Discover it® Secured Credit Card: Your Path to Building Credit

The Discover it® Secured Credit Card is a great option for individuals who are looking to build or rebuild their credit. Whether you're new to credit or working to improve your credit score, this card offers an excellent opportunity to demonstrate responsible credit use while earning rewards. The card comes with several features that can help you along the way, including cash back rewards, no annual fee, and the potential to graduate to an unsecured card. In this comprehensive guide, we’ll explore the key features of the Discover it® Secured Credit Card, how it works, and how to apply for it.

What is the Discover it® Secured Credit Card?

The Discover it® Secured Credit Card is a secured credit card that requires a deposit as collateral. This deposit is typically the credit limit of the card, meaning that if you deposit $500, your credit limit will be $500. The card functions just like an unsecured credit card, allowing you to make purchases, pay bills, and earn rewards, but the key difference is that your deposit acts as security for the lender.

Secured credit cards are often used by individuals who have little or no credit history, or those who are looking to rebuild their credit. They are considered one of the best ways to build a solid credit score because they offer a structured, manageable way to use credit responsibly. The Discover it® Secured Credit Card stands out from other secured cards due to its unique features, including a rewards program and the ability to graduate to an unsecured card after demonstrating responsible use.

Key Features of the Discover it® Secured Credit Card

1. Cash Back Rewards

One of the standout features of the Discover it® Secured Credit Card is its cash back rewards program. With this card, you can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Once you reach the $1,000 threshold, you’ll continue to earn 1% cash back on these categories. Additionally, you will earn 1% cash back on all other purchases, with no limit to the amount you can earn.

This is one of the most rewarding features of the card, especially for those who need to build credit but also want to earn rewards while doing so. For individuals using the card for daily expenses like gas and dining, the 2% cash back is particularly valuable, as it maximizes your rewards potential in the categories you likely use the most.

2. No Annual Fee

Unlike many other secured credit cards, the Discover it® Secured Credit Card comes with no annual fee. This is an attractive feature, as many credit cards, whether secured or unsecured, charge annual fees that can quickly add up. By eliminating this fee, Discover makes it more affordable for you to use the card without worrying about extra costs.

The lack of an annual fee is particularly important for individuals who are trying to build or repair their credit. Every dollar you earn in rewards can be used to offset purchases or saved, rather than being eaten up by an annual fee.

3. Build Credit with Responsible Use

The primary purpose of a secured credit card is to help individuals build or rebuild their credit. The Discover it® Secured Credit Card reports to the three major credit bureaus — Equifax, Experian, and TransUnion — every month. This means that your responsible use of the card, such as making timely payments and keeping your balance low, will help you build a positive credit history.

As you demonstrate responsible use, your credit score will improve, which can make it easier for you to qualify for other types of credit in the future. The Discover it® Secured Credit Card is designed to help you get on the path to financial freedom by giving you the opportunity to improve your credit score.

4. Cashback Match for New Cardholders

As an additional incentive, Discover it® Secured Credit Card offers new cardholders a special promotion called Cashback Match. For the first year, Discover will match all the cash back you earn at the end of the year.

For example, if you earn $200 in cash back during your first year, Discover will match that $200, giving you an additional $200. This feature can be extremely valuable, as it essentially doubles your cash back earnings for your first year with the card. It's a great way to kickstart your rewards program while building your credit.

5. Easy Transition to Unsecured Card

One of the key benefits of the Discover it® Secured Credit Card is that, after demonstrating responsible card use, you may be eligible to graduate to an unsecured Discover card. This means that you could eventually get your security deposit refunded and gain access to a higher credit limit without the need to put up collateral.

Typically, Discover will review your account after eight months of responsible usage to determine if you’re eligible for an unsecured card. If you meet the requirements, your deposit will be refunded, and your credit limit will be increased. This is a great incentive for cardholders who want to transition from a secured card to an unsecured one, ultimately helping them advance their financial goals.

6. No Foreign Transaction Fees

Another great benefit of the Discover it® Secured Credit Card is that it has no foreign transaction fees. If you plan to travel abroad or make international purchases, you won’t have to worry about paying extra fees for using your card outside of the U.S. Many credit cards charge a foreign transaction fee of up to 3% on purchases made in foreign currencies, so this is a big advantage for cardholders who travel frequently.

7. Security and Protection

The Discover it® Secured Credit Card comes with several security features designed to protect your account and your information. Discover offers $0 fraud liability, meaning you won’t be held responsible for any unauthorized charges made with your card. Discover also offers identity theft protection and account alerts, so you can monitor your card activity in real-time and be notified if there’s any suspicious activity on your account.

Additionally, the card includes purchase protection for eligible purchases, which can help if items are damaged or stolen. These features are particularly useful for individuals who are using a credit card for the first time or those who want to ensure their purchases are covered in case of fraud or theft.

How to Apply for the Discover it® Secured Credit Card

Applying for the Discover it® Secured Credit Card is a simple and straightforward process. Here’s how you can apply:

1. Check Your Eligibility

To apply for the card, you must meet the following basic requirements:

• Be at least 18 years old.
• Have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
• Be a U.S. citizen or resident.

You don't need to have an established credit history to apply for the Discover it® Secured Credit Card, which makes it an excellent option for those who are new to credit or rebuilding their credit.

2. Choose Your Security Deposit

The Discover it® Secured Credit Card requires a security deposit, which will serve as your credit limit. The minimum deposit is $200, but you can choose to deposit a larger amount, up to $2,500, depending on your needs. The deposit will be refunded when you transition to an unsecured card, or if your account is closed in good standing.

3. Complete the Application

Visit the Discover website to fill out the online application form. You’ll be asked to provide basic personal information, including your name, address, Social Security number, and income details. You will also need to specify the amount of your security deposit.

4. Submit the Application

Once you’ve completed the application, submit it online. In most cases, you’ll receive a decision within a few minutes. If approved, you’ll need to provide your deposit, which will then be used as your credit limit.

5. Receive and Activate Your Card

Once your application is approved and your deposit is processed, you will receive your Discover it® Secured Credit Card in the mail. Follow the instructions provided to activate your card, and you’ll be ready to start using it right away.

Final Thoughts

The Discover it® Secured Credit Card is a great option for individuals looking to build or rebuild their credit. With its cash back rewards, no annual fee, and potential to transition to an unsecured card, it offers significant value for those who are new to credit or rebuilding after financial challenges.

By using the card responsibly, you can improve your credit score and open the door to other credit opportunities in the future. If you’re ready to take the next step in managing your finances, the Discover it® Secured Credit Card is an excellent choice. Apply today and start building a better financial future.