Secured rewards card: Discover it Secured Credit Card review April 2018

Discover it Secured credit card

This rare secured card comes with cash back rewards and the chance to upgrade to an unsecured card.

discover it secured card reviews
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finder score: 83%

Avg. critics score: 97%
7 critics
Avg. user score: 86%
614 users
The Discover it secured card requires a minimum security deposit of $200, but Discover evaluates your spending habits after eight months to see if you’re eligible to upgrade to an unsecured card.
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$0annual fee
24.49%variable APR
300 or highercredit score range
More card details…

Discover it Secured Credit Card details

Product nameDiscover it Secured Credit Card
Issuing bankDiscover
Recommended credit score range300 or higher
Annual fee$0
Signup bonusN/A
Intro purchase APRN/A
Intro balance transfer APR10.99% intro APR for 6 months from date of first transfer
Balance transfer fee3% of the transaction
Foreign transaction fee$0
Cash advance rate26.49% variable
Cash advance fee$10 or 5% of the transaction, whichever is greater
Penalty APRN/A
Late payment feeNone the first time you pay late. After that, up to $37
Returned payment feeUp to $37
Overlimit feeN/A
Maximum credit limit$2,500
Minimum APR24.49%
The Discover it Secured card requires a minimum security deposit of $200, but Discover evaluates your spending habits after eight months to see if you’re eligible to upgrade to an unsecured card.

Critic reviews

CriticRatingNotable quotable
nerdwallet logo NerdWallet’s Virginia C. McGuire“Unless you lack a bank account or can’t pay the $200 minimum deposit, the Discover it® Secured Card should definitely be on your short list of secured credit cards. For the rewards alone, you really can’t top this solid offering from Discover.” Read more
“Unless you lack a bank account or can’t pay the $200 minimum deposit, the Discover it® Secured Card should definitely be on your short list of secured credit cards. For the rewards alone, you really can’t top this solid offering from Discover.” Read more
wallethub logoWalletHub’s John S. Kiernan100%“It’s one of only 11 ‘bad credit’ credit cards with no annual, monthly or processing fees and one of only nine that offer rewards. You’ll earn 2% cash back on the first $1,000 that you spend at restaurants and gas stations each quarter as well as 1% on everything else. Better still, Discover will double whatever rewards you rack up during the first year your account is open.” Read more
“It’s one of only 11 ‘bad credit’ credit cards with no annual, monthly or processing fees and one of only nine that offer rewards. You’ll earn 2% cash back on the first $1,000 that you spend at restaurants and gas stations each quarter as well as 1% on everything else. Better still, Discover will double whatever rewards you rack up during the first year your account is open.” Read more
Value Penguin logoValuePenguin’s Robert Harrow94%“The Discover it® Secured Card ­is one of the best credit cards for rebuilding credit. If you have a FICO score below 670, this card is a solid option for building up your score.” Read more
“The Discover it® Secured Card ­is one of the best credit cards for rebuilding credit. If you have a FICO score below 670, this card is a solid option for building up your score.” Read more
mybanktracker logoMyBankTracker.com’s Rebecca Lake80%“The Discover it® Secured card’s cash back structure really sets it apart from the crowd. We’d recommend this card to anyone who wants to be able to save money while they build or rebuild their credit.” Read more
“The Discover it® Secured card’s cash back structure really sets it apart from the crowd. We’d recommend this card to anyone who wants to be able to save money while they build or rebuild their credit.” Read more
credit card insider logoCredit Card Insider’s Brendan Harkness100%“The Discover it Secured Credit Card is one of the best secured cards available today. While most secured cards tend to come with penalties for having poor credit, this card actually has a number of benefits with no real penalties.” Read more
“The Discover it Secured Credit Card is one of the best secured cards available today. While most secured cards tend to come with penalties for having poor credit, this card actually has a number of benefits with no real penalties.” Read more
get.com logoGET.com’s Daniel Dreier76%“Discover it® Secured Credit Card – No Annual Fee is one of the best secured credit cards available in the US, although there are other secured cards which may offer higher credit lines.” Read more
“Discover it® Secured Credit Card – No Annual Fee is one of the best secured credit cards available in the US, although there are other secured cards which may offer higher credit lines.” Read more
cardrates.com logoCardRates.com’s Toby Sembower74%“Since this is a secured card, applicants must deposit $200 or more to secure a credit line. Still, it’s a solid option for those with bad credit, as it features a cash back rate and no annual fee.” Read more
“Since this is a secured card, applicants must deposit $200 or more to secure a credit line. Still, it’s a solid option for those with bad credit, as it features a cash back rate and no annual fee.” Read more

