Updated
Feb 28, 2022 Some offers mentioned on this page may be outdated. To confirm offers and credit card details, check the issuer’s website.
Discover It Secured Card
What we like:
Great rewards for a secured card
| Intro Offer | Cash back match at the end of your first year |
| Rewards Rate | 2% cash back at gas stations and restaurants up to $1,000 in combined purchases each quarter 1% cash back unlimited on all other purchases |
| Regular APR | 25.24% variable purchase APR |
| Annual Fee | $0 |
Card Summary
Pros
- Redeem cash back at any time (no minimum)
- Ability to increase credit limit after 8 months of timely payments
- No foreign transaction fees
- Free Social Security number alerts and free FICO score
- No penalty APR
- Late fee waived on first late payment
Cons
- Credit line equal to the refundable security deposit
- No 0% introductory APR on purchases
- Intro APR on balance transfers is high (10.99%)
- 3% balance transfer fee
Recommended Credit Score
- Bad credit or limited credit history
Discover it Secured Credit Card Review: What You Should Know
The Discover it Secured credit card is an ideal choice for anyone who is trying to rebuild their credit because of past financial problems such as bankruptcy or a long history of missed debt payments on their credit report. With no annual fee and the opportunity to earn rewards, this card stands out among other secured cards.
But if you have no credit history just because you’re young, you may want to consider the Discover it Student Cash Back card instead. Student cardholders earn bonus 5% cash back rewards for shopping at certain stores and can get also score a $20 statement credit for good grades.
In this review:
- Benefits of the Discover it Secured Card
- Downsides of the Discover it Secured Card
- How it Compares to Similar Cards
Benefits of the Discover it Secured Card
The Discover it Secured card offers ample benefits to cardholders trying to build their credit, including tools to track your credit score. Unlike most secured credit cards, the Discover it Secured also provides the chance to earn rewards as well as a bonus for new cardmembers.
Signup Bonus
When you use your Discover it Secured card and earn cash back rewards, Discover will match all the cash back you’ve earned at the end of the first year you’re a cardholder. This is an unlimited dollar-for-dollar match that happens automatically — there’s nothing more you have to do.
>> Read More: Best credit card sign-up bonus offers
Rewards
Discover provides 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. You also earn unlimited 1% cash back on all other purchases.
You can redeem any amount of cash back at any time — there’s no minimum threshold you have to reach, and cash back never expires. (Discover will credit your account with any cash back balance if you close your card or it remains inactive for 18 months.) You can also opt to use your rewards to shop at Amazon.com.
Free Credit-Building Tools
Unlike prepaid cards, the Discover it Secured is a real credit card that reports your payment history to the three major credit bureaus — Equifax, Experian, and TransUnion — so your history of responsible use can help you build or rebuild credit. You’ll also get free access to your FICO score so you can track your progress, as well as free Discover Identity Alerts if your personal information is compromised and you’re at risk of identity theft.
>> Read More: Best credit cards for bad credit
After eight months, Discover begins automatic reviews of your account every month to determine if you can transition to an unsecured card. This would mean getting your security deposit back while maintaining a regular Discover account to help you continue building credit.
Downsides of the Discover it Secured Card
Some of the downsides of the Discover it Secured Card include:
- Required security deposit. Although all secured cards require a security deposit, some allow you to put down a smaller security deposit than your credit limit, with the specific deposit requirement based on your credit score. The Discover it doesn’t do this, but it does begin reviewing your account after eight months to see if you can get your deposit back.
- Balance transfer APR. The high 10.99% introductory APR for balance transfers, plus a 3% balance transfer fee, means this card isn’t a good option if you’re looking to consolidate or refinance existing credit card debt.
- No intro APR for purchases. You’ll have to pay interest right away if you carry a balance on your card.
How it Compares to Similar Cards
The Discover it Secured card beats many other secured credit cards because of its rewards program and absence of fees. Still, it’s important to compare it to competitor cards to make an informed choice before signing up.
Discover it Secured Credit Card vs. Capital One Secured Credit Card
 |  | |
|---|---|---|
| Annual Fee | $0 | $0 |
| APR | 25.24% variable purchase APR | 26.99% (variable) |
| Benefits | 2% cash back at gas stations and restaurants up to $1,000 in combined purchases each quarter, 1% cash back unlimited on all other purchases, cash back match for the first year | None |
| Category | Secured | Secured |
| See how these cards stacks up to our top rated secured credit cards | ||
Like the Discover it Secured, the Capital One Secured Mastercard charges no annual fees, and its standard 24.99% variable APR is comparable to what you’ll find with the Discover it. The Capital One card does have one big advantage: You may be able to get a higher credit limit than your security deposit. Your deposit is either $49, $99, or $200 for a $200 credit limit, depending on your creditworthiness.
With Capital One, you can get access to a higher credit limit after you’ve made five on-time monthly payments, whereas Discover doesn’t start reviewing your account to remove the security deposit requirement until you’ve been a cardholder for eight months.
However, the Discover it provides the chance to earn cash back, while the Capital One card doesn’t have a rewards program. So if you want to be rewarded for spending, the Discover it Secured Card is the clear winner.
Bottom Line
If you need a secured credit card, you should absolutely consider the Discover it Secured card. This card won’t charge you a fee and unlike most secured cards, you can actually earn rewards for spending while you build up a responsible credit history.
But if you’re hoping for the chance to put down a lower security deposit than your credit limit, you’ll need to consider a competitor card. If you’re a student who simply hasn’t had time to build credit, student credit cards (like the Discover it Student Cash Back) could offer you the chance to earn more generous rewards.
>> Read More: Best Discover credit cards