- The Ascent
- Best Credit Cards
- Discover it® Secured Review
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.
Packed with features that are rare among secured credit cards, the Discover it® Secured 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 improve your credit. In the Discover it® Secured review below, we'll go over the card's many benefits and discuss other key points to consider before applying.
On Discover's Secure Website.
Discover it® Secured
On Discover's Secure Website.
Great for: Secured credit card and building credit
Bottom Line
Need to build your credit history? This card is a great place to start. It offers perks rarely found in secured cards including cash back, no annual fee, and double cash back in the first year.
Credit Rating Requirement:
Rewards
Cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 10.99%, 6 months
Ongoing APR
22.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
Discover it® Secured topped the podium in the following category for The Ascent's 2020 credit card awards:
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 doesn't have any 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 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.
Cash back match after the first year: Sign-up bonuses are another one of those perks that secured credit cards practically never have. Discover breaks the mold again here by doubling the cash back you earn in your first year using this card. If you earned $250 back, Discover will kick in another $250 and make it $500.
Pick your own credit limit: Your deposit is equal to your credit limit, and you can choose an amount between $200 and $2,500. Although a larger deposit costs you more up front, it also helps you keep your credit utilization ratio down, which is an important factor used to calculate your credit score.
Payments reported to all three credit bureaus: The Discover it® Secured reports your payment activity to all three major credit bureaus, which means you can improve your score with each of them.
Free FICO® Score: Discover provides you with an up-to-date FICO® Score every month. You can view your score in your online account, through Discover’s mobile app, and on your statement. 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 is that it can convert into a traditional unsecured Discover credit card. After as few as eight 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 isn't one of them.
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.
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.
Still, there are requirements you should know about to apply for the Discover it® Secured. You must:
Keep in mind that having all of the above doesn't guarantee you'll be approved for the card. Discover will evaluate your current financial situation and your credit history. If it declines your application, it won't charge you a security deposit.
![]() |
![]() |
Petal® 2 "Cash Back, No Fees" Visa® Credit Card |
Capital One® Secured Mastercard® |
Rating image, 4.5 out of 5 stars.
4.5 stars
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, 4.5 out of 5 stars.
4.5 stars
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. |
Apply Now
On Petal's Secure Website. |
|
Read Full Review | |
Credit Rating Requirement: |
Credit Rating Requirement: |
Welcome Bonus: N/A |
Welcome Bonus: N/A |
Rewards Program: 1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away |
Rewards Program: N/A |
Intro APR: Purchases: N/A Balance Transfers: N/A |
Intro APR: Purchases: N/A Balance Transfers: N/A |
Regular APR: 12.99% - 26.99%, variable |
Regular APR: 26.99%, variable |
Annual Fee: $0 |
Annual Fee: $0 |
Highlights:
|
Highlights:
|
Apply Now
On Petal's Secure Website. |
|
Show More
|
Capital One® Secured Mastercard® is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
If you have either bad credit or no credit history at all, the Discover it® Secured 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 is a welcome change from all that. Consumers who need to improve their credit and who can afford the $200 deposit should strongly consider applying.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.