Discover it Secured Credit Card review

What you need to know

Typically, you get a secured credit card for one reason: to rebuild your credit. In that sense, the Discover it Secured Card does its job. After you make a $200 deposit and start using your card, Discover will report your payment history to the three major credit bureaus. And to help out even more, the Discover it comes with no annual fee.

It’s the extras you receive, however, that set the card apart. You’ll get 2% cash back at gas stations and restaurants and 1% on all other purchases — a generous rewards rate for a secured card. Discover will also match all the cash back you’ve earned at the end of your first year.

Perhaps best of all, you have the opportunity to graduate to an unsecured card. After eight months, Discover will review your account. If they see you’ve been a responsible borrower, they’ll return your security deposit while you continue using your card. That’s an excellent offer you won’t find with other secured cards.

The perks

  • SIGNUP BONUS: Cash back match at the end of the first year. At the end of your first year, Discover will match all of the cash back you’ve earned.
  • INTRO APR: For balance transfers. Enjoy a 10.99% intro APR for six months on balance transfers, starting from the date of your first transfer. After your intro APR expires, it’ll revert to 24.49%.
  • CASH BACK: More at restaurants and gas stations. Earn 2% cash back at gas stations and restaurants on the first $1,000 in combined purchases each quarter (1% thereafter). Earn 1% cash back on everything else.
  • Credit reporting to the three major bureaus. Discover will report your payment history to the three major credit bureaus (TransUnion, Equifax and Experian). With consistent on-time payments, you’ll build your credit score.
  • Possible security deposit return after eight months. After eight months, Discover will review your account every month. If they deem you’ve been a responsible cardholder, they may return your security deposit while you continue using your card. This effectively turns your secured card into an unsecured card.
  • No annual fee. You won’t pay an annual fee for the life of the card.

You’ll also like

  • Security. Discover will alert you if they find your Social Security number on a risky website. They’ll also alert you if any new accounts (credit cards, loans, etc.) are opened on your Experian credit report.
  • Use cash back at Amazon.com. You can use your cash back directly at Amazon.com without having to redeem it first. Just link your Discover card account to your Amazon.com account.
  • Freeze It. With Freeze It, you can prevent new purchases, balance transfers or cash advances on your credit card. This is helpful if your card is lost or stolen.
  • Free overnight shipping for card replacements. If you lose your card, you can get a replacement the next day.
  • No penalty APR. Your interest rate won’t go up if you pay late.
  • First late fee waived. The first time you pay late, you won’t have to pay a fee. (On subsequent late payments, you may be assessed fees up to $37.)
  • No over-limit fee. If you exceed your credit limit, you won’t be charged a fee.
  • No foreign transaction fees. Use your card internationally without incurring fees.
  • Get your FICO score for free. View your FICO score on each of your monthly credit card statements.

What to watch out for

  • Security deposit. Before you can open the card, you must put down a security deposit of at least $200.
  • It hurts to pay late. Your first late fee is waived, but making subsequent late or returned payments could result in fees as high as $37.
  • Expiration on intro balance transfer. Your 10.99% balance transfer APR expires six months after your first transfer.
  • Time limit for balance transfers. If you want to take advantage of the intro balance transfer APR, your transfers must post to your account within the first four months.
  • Higher APR for cash advances. Cash advances are subject to a high APR of 26.49%.
  • Fees for balance transfers and cash advances. You’ll pay a fee of 3% of the balance transfer for each transfer. For each cash advance, you’ll pay the greater of $10 or 5% of the cash advance.

How can I make this card’s high APR worth it?

Even though the Discover it Secured Credit Card is a good way to build credit if you use it responsibly, it does have a 24.49% variable APR. To avoid paying this high APR on your purchases, try to pay off your monthly balance on time. After eight months of card ownership, your account will be reviewed by Discover to see if you can get your deposit back and upgrade to an unsecured version of this card.

