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Discover it® Secured

  • $0 Annual Fee

    Fee for maintaining card

  • $0 Welcome Offer Value

    As of 06/2018

  • 1% Cash Back

    Rewards rate

Apply Now

on Discover Card's website

Terms apply. Rates and fees.

The Discover it® Secured credit card is a great option if you’d like to build your credit at the same time as earning cash back credit card rewards, but it won’t do much for those who already have good or excellent credit.

In this review, we’ll look at the factors that make the Discover it® Secured credit card a good choice, and point out some potential drawbacks depending on your financial situation.

At a glance

Discover it® Secured

Apply Now

on Discover Card's website

Terms apply. Rates and fees.

  • No Annual Fee, cash back on every purchase, and helps you build your credit with responsible use.
  • Your Secured Credit Card requires a refundable security deposit up to the amount we can approve of at least $200 which will establish your credit line. You will need to provide your bank information when submitting your security deposit.
  • We will automatically begin reviewing your account starting at 8 months to see if we can transition you to an unsecured line of credit.
  • Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
  • Receive FREE Social Security number alerts-Discover will monitor thousands of risky websites when you sign up.

$0

$0

1% Cash Back

Annual Fee

Welcome
Offer Value

Rewards Rate

Discover it® Secured credit card deep dive

Those looking to build their credit may find their answer with the Discover it® Secured credit card, which allows cardholders to establish a solid credit history while earning rewards. But others may find better rewards elsewhere, so read on to see if this is the right card for you.

Get it: If you have no credit history or a score below 670, and would like a chance to build your credit while earning cash back rewards

The Discover it® Secured credit card is a great way to build or rebuild your credit. If you’re new to credit or have somehow damaged your score, this secured card will allow you to earn cash back on purchases without having to worry about spending above your means, all while building your credit.

Some of the benefits of the Discover it® Secured credit card include:

  • No Annual Fee, cash back on every purchase, and helps you build your credit with responsible use.
  • Your Secured Credit Card requires a refundable security deposit up to the amount we can approve of at least $200 which will establish your credit line. You will need to provide your bank information when submitting your security deposit.
  • We will automatically begin reviewing your account starting at 8 months to see if we can transition you to an unsecured line of credit.
  • Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
  • Receive FREE Social Security number alerts-Discover will monitor thousands of risky websites when you sign up.

Skip it: If your credit is above 670, you plan to carry a balance, or you’re not willing to put down a deposit to open a new card

If your credit score is above 670, your chances of being approved for a card with a higher rewards rate are good, meaning you won’t have to put down a deposit and you’ll earn more cash back, points, or miles for the money you spend on the card.

Additionally, if you tend to carry a balance on your credit card(s), the 24.49% variable purchase APR on the Discover it® Secured can cost you a lot of money, quickly—so a lower-APR card may be more in line with your spending habits.

Further, if you’re unable or unwilling to provide a deposit in order to open a credit card, the Discover it® Secured won’t be an option for you.

Consider these drawbacks of the Discover it® Secured credit card:

  • Requires a deposit: In order to provide a line of credit to those with no credit or a low credit score, Discover requires a refundable deposit that determines your credit limit. If your credit is above 670, you can probably get approved for a card that doesn’t require a deposit
  • Meant for building credit, not for maximizing rewards: While cash back rewards of any flavor can be exciting for someone with poor credit history, the rewards rate on this card is low compared to many other cash back cards. If your credit is good or excellent, you may be better off with a card that offers higher rewards rates
  • Not a card for carrying a balance: With a variable APR of 24.49% for purchases, carrying any type of balance on theDiscover it® Secured credit card can get expensive quickly. If you’re looking for a card to finance a large purchase with or you tend to carry a balance on your card, consider looking for a card with a 0% APR introductory offer and a lower APR thereafter
  • A limited limit: Your credit limit on the Discover it® Secured card is determined by how big of a deposit you put down upon opening the card (which must be between $200 and $2,500), so this isn’t the card to use if you’re looking to make a big purchase and pay it off over time

Summary

The Discover it® Secured card allows no credit and poor credit customers to start building or rebuilding their credit without an annual fee at the same time as earning cash back rewards. Those with average or better credit, on the other hand, may find a card with higher rewards rates to be more valuable.

We encourage you to provide honest and thorough feedback about your experience (not the experiences you’ve heard from other people), the good as well as the bad. But, we also want you to follow these content guidelines. The comments or responses that Credible posts under its official account are not provided, reviewed or endorsed by any of the financial institutions unless specifically stated otherwise in the response. Please keep in mind that the financial institution has no obligation to monitor any comments, questions or reviews you post and is therefore not responsible for ensuring your posts and/or questions are answered.

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