The Discover it® Secured Credit Card is consistently one of our top picks for people with Poor/Limited credit. It reports to all three credit bureaus and charges a $0 annual fee. It does require a $200 minimum security deposit. However, after you have the Discover it® Secured Credit Card for seven months, the issuer will begin conducting monthly reviews to see if you qualify to get your deposit back and graduate to an unsecured credit card.
It also operates the way that credit cards typically do, meaning you borrow money and pay as you go, rather than funding your account and then spending up to the amount you’ve funded. If you’re aiming to build credit and eventually open credit cards with top-of-the-line rewards programs or benefits, the Discover it® Secured Credit Card is a better option for learning how to manage a credit card.
The Discover it® Secured Credit Card also earns cash back: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. And Discover will match all the cash back you’ve earned at the end of your first year.
A couple downsides: Discover is not as widely accepted in some countries as Visa and Mastercard. Also, there will be a credit check if you apply for the Discover it® Secured Credit Card.