Consider other cards if…

Compare other Discover credit cards

Rates last updated April 27th, 2018
Name Product APR for Purchases ( Purchase Rate ) Intro APR for Balance Transfer Annual fee Product Description
Discover it® Card
12.24% to 24.24% variable
0% Intro APR for 14 months from date of first transfer (with per transfer, 3% balance transfer fee)
$0
Earn 5% Cash Back in rotating categories each quarter like gas stations, restaurants, Amazon.com, wholesale clubs and more, up to the quarterly maximum each time you activate. Plus unlimited 1% cash back on all other purchases.
Discover it® Miles Travel Credit Card
12.24% to 24.24% variable
0% Intro APR for 14 months from date of first transfer (with per transfer, 3% balance transfer fee)
$0
Earn unlimited 1.5x Miles for every dollar spent on all purchases – from airfare and hotels to groceries and online shopping.
Discover it® Secured Credit Card
24.49% variable
10.99% Intro APR for 6 months (with the amount of each transfer, 3% balance transfer fee)
$0
2% Cashback at restaurants or gas stations on up to $1,000 in combined purchases each quarter. Plus 1% cash back on all other credit card purchases.

Compare up to 4 providers

What to know before applying for the Discover it Secured Credit Card

To apply for the Discover it Secured Card, you must be at least 18 years old and a US resident.

Always consider your options and your financial situation before you apply for a credit card.

Information you’ll need

  • Full name, address and contact information.
  • Total annual gross income, monthly housing payment and total available assets.
  • Social Security number and mother’s maiden name.

A secured card requires a security deposit

To open the Discover it Secured Card, you must deposit a minimum of $200. The maximum deposit is $2,500.

Compare the Discover it Secured vs. Capital One Secured

Rates last updated April 27th, 2018
Unfortunately, none of the credit cards match that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
Name Product Product Description Annual fee Min credit limit APR for Purchases ( Purchase Rate )
Discover it® Secured Credit Card
2% Cashback at restaurants or gas stations on up to $1,000 in combined purchases each quarter. Plus 1% cash back on all other credit card purchases.
$0
$200
24.49% variable
Capital One Secured Mastercard
Take control and build your credit with responsible use.
$0
$200
24.99% variable

Compare up to 4 providers

How to apply for the Discover it Secured Credit Card

1. Go to the Discover website and click Apply Now.

discover secured credit card 1

2. Complete the application form with your name and contact information. Then click Next.

discover secured credit card 2

3. Continue filling out the application form with financial information like your employment status, total annual gross income, total assets and monthly rent or mortgage payment.

discover secured credit card 3

4. Finish the form with information like your Social Security number and mother’s maiden name. Then click the Next button. Review your application and submit it.

discover-secured credit card 4

Credit score needed for the Discover it Secured credit card

Credit rangeApproval rate
720–850100%
680–71988%
620–67959%
300–61929%
Not sure32%

I got the card. Now what?

Now that you have your Discover it Secured Credit Card and you’ve paid your security deposit, you’ll need to start paying your monthly payment. You can make payments:

  • Online. Set up your account with Discover online and you can make your monthly payment there.
  • Over the phone. Call the customer service line 24/7 at 1-800-DISCOVER (1-800-347-2683).
  • By mail. Send a personal check, cashier’s check or money order to Discover Financial Services, PO Box 6103, Carol Stream, IL 60197-6103.

To avoid late payment fees of up to $37, which can affect your credit history, you can arrange to have your Discover card payment automatically deducted from your bank account each month. This applies to your minimum payment, statement balance or an amount you choose.

You’ll also want to avoid paying interest. After the close of each billing cycle, you have a grace period of 25 days to pay your balance (at least 23 days for billing periods that begin in February). If you do, you won’t pay interest on your purchases.

Once you get your card, you can make the card work for you. Here are a few tips to help you save money while building your credit history:

  • If this is your first credit card, consider first putting down a small deposit so that you can get used to having a credit limit. It can be tempting to spend more than you’ve budgeted for.
  • Use your card for small purchases and then pay them off right away. This will help you build positive credit habits.
  • Pay your bills on time. Your payment history makes up 35% of your FICO score.

