In the world of credit cards, the Discover it® Secured Credit Card stands out as a beacon of hope for those looking to build or rebuild their credit while enjoying cash back rewards. With a Finance Devil rating of 5 stars out of 5, this secured card is nothing short of exceptional. In this comprehensive review, we’ll delve into the key features, benefits, and potential drawbacks of discover it secured credit card review to help you make an informed decision.
Discover it® Secured Credit Card Overview
The Discover it® Secured Credit Card is a standout choice for individuals looking to strengthen their credit profile while earning cash back rewards. What sets it apart from other secured cards is its generous rewards program and first-year bonus. Here’s a quick overview of what this card has to offer:
- Rewards Rate: Earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter, then 1%), plus 1% cash back on all other purchases.
- Annual Fee: $0
- Intro Offer: Cashback Match™ – Discover will match all the cash back you earn in your first 12 months.
- Regular APR: 28.24% Variable APR
- Recommended Credit: No Credit History
*Before you apply, you can see if you’re pre-approved for Discover card with no deposit or for a secured credit card that requires deposit. There’s no harm to your credit to* check.
Rewards Program
Rewards
The Discover it® Secured Credit Card’s rewards program is a standout feature. Cardholders can earn 2% cash back at gas stations and restaurants, with the added benefit of 1% cash back on all other purchases. This competitive rewards structure puts it on par with traditional credit cards, making it a rare gem among secured cards. The cash back you earn is even more enticing due to Discover’s unique offer: they will match all the cash back you’ve earned at the end of your first year.
Welcome Offer
Discover’s welcome offer is truly exceptional. Most secured cards do not provide welcome offers, but this one does. At the end of your first year, Discover will double the cash back you’ve earned. This means that diligent cardholders can see substantial rewards in a relatively short time frame.
Rates and Fees
No Annual Fee
One of the most appealing aspects of the Discover it® Secured Credit Card is its $0 annual fee. Unlike many credit-building cards laden with fees, this card keeps costs low for cardholders.
No Foreign Transaction Fees
If you’re a frequent traveler or make international purchases, you’ll appreciate that this card comes with no foreign transaction fees.
No Penalty APR or Late Payment Fee (up to $41 after that)
Discover understands that cardholders on a credit-building journey might make occasional slip-ups. They offer leniency by not imposing a penalty APR or charging a fee for your first late payment (up to $41 afterward).
Balance Transfer Intro APR
For those looking to manage existing balances, the card offers a 10.99% balance transfer intro APR for the first six months. While this comes with a 3% intro balance transfer fee (up to 5% on future transfers), it can be a valuable feature for some cardholders.
Ongoing Variable APR
The card’s ongoing variable APR is 28.24%, which is typical for secured cards. However, it’s essential to pay attention to this rate if you anticipate carrying a balance.
Credit-building Features
Free FICO Credit Scorecard Access
Cardholders gain access to their FICO credit score through the Discover app, along with other credit education resources. This tool helps you track your credit score and monitor changes resulting from your credit habits.
Credit Reporting
Discover shares your credit history with the three major credit bureaus (Equifax, Experian, and TransUnion), provided you use the card responsibly. This is a significant factor in building or rebuilding your credit.
Automatic Account Reviews
Discover will review your account starting at seven months to assess your eligibility for an upgrade to an unsecured credit card. If you qualify, Discover will refund your security deposit and potentially grant you a higher credit limit.
Other Cardholder Perks
Discover® Identity Alerts
Discover offers free identity alert services, including daily monitoring of your Experian® credit report and alerts for new inquiries or accounts. They also notify you if your personal information is detected on the Dark Web.
Free Overnight Card Replacement
Losing your card is never fun, but Discover makes it convenient by offering free overnight card replacement. It’s worth noting that this offer doesn’t apply to P.O. boxes or addresses located outside of the U.S.
Online Privacy Protection
Discover’s mobile app provides Online Privacy Protection at no cost. It scans your online personal information approximately every 90 days and submits opt-out requests on your behalf to select people search sites.
Freeze it®
When activated via the online portal or app, Freeze it® blocks new purchases, cash advances, or balance transfers. This feature provides peace of mind in case your card is lost or stolen.
READ ALSO: Mission Lane Visa Credit Card Review: Building Credit the Affordable Way
Pros and Cons
Pros
- Competitive rewards: Earn cash back on gas stations and restaurants, with a generous first-year cash back match.
- No annual fee: Keep costs low with no annual fee.
- No foreign transaction fees: Travel without extra charges.
- Upgrade possibility: Qualify for an unsecured card after just seven months of responsible card use.
- Free FICO scorecard: Monitor your credit journey with access to your FICO score.
Cons
- Limited spending categories: If you don’t spend much on gas and dining, other cards may offer better rewards.
- Acceptance: Discover may not be as widely accepted as some other networks.
- APR: The card’s APR is relatively high, so it’s best to avoid carrying a balance.
Is the Discover it® Secured Credit Card Right for You?
The Discover it® Secured Credit Card is an excellent choice if you’re seeking to build or rebuild your credit while enjoying cash back rewards. With a high credit limit potential, low fees, and the opportunity for an upgrade to an unsecured card, it caters to a broad audience. However, if you require unlimited rewards on all purchases or anticipate carrying a balance, you may want to explore alternative options.
The Discover it® Secured Credit Card offers a unique blend of credit-building features and rewards that make it a compelling choice for those on a credit-building journey.
