loan amount is around 50,,and the maximum amount can go up to 50 Lakhs depending on your eligibility. The banks like to have a personal discussion with borrowers before approving higher Personal Loan limits. How does the credit score affect the Personal Loan approvals?

Banks stipulate a minimum credit score for processing a Personal Loan application. They do not have any hesitation in approving Personal Loans to borrowers having a credit score more than It is better to order your credit report from the credit bureaus and know your score. It can save you the trouble of having to deal with a loan rejection. Banks make inquiries with the credit bureaus before sanctioning the Personal Loans. Every query affects your credit score.

What are the options available to banks in case of default? The banks do not have any collateral to fall back on in case of default. The only recourse available to the banks is to file a civil suit in the court of law. However, the interest rate and other charges vary a lot from one bank to another. It is advisable to shop around and check out the offers before applying for a personal loan. MyMoneyMantra is one place where you can get access to a variety of personal loan products from different banks.

You can compare these products on a single screen and decide on the best option. It will keep your EMI affordable and allow you to repay your loans quickly, thus improving your credit score.

It is better if you keep your tenure shorter than that. The ideal tenure is 36 months. Nevertheless, you should also check out the EMI affordability.

You should be able to afford the EMI. There are many hidden charges such as late fee penalty, cheque bounce charges, pre-payment penalties, lock-in period, and so on. Consult your financial advisor before you sign on the dotted line. Some banks charge interest on reducing balance method whereas some banks follow the straight-line Understand the difference between the two.

Use our EMI calculator to estimate the total outflow. It will be the biggest favour you do to your legal heirs. You do not leave behind any loan liability in case of any untoward incidents. Many banks include the loan insurance premium in the loan amount. As you repay the loan in instalments, you do not feel the pinch. For all those times when you need access to funds quickly and without providing any security, a Personal Loan is your answer.

How is my eligibility determined for a Personal Loan? Do I need to have a co-applicant to avail a Personal Loan?

What do I need to know about the Personal Loan application process? How Are Millennials Drawing Loans in ? Impact of Aadhar Card on Personal Loan. This helps you calculate the monthly instalment for the desired loan amount, interest rate and tenure. Eligibility Calculator Net Monthly Income. Loan Tenure Yr Mo.

Do you have an existing loan which you would like to transfer? This tool helps calculate the money, that we can help you save. Number Of EMIs paid so far. New Loan Tenure Yr Mo. Payout in first loan. Payout in new loan. Number of EMIs paid for far. Total pre-payment to be made. Let us help you estimate how quickly you can repay your loan by making part payments from time to time.

Number of EMI paid so far. Get best offers on: Insurance Life Insurance Health Insurance. No security or guarantor Balance transfer of another bank's loan Quick approval within 72 hours Loan insurance.

You can avail a Personal Loan for a wedding, home renovations, and go on vacation. Processing fees of 2. Age between 23 and 58 years at time of maturity Self-employed persons - Minimum 28 and maximum 68 years at maturity Salaried and self-employed persons are eligible Stable job with minimum 1-year service Self-employed - Minimum 3 years business Credit score and above. Minimum age 21 years, Maximum 58 years Both salaried employees and self-employed professionals are eligible Minimum income 22, per month.

Processing fees - 2. Minimum 25 years at the application and 58 years at maturity A salaried employee from multi-national companies, private organisations, and public companies are also eligible 2 months' salary slip and 3 months bank statement along with KYC documents You must be a residing citizen of India. Flexible Finserve Loan facility available where you pay the interest alone in EMIs and the principal amount either as a lump sum amount or at the end of the loan tenure.

Facility to withdraw from your credit line multiple times Quick loan approvals with funds credited to account within 24 hours Part prepayment facility up to 6 times a year at no extra cost Use for a variety of purposes like wedding, travel, home improvement, medical emergencies, or higher education.

Interest rate ranging from Minimum Salary 25, 6 months continuity in a job Total employment - Minimum 2 years Last 2 years IT returns Minimum age 22 years and maximum 58 years at maturity.

No collateral or guarantor required Purpose of loan can be anything like wedding expenses, home renovation, medical expenses, overseas travel, new business, resolve financial crunch and so on Flexible repayment options Competitive interest rates Minimum documentation Part prepayment allowed after completion of 6 months and full prepayment after 12 EMIs. Salaried employees, self-employed professionals, and business owners Minimum 21 years and maximum 58 years at maturity Net salary 20, Minimum qualification - Graduate Available in select Indian cities Credit score of and above.

