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For building and rebuilding credit, the Discover it® Secured Credit Card has it all. There's no annual fee, it can graduate to an unsecured card, and it even offers valuable cash back bonuses. Read our full Discover it® Secured Credit Card review to see why we consider it an undisputed leader in its category.
New/Rebuilding Under(579)
Intro APR
Purchases: n/a
Balance Transfers: 10.99%, 6 months
Regular APR
28.24% Variable APR
Rewards 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
1% - 2% Cashback
Annual Fee
$0
Welcome Offer
Discover will match all the cash back you’ve earned at the end of your first year.
We think this card has among the highest cash back potential for a secured card with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches the cash back new cardholders earn at the end of the first year. This card could be perfect for you if you're new to credit, or rebuilding after past troubles.
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
Offer | Our Rating | Welcome Offer | Rewards Program | APR | Learn More |
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Rating image, 5.00 out of 5 stars.
5.00/5
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.
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.
= Best = Excellent = Good = Fair = Poor |
Discover will match all the cash back you've earned at the end of your first year. N/A | 1% - 5% Cashback Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. |
Intro: Purchases: 0%, 15 months Balance Transfers: 0%, 15 months Regular: 17.24% - 28.24% Variable APR |
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Rating image, 5.00 out of 5 stars.
5.00/5
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.
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.
= Best = Excellent = Good = Fair = Poor |
Up to $300 cash back Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases. | 1.5% - 5% cash back Enjoy 5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases |
Intro: 0% Intro APR on Purchases and Balance Transfers for 15 months Purchases: 0% Intro APR on Purchases, 15 months Balance Transfers: 0% Intro APR on Balance Transfers, 15 months Regular: 20.49% - 29.24% Variable |
Apply Now for Chase Freedom Unlimited®
On Chase's Secure Website. |
|
Apply Now for Chase Sapphire Preferred® Card
On Chase's Secure Website. |
Rating image, 4.50 out of 5 stars.
4.50/5
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.
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.
= Best = Excellent = Good = Fair = Poor |
75,000 bonus points Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠. | 5x on travel purchased through Chase Travel℠, 3x on dining and 2x on all other travel purchases Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more. |
Intro: N/A Purchases: N/A Balance Transfers: N/A Regular: 21.49%-28.49% Variable |
Apply Now for Chase Sapphire Preferred® Card
On Chase's Secure Website. |
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.
Secured credit cards are often light on features, but the Discover it® Secured Credit Card is an exception.
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.
The Discover it® Secured Credit Card has a much better cash back program than most of its competitors. It earns a 2% Cashback Bonus® at gas stations and restaurants on up to $1,000 in combined purchases each quarter. It earns 1% cash back on other purchases.
Already have good credit? Check out our list of the Best Cash Back Credit Cards.
Another valuable feature of this card is Discover's Unlimited Cashback Match. Discover will 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 if you earn a lot of cash back.
For example, if you earned $250 cash back during your first year as a cardholder, Discover will kick in another $250. Lots of secured credit cards don't have sign-up bonuses, so the fact that this one does is great for cardholders.
Discover provides you with your up-to-date FICO® Score in its Credit Scorecard tool. You can access this online, in Discover's app, or see it in your monthly credit card statement. This tool also lets you know the factors that are affecting your credit and what you can do to improve your credit score.
When you're building credit, it's important to have access to your credit score to monitor your progress. Your FICO® Score is the type of credit score that's most widely used by lenders, so Discover's FICO® Credit Scorecard is very useful.
The Discover it® Secured Credit Card can graduate to a traditional, unsecured Discover credit card. Discover starts automatic reviews after seven months to see if it can convert your card into an unsecured card and refund your deposit. This is an excellent feature for a secured credit card. It means you don't need to close the card to get your deposit back, so you can keep building your credit history with it.
LEARN MORE: Best Unsecured Credit Cards
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.
One of the reasons Discover credit cards are popular is the card issuer's excellent customer service. It has 100% U.S.-based customer service, and it consistently posts high scores in J.D. Power's yearly customer satisfaction studies. It's always nice when your card issuer provides quality service, and it's especially important when you're new to credit.
There isn't much to critique about this Discover card, but it could improve in one area.
Since this is a secured credit card, it requires a refundable security deposit. Deposit amounts start at $200, and your deposit is equal to your credit limit. The minimum required deposit could be too expensive for consumers who don't have much saved.
This is a minor quibble, but there are secured cards with smaller security deposit options. If you need a smaller deposit amount, look into credit card reviews for other secured cards.
There's no minimum credit score for the Discover it® Secured Credit Card. You can qualify for this card whether you have no credit history or you have bad credit because of issues ion your credit file. That doesn't mean approval is guaranteed no matter what, but this is one of the easier credit cards to get.
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.
Compare credit card rewards, fees, APRs, and more using our side-by-side comparison tool.
At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.
The credit limit for the Discover it® Secured Credit Card is equal to your security deposit, which can range from $200 to $2,500. Discover will determine your maximum credit limit based on your income and ability to pay.
Discover credit cards usually arrive within five to seven days of approval. It can take longer though, and times of up to two weeks are normal. If you haven't received your Discover it® Secured Credit Card by then, call Discover to follow up.
You can get a larger credit limit for the Discover it® Secured Credit Card by adding to your security deposit. Discover will allow you to increase this up to your maximum allowed credit limit. Discover may also raise your credit limit if you graduate to an unsecured Discover credit card.
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