How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Advertising Disclosure

LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).
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American Express Disclosure
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American Express Disclosure

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Discover it® Secured Credit Card Review

LendingTree's Review

How LendingTree Rates Credit Cards?

Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.
4.2
Discover it<sup>®</sup> Secured Credit Card
Rewards Rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
APRs
10.99% Intro APR for 6 months on balance transfers, then 28.24% Variable APR.
Rates and Fees
No annual fee, no late fee on your first late payment. No penalty APR.*
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It was not reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Our take: The Discover it® Secured Credit Card is one of the best secured credit cards for building credit. It has a $0 annual fee, the chance to graduate to an unsecured card and a rewards program, which is rare for secured credit cards. Plus, it’s easy to qualify for.

Who is the Discover it® Secured Credit Card best for?

The Discover it® Secured Credit Card is best if you’re new to credit or trying to repair your credit score. Unlike most cards geared toward consumers with low credit scores, the Discover it® Secured Credit Card earns cash back — and it doesn’t hit applicants with expensive fees or confusing terms. It’s consistently one of our top credit card choices for building credit.

The Discover it® Secured Credit Card is a secured credit card, meaning it requires a security deposit (ranging from $200 to $2,500), which will act as your credit limit. In the event you don’t pay off what you charge to the card, Discover will use the deposit to recoup that loss. Otherwise, it works just like a regular, unsecured credit card.

Discover it® Secured Credit Card overview

    • No credit score required to apply.
    • No Annual Fee, earn cash back, and build your credit history.
    • Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
    • Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
    • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
    • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
    • Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
    • Terms and conditions apply.
  • Recommended Credit
    Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion
  • 300 600
    Limited / Poor
  • Free FICO Score access
  • $0 fraud liability guarantee
  • Discover Identity Alerts (free upon activation)
  • Freeze and unfreeze your card online
  • U.S.-based 24/7 customer support

Intro Purchase APR

N/A

Regular Purchase APR

28.24% Variable APR

Intro BT APR

10.99% Intro APR for 6 months

Regular BT APR

28.24% Variable APR

Annual Fee

$0

Cash Advance Fee

Either $10 or 5% of the amount of each cash advance, whichever is greater.

Foreign Transaction Fee

None

Balance Transfer Fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Pros and cons of the Discover it® Secured Credit Card

Pros

  • Rewards program
  • Chance to graduate to an unsecured card
  • Reports to all three credit bureaus
  • $0 annual fee
  • No penalty APR
  • No late fee on your first late payment

Cons

  • Requires a security deposit
  • Low credit limit
  • High APR

What we like about the Discover it® Secured Credit Card

  • Rewards program

    It’s rare to find a secured credit card that offers rewards, so this is one of many reasons the Discover it® Secured Credit Card stands out from the competition.

    Cardholders can earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.

    Rewards programs can tempt you to overspend, so make sure you can keep your spending in check if you sign up for this card. The best way to build credit with a secured card is to use less than 30% of the card’s credit limit and pay it off on time and in full every month.
  • Chance to graduate to an unsecured card

    After you’ve had the card for seven months, Discover will begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded.

    Discover will consider your behavior across your credit cards and loans from Discover as well as other issuers or lenders. You can also get your deposit back if you choose to close your account and pay any remaining balance.
  • Reports to all three credit bureaus

    Account and payment history with the Discover it® Secured Credit Card is reported to Equifax, Experian and TransUnion. So if you handle the card responsibly, that behavior will help build a good credit score.

  • No annual fee

    While many cards for consumers with low credit scores come with expensive annual fees and monthly maintenance fees, the Discover it® Secured Credit Card is an affordable option. It has an annual fee of $0, so you’re not paying anything on top of your security deposit.

  • No penalty APR and no late fee on your first late payment

    Most credit cards will increase your interest rate if you pay late. That higher rate is called a penalty APR. The Discover it® Secured Credit Card won’t do that. Also, the late fee is none the first time you pay late. After that, up to $41.

    Paying on time is the most important factor in your credit score, making up 35% of your total credit score, so you should try to make every payment on time. You can set up autopay through Discover or your bank to avoid missing your due date.

What to watch out for with the Discover it® Secured Credit Card

  • Requires a security deposit

    You’ll need to deposit at least $200 to open the card and secure a $200 credit limit (or more, if you want a higher line of credit). You can get the money back if you pay off the card and close the account, or if Discover graduates you to an unsecured card. However, the deposit might be a con if you don’t want to tie up a minimum of $200.

    Note, many of the unsecured options for cardholders with low credit scores charge annual and ongoing maintenance fees that can be just as expensive as the deposit for this card. Not to mention, you’ll have to pay those fees every year as long as your account is open. With that in mind, a $200 upfront deposit may be the better way to go.

  • Low credit limit

    The Discover it® Secured Credit Card‘s maximum credit limit is $2,500. This is on the low side compared to some secured credit cards. For instance, the Capital One Quicksilver Secured Cash Rewards Credit Card offers a credit limit up to $3,000, and the U.S. Bank Altitude Go Visa Secured Card lets you secure up to $5,000.

    A lower credit limit may be fine if you’re just trying to establish a regular payment history. However, if you need to make larger purchases, it could be limiting.

  • High APR

    The Discover it® Secured Credit Card has a 28.24% Variable APR. Though this is on par with other cards aimed at applicants with limited, bad or poor credit, it’s still high. To avoid interest charges, make it a point to pay your balance in full each month.

