What credit score is needed for discover it secured card

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Among secured cards, the Discover it® Secured Credit Card stands tall. Few secured cards offer cash back and a welcome bonus, but this one does. With the Discover it® Secured Credit Card you’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases, which is comparable to several of Discover’s unsecured alternatives.

The ability to earn Unlimited Cashback Match - Discover will automatically match all the cash back earned at the end of the first year significantly sweetens the deal. With no annual fee and access to a FICO score each month, the Discover it® Secured Credit Card provides those seeking to build a stronger credit profile a card they can be excited about.

Discover it® Secured Credit Card

Welcome Bonus

Cashback Match™

Regular APR

25.99% Variable APR

Credit Score

New/Rebuilding Credit

Pros

• No annual fee
• Cash back rewards earning is uncommon for a secured card
• Free FICO score access each month
• Cashback Match doubles cash back rewards earning at the end of the first year

Cons

• Rewards are capped
• Secured cards don’t provide many of the perks unsecured cards do
• Secured cards require refundable deposits

Highlights

• No credit score required to apply.
• No Annual Fee, earn cash back, and build your credit with responsible use.
• Establish your credit line by providing a refundable security deposit of at least $200. That means a $200 deposit for a $200 credit line. Or a $500 deposit for a $500 credit line. Bank information must be provided when submitting your deposit, and the security deposit equals your credit limit.
• 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. Plus, earn unlimited 1% cash back on all other purchases – automatically.
• NEW! Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
• Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
• Click “Apply Now” to see terms and conditions.

Introduction

The Discover it® Secured Credit Card can help those that need to build credit. Cardholders make a security deposit starting at $200 up to a maximum of $2,500 with approval and can then receive a credit line equal to the amount of their deposit, while also  earning cash back on their spending.

The card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. Like all Discover cards, this one comes with Unlimited Cashback Match - Discover will automatically match all the cash back earned at the end of the first year.

After seven months, account holders will automatically be evaluated for deposit return and transition to an unsecured card. This allows those building good credit habits with the card to begin to use the card as an unsecured card after proving their responsible credit usage.

The Discover it® Secured Credit Card offers a number of perks, mostly related to credit and identity monitoring, but also inclusive of a $0 fraud liability for cardholders and free overnight shipping on card replacements. The card also has no foreign transaction fees, though Discover cards are not as widely accepted outside of the U.S. than other credit cards.

At a Glance

• $0 annual fee
• You’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases
• Free FICO score access each month
• Can help build credit with responsible use
• Unlimited Cashback Match - Discover will automatically match all the cash back earned at the end of the first year

Discover it Secured Credit Card Rewards

Earning Rewards

The Discover it® Secured Credit Card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases.

Redeeming Rewards

Discover makes redeeming cash-back rewards easy: Awards can be redeemed in any amount at any time. If the card is not used in 18 months or the account is closed, any reward balance is credited to the account. Rewards do not expire.

Rewards Potential

To determine the rewards potential of the Discover it® Secured Credit Card we have to look at the bonus categories and calculate what an American household might spend in those areas.  Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. For secured cards, we estimate an annual household spending of approximately $84,352.

We estimate our sample cardholder to spend about $1,438.50 per quarter on gas stations and restaurants. Discover maxes out quarterly earnings bonuses at $1,000 per quarter or $4,000 per year, after which the earnings rate drops down to an unlimited 1%. When maxed out, a Discover it Secured cardholder will earn $80 from the bonus categories alone.

We estimated that the remaining annual household credit card spending is $19,333 If all of that spending is put on this card, the cardholder would earn an additional $193.33. The total earnings of $273.33 per year will be doubled in the first year by Discover Cashback Match.

Discover it Secured Credit Card Benefits

• $0 Fraud Liability: Cardholders aren’t responsible for unauthorized charges.
• Freeze It: Place a hold on the card via Online or Mobile banking.
• FICO Score Access: Cardholders gain free, easy access to FICO scores through Discover’s apps and statements.
• Contactless Pay: Discover’s high tech cards use digital technologies to reduce contact while paying—great for pandemics!
• Credit Education Resources: Discover offers finance education resources to help its account holders to help them as they build or rebuild their credit.