Credit Card Insights: Discover it Secured Credit Card

We’ve polled hundreds of Discover it Secured card users. Here’s what we’ve found.

Quick Stats
Application iconApplication process rating: 74%.
Customer service iconCustomer service rating: 80%.
gauge credit meterApproval rate for 300–619 credit range: 29%.
priority meterNo. 1 reason people sign up: $0 annual fee.
Pay monthly balance 247% pay monthly balance in full.

Reviews around the web

Critics and user reviews from around the web on the Discover it Secured Credit Card

Chances are that if you’re looking for a secured credit card, you’re either fixing a damaged credit score or building your credit from scratch. In either case, your options among these cards all typically look the same: an upfront deposit, maybe some fees and typically no rewards. Not so with the Discover it Secured Credit Card.

It is “only one of nine ‘bad credit’ credit cards … that offer rewards” (WalletHub), offers users the chance to upgrade to an unsecured card and should be on your “short list of secured credit cards” (NerdWallet) as it’s “one of the best credit cards for rebuilding credit” (ValuePenguin).

Critic reviews

CriticRatingNotable quotable
nerdwallet logo NerdWallet’s Virginia C. McGuire“Unless you lack a bank account or can’t pay the $200 minimum deposit, the Discover it® Secured Card should definitely be on your short list of secured credit cards. For the rewards alone, you really can’t top this solid offering from Discover.” Read more
“Unless you lack a bank account or can’t pay the $200 minimum deposit, the Discover it® Secured Card should definitely be on your short list of secured credit cards. For the rewards alone, you really can’t top this solid offering from Discover.” Read more
wallethub logoWalletHub’s John S. Kiernan100%“It’s one of only 11 ‘bad credit’ credit cards with no annual, monthly or processing fees and one of only nine that offer rewards. You’ll earn 2% cash back on the first $1,000 that you spend at restaurants and gas stations each quarter as well as 1% on everything else. Better still, Discover will double whatever rewards you rack up during the first year your account is open.” Read more
“It’s one of only 11 ‘bad credit’ credit cards with no annual, monthly or processing fees and one of only nine that offer rewards. You’ll earn 2% cash back on the first $1,000 that you spend at restaurants and gas stations each quarter as well as 1% on everything else. Better still, Discover will double whatever rewards you rack up during the first year your account is open.” Read more
Value Penguin logoValuePenguin’s Robert Harrow94%“The Discover it® Secured Card ­is one of the best credit cards for rebuilding credit. If you have a FICO score below 670, this card is a solid option for building up your score.” Read more
“The Discover it® Secured Card ­is one of the best credit cards for rebuilding credit. If you have a FICO score below 670, this card is a solid option for building up your score.” Read more

Discover it Secured vs. Capital One Secured

discover it secured reviewcapital one secured review
Discover it® Secured Credit CardCapital One Secured Mastercard
Annual fee$0$0
APR24.49% variable24.99% variable
Minimum deposit$200$200
RewardsQuarterly cash back on up to $1,000. 2% cash back at restaurants/gas stations, 1% cash back on all other credit card purchases. At the end of the first year Discover will match dollar for dollar all your cash back earnings.N/A

Discover it Secured Credit Card Details

Product nameDiscover it Secured Credit Card
Issuing bankDiscover
Recommended credit score range300 or higher
Annual fee$0
Signup bonusN/A
Intro purchase APRN/A
Intro balance transfer APR10.99% intro APR for 6 months from date of first transfer
Balance transfer fee3% of the amount of each transfer
Foreign transaction fee$0
Cash advance rate26.49% variable
Cash advance fee$10 or 5% of the transaction, whichever is greater
Penalty APRN/A
Late payment fee$37
Returned payment fee$0
Overlimit feeN/A
Maximum credit limit$2,500
Minimum APR24.49%

Bottom line

The main purpose of the Discover it® Secured Credit Card is to help those who are trying to improve or build credit, so it is essential that you pay your monthly bill on time. Remember that your payments make up 35% of your credit score, so missing payments will have additional consequences. Discover will review your account after eight months to see if you are eligible to have your deposit refunded and upgraded to an unsecured cards. It remains one of the best secured cards you’ll find on the market.

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