Discover it® Secured Credit Card Review

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Discover it® Secured Credit Card
GOOD FOR CASH BACK

Discover it® Secured Credit Card

Rewards rate:

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Earn unlimited 1% cash back on all other purchases – automatically.

  • Intro bonus: Cashback Match™
  • Annual fee: $0
  • Regular APR: 22.99% Variable
  • Recommended credit score: (No Credit History)

With a valuable cash back rewards program, the Discover it Secured credit card stands apart from other credit-building secured cards. 

Along with the standard features of a secured credit card — a refundable cash security deposit and payment reporting to the three credit bureaus to help you build credit — the Discover it Secured credit card gives users a way to build their credit and earn cash back rates typically only available with harder-to-get rewards cards.  

At a Glance

  • Earn 2% back on up to $1,000 in combined spending at gas stations and restaurants each quarter (then 1% back) 
  • Earn 1% back on other purchases
  • Cashback Match first-year bonus: Discover will automatically match all the rewards you earn at the end of your first year
  • Refundable security deposit between $200 and $2,500 required, which will act as your credit limit
  • No annual fee
  • 22.99% variable APR

Pros

  • Build credit, even with limited credit history

  • Automatic monthly account reviews after 8 months to determine if you qualify for a refunded deposit

  • Earn rewards on your spending

Cons

  • Requires security deposit (minimum $200)

  • High APR

Additional Card Details

Since the Discover it Secured card — like other secured cards — is designed to help people with poor or limited credit build a better score, it doesn’t come with a lot of added benefits beyond cash back rewards. 

However, you will get some basic perks that can help you improve your credit. These include a free FICO credit score every month, free account activity alerts, no late fee on your first late payment (up to $40 thereafter) and no penalty APR.

Discover also makes it easy to reap the benefits of your improved credit. After eight months, the issuer will begin automatic monthly account reviews to see if you’re eligible to upgrade to an unsecured version of this card and receive your security deposit back.

Should You Get this Card?

The Discover it Secured credit card is one of the best secured credit card options on the market today. 

If you need to build credit, a secured credit card can be a valuable tool for improving your score. And with its added cash back rewards, flexible security deposit requirement, and ongoing opportunities to prove your creditworthiness, this card is one of the best options for building credit and establishing the good credit habits that will help you qualify for better credit cards or other financial products (like a mortgage or auto loan) later on. 

Pro Tip

While a cash deposit is required to open a new Discover it Secured credit card and serves as collateral for your line of credit, you’ll get it back in full when you’re eligible to upgrade to an unsecured card or cancel your account with a $0 balance in good standing.

How to Use Discover it Secured

Discover it Secured is a secured credit card, so you’ll need to submit your bank information and agree to a cash deposit of at least $200 (up to $2,500) with your application, which you’ll be charged upon approval. 

Because this deposit acts as your credit limit, you should think about the amount you choose to deposit. One of the most influential factors in your credit score is credit utilization ratio, or the amount of credit you have available in relation to your credit limit. Experts recommend keeping your utilization 30% or less, which can be difficult with a low credit limit. If you start with a credit limit (and security deposit) of just $200, for example, a $100 balance on your monthly statement would report to the credit bureaus as 50% utilization on this card.

Over time, begin using your credit card for small purchases you can afford to pay off each month. You can maximize your cash back rewards by using your card at gas stations and restaurants to earn 2% back (at least until you reach the $1,000 quarterly cap, then 1% back). 

Most importantly, pay your credit card bill in full by the due date without fail. This will help you build a positive payment history — the most influential factor in your credit score — and record of responsible credit use with the credit bureaus.

Discover it Secured Card Card Compared to Other Cards

Discover it® Secured Credit Card

Discover it® Secured Credit Card

  • Intro bonus:
    Cashback Match™
  • Annual fee:
    $0
  • Regular APR:
    22.99% Variable
  • Recommended credit:
    (No Credit History)
Secured Mastercard® from Capital One

Secured Mastercard® from Capital One

  • Intro bonus:
    No current offer
  • Annual fee:
    $0
  • Regular APR:
    26.99% (Variable)
  • Recommended credit:
    (No Credit History)
  • Learn more externa link icon at our partner’s secure site.
U.S. Bank Secured Visa® Card

U.S. Bank Secured Visa® Card

  • Intro bonus:
    No current offer
  • Regular APR:
    25.99% (Variable)
  • Recommended credit:
    (No Credit History)
  • Learn more externa link icon at our partner’s secure site.

Bottom Line

EDITORIAL INDEPENDENCE

As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.

If you’re looking to build your credit score, the Discover it Secured credit card is a good beginner credit option. Secured credit cards are easier to get approved for than traditional cards because of the cash deposit, and regular payment reporting to the credit bureaus can help you work toward a good credit score and improve your financial situation over time. And while you improve your creditworthiness with the Discover it Secured, you can enjoy valuable cash back rewards along the way. 

Still, there are other secured cards that may also suit your credit goals. Make sure to compare all your options, accounting for fees and any additional benefits, before you apply.

Frequently Asked Questions

What credit score do you need for the Discover it Secured Card?

Discover it Secured is designed for those looking to build credit, which means it’s possible to qualify with poor credit or little credit history. Just remember that you’ll have to put down a cash deposit as collateral, which will be equal to your new line of credit.

Does the Discover it Secured Card do a hard pull on your credit?

Yes, Discover will complete a hard credit check to determine your eligibility for the Discover it Secured credit card.

What is the annual fee on the Discover it Secured Card?

Discover it Secured does not charge an annual fee.