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The Discover it® Secured Credit Card has no annual fee, and people who don’t have a good credit profile can be qualified for this card. Cardholders can also earn rewards and get a refund on their security deposit. However, this card has high variable APRs. Our Discover it® Secured Credit Card review looks at the advantages and disadvantages of this card to let you know if this card is the best pick for you.
Before applying for the Discover it® Secured Credit Card, make sure you have a full understanding of its fees, APR and other charges to ensure it’s a good fit for your needs.
Card Details to Know Up Front
- Bonus, Fee or FeatureHas or Not
- Has Annual Fee
- Has Balance Transfer Offer
- Has APR Offer
- Cash Back Rewards
- Travel Rewards
Discover it® Secured Credit Card at a Glance
The Discover it® Secured Credit Card has low credit score requirements. As a result, people who want to improve their credit history can qualify for this card. Additionally, this card doesn’t charge an annual fee and reports to the three major credit bureaus.
- Discover it® Secured Credit Card
A good no-annual-fee secured card for earning cash back and building/rebuilding credit
- Limited–PoorRecommended Credit
- $200Min. Security Deposit
- 1%–2% Cash BackRewards Rate
- 2xRewards Rate on Gas
- 2xRewards Rate on Dining
Pros & Cons Explained
Deciding whether or not to get a credit card requires weighing the pros and cons. Here are some of the main benefits and downsides of the Discover it® Secured Credit Card.
- People with no or new credit can applyInstead of evaluating your credit history, Discover will review other relevant information to determine if you qualify for the card. However, during the application process, Discover may ask you to provide details about your credit report and creditworthiness.
- No annual feeThe Discover it® Secured Credit Card doesn’t have an annual fee.
- Earn cash backThis card offers 2% cash back at gas stations and restaurants up to a combined total of $1,000 each quarter. You earn 1% cash back on all other purchases. Using this card outside of the U.S. is perfect because it does away with foreign transaction fees.
- Build your creditOne of the main uses of this card is to help you build or rebuild your credit. This card reports to the three major credit bureaus, allowing you to develop a credit profile across these bureaus.
- CashBack MatchFor the first year of card ownership, you can get a dollar-for-dollar match on any cash back rewards you’ve earned. There is no limit on this match.
- High APRThe regular purchase APR for this card is 27.74% variable. The intro balance transfer APR is 10.99% APR for six months on balance transfers that post to your account by August 10, 2023. The cash advance APR for this card is 29.74% variable. These high interest rates can be steep, especially if you don’t pay your balance in full every month.
- Requires a security depositTo open an account, a minimum security deposit of $200 is required. For those who want to deposit a higher amount, the maximum security deposit is $2,500.
The Discover it® Secured Credit Card is not one of MoneyGeek’s top picks for the best secured credit cards of 2022. If you want to explore your options and find out which secured cards made the cut, you can check out our choices for the best secured credit cards of 2022.
Other Features Explained
The Discover it® Secured Credit Card offers some key features alongside its excellent rewards program that make it a great option for people who are trying to improve their credit. Here are some of the best features the card offers.
- Card FeatureDescription
- Freeze It®When your Discover it® Secured Credit Card is lost or stolen, Discover can freeze your account. New purchases, cash advances or balance transfers will not be allowed. Cardholders can activate this using Discover’s mobile app or website.
- $0 Fraud Liability GuaranteeCardholders will not be liable for unauthorized purchases or transactions made with your Discover card by another person without your authorization. Even though Discover offers this guarantee, it’s still important to practice proper care and diligence in using your card.
- 99% nationwide acceptanceDiscover is recognized in 99% of establishments that accept credit cards in the United States.
It’s important to pay your credit card bills on time while you’re building or rebuilding your credit score. The best way to have a good credit standing is to pay the full monthly amount. If your budget can’t accommodate the full bill, make sure to at least pay the minimum due and make your payment on time.
Understanding the Fine Print
Knowing the fees and rates that come with your credit card is important since these factors can determine whether or not a card is right for you. Here are some of the key fees and interest rates associated with the Discover it® Secured Credit Card.