Minimum documentation Flexible repayment options Minimum lock-in period of 12 months. Minimum age 23 years and maximum 60 years at maturity Salaried, self-employed professionals and business people can apply A regular source of income Credit score and above. Simplified Loan process with minimum documentation Add-on facility availability Quick turnaround process Fixed rate of interest Use for marriage expenses, home improvement, and other personal expenses.

Processing fees - 0. Salaried employees, self-employed professionals and business people are eligible Minimum 21 years and maximum 58 years at maturity for salaried, years for self employed individual, years for businessman Monthly income 20, for salaried employees and a yearlyincome of 2 Lakhs for self-employed persons 2 years continuous job or 3 years continuity in business. Use for a variety of purposes like wedding expenses, educational expenses, travel, and any other general purpose except speculation Fast turnaround time of a maximum of 72 hours after submission of all documents Easy repayment options No security or guarantor Top up facility available.

How quickly can you raise that? If it is going to take several months, you will likely want to defend the lawsuit that is coming to buy that time. Check out this video about using the fact you were sued for collection to your advantage. If they get a judgment they are likely going to want to collect on it. But you can settle judgment debts for less, and set up payments after the fact too. Thank you for the response. Also, your video references Attorneys that specialize in these types of settlement, should I call or email you directly for a referral?

It is far better to negotiate a settlement prior to judgment, and prior to be sued too. But there are instances where defending a collection lawsuit from Discover will lead to the best savings result. We spoke on the phone before: When I talk to either Discover or Chase, do I tell them that I have debts with the other creditor and reveal how much, or keep the other debts secret? Chase accounts are with United Collections Bureau, just found out. Chase is usually only going to have your account out to one debt collection agency at a time.

You cannot really keep one account from the other, as debt collectors have real time access to your credit reports. Be sure to watch that video. I would negotiate and reach my settlement with Discover now, as that threat of suit is something they regularly follow through on. My husband passed away in August. I used the credit card to pay for burial. Today I received a letter from attorneys asking me to call. I tried all day but did not get through. I can borrow the money and send a check tomorrow for full amount.

Was this a Discover Card? Is there an estate for your husband that passed to you? They are likely going to want to try to collect the entire balance. What is the total owed? I wonder how can I negotiate the balance with them since I got some money I can use to this balance. My account is still with them and never in collections. After reviewing websites, articles, etc about settling a card balance, the balance has to be in collections.

I have an excellent credit and all I want is to pay full the balance with a reduction of it. You cannot pay less than the balance owed without hurting your credit. And you also cannot get the best settlement outcome without being many months behind, which also impacts your credit. Hello Michael, I have two accounts with discover. They are a result of identity theft which is why i had a fraud investigation encouraged and disputed the debt.

The only thing standing between us and a pre approval is those two charged off cards on my credit report. What do I do? Does it make sense to offer discover to pay at least part of the debt? Like a paid for deletion kind of deal? Or would that not help me? What are my best options? Thank you so very much for your help! Fill in the talk to Michael form in the right column Tina. When I see that I will email you to set up a phone call. I will be asking some detailed questions about the ID theft before I offer the feedback you are looking for.

The law firm rep then said i needed to answer questions before they could take the offer to discover. She asked if we owned or rented a home? She asked what are our monthly bills are? The law firm rep said that someone would be in touch from the law firm instead of agreeing to the offer right then and gave no timeline.

I run in to that too. They may not be countering because they are content to progress with the legal action in play. You can reach back to them if you like. In June, , I had an accident that rendered one of my legs useless. I am unable to work because I am not able to stand, sit, walk, drive a car, lift objects, kneel, etc.

I have ongoing medical needs which require me to visit doctors for various treatments at least every 2 months. I applied for social security disability in February, , but was recently informed that my final hearing is still at least 10 months away. I am without any form of medical insurance in my state, in order to qualify for medicaid, one must first be approved for social security disability.

I am up a creek financially until my disability goes through or my leg magically functions again and I can return to work. I have literally lost everything. My savings are gone. I cashed in my retirement. That is now gone. I sold my car. Being that I was a normal, working, middle-class adult living a regular life, I had some credit cards with balances on them at the time of my accident. I was in contact with all of the creditors when it became clear that my leg was not getting better, when I realized I would not be able to return to work in a reasonable amount of time, and I when was not going to be able to continue making credit card payments.

