Discover it® Secured Credit Card Review 2024: Earn cash back while you build credit
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 5:38 p.m. UTC Nov. 8, 2023
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The Discover it® Secured Credit Card offers solid rewards for users with limited or poor credit, charges no annual fee, and also gives you the chance to graduate to an unsecured card.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 35+ cards analyzed.
- 6 data points considered.
- 5-step fact-checking process.
Discover it® Secured Credit Card
Discover it Secured Credit Card basics
- Annual fee: $0.
- Welcome bonus: Discover will automatically match all the cash back earned at the end of the first cardmember year.
- Rewards: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
- APR: 10.99% intro APR on balance transfers for six months, then a 28.24 variable APR applies on purchases and balance transfers. There's a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).
- Benefits: Free access to your FICO Score and the chance to get your security deposit back without closing your account.
- Reports to all three credit bureaus? Yes.
- Preapproval tool: Yes.
- Recommended credit score needed: New or rebuilding credit.
About the Discover it Secured Credit Card
If you’re looking to build credit from scratch or repair a poor credit history, the Discover it Secured Credit Card can help you do that and reward you along the way, too. Few secured credit cards earn rewards, and fewer provide a welcome bonus, but you get both with this card.
You’ll need to put up a security deposit to get approved, which starts at $200, and your credit limit will match your deposit. It’s typical for secured cards to allow your deposit to be refunded if you pay your balance in full and close your account, but Discover offers another route to getting your deposit back. Use your account and other credit responsibly, and Discover may convert your card to an unsecured account and return your deposit in as little as seven months.
In addition to reporting your balance and payments to the three credit bureaus — Equifax, Experian and TransUnion — Discover offers free access to your FICO Score, so you can track your progress. Try to limit your spending, though, as a high balance on a card with a low limit could negatively impact your credit score. Also, the card’s high annual percentage rate (APR) can make for costly interest charges if you don’t pay your bill on time and in full every month.
Building credit can seem complicated. We make it easy with our guide to building credit for beginners.
Pros
- Unlimited cash back: The Discover it Secured Credit Card is rare among secured cards in that it offers cash back on every purchase you make. Each quarter, you’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
- Generous welcome offer: Discover will automatically match all the cash back earned at the end of the first cardmember year. There’s no limit to how much you can earn with this match — though, speaking practically, your spending may be limited based on how much of a deposit you can provide and thus how low or high of a credit limit you have to work with.
- Redeem rewards: You can redeem rewards as statement credits, deposits into your bank account, gift card purchases or charitable donations. If you opt for gift cards, Discover advertises an added bonus to your gift card balance with each redemption. You can also redeem your rewards for online shopping via PayPal and Amazon.com.
Cons
- Requires a security deposit: While it’s possible to get your deposit back relatively quickly, it can still be challenging to come up with $200 or more in cash that you can’t access until you qualify for a refund.
- Rewards are capped: While earning cash back at an elevated rate on eligible gas station and restaurant purchases is an excellent benefit on a secured credit card, it can still be frustrating to have your bonus rewards capped every quarter (once you hit the spending cap, your earnings will drop to the base rewards rate on all spending).
- High APR: It’s standard for a secured card to charge a high interest rate, but you’ll still want to try to avoid carrying a balance from month to month.
Discover it Secured Credit Card rewards
Cardholders can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
Plus, there’s a welcome bonus: Discover will automatically match all the cash back earned at the end of the first cardmember year.
Using government data and other publicly available information, we estimate that a household in the U.S. that would be in the market for this card has about $12,544 in annual expenses they are likely to be able to charge to a credit card.
Here’s what such a cardholder might earn in cash back using this card:
| SPENDING CATEGORY | SPENDING AMOUNT | CASH-BACK RATE | CASH BACK EARNED |
|---|---|---|---|
Gas station and restaurant purchases up to $1,000 spent per quarter
| $4,000
| 2%
| $80
|
Other purchases
| $8,544
| 1%
| $85.44
|
TOTAL
| $12,544
| $165.44
|
With a low credit limit, however, you may need to make multiple payments throughout the month to avoid maxing out your card too quickly. The Discover it Secured Credit Card’s security deposit can range from $200 to $2,500 and your credit limit will match your deposit amount.
Note that applicants are not guaranteed the ability to get the maximum credit line. If approved, Discover will determine what you’re eligible for based on income and ability to pay.
Discover it Secured Credit Card credit-building features
The Discover it Secured Credit Card offers a few features that make it a standout tool for your credit-building journey.
