- No annual fee
- No credit score requirements
- Cash back rewards
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The Discover It® Secured Credit Card is designed for those who want to build or improve their credit score. As a secured credit card, a refundable deposit is required, but the card offers 2% cash back at gas stations and restaurants and 1% on other purchases. And for the first year, you get 2x Cash back on everything you earn. There is no annual fee.
The Discover It® Secured Credit Card is an excellent secured card with no annual fee and a solid rewards program. While it requires a security deposit and isn’t the most widely accepted credit card brand, it’s a strong offering for applicants looking to build or rebuild their credit with low fees and excellent cash back rewards.
Pros & cons
- Security deposit required
- Approval not guaranteed
- Discover cards are less widely accepted
Who is the Discover It® Secured Credit Card for?
The Discover It® Secured Credit Card is a credit card for people who are new to credit or looking to fix their credit after past mistakes. Its primary selling features include low fees and competitive cash back rewards.
However, users should be aware that they must put down a security deposit equal to the credit limit when opening a new account. After seven months of responsible usage, Discover automatically reviews accounts to determine if they can be upgraded to an unsecured Discover It card.
Here’s a closer look at the different features offered by the Discover It® Secured Credit Card.
Cash back rewards
With the Discover It® Secured Credit Card, you’ll earn cash back rewards on all standard purchases. Users earn 2% back at gas stations and restaurants on up to $1,000 in quarterly combined purchases and 1% back on all other purchases.
At the end of the first year, all rewards are automatically doubled. That means you’ll effectively earn 4% at gas stations and restaurants and 2% elsewhere for the first year.
No annual fee
Unlike many secured credit cards, Discover It Secured doesn’t charge annual, monthly maintenance, or sign-up fees. You can use the card for free if you pay off the balance in full each month and avoid certain fee-bearing transactions.
Credit score access
The card’s features encourage you to follow good credit habits to achieve an optimal credit score. This includes free access to your FICO credit score, so you can track your progress over time. Discover encourages you to keep your balance low and pay on time, critical aspects of building a positive credit history.
Potential to upgrade to an unsecured card
After seven months of responsible card use, Discover automatically evaluates accounts to determine whether they can be upgraded to an unsecured card. When that happens, you get your deposit back and can keep using the card as a regular credit card.
The fine print
While the Discover It® Secured Credit Card has low fees and a decent cash back rewards program, here are some other potential charges to be aware of.
- High interest rate: As of this writing, the interest rate is 28.24% APR, which is high compared to most credit cards. The rate for cash advances is even higher.
- Balance transfer and cash advance fees: Balance transfers are subject to a 3% or 5% fee, depending on how long after opening a new account you complete the transfer. Cash advance transactions are subject to a 5% fee with a $10 minimum.
- Late and returned payment fees: Late and returned payments are subject to a fee of up to $41 per occurrence. The first late payment fee is waived.
- Approval isn’t guaranteed: While no specific credit score requirements exist for this card, approval isn’t automatic. Some secured cards guarantee approval regardless of your credit history.
Additional hidden perks
The card has modest benefits, but does come with a handful of added perks to help build your credit and keep your identity secure.
In addition to FICO credit score access, Discover provides identity alerts when your credit report changes or if your information shows up on the dark web. Discover also scans and helps you remove your personal information from public directory websites.
You can freeze and unfreeze your card anytime, preventing unauthorized account use. And if your card is lost or stolen, you’ll get a new one overnight at no extra charge.
What could be improved
Compared to similar cards, the Discover It® Secured Credit Card has a lot to offer with little room for improvement. It would be nice if the 2% cash back rate at gas stations and restaurants had a higher spending cap. Compared to similar cards, however, it’s pretty good.
Discover has made strides to improve acceptance at businesses around the United States. However, it still lags behind Visa and Mastercard. It’s a hassle to pull out your card for payment and have it turned down before you tap, dip, or swipe it at the cash register.
U.S. Bank Cash+® Visa® Secured Card
The Discover It® Secured Credit Card is one of the best in its category. With unlimited cash back rewards and no recurring fees, you can make money from this card, assuming you pay off the balance in full monthly to avoid interest charges. If you’re looking for a card to build or rebuild your credit score, put this one near the top of your list.
Frequently asked questions (FAQs)
Is the Discover It® Secured Credit Card good?
The Discover It® Secured Credit Card is a good option for people looking to build or rebuild credit, as there are no recurring fees, and you earn cash back rewards.
What credit score do you need for the Discover It® Secured Credit Card?
There’s no specific minimum credit score for the Discover It® Secured Credit Card. However, approval isn’t guaranteed.
How long does it take to go from secured to unsecured with Discover?
Discover evaluates cards beginning seven months after you open an account to determine if you qualify for an unsecured Discover It card.
Can you be denied for the Discover It® Secured Credit Card?
Approval for the Discover It® Secured Credit Card isn’t guaranteed. While it’s made for people with no credit or bad credit, some applications may be turned down.
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