Discover it Secured Credit Card review: Earn rewards while building credit
Editor's Note
Discover it Secured Credit Card overview
The Discover it Secured Credit Card is a good option for people with limited or poor credit history. It has no required credit score and gives cardholders a chance to have their security deposit refunded. This card also earns cash-back rewards, making it a good choice for any credit card beginner. Card rating*: ⭐⭐⭐
*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.
If you're building (or rebuilding) your credit, a secured credit card is an excellent option. You can be approved with a low (or sometimes no) credit score. Typically, secured cards require a deposit — which becomes your credit limit at the start.
While these can be a great option, they typically lack the benefits we expect from our top rewards cards — like a welcome bonus and solid earning rates.
The Discover it Secured Credit Card, however, offers more than just an opportunity to build credit. Cardholders can earn a refund on their security deposit, making this card a strong contender if you're looking to build credit. On top of that, you'll earn rewards on your purchases.
This card has no annual fee and no required credit score, but it does require a security deposit of at least $200 — and your deposit amount is what your credit limit will be.
Let's dig into the card details to see if it's a good fit for you.
The information for the Discover it Secured Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Discover it Secured Credit Card pros and cons
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Discover it Secured Credit Card welcome offer
New Discover it Secured cardholders will earn a cash-back match at the end of the first cardholder year. There is no limit to the amount of cash back the cardholder can earn in this match.
The value of this welcome offer will depend on how much you spend on the card in the first cardholder year. Still, many secured cards don't offer a welcome bonus at all, so the opportunity to earn an unlimited cash-back match is a valuable perk.
Related: This month's best welcome offers
Discover it Secured Credit Card benefits
As with most secured cards, the primary benefit of the Discover it Secured Credit Card is the ability to improve your credit score. However, this card also offers some additional perks that make it stand out against other secured cards on the market, such as a welcome offer and the chance to earn bonus rewards in some categories.
Additionally, cardholders can get their security deposit refunded after six consecutive on-time payments and six months of good status on all their credit accounts.
The card also comes with standard benefits like fraud protection and the ability to track your credit score.
These benefits fall short of what you'll find on our favorite travel rewards cards, but they're pretty standard for a card with no annual fee. Plus, the ability to get your security deposit refunded is a unique benefit that may sway you to choose this over other secured credit cards.
Related: How to check your credit score for free
Earning cash back on the Discover it Secured Credit Card
The Discover it Secured Credit Card earns 2% cash back on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1%) and 1% cash back on all other purchases.
These earning rates pale in comparison to our favorite travel rewards and cash-back credit cards, but they're solid for a secured card. Many secured cards don't earn any rewards, so the ability to earn cash back at all is an asset on this card, and earning bonus cash back on bonus categories is even better.
Redeeming cash back on the Discover it Secured Credit Card
You can redeem your rewards as cash back in the form of a deposit to your bank account or a statement credit to your account. Additionally, you can pay directly with your rewards through Amazon, Apple Pay and PayPal.
You can also redeem your rewards for gift cards, or use them to make a charitable donation. This is a decent range of redemption options, given that this isn't a lucrative travel rewards card.
Related: How to redeem cash-back rewards from your credit card
Which cards compete with the Discover it Secured Credit Card?
If the Discover it Secured Credit Card isn't quite what you're looking for, consider one of these options instead:
- If you want to earn more cash back: The Capital One Quicksilver Secured Cash Rewards Credit Card earns an unlimited 1.5% back on all purchases, making it a good option if you want to earn more cash back on general purchases. To learn more, check out our full review of the Capital One Quicksilver Secured Credit Card.
- If you want a lower security deposit: The Capital One Platinum Secured Credit Card requires a security deposit as low as a $49 and may give you a higher credit line than your security deposit. To learn more, check out our full review of the Capital One Platinum Secured Credit Card.
- If you don't need a secured card: The Citi Double Cash® Card (see rates and fees) allows you to earn 2% cash back on all purchases (1% as you buy and another 1% as you pay), making it a better option if you don't need a secured card. To learn more, check out our full review of the Citi Double Cash.
For additional options, check out our full list of the best secured credit cards and the best cash-back credit cards.
Related: How to choose the best credit card for you
Is the Discover it Secured Credit Card worth it?
The Discover it Secured Credit Card is a strong option for those building credit. It has no required credit score and allows you to earn rewards on all your purchases — including bonus rewards on dining and gas station purchases. Still, its earning rates are lower than many nonsecured cash-back cards, so you'll want to explore other options if you don't need a secured card.
Bottom line
The Discover it Secured Credit Card is a good way for cardholders to earn cash-back rewards while building credit. However, if you want different earning rates or a lower security deposit requirement, you'll want to research other secured credit cards before deciding on this one.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app