If you’re struggling with bad credit or a limited credit history, secured credit cards are one method for building your credit. Often, with secured credit cards, there’s no real perk to having one beyond the building credit aspect.
However, with the Discover it Secured credit card, cardholders have a chance to rebuild their credit while earning cashback rewards. Discover even offers another bonus in the form of doubling any cashback rewards earned for your first year of account opening. Such perks are what separates Discover’s secured card from other options.
While secured credit cards tend to have high interest rates, they also can be a tool to develop proper credit card practices to use long after re-establishing your credit. Does it make sense to have a secured credit card? And if so, what makes the Discover it Secured card so special?
Discover it Secured
Discover it Secured
- 2% cash back at restaurants and gas stations
- Refundable security deposit
- Cash back match at the end of first year
- FICO Credit Score monitoring
Who should get this card?
The Discover it Secured credit card is best for two types of people: those with damaged credit and those with limited or no credit. These people often find it difficult to get approved for an unsecured credit card because of their credit history.
A secured credit card normally doesn’t require a credit check as part of the application process. Instead, the account is secured with a security deposit. In the case of the Discover it Secured card, the minimum security deposit is $200.
Discover it Secured is for you if you’re interested in a secured credit card that can eventually be converted into an unsecured card. After eight months, Discover automatically reviews your account, looking for signs of responsible credit card use. If you’ve done your part, your card can be converted to an unsecured card and you’ll be refunded your security deposit.
|Intro bonus||Discover matches all your cash back earned in your first year as a cardholder|
|Recommended credit score||Fair, Bad|
|Reward details||2% cash back on purchases at restaurants and gas stations (up to $1,000 quarterly), and 1% cash back on all other purchases|
Top card benefits
- Generous welcome offer: There's a generous welcome offer with this card: Discover matches all your cash back earned in your first year as a cardholder. There’s no limit on how much cash back you can earn either, which makes this a great perk.
- Earn cash back: Discover it Secured cardmembers earn 2% cash back on restaurants and gas stations (up to $1,000 quarterly). It also offers unlimited 1% cash back on all other purchases. Cardholders can get paid while establishing credit.
- Free credit score: Access your FICO credit score for free through monthly statements as well as an online account through the Discover app. You can track your progress as you work to rebuild credit.
- Refundable deposit: When you pay your balance in full and close your account, you’ll be refunded your full security deposit.
- No annual fee: Start building your credit without the hassle of an annual fee. There is a $0 annual fee with the Discover it Secured credit card.
Is Discover it Secured good for building credit?
Discover it Secured is one of the best secured credit cards for building credit. Using your card responsibly and making on-time payments will help build your credit.
Can you increase your limit with Discover it Secured?
Yes, you can increase your credit limit. There’s a minimum security deposit of $200 to open an account. You can increase your limit up to a $2,500 maximum limit, and your security deposit has to equal your credit limit. Increases are determined by your income and your ability to pay your credit card bill.
How long does it take for Discover it Secured to become unsecured?
This depends on your credit card usage and payment. Accounts are automatically reviewed by Discover after eight months. If you’ve shown responsible use during that time, it’s likely that you would be able to convert to an unsecured card.
Are Discover it Secured payments reported to the credit bureaus?
Yes, any payments made on your Discover it Secured credit card are reported to all three major credit bureaus: Equifax, Experian, and TransUnion.
Will the Discover it Secured card raise my credit score?
Yes, as you use your secured credit card responsibly and make regular on-time payments, your credit will start to improve.
Other cards to consider
Another popular secured credit card to check out is the Capital One® Secured Mastercard®. This card has a $0 annual fee and only requires an initial security deposit of $200. With this card, you can also increase your credit limit after making just five monthly on-time payments, and you have the option to pick your monthly due date. This secured card is worth considering if you want to rebuild your credit.
Another promising secured card is the Opensky Secured Visa. Opensky’s credit card doesn’t require a credit check for approval, and users can set their credit limit up to $3,000 ($200 minimum). This card does come with a small annual fee of $35. However, the Opensky Secured Visa comes with all the benefits of a Visa credit card, including fraud protection and acceptance almost anywhere in the world. Opensky also lets cardholders set up email alerts, which can keep you informed about payment due dates or when a transaction has posted.
Discover it Secured
Discover it Secured
Discover matches all your cash back earned in your first year as a cardholder
See how these cards compare:
Capital One® Secured Mastercard®
- $200 initial credit line after making minimum security deposit
- Access to a higher credit line after you make your first 5 monthly payments on time
- No annual fee
- Pick your monthly due date
OpenSky Secured Visa Credit Card
- Credit limit defined by your refundable deposit
- Choose your limit between $200 and $3,000
- All the benefits of a Visa credit card
- No credit check when applying