- Doesn’t require a credit score to apply: If you’re just starting out and don’t have any credit history at all, don’t worry. The Discover it Secured Credit Card is available to applicants who don’t have a credit score.
- FICO Score access: You’ll be able to check your FICO Score based on your TransUnion credit report anytime, allowing you to keep track of your progress as you work to establish or repair your credit history. You’ll also be able to view factors that are influencing your score, so you can address potential issues as they arise.
- Identity alerts: Discover scans thousands of sites on the dark web every day and will alert you (once you activate) if your Social Security number is found on any of them.
- Return of deposit: After your first seven months with the card, Discover will start reviewing your account monthly to determine if you’re eligible to convert to an unsecured account and get your deposit back. You’ll qualify for a refund if you’ve made your last six consecutive monthly payments on time and all of your credit accounts are in good status (note that this means credit accounts with all institutions, not just Discover accounts).
How the Discover it Secured Credit Card compares to other secured credit cards
Discover it Secured Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card * The information for the Capital One Quicksilver Secured Cash Rewards Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re new to credit, the Capital One Quicksilver Secured Cash Rewards Credit Card offers an impressive 1.5% cash back on purchases and 5% cash back on hotels and rental cars booked through Capital One Travel.
The Quicksilver Secured Card also charges no annual fee, the deposit is refundable without account closure — if Capital One decides based on responsible use that you’re eligible to upgrade to an unsecured credit card — and you could get credit line increases without needing an additional security deposit.
However, the card may not be an option for some people who are rebuilding their credit scores.
Discover it Secured Credit Card vs. Capital One Platinum Secured Credit Card * The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re concerned about putting $200 or more toward a security deposit, the Capital One Platinum Secured Credit Card may offer a solution. Depending on your creditworthiness, the initial deposit for a $200 credit limit can be $49, $99 or $200 — the issuer will let you know your minimum deposit if you’re approved for the card.
You can get your deposit back without closing your account, if Capital One determines you’re eligible for an upgrade to an unsecured card, and you can qualify for a higher credit line with no additional deposit. The card’s annual fee is $0.
This card does not earn rewards.
Discover it Secured Credit Card vs. Petal® 1 “No Annual Fee” Visa® Credit Card * The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re looking to build credit while avoiding a security deposit, consider the Petal 1 Visa Card (issued by WebBank). It reports to the major credit bureaus, you can check for preapproval and people who don’t have a credit score can be evaluated through Petal’s Cash Score (which analyzes your income and the bills you pay).
Cardholders can earn between 2% to 10% cash back at select merchants. Note, however, that the Petal 1 Visa card has a 25.24% to 34.74% variable APR, so it’s crucial to avoid carrying a balance.
Depending on your creditworthiness, you may qualify for the regular Petal 1 with no annual fee or the Petal® 1 Rise Visa® Credit Card * The information for the Petal® 1 Rise Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. version (issued by WebBank), which charges a $59 annual fee.
Should you get the Discover it Secured Credit Card?
The Discover it Secured Credit Card can be an excellent choice if you’re looking to build or rebuild your credit history and you want to earn rewards on your everyday purchases. The ability to get a refund of your deposit as soon as seven months is also a critical feature — while other secured cards may offer the same benefit, they may not be as clear on when you can qualify for it.
With that said, the card’s rewards structure isn’t the best available, and if you have a limited credit history, you may even be able to get a credit card that doesn’t require a security deposit at all. As a result, it’s important to take your time and shop around to ensure you get the best card for your situation and preferences.
Methodology
Our credit cards team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. Factors we considered when we developed our rankings included:
- Annual fees.
- Any other fees, like account opening fees, monthly maintenance fees or credit limit request fees.
- If the card earned any rewards and/or a welcome bonus.
- If the card requires a security deposit.
- If the card requires a credit score to apply.
Frequently asked questions (FAQs)
You can make your initial deposit using an electronic funds transfer from your bank account.
The Discover it Secured Credit Card can be an excellent way to build your credit history. As you use your card responsibly, including maintaining a relatively low balance and paying your bill on time every month, Discover will report your activity to all three credit bureaus, which should help you build a positive credit history.
The Discover it Secured Credit Card is designed for consumers who are new to credit and rebuilding their credit scores. However, the card issuer does not specify a minimum credit score to get approved. Also, know that even with this being a secured card, your application can be denied. For example, some consumers have reported denials for having too many recent inquiries.
*The information for the Capital One Platinum Secured Credit Card, Capital One Quicksilver Secured Cash Rewards Credit Card, Petal® 1 Rise Visa® Credit Card and Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