Fine Print

Interest Rates

• Regular APR: 25.99% Variable APR
• Purchase Intro APR: N/A
• Balance Transfer Intro APR: 10.99% for 6 months

Fees

• Annual Fee: $0
• Balance Transfer Fee: 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
• Cash Advance:
• Foreign Purchase Transaction: None

How the Discover it Secured Credit Card Stacks Up

Discover it® Secured Credit Card vs. Bank of America® Customized Cash Rewards Secured Credit Card*

The Bank of America® Customized Cash Rewards Secured Credit Card earns 3% cash back in a category of choice: gas, online shopping, dining, travel, drug stores or home improvement/furnishings; 2% cash back at grocery stores and wholesale clubs; unlimited cash back on all other purchases. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. Like Discover, Bank of America periodically reviews the credit status of its cardholders to evaluate whether or not the secured status can be lifted from the card. The standard rate APR is 26.99% variable APR on purchases and balance transfers. Balance transfer fee of either $10 or 5% of the amount of each transaction, whichever is greater, applies.

When leveraged correctly, the Bank of America® Customized Cash Rewards Secured Credit Card* offers reward potential beyond that of the Discover it® Secured Credit Card. With a higher cap on purchases eligible for bonus rewards and a higher reward rate, the card competes well with many unsecured cards. The Discover it® Secured Credit Card will, however, give the Bank of America® Customized Cash Rewards Secured Credit Card* a run for its money when it comes to rewards earned in the first year.

Discover it® Secured Credit Card vs. U.S. Bank Cash+® Visa® Secured Card*

The U.S. Bank Cash+® Visa® Secured Card* offers a choose-your-own-category rewards adventure. The card earns 5% cash back on on the first $2,000 in combined eligible purchases each quarter in two categories of choice, 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center, 2% cash back on eligible purchases in choice of one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases. For those capable of paying close attention to spending and leveraging the rewards in a useful way, the card offers excellent reward potential. Whether or not the card’s rewards can compete with the Discover it® Secured Credit Card’s rewards will depend on individual spending habits and budgets—but while figuring it out for yourself, don’t forget about Discover’s reward bonus at the end of the first year of account ownership.

With similar convenience benefits, the Discover it Secured and the U.S. Bank Cash+® Visa® Secured Card* are well matched competitors. Which—if either—is right for you will depend on how rewarding or convenient the card can be to you.

Discover it® Secured Credit Card vs. Petal® 1 “No Annual Fee” Visa® Credit Card

The Petal® 1 “No Annual Fee” Visa® Credit Card, issued by WebBank, isn’t a secured card, but it is designed for those with weaker credit, so it makes sense to compare it to the Discover it® Secured Credit Card. The Petal 1 card is unsecured, and bases approval on a combination of factors including your banking history and other financial metrics. The card offers credit limits between $300 and $5,000 and standard rate APRs of 22.99% - 32.49% variable APR.

The Petal 1 only earns cash back at select merchants. With the Discover it® Secured Credit Card, cash back is reliable and easy to earn. For some the Petal 1 may not be an option until credit improves. But for those who qualify, it’s worth considering the benefits of an unsecured card over a secured card.

Compare Discover it Secured Credit Card With Petal 1 Visa Credit Card

Is the Discover it Secured Credit Card For You?

As secured cards go, the Discover it® Secured Credit Card ranks high on our list of the best secured credit cards. While the rewards may not be stellar compared to many unsecured cards, we’re glad to see rewarding options become available for those whose weak or damaged credit history leaves them with few other options.

The Discover it® Secured Credit Card, like most secured cards, has a high APR and requires a deposit. For those who won’t be able to pay their bills on time, every time, we don’t recommend risking further damage to credit. But for those ready to build credit, this is likely an appealing option.

Frequently Asked Questions (FAQs)

What credit score is required for the Discover it Secured Card?

Discover advertises the Discover it® Secured Credit Card for those new to credit and rebuilding credit.

How does the Discover it Secured Card work?

As a secured card, the Discover it® Secured Credit Card requires cardholders to secure a line of credit with a deposit. This deposit is refundable if and when the account is upgraded to a secured account or closed with a $0 balance.

How to Qualify for the Discover it Secured Card

Discover’s application requires applicants to provide personal and financial details and will likely make a hard inquiry on a credit report, but the prequalification tool on the issuer’s website can help consumers gather an idea about their odds of approval. Prequalification does not guarantee application success, but it will only make a soft inquiry on a consumer’s credit report.

How to Apply for the Discover it Secured Credit Card

Apply for the Discover it® Secured Credit Card via Discover’s website. The application will require you provide personal and financial details including your full name, date of birth, address, gross income, housing payment and more.

How to Increase Your Credit Limit on a Discover it Secured Card

As with all secured cards, the credit limit on the Discover it® Secured Credit Card is tied directly to the amount of a deposit. The minimum deposit amount is $200 and the maximum is $2,500. To increase the credit limit on the Discover it® Secured Credit Card, a cardholder can increase the deposit amount.

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