Discover it® Secured Credit Card Review

Discover It® Secured Credit Card Review

In this article, we are reviewing the Discover It® Secured Credit Card, a credit card designed for people who want to start building or rebuilding their credit.

The Discover It® Secured Credit Card has many advantages that cannot be found in other secured credit cards. The card has no annual fee and offers 1% unlimited cashback on all purchases plus 2% cashback on purchases at restaurants and gas stations (on up to $1,000 in combined purchases each quarter) that are automatically credited to your account.

Plus, once you’ve opened your account and held it for 8 months, the Discover It® Secured Credit Card team automatically reviews your credit score and gives you an option to upgrade to an unsecured credit card (if you’re eligible). They also share your credit card usage information with the three major credit bureaus regularly to help you establish your credit history.

All this makes it an ideal card for people who want to start building their credit history or improve their credit score.

Discover It® Secured Credit Card: Pros and Cons

Rewards System in a Nutshell

The Discover It® Secured Credit Card is a rare find in that it offers a rewards program that matches the type of rewards offered by Discover’s unsecured credit cards.

The card offers two different reward categories:

• 2% cashback on your first $1,000 in combined purchases at gas stations and restaurants every quarter
• 1% cashback on all other purchases, with no limit

Furthermore, the Discover It® Secured Credit Card comes with an introductory offer that doubles your cashback amount at the end of the first year. There are no limits on how much you can earn, and the funds are added to your account automatically.

You can redeem any amount of cashback rewards at any time. The cashback balance can be electronically deposited to your account, used to pay at partner merchants, or donated to charity organizations.

The rewards do not expire, and Cashback Bonus balance will be credited to your account when you close it or if it remains inactive for 18 months.

Who can benefit from getting the Discover It® Secured Credit Card?

The Discover It® Secured Credit Card can be useful for people with bad credit who want to rebuild their credit history. It can also be a great starter credit card for those with no credit history.

The company gives you monthly access to your FICO® Credit Score, which allows you to monitor and improve your credit score accordingly. Plus, they automatically report your credit card activity to three credit bureaus, helping create a credit history for those who don’t have one yet.

You can also use the same account when you graduate from a secured to an unsecured credit card and qualify for a credit increase.

Credit card companies typically require you to create a new account to do this, lowering your credit score. However, with the Discover It® Secured Credit Card, you get to preserve your credit standing while avoiding the hassle of applying for a new account. This is because Discover simply converts your secured credit line into an unsecured one rather than opening a new account.

All of this makes it an ideal card for people who want to start building credit or rebuilding bad credit.

Are there any other benefits?

The card also carries other general benefits which come with all Discover It® cards, such as:

• Freeze It®, which allows you to block new purchases, cash advances, and balance transfers. This is useful if you detect fraud or have your card stolen.
• Discovery® Identity Alerts, which alerts you if someone on the dark web uses your social security number or gains access to your personal information.
• Free overnight card replacement, in case your card gets lost or stolen.
• Zero late fees if you miss paying your bill for the first time.
• No penalty APR for late payments. However, with an APR of 28.24%, it’s not a card that’s ideal for carrying a balance long term.
• No foreign transaction fees.
• If you have other cards and carry a high interest rate balance, you can transfer the balance to your Discover It® Secured Credit Card account. The account has an introductory APR of 10.99% for balance transfers made within the first six months, which is fairly competitive.

Conclusion

If you’re going through some financial difficulties or are looking for ways to start building your credit score, the Discover It® Secured Credit Card is the card for you. Its FICO® Credit Score reporting allows you to monitor your progress and actively work towards building your credit. Plus, Discover makes the transition to an unsecured credit card as seamless as possible.

The Discover It® Secured Credit Card’s cashback rewards are another rare benefit, as most secured credit cards do not offer such extensive rewards options.

With that said, you need to be sure that you’re ready and capable of paying their monthly bills on time, as the variable APR for purchases is on the higher side. As with other secured cards, you’ll also have to be prepared to pay the minimum deposit amount to open your account.