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Discover it® Secured Review: A Standout Secured Credit Card

Review Updated
Lyle Daly
Author: Lyle Daly
Lyle Daly
Lyle Daly
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Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. His work with Motley Fool Money and The Motley Fool has appeared syndicated in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.

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Ashley Maready
Fact Checked: Ashley Maready
Ashley Maready
Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

For building and rebuilding credit, the Discover it® Secured Credit Card has it all. There's no annual fee, it can graduate to an unsecured card, and it even offers valuable cash back bonuses. Read our full Discover it® Secured Credit Card review to see why we consider it an undisputed leader in its category.

Ratings Methodology

Discover it® Secured Credit Card

Apply Now for Discover it® Secured Credit Card

On Discover's Secure Website.

Rates & Fees External Link Icon

Discover it® Secured Credit Card
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: New/Rebuilding Under(579)
Apply Now for Discover it® Secured Credit Card

On Discover's Secure Website.

Rates & Fees External Link Icon

Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

New/Rebuilding Under(579)

Intro APR

Purchases: n/a

Balance Transfers: 10.99%, 6 months

Regular APR

27.49% Variable APR *Rates as of December 12, 2024.

Rewards Circle with letter I in it. 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically

1% - 2% Cashback

Annual Fee

$0

Welcome Offer

Discover will match all the cash back you’ve earned at the end of your first year.

  • We think this card has among the highest cash back potential for a secured card with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches the cash back new cardholders earn at the end of the first year. This card could be perfect for you if you're new to credit, or rebuilding after past troubles.

    • Cash back rewards
    • Great sign-up bonus offer
    • No annual fee
    • Can graduate to an unsecured card
    • Minimum deposit amount
    • No credit score required to apply. No Annual Fee.
    • Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
    • Raise your credit score by 30+ points.
    • 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, automatically. Plus earn unlimited 1% cash back on all other purchases.
    • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
    • Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
    • Terms and conditions apply.

Credit card comparison

We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.

Offer Our Rating Welcome Offer Rewards Program APR Learn More
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Best for cash back on rotating categories 		Discover will match all the cash back you’ve earned at the end of your first year. 1% - 5% Cashback Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.

Intro:

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular: 18.49% - 27.49% Variable APR *Rates as of December 12, 2024.

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash rewards on everyday spending 		$200 cash rewards Circle with letter I in it. Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. 2% cash rewards Circle with letter I in it. Earn unlimited 2% cash rewards on purchases.

Intro: Circle with letter I in it. 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers

Purchases: 0% intro APR, 12 months from account opening

Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers

Regular: 19.24%, 24.24%, or 29.24% Variable APR

Apply Now for Wells Fargo Active Cash® Card

On Wells Fargo's Secure Website.

Rates & Fees External Link Icon

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for unlimited rewards on purchases 		25,000 points Circle with letter I in it. 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases 1.5 points per dollar Circle with letter I in it. Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open.

Intro: Circle with letter I in it. 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.49% - 28.49% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.

Purchases: 0% Intro APR for 15 billing cycles for purchases

Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days

Regular: 18.49% - 28.49% (Variable)

Apply Now for Bank of America® Travel Rewards credit card

On Bank of America's Secure Website.

Full Discover it® Secured review

This credit card is a good fit for: Cardholders with a thin or bad credit history who want to build credit while earning cash back rewards.

Top perks

Secured credit cards are often light on features, but the Discover it® Secured Credit Card is an exception.

No annual fee

Many credit cards for bad credit have annual fees that make improving credit more expensive than it needs to be. The Discover it® Secured Credit Card doesn't have an annual fee.

Up to 2% cash back

The Discover it® Secured Credit Card has a much better cash back program than most of its competitors. It earns a 2% Cashback Bonus® at gas stations and restaurants on up to $1,000 in combined purchases each quarter. It earns 1% cash back on other purchases.

Already have good credit? Check out our list of the Best Cash Back Credit Cards.

Unlimited Cashback Match sign-up bonus

Another valuable feature of this card is Discover's Unlimited Cashback Match. Discover will match all the cash back you’ve earned at the end of your first year. This sign-up bonus is only available during the first year and for new cardholders, but it can be particularly lucrative if you earn a lot of cash back.

For example, if you earned $250 cash back during your first year as a cardholder, Discover will kick in another $250. Lots of secured credit cards don't have sign-up bonuses, so the fact that this one does is great for cardholders.

FICO® Score for free

Discover provides you with your up-to-date FICO® Score in its Credit Scorecard tool. You can access this online, in Discover's app, or see it in your monthly credit card statement. This tool also lets you know the factors that are affecting your credit and what you can do to improve your credit score.

When you're building credit, it's important to have access to your credit score to monitor your progress. Your FICO® Score is the type of credit score that's most widely used by lenders, so Discover's FICO® Credit Scorecard is very useful.

Graduate to an unsecured card

The Discover it® Secured Credit Card can graduate to a traditional, unsecured Discover credit card. Discover starts automatic reviews after seven months to see if it can convert your card into an unsecured card and refund your deposit. This is an excellent feature for a secured credit card. It means you don't need to close the card to get your deposit back, so you can keep building your credit history with it.

LEARN MORE: Best Unsecured Credit Cards

No foreign transaction fee

Quite a few cards tack on a 3% foreign transaction fee for international purchases, but the Discover it® Secured Credit Card isn't one of them.

Highly rated customer service

One of the reasons Discover credit cards are popular is the card issuer's excellent customer service. It has 100% U.S.-based customer service, and it consistently posts high scores in J.D. Power's yearly customer satisfaction studies. It's always nice when your card issuer provides quality service, and it's especially important when you're new to credit.

What could be improved

There isn't much to critique about this Discover card, but it could improve in one area.

High deposit requirement

Since this is a secured credit card, it requires a refundable security deposit. Deposit amounts start at $200, and your deposit is equal to your credit limit. The minimum required deposit could be too expensive for consumers who don't have much saved.

This is a minor quibble, but there are secured cards with smaller security deposit options. If you need a smaller deposit amount, look into credit card reviews for other secured cards.

Suggested credit score

There's no minimum credit score for the Discover it® Secured Credit Card. You can qualify for this card whether you have no credit history or you have bad credit because of issues ion your credit file. That doesn't mean approval is guaranteed no matter what, but this is one of the easier credit cards to get.

The Discover it® Secured is right for you if:

If you have either bad credit or no credit history at all, the Discover it® Secured Credit Card is one of the best credit cards you'll find. Most credit cards that target consumers with bad credit don't offer many perks, and some even take advantage of cardholders by charging exorbitant fees.

The Discover it® Secured Credit Card is a welcome change from all that. Consumers who need to improve their credit and who can afford the minimum deposit should strongly consider applying.

Find the best credit card for your needs
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Compare credit card rewards, fees, APRs, and more using our side-by-side comparison tool.

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Our credit card methodology

At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.

FAQs

  • The credit limit for the Discover it® Secured Credit Card is equal to your security deposit, which can range from $200 to $2,500. Discover will determine your maximum credit limit based on your income and ability to pay.

  • Discover credit cards usually arrive within five to seven days of approval. It can take longer though, and times of up to two weeks are normal. If you haven't received your Discover it® Secured Credit Card by then, call Discover to follow up.

  • You can get a larger credit limit for the Discover it® Secured Credit Card by adding to your security deposit. Discover will allow you to increase this up to your maximum allowed credit limit. Discover may also raise your credit limit if you graduate to an unsecured Discover credit card.