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If you are looking to repair your credit and still desire a credit card, enter Discover it® Secured Credit Card.
With the Discover it® Secured Credit Card, you will enjoy many of the same benefits and rewards that are offered in Discover’s unsecured credit cards.
This article will discuss the pros and cons, rewards and benefits, as well as alternatives to the Discover it® Secured Credit Card if it is not for you (but we think it is).
It will also discuss what exactly is a secured credit card and how does it differ from the more popular unsecured credit card.
The Discover it® Secured Credit Card is a secured credit card offered by Discover. Secured credit cards mean you have to deposit money onto the card which then becomes your spending limit.
This is a different approach than your typical unsecured credit cards where your credit score determines a spending limit the credit card company issues you.
The Discover it® Secured Credit Card can be a great way to enhance your credit score as it operates as a normal credit card while also reporting to all three credit bureaus.
Amazingly, the Discover it® Secured Credit Card offers many of the same benefits and rewards that Discover offers with their unsecured credit cards.
Below are some of the benefits and rewards you can expect with the Discover it® Secured Credit Card.
You earn rewards every time you use your Discover it® Secured Credit Card.
You will earn 2% cash back at gas stations and restaurant purchases, up to $1,000 per quarter, and an unlimited 1% cashback reward on all other purchases. Discover it® Secured Credit Card will also match the rewards you earn the first year.
Redeeming rewards for the Discover it® Secured Credit Card is easy. You can request, in any increments, a statement credit, cash deposit, a gift to your favorite charity, or a gift card to one of Discover’s partners.
Discover it® Secured Credit Card offers just as many benefits as they do rewards.
You will not pay any annual fee for your Discover it® Secured Credit Card.
As soon as you start using your Discover it® Secured Credit Card, you will be on your way to repairing and building your credit score as Discover it® Secured Credit Card reports to all three credit bureaus.
It is really easy to earn rewards with the Discover it® Secured Credit Card. All you need to do is use your card! You will earn 2% at gas stations and restaurants, up to $1,000 per quarter, and an unlimited 1% for all other purchases.
After 8 months, Discover it® Secured Credit Card will evaluate your account and see if you are eligible to receive your deposit back while continuing to use your Discover it® Secured Credit Card, essentially making your secured credit card an unsecured credit card!
Now that you know a little more about Discover it® Secured Credit Card, here are some alternative cards to the Discover it® Secured Credit Card.
BankAmericard® Secured Credit Card that requires a minimum of a $300 deposit with a maximum of $4,900 to open an account.
Since this is a secured card, the amount you deposit will be your spending limit. BankAmericard® Secured Credit Card gives you access to your FICO score.
They will also periodically review your account to see if you qualify for getting your deposit returned while still being able to use your BankAmericard® Secured Credit Card.
The standard APR rate on the BankAmericard® Secured Credit Card is 22.99% and comes with no annual fee.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card is different in that it is an unsecured credit card. Depending on your creditworthiness, you can receive a credit limit from $500 to $10,000!
You earn 1% cashback rewards which can increase to 1.5% cashback after making 12 payments on time. Every once in a while, you will be able to earn 2% to 10% on select merchant offers.
Secured Mastercard® from Capital One® has minimum deposits as low as $49 and you can pay deposits in installments.
Secured Mastercard® from Capital One® is also unique in that there is an option to have a higher credit limit than your initial deposit.
Unfortunately, Secured Mastercard® from Capital One® does not offer any rewards program and their regular APR is high at 26.99%.
Here are some frequently asked questions about the Discover it® Secured Credit Card.
If you are in need of a credit card but your credit score needs some help, Discover it® Secured Credit Card may be a good option.
You will get many of the same perks as a normal unsecured credit card user would get. You also earn rewards, have flexible redemption, and eligible for your deposit back in just 8 months.
Since the Discover it® Secured Credit Card, your credit limit is not based on your credit score, but rather it is based on your deposit amount. Therefore, a low credit score can still qualify for the Discover it® Secured Credit Card.
You can go to the Discover website and apply. Since this is a secured card, part of the application process is connecting your bank account so you can make your minimum deposit.
You then submit that information to qualify for the Discover it® Secured Credit Card.
You are eligible to get your deposit back after 8 months of good payment history. Once you get your deposit back, you can continue using the card like normal which essentially becomes an unsecured credit card.
If you are finding it hard to qualify for unsecured credit cards because your credit needs work, you may want to look at the Discover it® Secured Credit Card.
Making a deposit on the Discover it® Secured Credit Card becomes your spending limit. You will then be able to use your card anywhere Discover is accepted and start earning rewards.
Some of the rewards are 2% cash back at gas stations and restaurants, up to $1,000 per quarter, and unlimited 1% cashback on all other purchases.
While you are using your card, Discover it® Secured Credit Card reports to all three credit bureaus to help rebuild your credit.
After 8 months of good card and payment behavior, you are eligible to get your deposit back and to continue using your credit card under the normal terms.
Brian is a serial entrepreneur that loves financial technology and personal finance. From working with start-ups to creating his own recruiting company, Brian knows first hand what it takes to manage money. Throughout his career, Brian has become a respected writer covering topics in personal finance, business, and financial technology.
