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.
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
see terms
Foreign Transaction Fee
None
Balance Transfer Fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
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.
The card offers 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.
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.
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.
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.
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
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. 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.
See Capital One Platinum Secured Credit Card rates and fees.
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.
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, this card doesn’t offer cash back rewards, and it has an annual fee of $35. It also 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.
| Credit Cards | Annual Fee | Welcome Offer | Rewards Rate | |
|---|---|---|---|---|
Discover it® Secured Credit Card
 Apply Now
on Discover's secure site Rates & Fees |
$0 | Discover will match all the cash back you’ve earned at the end of your first year. | 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 |
Apply Now
on Discover's secure site Rates & Fees |
Capital One Platinum Secured Credit Card
Apply Now
on Capital One's secure site Rates & Fees |
$0 | No bonus | Non-rewards Card |
Apply Now
on Capital One's secure site Rates & Fees |
|
Capital One Quicksilver Secured Cash Rewards Credit Card
Apply Now
on Capital One's secure site Rates & Fees |
$0 | N/A | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) |
Apply Now
on Capital One's secure site Rates & Fees |
OpenSky® Secured Visa® Credit Card
Apply Now
on Capital Bank, N.A.'s secure site |
$35 | N/A | Non-rewards card |
Apply Now
on Capital Bank, N.A.'s secure site |
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 poor/limited 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 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 poor/limited 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.
