The Discover it® Secured credit card is a more traditional secured credit card option. With this card, you’ll need to offer up a security deposit, but there’s no credit score required to apply.
Here are the key features⁵ of the Discover it® Secured credit card:
- You can get pre-approved without affecting your credit, and there’s no minimum credit score required.
- A minimum security deposit of $200 is required to open an account, but this deposit is refundable.
- Your account activity is reported to all three major credit bureaus to help you build a credit history.
- Cardmembers can earn cash back rewards on purchases.
The Discover credit card helps people new to building credit and those hoping to rebuild credit. There is a credit check to apply, but you don’t need to have a credit score for approval.
You’ll need a $200 deposit to open your account, and your credit limit equals that amount. It’s possible to qualify for a higher credit limit of $2,500, based on your income and ability to pay. After seven months, Discover will review your account history to decide whether to refund your deposit and transition you to an unsecured credit card.
Discover doesn’t charge an annual fee for its secured credit card, but you will pay interest on purchases. The APR for the Discover it® Secured card is typical of other secured cards, which is to say it’s on the higher side. The best way to avoid interest charges is to pay your balance in full each month.
Cardmembers can earn rewards on purchases. Here’s how the rewards program works:
- Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
- Earn 1% cash back on all other purchases automatically
Discover also offers an unlimited dollar-for-dollar match on all cash back earned during the first year of card membership.
Discover it® Secured credit card pros and cons
The Discover it® Secured credit card could be a smart option if you’re interested in building credit and don’t mind putting up a security deposit. The rewards program adds to the card’s value.
Here are some of the main pros of the Discover credit card:
- Get pre-approved without affecting credit
- No credit score required to apply
- Pay no annual fee
- Earn rewards on purchases
- Get your deposit refunded with responsible use
In terms of the downsides, there are a few potential drawbacks.
As mentioned, you’ll need at least $200 to open a Discover it® Secured credit card account. That could be a stumbling block if you don’t have an extra $200 to spare for the security deposit.
Of course, you could request a higher credit limit if you can make a larger deposit. Once again, the maximum credit limit you can have with this card is $2,500. You could consider this a con, however, since some secured cards may allow a limit as high as $5,000. And with Chime, you can effectively set your own credit limit each month.
Then there’s the regular variable APR that applies to purchases. If you aren’t diligent about paying your balance in full each month, then anything you charge could cost you more once the interest gets tacked on. It’s common to find secured cards that charge interest, but you don’t necessarily have to pay it when you have other options like Chime Credit Builder.
