Get yourself a Secured Credit Card Overview
The Discover it Secured Credit Card is a great option for people with limited or poor credit history. It has no credit score required and offers cardholders a chance to get their security deposit back. This card also earns cash back rewards, making it a great choice for any credit card beginner. Card rating*: ⭐⭐⭐
*Card rating is based on the opinion of TPG editors and is not influenced by the card issuer.
If you’re building (or rebuilding) your credit, a secured credit card is a great option. You can be approved with low (or sometimes no) credit. Generally, secured cards require a deposit – which is your credit limit initially.
While these can be a great option, they often don’t have the benefits we expect from our top rewards cards – like a welcome bonus and strong earning levels.
The Discover it Secured Credit Card, however, offers more than just an opportunity to build credit. Cardholders can get their security deposit back, making this card a strong contender if you’re looking to build credit. In addition, you will earn rewards for your purchases.
This card has no annual fee and no credit score required, but it does require a security deposit of at least $200 — and the amount of your deposit will be your credit limit.
Let’s dig into the details of the card to see if it’s right for you.
Discover it Secured Credit Card information is independently collected by The Points Guy. The card information on this page has not been updated or provided by the card issuer.
Discover the pros and cons of a Secured Credit Card
| Benefits | Evil |
|---|---|
|
|
Discover offers for accepting a Secured Credit Card
New Discover it Secured cardholders will earn match cashback at the end of the cardholder’s first year. There is no limit to the amount of money a cardholder can earn in this game.
Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for the best news, in-depth guides and exclusive deals from TPG experts
The value of this welcome gift will depend on how much you spend on the card in the cardholder’s first year. However, most secured cards don’t offer a welcome bonus at all, so the chance to earn an unlimited cash back game is a significant benefit.
Related: This month’s best welcome offers
Discover the benefits of a Secured Credit Card
Like most secured cards, the main benefit of the Discover it Secured Credit Card is the ability to improve your credit score. However, this card also offers some additional benefits that set it apart from other secured cards on the market, such as welcome offers and the chance to earn bonus rewards in other categories.
Additionally, cardholders can receive a refund of their security deposit after six consecutive on-time payments and six months of good standing on all of their credit accounts.
The card also comes with standard benefits such as fraud protection and the ability to track your credit score.
These benefits fall short of what you’ll find on our favorite travel rewards cards, but they’re pretty standard for a card with no annual fee. Also, the ability to repay your security deposit is a unique benefit that may motivate you to choose this over other secured credit cards.
Related: How to check your credit score for free
Cash back on Discover it Secured Credit Card
The Discover it Secured Credit Card earns 2% cash back on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1%) and 1% cash back on all other purchases.
These earning rates are low compared to our favorite travel rewards and cash back credit cards, but strong for a secured card. Most secured cards don’t earn rewards, so the ability to earn cash at all is an asset to this card, and earning bonus cash through bonus categories is even better.
Cash back on Discover it Secured Credit Card
You can use your rewards as cash back as a deposit to your bank account or a statement credit to your account. Additionally, you can pay directly for your rewards through Amazon, Apple Pay and PayPal.
You can also redeem your rewards for gift cards or use them to make a charitable donation. This is a decent range of redemption options, given that this is not a high-value travel rewards card.
Related: How to use cash back rewards on your credit card
What cards compete with the Discover it Secured Credit Card?
If the Discover it Secured Credit Card isn’t what you’re looking for, consider one of these options instead:
For more options, check out our full list of the most secure credit cards and the best cash back credit cards.
Related: How to choose the best credit card for you
Is the Discover it Secured Credit Card worth it?
The Discover it Secured Credit Card is a solid option for those building credit. It has no credit points required and lets you earn rewards on every purchase — including bonus rewards on restaurant and gas station purchases. However, its earning rates are lower than most unsecured cash back cards, so you’ll want to explore other options if you don’t need a secured card.
Bottom line
The Discover it Secured Credit Card is a great way for cardholders to earn cash back rewards while building credit. However, if you’re looking for different interest rates or a lower security deposit requirement, you’ll want to research other secured credit cards before deciding on this one.
Related: 6 things you should do to improve your credit score
Source link