Citibank worked with me. Bank of America worked with me. Discover card refused to work with me. The last payment I made to them was December, , five months after my last charge to the account, six months after my accident, and having no previous delinquencies over eight years of card membership.

They served me with a summons. I responded within their time frame. They sent their enormous packet of statements. The second check I write will be to Discover Card. I knew what was coming. Reading through the posts here, I see that your advice is generally to scrounge up as much money as possible and try to make a reasonable offer. My parents are the only people I can ask for money, but they are already depleted and I have another round of treatments scheduled for the beginning of the year.

Is it wise to try to settle before the court date? Or should I plead my flimsy case before the judge? And what happens if the judge decides I owe the full amount?

I have absolutely no way to pay it. I have no wages to garnish, no house to lien, no money in my bank account to seize. I have never denied the debt. What do you suggest? I rarely see them get done for less when you are in the courts, but given your set of circumstances, yours could be one of them.

I would still prepare for half as a realistic outcome though. This was a fail on their part, but it happens all the time with credit cards, not just Discover. I too would hesitate to file bankruptcy over this one debt for 9k. Not when it can be settled for half to boot. Then there is the reality that there could be additional medical costs that overwhelm down the road, and I would want to keep bankruptcy as a trump card you can only file chapter 7 every 8 years.

You are judgment proof, so the result of court will not matter. Explaining everything to the judge will not matter at all. I have the means to settle this debt outright but would obviously like to get the best deal possible so not to waste the means I have.

Please let me know what you think would be the best settlement negotiation strategy to take. I really want to get these debt payments out of my life for good. Click the debt settlement tab in the upper menu.

That is the beginning of an article series about what to, and how to, settle debt with an original creditor like Discover Card. Read through to the end of the series and you will have the understanding of the settlement process you need. You have to fall behind with payments, and by several months, in order to get the best deal negotiated with Discover.

Your credit will take a beating over it, but can bounce back. Three years ago Discover had referred my account to Zwicker and Associates who failed to ever contact me directly and a judgement was made against me in Massachusetts. I never personally received paperwork until receiving a letter in an attempt to garnish my wages. A few months later I moved to Florida and after living here for 18 months I received a letter from Zwicker and Associates stating that the Massachusetts judgement had been vacated.

Is there a chance they would try to come after me now knowing my new location or is it likely they have simply called it quits? I would not be confident they called it quits. I would continue to say up whatever money I can each month in order to be prepared to react to any new collection activity on the Discover account. If nothing happens between now and when you are done with Cavalry, you can then be proactive on your terms. I did not try to fight it since the debt was valid and a judgement was issued against me.

I am in a state that does not allow wage garnishment but just last week a recieved a letter from the attorney with a form to fill out to give to the court to list my assets and exemptions. Is it too late to settle? The last payment was paid over 3 years ago.

Thanks for your help! You typically have to work this out with the collection attorney firm that Discover sent your account to. And timing your negotiations with the request for assets they sent you is not all that great. Trying to negotiate a settlement prior to submitting that will often suggest there is more to collect. Parents are negotiating debt settlement directly with Discover card. Their only income is social security which they use for mortgage and living expenses.

Their credit is already very bad anyway and they have no cash on hand. The balance on the card is made up of primarily interest that has accumulated over several years and there have been no activity for 6 months.

They are on food stamps, get home heating help, Mother is disabled on Medicaid. I would like to help with settlement payoff but particularly with Discover since the balance is mostly interest should we expect to negotiate a lower offer? That does not mean Discover keeps to the same collection policies forever.

My question for you is why not just encourage your folks to file chapter 7 bankruptcy and wipe out all the debts for less than 2k? Discover does not sell debt. The last time I think I was able to make a payment was either late or early when i got laid off.

It was a miracle I was able to keep my house and I was unemployed for 2 years prior to starting work again in A couple weeks ago I came home to a piece of paper stuck in my door from what I found was a PI with some kind of Texas State supreme court registered process server number, but I have not had any registered mails show up nor have I called the phone number on the paper.

Would you recommend I call Disc card to see if I can work something out with them? I have no cash for real settlement, nor know anyone I could borrow from or who would lend me the money. I would take out home equity loan but my credit score is currently , I need to be over for that to be considered and paying any of this will of course lower it again. You would need to call the attorneys for Discover to set up payments. You can look up the case that is filed against you in your county court house, or call Discover and they will give you the attorney information.

