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Discover it® Secured Credit Card

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Image of the Discover It Secured Credit CardImage: Image of the Discover It Secured Credit Card

129 reviews from verified cardholders

4.1

Rating: 4.1 out of 5.
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Great for graduating to unsecured credit

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Annual fee: $0

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.


Member stats

Updated daily

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49.5%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

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40 years

Average age of members who matched this card or similar cards.

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$67,225

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.


Card highlights

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More features than many cards meant for building credit

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Potential path to graduate to an unsecured account

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No penalty APR and first late payment fee is waived



Discover it® Secured Credit Card review: A strong card for building credit

Updated March 9, 2023


This date may not reflect recent changes in individual terms.


Written by: Eric Freeman


Pros


Cons



What you need to know about the Discover it® Secured Credit Card

Paying the security deposit on a secured card might not appeal to everyone at first, but the Discover it® Secured Credit Card could be one of your best options for building or rebuilding your credit. It reports to the three major consumer credit bureaus and offers plenty of useful features, all with no annual fee.


Refundable security deposit sets your credit limit

Like all secured credit cards, the Discover it® Secured Credit Card requires a refundable security deposit to open your account. The amount of your security deposit sets your credit limit, and the minimum deposit is $200. But Discover also caps the maximum credit limit at $2,500, so you may be able to go higher than $200, depending on your income and ability to pay.


Your card’s credit limit determines your spending power, but it’s also an important factor in the calculation of your credit scores. Most models consider your credit utilization rate, or the amount of your available credit you use, as one of the biggest factors in your scores. Most experts recommend aiming to use less than 30% of your available credit, so every bit you can afford to put down as part of your deposit can make a difference to your scores.


There’s a path to unsecured credit

While the security deposit might cost you upfront, Discover thankfully offers the opportunity to get that money back after less than a year of card membership. The issuer promises automatic monthly reviews for a potential transition to an unsecured account after seven months. If you qualify, Discover will return your security deposit in full and no longer require a deposit on your account.


The ability to graduate to an unsecured card is not a standard offering from secured credit cards, and it’s one of the biggest reasons why we like the Discover it® Secured Credit Card for those looking to build or rebuild credit. A security deposit can be a hassle, and getting a clear timeline on when you could have that money returned to you helps set this card apart from the competition.


Rewards offer value beyond building credit

We don’t consider a rewards program to be an essential component of a card meant for building credit, but that doesn’t mean the extra value isn’t meaningful. The Discover it® Secured Credit Card offers 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants each quarter (then 1%). All other purchases earn 1% cash back, too.


Plus, Discover’s Cashback Match feature will match all the cash back you earn at the end of your first year of account membership. So if you earned $20 in cash back over the course of the year, you’d get another $20 in your account even if you’d already redeemed all your available rewards.


The potential value of your total cash back might not be super high if your card’s credit limit is the $200 minimum, but we know that every little bit helps. And most secured credit cards don’t come with any rewards at all, so this extra value is another reason to recommend the Discover it® Secured Credit Card.


Other features of the Discover it® Secured Credit Card

These features of the card are also worth considering as you decide whether to apply.



Who this card is good for

The Discover it® Secured Credit Card could be a great option if you’re looking to build credit and have the ability to cover the $200 minimum security deposit. While not everyone wants to pay a deposit and the card’s initial credit limit could be low, few options meant for building credit offer the range of features and terms found on this card. Plus, the path for graduating to an unsecured card means you might be able to get your security deposit back in as few as seven months.


This card is probably better for those who are looking to rebuild credit rather than for those who are trying to build a credit history from scratch. If you’re new to credit entirely, it might be worth considering some unsecured cards or student cards first.



Member reviews

Overall rating:

4.1

Rating: 4.1 out of 5.

129 reviews from verified cardholders

Most helpful positive review

December 14, 2022

5

Rating: 5 out of 5.

Excellent for building credit

Credit Karma Member ,Verified cardholder


I applied for this card with fair chances of approval and a credit score in the 600s. I sent in my $200 deposit. I was approved right away and my card came quickly. I used it modestly and always paid on time. After 6 months, they sent me back my deposit and raised my limit $500. It’s a modest credit limit but I’m patient and I’m willing to work the process to get my credit where I want it to be. I think I’m going to enjoy doing business with Discover!

Most helpful negative review

March 11, 2023

1

Rating: 1 out of 5.

BAD, Bad, Bad!

Credit Karma Member ,Verified cardholder


I put $200 on this card and it came in the mail. A few weeks later they told me I need to mail them my SS card for ID verification. No way was I going to MAIL my SS card. I asked if I can go to the branch and they told me no. I suspected this was scam and decided to simply close the card. If they require ID verification why not ask that BEFORE approving the card to be opened? It’s most likely they’re selling your information via a 3rd party based on how you manage the card. Be careful with this one. I recommend going to Capital One or Chase.

All member reviews


*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the card shown, or whether you meet certain criteria determined by the lender. Of course, there's no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don't meet the lender's "ability to pay standard" after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.