Compare it to the Discover it® Secured Credit Card
For those new to credit who are looking to establish a credit history, or for those who want to rebuild a bad credit profile, one way to do that is to apply for a secured credit card.
Secured cards require a security deposit equal to your desired credit limit — other than that, they function just like normal, unsecured cards. When you close or upgrade the card, you get your deposit back, minus any fees or balance due.
One secured card that’s frequently among our top picks is the Discover it® Secured Credit Card. This card is a great choice because it sets a timeline for when Discover will start reviewing your account to see if you’re eligible to get your deposit back. Plus, cardholders earn cash back, which is unusual among secured cards.
The AvantCard Credit Card does not require a deposit, so if you don’t have $200 available upfront, it might be a better choice. Plus, the Discover it® Secured Credit Card does not charge an annual fee — and the security deposit is refundable when you pay off and close your account or if you graduate to an unsecured card.
If you’re planning to keep your card for a while, which is good for your length of credit history, the Discover it® Secured Credit Card could cost less in the long run. And note that after eight months, Discover begins monthly reviews of your card to see if you’re eligible to upgrade to an unsecured card and get your deposit refunded.
The AvantCard Credit Card doesn’t offer rewards, while the Discover it® Secured Credit Card does. Rewards shouldn’t be your focus when working to establish or repair your credit score, but if you use the card responsibly and always pay it in full, earning cash back is a nice additional benefit.