How long would it take you to save up? Lawsuit was filed and I answered. Motion for summary judgement was filed by Plaintiff. I believe sufficient evidence has been provided to award summary judgement. Is it too late to negotiate a lump sum settlement for less than the balance.

If so, how negotiable would you expect them to be? That is sometimes a stretch to get approved. How much can you pull together quickly? To make a long story short, I have been away for the past year and return to the amount being in collections.

Would it be in my best interest to speak with them and pay that amount or to contact Discover directly? Would they consider deleting my fault from my credit history prior to the seven years? What is the date the offer expires on that collection agency letter? If that has gone by, call and get a new one sent before you pay. We hired a lawyer and the hearing was today. The judge found in our favor thankfully. My concern is the appeal. I know they have 30 days to appeal and I was wondering if you knew how likely it is that they will appeal?

It is not all that common to see an appeal on a dismissed collection lawsuit. Discover does take some cases the distance though. Continue to save up any money you can to resolve the debt and put yourself in the best position to navigate anything that comes up. I have disputed charges with Discover and requested that verification and retrieval information and have been denied of both. I carried their identity theft protection products paid for for nearly 3 years and recently settled a lawsuit against experience for selling my information that was misused.

On top of that I have identity theft and Ftc affidavit of identity theft and when I went to use my identity theft protection with Discover I found out that the provider was in fact Experian. He is licensed in Nevada but does not reside or have an office here in Las Vegas and telephonically appears so far.

I also spoke with the merchants account holder and verified that the merchant infected been shut down for high percentage of chargebacks and questionable activity. Three other banks that I had credit card accounts with have done the same neglected their fiduciary responsibilities to me as a cardholder and facilitated three party payment processors and high risk merchants in there fraudulent activity against me.

And responded only to say time and time again that the charges were valid and provide no documentation to support that decision. But I have no idea about court proceedings and one wrong or incomplete act can be a game changer and make me liable, not only for the debit but attorney fees as well.

The situation has affected me and my family and I live in fear and anxiety. Any credit cards with a zero balance in good standing have been closed and my credit is annihilated at best. In the actions of Discover have been willful and strategic with disregard to me as a whole.

I can email you a list of attorneys with debt collection defense experience in Nevada if you like? If you have not spoken with the an attorneys whose practice has a daily focus on these things, you may have a different experience. I can take money out of my Mutual funds and Stocks, two accounts that I have but do not want to deplete.

Card D and E i want to pay them off eventually. I read that Discover can see that I am making payments on chase cards through my credit report. What do you say? Who should I negotiate with first? Chase or Discover and what is the best priority of the card to start with in chase?

I have one part time job and a side gig where I make barely enough to cover my living costs and having to borrow a bit here and there from family. Discover comes first due to their more aggressive collection policies as of the time I am writing this reply.

As far as which Chase account to tackle afterward, that can depend on the cash flow you have available. Done correctly, settlements on the Chase account should not differ greatly, so it will come down to which one you can clear away based on the money on hand, and then do the next one, etc.

Assume you need as much as 9k to settle all of these accounts. How long would it take to raise the money? Without tapping into the mutual funds and stocks accounts I have, and luck aside it would take about 3 years, with luck of sales of my products could take less than 6 months.

Call in for a consult Raphael. You can reach me at ext 2, or fill in the talk to Michael form in the right column of this page. I am out of the office today, but will reach back to you tomorrow and go over this in more detail. You really want to knock Discover out of the way if possible. There are some hybrid approaches you can take, and one of them is giving them a small payment, but only if it makes sense, which I can help you determine better on the phone.

I have worked hard to stretch my pay to make the minimum payment each month but we are not making any dent in the principle and never will. With other medical expenses and household repairs adding up I am finding it harder and harder find the money to make the minimum payments and feel very hopeless. On the other hand we currently have a fairly good credit score and I am nervous about doing anything to damage that.

It is my understanding that that Discover really will not work with us until we are past due on our account. Would it be worth it for us to skip a payment before calling and trying to negotiate a reduction of some sort? A family member has offered to pay off the card in a lump sum amount with the agreement that we would then begin paying them back until the balance was resolved, interest free. They have asked however that we try to negotiate a lower pay off amount before we proceed. As generous as this offer is it still is going to be very difficult and anything we can do to reduce this amount would help.