Alternate cards for bad credit

The Discover it® Secured Credit Card is an excellent tool to rebuild from bad credit, or to start building credit history if you have none. But if you don’t have $200 on hand for the security deposit, there are other cards worth considering: the Capital One Platinum Secured Credit Card, the Capital One Quicksilver Secured Cash Rewards Credit Card and the OpenSky® Secured Visa® Credit Card

Capital One Platinum Secured Credit Card

| Disclosures
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
apply-now-icon Apply Now
on Capital One's secure site
Rates & Fees
N/A
29.99% (Variable)
$0
Non-rewards Card
  • No annual or hidden fees. See if you're approved in seconds
  • Building your credit? Using the Capital One Platinum Secured card responsibly could help
  • Put down a refundable security deposit starting at $49 to get a $200 initial credit line
  • You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
  • Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
  • Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
  • Monitor your credit score with CreditWise from Capital One. It's free for everyone
  • Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
  • For Capital One products listed on this page, some of the benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
300 600
Limited / Poor

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.


 
With the Capital One Platinum Secured Credit Card, Capital One determines your minimum deposit after you apply. It could be $49, $99 or $200, all of which come with a $200 starting credit limit. Because the card allows you to deposit less than your actual credit limit, this card could be the best option for those who aren’t able to put down the $200 the Discover it® Secured Credit Card requires. Just know, you are guaranteed to be approved for the lower deposit amount.

The Capital One Platinum Secured Credit Card comes with a $0 annual fee, but it doesn’t earn cash back rewards like the Discover it® Secured Credit Card (see rates & fees). Both cards have relatively high APRs — but the Discover it® Secured Credit Card‘s is lower, which is something to keep in mind if you think you might carry a balance from month to month.

Capital One Quicksilver Secured Cash Rewards Credit Card

| Disclosures
Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards Credit Card
apply-now-icon Apply Now
on Capital One's secure site
Rates & Fees
N/A
29.99% (Variable)
$0
1.5% Cash Back on every purchase, every day; 5% Cash Back on
  • No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds
  • Put down a refundable $200 security deposit to get a $200 initial credit line
  • Building your credit? Using a card like this responsibly could help
  • Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
  • You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
  • Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
  • Monitor your credit score with CreditWise from Capital One. It's free for everyone
  • Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
  • For Capital One products listed on this page, some ofthe benefits are provided by Visa® or Mastercard® and may vary by product. Seethe respective Guide to Benefits for details, as terms and exclusions apply
300 600
Limited / Poor

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.


 
The Capital One Quicksilver Secured Cash Rewards Credit Card is similar to the Discover it® Secured Credit Card because it can help build your credit while allowing you to earn rewards. You can earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). It also has a slightly higher maximum credit limit of $3,000.

While both cards earn cash back, the Discover it® Secured Credit Card earns a higher rate on gas and restaurant purchases — which could make it a better choice if those are your top spending categories. That said, when using a secured card, remember that making payments on time and building your credit is the main goal — not earning cash back.

OpenSky® Secured Visa® Credit Card

| Disclosures
OpenSky® Secured Visa® Credit Card
OpenSky® Secured Visa® Credit Card
apply-now-icon Apply Now
on Capital Bank, N.A.'s secure site
N/A
25.64% (variable)
$35
Earn up to 10% cash back* on everyday purchases
  • New feature! Earn up to 10% cash back* on everyday purchases
  • No credit check to apply. Zero credit risk to apply!
  • Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months
  • Get free monthly access to your FICO score in our mobile application
  • Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and TransUnion
  • Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
  • Fund your card with a low $200 refundable security deposit to get a $200 credit line
  • Apply in less than 5 minutes with our mobile first application
  • Choose the due date that fits your schedule with flexible payment dates
  • Fund your security deposit over 60 days with the option to make partial payments
  • Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
  • *See Rewards Terms and Conditions for more information
300 600
Poor

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.


 
The OpenSky® Secured Visa® Credit Card is a unique secured credit card because it doesn’t require a credit check. So when you apply, your credit score won’t be taken into consideration or be impacted. However, it has an annual fee of $35 and requires a security deposit of at least $200.

This card may be a good fit for you if you have poor credit or don’t want your credit score to take another hit from applying for a credit card — or if you’ve been denied from other secured credit cards.

Is the Discover it® Secured Credit Card right for you?

The Discover it® Secured Credit Card is a good card that lets you earn cash back while building credit — and the automatic monthly reviews (after seven months) to see if you qualify to get your deposit refunded make this a more transparent product than many competing cards. Whether you’ve got limited / poor credit and want to repair it, or you’re new to credit and need a card that can help you establish a good payment history, the Discover it® Secured Credit Card is a solid choice.

However, if you’re worried that your credit is too bad to qualify for even a secured card, you may want to consider the OpenSky® Secured Visa® Credit Card. It doesn’t require a credit check when you apply (though financial information such as income and housing payment is considered) and charges a reasonable $35 annual fee.

apply-now-icon Apply Now
on Discover's secure site
Rates & Fees

Frequently asked questions

Discover has an online form where you can check if you’re preapproved for any Discover cards. This is a soft pull, which doesn’t hurt your credit score like a hard pull does. Note that there will still be a hard pull if you decide to actually apply for a card, which can knock a few points off your credit score for a year. And be aware that while preapproval indicates you’re more likely to be approved, it does not guarantee approval when you apply.

The Discover it® Secured Credit Card is designed for applicants with limited / poor credit. Secured cards tend to be easier for applicants with bad credit or no credit to get than unsecured cards. However, you can be turned down for a secured credit card just as you can be denied on any credit card application.

If you’re approved for the Discover it® Secured Credit Card, your credit limit will be equal to the amount of your security deposit. The Discover it® Secured Credit Card requires a minimum deposit of $200.

Once your Discover it® Secured Credit Card account has been open for at least 31 days, you can call Discover at 1-800-347-3085 and apply to increase your credit limit. Note that you’ll need to add the additional amount to your deposit. The maximum security deposit with the Discover it® Secured Credit Card is $2,500.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.