The Discover it® Secured Credit Card is an excellent choice if you have no credit history or have a low credit score. This card reports your activity to the three major credit bureaus, helping you build credit and become eligible for more premium cards in the future.
Although secured credit cards typically offer few benefits, Discover it Secured is a rare option that offers attractive, ongoing cash back rewards and a first-year welcome bonus. Also, after seven months of “good reputation” or responsible use of your card, you will automatically be considered for an unsecured credit card.
Reminder: Details of the Secure Bank Card Discover it
- Reward rate: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (1% thereafter); 1 back on all other purchases
- welcome bonus: Discover will match all the cash back you have earned at the end of your first year
- Annual subscription: $0
- Introduction AVR: 10.99% introductory APR for six months on balance transfers
- Regular APR: 24.49% variable
Find out Advantages of the secured credit card
The Discover it Secured Credit Card offers a surprising number of benefits, including cash back rewards comparable to unsecured credit cards. Here is a list of the top Discover it Secured benefits to focus on:
Ongoing cash back rewards
Cash back is probably the best advantage of this card. You’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter, then 1%. Plus, you’ll earn 1% cash back on all spend outside of these categories. Rewards can be redeemed at any time, and there is no minimum you need to earn before redeeming them.
Cashback Match Welcome Offer
As a welcome offer, Discover will match your cashback rewards at the end of your first year – known as Discover’s Cashback Match program. There is no limit to the amount you can win, and there are no hoops to jump through to receive your bonus; it is automatically applied. If you earn $100 in cash back in your first year of card membership, for example, Discover will award you an additional $100, for a total of $200 in cash back.
Discover’s “Freeze it” feature allows you to deactivate your card from your online portal or app, blocking new purchases, cash advances or balance transfers. This feature acts as an on/off switch for your card, which is useful if your card is lost or stolen.
Automatic account reviews
Discover will automatically consider your eligibility for an unsecured card after you have held a Discover it secured credit card for seven months. Typically, the issuer will look at your payment history and see how responsible you were in terms of using the card.
Online privacy protection function
With its online privacy protection feature, Discover will remove all personal information about you from 10 of the most popular people search websites. These websites often store personal information, such as addresses and phone numbers. Similar services typically charge around $100 per year.
You will also be able to receive free alerts whenever someone withdraws your credit and if your social security number appears on the dark web.
Access to FICO credit score
As a Discover it Secured credit card holder, you will have free access to your FICO credit score through the Discover mobile app. It can help you monitor your credit and keep track of what’s affecting it.
No annual fee
You won’t have to worry about offsetting the cost of this card against earned rewards since there is no annual fee. It is common for secured credit cards to charge an annual fee between $25 and $50, so this benefit will save you an extra expense.
To open an account, however, you will need to provide a refundable security deposit, which will become your line of credit. You will need to provide a minimum of $200 and the maximum credit limit is $2,500.
Maximize the Discover it secure credit card
The Discover it Secured works best as a bridging or starter card – in other words, a card to build your credit until you can eventually transition to an unsecured card with higher rewards.
The best way to get the most out of this card is to pay your card on time and in full. This way, you’ll build your credit and be in the best possible position to be approved for an unsecured Discover card – like Discover it® cash back – after seven months. You’ll also want to avoid having to pay the card’s 24.49% variable APR, which could easily eat into your rewards.
To further increase your chances of switching to an unsecured card, also be sure to keep an eye on your credit score and personal information along with the various benefits of this card.
The bottom line
The Discover it Secured Credit Card is one of the best secured credit cards available for those with limited or no credit, considering its cash rewards structure, welcome offer, and even a bonus period. introduction to low interest rates on balance transfers.
Before you call to apply, be sure to check out our list of the best secured credit cards for this month in case another option catches your eye.