Do you think there is any chance of discover even taking a few thousand off the debt as we have been current on our payments?

I am just very confused on what our next move should be. You cannot negotiate a lower balance payoff with Discover while current, and you cannot do that by missing one payment. You will have to miss 6 payments to get to a place where you can negotiate less than half off with Discover. Anything earlier than that and Discover may offer 10 to 20 percent off, but not much more.

If your goal is to save the most money you are fortunate to have someone in your corner with the money you will need. It is a process to get where you are going. Do you want help? Husband been ill no income. Discover sent offer Feb 5, offfer to lower interest to 7. On this letter showed Feb We wrote accept offer to reduce. Got Mar statement. Mailed pyt Mar last pyt prior Dec Never settlement offer never knew in collections.

Huband was mentally incapaciated I want you to talk over your issue with an attorney with experience in debt collection defense. You may have some issues about having accpepted their offer to reduce payments, where you did your part if I read your comment correctly , but they sued anyway.

I sent you an email with some contacts that have the experience you need, but you should first see if you qualify for low income legal aid, and if there is an office in your general area. They advised me that the debt will remain with discover and will not be sold to a collections agency after days which leads me to believe they commission an agency to retrieve the debt for a percentage. My question is when would be the most appropriate time to offer a settlement to discover and what would be an appropriate amount to start from.

Will discover offer me a settlement in the form of a letter in the mail? Discover stopped selling debt years ago. They will use outside collection agencies and a network of collection law firms. They do offer to settle, so I am not sure why you were lied to.

You do appear to be really early in your negotiation effort. How long has it been since you last paid? Settling is a discussion I generally encourage having with Discover between and days delinquent. There is a chance that Discover will not be all that receptive to settling based on the balance transfer activity.

There is always a chance a creditor will not be receptive to settlement, but that often changes once you are dealing with an outside agency or law firm.

I have seen Discover send out settlement offer letters in the mail on older accounts. They are not nearly as consistent with those offer letters as some of the other banks are. Thank for your response Michael! The last payment I made had to have been in April. Should I pick up the phone on them when they call? Or should I continue picking up once a month?

How apt is discover to suing? Will these law firms be more likely to settle? Given that I am 30 days late, what should be my course of action? I am a fan of talking to original creditors a few times leading up to your negotiating a settlement with them. I encourage people to make those calls rather than pick up those calls from Discover. Your mindset is often better that way. Here is more on the topic: Discover sues to collect more than most banks.

Your risk of being sued for collection by Discover will typically begin once they charge off the account. You can often settle before that happens. I do see better settlement outcomes when you work things out directly with the bank as opposed to waiting for an attorney to contact you. In other words, Discover lawsuits can be negotiated, but at a premium. If settlement is your goal, your next step is to pull the money together and then hurry up and wait until the optimal time to negotiate the best settlement arrives.

I have learned that this resets the process another certain amount of days. Should I resist this request or is this a necessary and legitimate request? I have seen them request that payment, and they do follow through with the letter and the settlement.

If you are nervous about it record the call, and tell them why; because they are not willing to send the letter without the payment. I have an old delinquent account with the Discover Bank since March of My delinquent debt is more than4 years old, and the statute of limitation SOL is expired.

The SOL in my state Maryland is 3 years. But, concerns I have is that if I call, my telephone conversation recorded by the Discover resets the time filing a suit and the phone recording can be used against me in the court. Please share your opinions on my concerns. Talk to an experienced Maryland debt collection defense attorney about whether your phone call with Discover would potentially reset the SOL to sue.

How long until you have the ability to pay the 30 percent? We are trying to purchase a car. According to the myfico simulator if i were to payoff or pay down the DC I would be hitting the mark. My goal is to one day hit and remain there. Credit scores do not always immediately improve when the account is settled and brought to zero. But your DTI is indeed going to improve right away.

I am desperately trying to fix my credit score. Discover card still owns this account. Discover does not do Pay for delete, at least that is what i was told by both collectors and Discover. My question to you is should I take the settlement?

Will this improve my credit score when I settle for less? Or should be patient and wait until it drops off credit report,. Discover will not do pay for delete. You could not offer them 10 times what you owe and get that out of them.