Comparing the Discover it® Secured Credit Card to Other Secured Cards
When it comes to secured credit cards, the Discover it® Secured Credit Card truly stands out as one of the best options available. Its unique features and benefits make it a strong contender, but it’s essential to explore how it compares to other secured cards in the market. Let’s dive into a detailed comparison with two notable alternatives: the Capital One Platinum Secured Credit Card and the Capital One Quicksilver Secured Cash Rewards Credit Card.
Discover it® Secured Credit Card vs. Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card Overview
The Capital One Platinum Secured Credit Card is a no-annual-fee option designed to help improve your credit score and potentially upgrade to an unsecured card. Here’s how it stacks up against the Discover it® Secured Credit Card:
- Annual Fee: $0
- Intro Offer: N/A
- Rewards Rate: N/A
- Recommended Credit Score: No Credit History
Deposit Requirements
One significant advantage of the Capital One Platinum Secured Credit Card is its low deposit requirement. You can start with a security deposit as low as $49 and still qualify for a minimum credit limit of $200. If you don’t qualify for the $49 deposit, you may be eligible for a $99 or $200 minimum deposit instead. This feature can be attractive to those with limited funds for a deposit.
Account Review Period
Capital One offers an automatic account review after only six months of responsible card use, whereas the Discover it® Secured Credit Card reviews your account starting at seven months. This means you have the potential to get your security deposit back more quickly with the Capital One Platinum Secured Credit Card.
Foreign Transaction Fees
If you’re a frequent traveler or plan to make international purchases, the Capital One Platinum Secured Credit Card might be more suitable. It operates on the widely accepted Mastercard network, which is generally accepted overseas, and it has no foreign transaction fees. This makes it a convenient choice for international use.
Maximum Credit Limit
One limitation of the Capital One Platinum Secured Credit Card is its maximum credit limit, which is typically $1,000. In contrast, the Discover it® Secured Credit Card offers a higher potential credit limit, up to $2,500 with a matching deposit. A higher credit limit can help you maintain a lower credit utilization ratio, a crucial factor in building credit.
Discover it Secured Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards Credit Card Overview
The Capital One Quicksilver Secured Cash Rewards Credit Card is another no-annual-fee secured card, known for its cash back rewards program. Here’s how it compares to the Discover it® Secured Credit Card:
- Annual Fee: $0
- Intro Offer: N/A
- Rewards Rate: 1.5% – 5%
- Recommended Credit Score: No Credit History
READ ALSO: Unveiling the Capital One Platinum Secured Credit Card: A Comprehensive Review
Rewards Program
The Capital One Quicksilver Secured Cash Rewards Credit Card offers unlimited 1.5% cash back on all purchases, with the potential to earn 5% cash back on hotels and rental cars booked through the Capital One Travel portal. Unlike the Discover it® Secured Credit Card, which has rotating bonus categories, the Quicksilver Secured offers a simpler rewards structure.
Automatic Redemption
One notable feature of the Quicksilver Secured card is the option to set up automatic cash back redemption on a specific date or when you reach a certain rewards balance. This feature can make managing your rewards more straightforward.
Credit Limit
While the Quicksilver Secured card may offer a higher credit limit than the entry-level deposit of the Discover it® Secured Credit Card, it’s important to note that the higher limit is not guaranteed. You may still receive a lower credit limit based on your creditworthiness.
First-Year Rewards
In the first year, the Discover it® Secured Credit Card has a distinct advantage due to its bonus categories and first-year cash back match. With diligent use, you can potentially earn more rewards during your initial year with the Discover card.
Who Is the Discover it Secured Credit Card Right For?
- If you enjoy eating out: If you enjoy dining out and want to earn rewards on restaurant and gas station purchases, the Discover it® Secured Credit Card is an excellent fit. It allows you to build credit while enjoying cash back rewards.
- If you are credit greenhorn : For individuals who are new to the world of credit, this card is a straightforward option for building credit without the complexity of intricate rewards structures or excessive fees. It’s accessible to applicants with no prior credit history.
- Credit rebuilders: If you’re working to rebuild your credit, especially if you have fair or poor credit, this card offers a solid starting point. The introductory APR period and free FICO score access can be valuable tools in your credit-building journey.
To Recap For Discover it Secured Credit Card Review
The Discover it® Secured Credit Card is a versatile option for those seeking to establish or rebuild their credit while enjoying cash back rewards. While other secured cards have their merits, the Discover card’s low fees, rewards potential, and first-year offer make it a compelling choice for many individuals on a credit-building path. However, the right card for you ultimately depends on your specific financial goals and spending habits.
Access Now: Discover it® Secured Credit Card
FAQs
Is the Discover it® Secured Credit Card a good option for someone with no credit history?
- Yes, it’s an excellent option for individuals with no credit history as it is designed to help build credit.
Can I use the card for international purchases?
- Yes, the card has no foreign transaction fees, making it suitable for international use.
How does the cash back match work?
- Discover will match all the cash back you’ve earned at the end of your first year, effectively doubling your rewards.
Are there any spending restrictions on the 2% cash back categories?
- Yes, there is a spending limit of $1,000 in combined gas station and restaurant purchases each quarter to earn the 2% cash back rate.
What credit score do I need to qualify for an upgrade to an unsecured card?
- Discover typically considers upgrading secured cardholders to an unsecured card after seven months of responsible card use.
In conclusion, the Discover it® Secured Credit Card is a powerful tool for improving your credit and earning rewards simultaneously. With its exceptional rewards program, low fees, and credit-building features, it’s a solid choice for anyone looking to enhance their financial profile.
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