In recent years, secured credit cards have gained popularity among consumers looking to build or rebuild their credit. One standout product in this category is the Discover it® Secured credit card. In this review, we will explore everything you need to know about the Discover it® Secured card for 2023.

Overview

The Discover it® Secured credit card is designed for those with no credit history or past credit mistakes. With a secured card, you provide a security deposit as collateral that determines your credit limit. This deposit is refundable in full once your account is closed and paid off in good standing.

Key Features

1. Cash-Back Rewards: The Discover it® Secured card offers competitive cash-back rewards for a secured credit card. You can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% unlimited cash back on all other purchases.

2. No Annual Fee: Unlike some secured cards which charge an annual fee, the Discover it® Secured has no annual fee.

3. Cashback Match: At the end of your first year as a cardholder, Discover will automatically match all the cash back you’ve earned – with no limit to the amount they’ll match.

4. Graduation to Unsecured Credit: Discover periodically reviews your account for responsible use and timely payments. If you demonstrate responsible usage, you may qualify to graduate to an unsecured card and receive your security deposit back.

5. Tools for Building Credit: The Discover it® Secured card includes free FICO® Credit Score monitoring, Social Security number alerts, and tools to help you manage your spending and payments.

Requirements & Fees

To apply for the Discover it® Secured card, you need to be at least 18 years old and provide proof of identity, address, and social security number. The minimum security deposit is $200, though you can increase this amount to secure a higher credit limit. The card also has a variable 22.99% APR for purchases and balance transfers.

Pros

1. Competitive cash-back rewards for a secured card
2. No annual fee
3. Cashback Match program for the first year
4. Graduation to unsecured credit with responsible use
5. Tools and resources for building credit

Cons

1. Security deposit required (minimum of $200)
2. High APR compared to some other secured cards
3. No introductory APR offer on purchases or balance transfers

Final Verdict

The Discover it® Secured credit card is an excellent option for those looking to build or rebuild their credit. With its competitive cash-back rewards, no annual fee, and additional benefits like account graduation, it stands apart from many other secured cards on the market. While the required security deposit and high APR might deter some applicants, the card’s overall value makes it worth considering for anyone looking to improve their credit while enjoying rewards and benefits along the way.