Settling the account and getting the credit report to show you owe zero and a resolved Discover collection account is what you can expect. Whether or not this settlement with Discover will improve your credit immediately will vary from one person to the next. It will improve your options with certain loans, like a refi or new home loan. I have been current with Discover Card, but my interest rate is so high. I read a lot of articles, that they will give me a chance if I got late in payment, so I did.

They called me last night, and I asked if they can drop the interest, and I am still willing to pay the balance, until paid in full. They only offer 9. They are very pushy, and I spoke to the manager, and it is saying, same thing like the representative I spoke to. She told me, she will send my account to their lawyer. I said, then, I will have a better deal when your lawyer gets it. What is my best option? In , I asked them to enroll me in hardship because my husband has no jobs for 2 years.

Then, they only lower the rate to Now, they told me, try the 6 months, and we will figure out the best for you after this. I said no, because you already did it to me in Please let me know, what am I supposed to do next?

How long have you had this account? Do you have other credit card balances besides this one, and if so, what do they all add up to? They sent me a motion for summary judgment. As for a day to show cause, all of this information was left blank. They also provided over a pages of statement printouts with an affidavit from someone they claim is the litigation support specialist.. Monday, February 29th, I received the motion for summary judgment paperwork again, but this time it had a hearing date of March 30th on it.

They sent the same printouts again with it and affidavit with no original copy of the signed contract or proof they own the debt. Discover has charge off on my credit report at this time. Discover is who your account was with and who owns the account now. They have not sold unpaid debt for many years. Now that you have engaged in defending the court case, it is not all that common to win and get a dismissal when sued by your original creditor. If your goal is avoiding a Discover judgment, you stand a better shot of negotiating a settlement if you can afford one.

Yes I can raise half or a little more of what I am being sued for. If an agreement is met, I know the amount should be given but what else? Should it include credit reporting request such as paid in full or paid as agreed?

Should a request to dismiss the motion for summary judgment dismissed with prejudice after payment? It is not a bad idea to talk this over with an experienced debt defense attorney. Post a reply with your state and I will email you contact that offer no cost initial consults.

You should not send a dime without the negotiated agreement in writing. Discover has to update current and correct information to your credit reports. If you settle the debt they are good about sending those updates. It can take 60 days. It will show settled for less usually, but as a resolved collection, which you can then begin to bounce back from. Discover will not agree to remove the credit reporting,and the law firm suing is not in a position to agree to that for them.

This letter is not a threat of suit and should not be considered a threat of suit. So how am I to take this?! I havent made a payment on this card since last summer due to unemployment, illness, and family issues. I have explained to DC that I have no means to make payment and I am actually filing for disability. They are also helping me with my utility bills but absolutely will not pay anything towards the DC balance. Should I consider filing Chapter 7? I hate to do it and the guilt of not discharging DC is weighing heavily on me but I dont see any other way out of this mess.

How soon can I expect to be sued? This letter is ambiguous to me. If the Discover balance Zwicker is now collecting is the only reason you would file bankruptcy, than I do not like that option. The debt is too small if you consider:. Settling with Zwicker for roughly half would mean coming up with about 4k. Look to raise money as quickly as you can in order to settle. Even if your sued and judgment entered, it appears there is little they can do to collect, given your disability status. I cannot say how long it will be before Zwicker sues.

I would suggest that it is more likely now that Zwicker has your file. Payments have been made on time, every month since. I have money order receipts and bank statements all showing I made the payments. Will I have to pay the whole amount? How do I respond to them? If it were me I would respond to the Florida attorney letter with a dispute letter of my own. I would point out in the dispute that the debt they are attempting to collect is not valid. Include a copy of the settlement agreement and list out all payment transaction dates.

I would state plainly that any further collection efforts will result in your consulting with your own fair debt attorney, and your filing a debt collection complaint against the law firm and their client with the CFPB.

You could also call Discover and verify all of the facts of your settlement and see what they have to say. If you were my customer, and this happened, that is what I would do. This would give Discover the chance to pull the account back and could be the cleanest resolution to the mistake that was made in the first place.

Thank you for your response. When I look up the case in the civil court, I only find the original date not anything in Augusy Perhaps I misunderstood you. That was how I read your original comment. Stipulation was made in front of a judge to make monthly payments until paid off, then 8 months later they said I defaulted on the agreement and court enforced the full amount I never received any paperwork on this plus interest.