The Discover it® Secured Credit Card is consistently one of LendingTree’s top recommendations for people with poor/limited credit. It reports to all three credit bureaus, charges a $0 annual fee and comes with a transparent timeline on when Discover will consider your account for an upgrade to an unsecured card.
After you’ve had the Discover it® Secured Credit Card for seven months, Discover will begin conducting monthly reviews of your account to see if you’re eligible to graduate to an unsecured card and get your deposit back. Note, however, that graduating is not guaranteed. Plus, be aware that Discover will take into account behavior on other financial products with other issuers, not just Discover. Still, it’s a valuable feature for consumers working to improve their credit.
For another benefit, cardholders earn 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.
There’s also a unique sign-up bonus for new cardholders: Discover will match all the cash back you’ve earned at the end of your first year.
The Discover it® Secured Credit Card has a 28.24% Variable APR. And while that’s typical for people with poor/limited credit, it’s much higher than the DCU Visa® Platinum Secured Credit Card‘s 16.75% to 18.00% (variable) APR. If you think you might need to carry a balance once in a while, the DCU Visa® Platinum Secured Credit Card is more likely to help you save money on interest charges.
But at $200, the Discover it® Secured Credit Card‘s minimum security deposit is more affordable than the $500 required for the DCU Visa® Platinum Secured Credit Card.