Discover it® Secured Credit Card review
Discover it® Secured Credit Card: Details and benefits
If you have a bank account but limited or poor credit history, the Discover it® Secured Credit Card offer is a terrific choice to help build credit history with the three major credit bureaus and earn cash-back rewards, too.
You can also quickly graduate to an unsecured Discover card with just eight months of good payment behavior.
This is the only secured credit card on the market that offers cash-back rewards — and generous ones at that. Not only does this card earn 2% cash back on gas stations and restaurants up to $1,000 in combined spending per quarter, and 1% on everything else, but Discover will match dollar-for-dollar all those rewards at the end of the first year.
Like other secured cards, the Discover it® Secured Credit Card version requires you to put down a refundable security deposit. That deposit becomes your credit line. Minimum deposit is $200. The maximum credit limit is $2,500.
Also like other secured cards, the annual percentage rate on the Discover it® Secured Credit Card is quite high. Make sure to pay your balance off entirely each month – or else you’ll be paying big finance charges and losing the value of the rewards you earn.
Unlike some secured cards, you won’t pay any annual fee. Watch out for fee-heavy secured credit cards.
Is it worth it for you?
The Discover it® Secured Credit Card offer is ideal if you’re just starting to build a credit profile or if you’re trying to rebuild you’re credit. Discover reports your payments to all three major credit bureaus – Equifax, Experian and TransUnion. On-time payments will help to improve your credit score.
If you’re looking for a zero percent introductory offer, this likely isn’t the card for you. You’ll pay a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*, but keep in mind that eats into your credit limit, which is determined by your deposit. Intro balance transfer APR is 10.99% for six months from the date of the first transfer. After the intro APR expires, you’ll pay a variable 22.99%. The annual percentage rate for purchases is a variable 22.99%. This is in line — or better than– other secured credit cards.
Get the most value from Discover it® Secured Credit Card
The best way to gain value from this card is to use it responsibly and build your credit history.
After eight months Discover will automatically review your payment history and let you know if you qualify to graduate to an unsecured credit card, which means you don’t need a security deposit as collateral.
Discover also supplies free access to your FICO credit score on your monthly statements. This can help you track your progress toward improving your credit.
How to redeem rewards
You can redeem your cash back rewards in any denomination at any time. There’s no minimum for redemption and your cash back doesn’t expire.