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Packed with features that are rare among secured credit cards, the Discover it® Secured Credit Card is an undisputed leader in this category. With no annual fee and high approval odds, this card is one to check out if you need to build your credit. In the Discover it® Secured Credit Card review below, we'll go over the card's many benefits and discuss other key points to consider before applying.
BEST OF 2022
Discover it® Secured Credit Card
Apply Now
On Discover's Secure Website.
Apply Now
On Discover's Secure Website.
Rating image, 5.00 out of 5 stars.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. 5.00/5
Apply Now
On Discover's Secure Website.
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This card is a great place to start when building your credit history. It offers perks rarely found in secured cards, including cash back, no annual fee, and Discover's innovative sign-up bonus.
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- Cash back rewards
- Great sign-up bonus offer
- No annual fee
- Can graduate to an unsecured card
- Minimum deposit amount
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- No Annual Fee, earn cash back, and build your credit with responsible use.
- Using your secured credit card helps build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can’t do that.
- Establish your credit line with your tax return by providing a refundable security deposit of at least $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.*
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- Discover is accepted nationwide by 99% of the places that take credit cards.
- Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score.
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- Click "APPLY NOW" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
Full Discover it® Secured Credit Card review
This credit card is a good fit for: Cardholders with a thin or bad credit history who want to build credit while earning cash back rewards.
Top perks
No annual fee
Many credit cards for bad credit have annual fees that make improving credit more expensive than it needs to be. The Discover it® Secured Credit Card doesn't have an annual fee.
Up to 2% back
It's almost unheard of to get cash back from a secured credit card, but the Discover it® Secured Credit Card offers 2% cash back on the first $1,000 of spending at gas stations and restaurants each quarter. In addition, the card offers 1% cash back on all other spending.
Unlimited Cashback Match sign-up bonus
Sign-up bonuses are another one of those perks that secured credit cards practically never have. But Discover breaks the mold again here and will automatically match all the cash back you’ve earned at the end of your first year. This sign-up bonus is only available during the first year and for new cardholders, but it can be particularly lucrative since the match is unlimited. For example, if you earned $250 back during the sign-up bonus period, Discover will kick in another $250.
FICO® Score for free
Discover provides you with an up-to-date FICO® Score. By having this credit score available, you can monitor your progress in building your credit.
Graduate to an unsecured card
One of the biggest perks of the Discover it® Secured Credit Card is that it can convert into a traditional unsecured Discover credit card. After as few as seven months of on-time payments, you may be eligible to have your security deposit returned, thus turning your secured card into an unsecured credit card.
No foreign transaction fee
Quite a few cards tack on a 3% foreign transaction fee for international purchases, but the Discover it® Secured Credit Card isn't one of them.
Alternatives to consider
- If you're building credit for the first time: It's possible to qualify for the Petal® 2 "Cash Back, No Fees" Visa® Credit Card without any credit history. Since it's an unsecured card, you won't need to pay a security deposit and can save money upfront.
- If you can't afford a $200 deposit: The security deposit on the Capital One Platinum Secured Credit Card can be as low as $49. While this card doesn't earn rewards, it also doesn't charge an annual fee and can graduate to an unsecured card.
As of Jan. 13, 2022
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| Petal® 2 "Cash Back, No Fees" Visa® Credit Card | Capital One Platinum Secured Credit Card |
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Rating image, 4.00 out of 5 stars.
4.00 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Rating image, 4.50 out of 5 stars.
4.50 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
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Apply Now
On Petal's Secure Website. |
Apply Now
On Capital One's Secure Website. |
| Read Full Review | Read Full Review |
| Rates & Fees | |
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Credit Rating Requirement: |
Credit Rating Requirement: |
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Welcome Bonus: N/A |
Welcome Bonus: N/A |
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1% - 1.5% cash back |
Rewards Program: N/A |
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Intro APR: Purchases: N/A Balance Transfers: N/A |
Intro APR: Purchases: N/A Balance Transfers: N/A |
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Regular APR: 12.99% - 26.99% Variable |
Regular APR: 26.99% Variable |
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Annual Fee: $0 |
Annual Fee: $0 |
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Highlights:
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Highlights:
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Apply Now
On Petal's Secure Website. |
Apply Now
On Capital One's Secure Website. |
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What could be improved
High deposit requirement
The minimum required deposit of $200 could be too expensive for some consumers. Even though this is a minor quibble, there are secured cards where you could potentially pay a smaller deposit.
Find the best credit card for your needs
Compare credit card rewards, fees, APRs, and more using our side-by-side comparison tool.
Suggested credit score
Since this is a secured credit card, there's no minimum credit score to get it. You can qualify for this card whether you have no credit history or you have bad credit because of an issue on your credit file.
This credit card is right for you if:
If you have either bad credit or no credit history at all, the Discover it® Secured Credit Card is one of the best credit cards you'll find. Most credit cards that target consumers with bad credit don't offer many perks, and some even take advantage of cardholders by charging exorbitant fees.
The Discover it® Secured Credit Card is a welcome change from all that. Consumers who need to improve their credit and who can afford the minimum deposit should strongly consider applying.
FAQs
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Your credit limit for the Discover it® Secured Credit Card will equal the size of your deposit. The minimum deposit is $200. This will mean a $200 credit limit.
The maximum amount you can deposit will be set by Discover, but it can't exceed $2,500.
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Your new Discover card should arrive within two weeks of being approved. But the average time from approval to delivery seems to be around seven days.
You can often get an instant decision when you apply online. In some cases, Discover may require additional information for review. If that happens, it could be several days before you get a decision. This could mean your overall wait time is longer.
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You can get a larger credit limit for the Discover it® Secured Credit Card by making a larger deposit. The credit limit will equal the size of the deposit, which can range from $200 to $2,500.
Apply Now
On Discover's Secure Website.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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