- Card FeatureAmount or Rate
- APR27.74% Variable
- Annual Fee$0
- Cash Back Rewards
- Rewards Rate1%–2% Cash Back
- Airline Benefits
Discover it® Secured Credit Card has variable APRs whether it’s a regular purchase, balance transfer or cash advance. The standard purchase APR is 27.74%. The same rate will apply for balance transfer payments after August 2023, but this card has an intro rate of 10.99% prior to this date. The cash advance APR is 29.74%.
One of the best benefits of a Discover it® Secured Credit Card is its $0 annual fee. This is a great perk considering the rewards the card offers.
Balance Transfer Fee and APR
This card charges a 3% balance transfer fee for transactions done by August 10, 2023, and 5% afterward. These percentage rates are based on the amount that you are transferring. The balance transfer APR is 10.99% for six months from the date of the first transfer. After August 10, 2023, then the regular variable purchase APR of 27.74% variable will apply.
Cardholders can receive 2% cash back on purchases made at gas stations and restaurants up to $1,000 total combined per quarter. All other purchases receive 1% cash back. Plus, for your first year of card ownership, Discover will match all your cash back rewards.
When comparing credit cards, you can get information about the card and its offerings by checking your latest billing statement, official websites of credit card companies, the fine print of your agreement and the credit card agreement database maintained by the Consumer Financial Protection Bureau.
Who Should & Shouldn’t Consider Discover it® Secured Credit Card?
Other Considerations for Discover it® Secured Credit Card
There are several factors to consider before getting a Discover it® Secured Credit Card. Whether this is your first and only card or an additional card in your wallet, it has an important impact on your financial health.
Things to Consider if This Will Be Your First or Only Credit Card
The Discover it® Secured Credit Card could be a good first card. It claims that you don’t need a credit score to apply. However, Discover will still evaluate your credit information and creditworthiness.
You will also need to consider that your credit limit could be as low as $200 and the highest it can be is $2,500. If this is your only card, you will need to consider if these credit limits will be enough for you.
Additionally, if this is your first card, you need to have money prepared for a security deposit that is equivalent to the credit limit you want.
Things to Consider if This Will Be an Additional Card in Your Wallet
If this is an additional card in your wallet, you will need to ask yourself if this card offers something new that your other cards do not. The benefits of a Discover it® Secured Credit Card are quite limited compared to other credit cards. It offers 1% to 2% cash back. On top of this, the 2% cash back on gas stations and restaurants is capped at $1,000 every quarter.
Another factor to consider is the high APR. On average, the medium range for APR in credit cards is 9.9% to 12.9%. The Discover it® Secured Credit Card has a standard APR of 27.74%. This is a large difference compared to other credit cards, and it might mean a significant additional cost.
The main benefit of adding this card to your wallet would be that it may help you rebuild your credit.
MoneyGeek has gathered data about credit cards that are listed in the credit card agreement database of the Consumer Finance Protection Bureau. Our methodology involves analyzing 56 data points, considering average spend profiles and card bonuses, establishing the three-year value of a card, reviewing all the data and re-ranking the cards monthly to stay up to date.
How Discover it® Secured Credit Card Compares to Other Cards
The Discover it® Secured Credit Card has outstanding features. However, in order to get an idea of how useful the card can be, it needs to be compared with other cards. Taking the time to compare it to other cards can help you understand what it lacks, what makes it special and if it meets your needs.
Quick Comparison of Discover it® Secured Credit Card
Discover it® Secured Credit Card
- Recommended Credit: Limited to Poor
- Security deposit: $200–$2,500
- Annual fee: None
- APR: 27.74% variable
- Rewards rate: 1%-2%
- Best for: People who want to build or rebuild their credit profile while earning rewards.
Citi® Secured Mastercard®
- Recommended Credit: None to poor
- Security deposit: $200–$2,500
- Annual fee: None
- APR: 27.24% (Variable)
- Rewards rate: None
- Best for: People who have no credit history and want to start building their credit profile.
Other Helpful Decision-Making Q&As
MoneyGeek’s Discover it® Secured Credit Card review aims to give you the important details that you need in order to choose the best credit card for your needs. To further help you with your decision, we answered the commonly asked questions about the card.
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Learn more about credit cards in general
- Discover. "Discover it® Secured Credit Card to Build Credit History." Accessed April 11, 2022.
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