How the Discover It Secured Credit Card works for you?. Beginning your credit journey can be a painful process without a credit history or even with a low credits score. The building or rebuilding of your credit is a time taking process that requires diligence. If you apply for a credit card that requires a good credit score but has average or bad credit, your credit score might fall if your application gets rejected.
This is where Credit Rebuilding Cards come into play, which acts as your credit card and helps you increase your Credit Score. Secured Credit Cards require a security deposit of a certain amount (usually $200). Most credit card issuers pay back the security deposit amount deposited by you upon responsible usage of the card.
Discover offers you a great option for secured credit that builds or improves your credit score at a relatively lower fee than many Credit Card issuers. Discover It Secured Credit Card offers you the ability to earn cashback rewards on all purchases made by you while improving your credit, thereby making you more creditworthy for lenders. Hence, you would be able to switch to a better credit card that offers you enhance perks.
What’s Ahead
- Key Highlights
- PROS & CONS
- Rates & Fees
- Why might you want to go for Discover It Secured Credit Card?
- Why might you want to go for a different credit building card?
- Discover It Secured Credit Card Vs. Secured MasterCard by Capital-One.
- Discover It Secured Card Vs. Petal 1 “No Annual Fee” Visa Credit Card.
- Verdict: is It a Good Credit Card
Key Highlights
- No Credit Score is needed for your Approval of this card.
- You can earn Cashback Rewards of 2% on your everyday purchases using the card (with a quarterly spending cap of $1,000). After reaching the threshold of $1,000, you can still earn a limitless Cashback Reward of 1% on all other purchases made by you.
- No Hidden Fees are Applicable.
- No Annual Fees is Chargeable.
- Using the Discover It Secured Card diligently can be helpful for you in building or rebuilding your credit history.
- You can put down a security deposit of $200 to avail an initial credit line of $200.
- Maximum credit line limit available for you is $2,500.
- You can even earn your security deposit in the form of a statement credit when you are using your card responsibly and making payments timely.
- Initially, 3% Balance Transfer Fee is Applicable on all initial Balance Transfers After 6 Months 5% Balance Transfer Fee is Applicable on all Balance Transfers done by you.
- No Foreign Transaction Fee is Applicable.
- An Introductory APR of 10.99% is applicable on all purchases, and you do balance transfers.
- The Regular APR of 22.99% is applicable on purchases and balance transfers made by you.
PROS & CONS
Pros👆
- Earn Cashback on all purchases made by you.
- Low Cost of Maintenance.
- Offers Introductory APR.
- Ease of Building Credit.
- Top-Notch Customer Card Services.
Cons👎
- Lower Maximum Credit Limit.
- Lack of Visa and MasterCard Perks.
Full Review
Here is the full review of the Discover It Secured Credit Card.
Rates & Fees
| TYPES | RATES ($) |
|---|---|
| Joining Fees | None |
| Annual Fees | None |
| Balance Transfer Fees | 3% Balance Transfer Fee is applicable on all Balance Transfers you do for the first 6 months. Then 5% Balance Transfer Fee is applicable on all Balance Transfers done by you. |
| Foreign Transaction Fees | None |
| Introductory APR | For the first 6 Months of Account Opening, you are offered an introductory APR of 10.99% on all purchases and Balance Transfers done by you. |
| Regular APR | A regular APR of 26.99% is applicable on all purchases and Balance Transfers made by you. |
| Cash Advances Fees | |
| Overdraft Protection Advances | |
| Late Payment |
Why might you want to go for Discover It Secured Credit Card?
Earn Cashback on all purchases made by you.
Among Credit Building Cards offered by Card Issuers, very few offer cashback rewards, which sets Discover It Secured Credit Card apart from the pack. You can earn a cashback reward of 2% on all your everyday purchases (with a quarterly spending cap of $1,200); after reaching that threshold, you can still earn a limitless cashback reward of 1% on each purchase you make.
Low Cost of Maintenance
Discover It Secured Card is a Low-Maintenance Credit Building Card that does not charge you any Annual Fee and Foreign Transaction Fee. It only charges you a Balance Transfer Fee of 3% for the Balance Transfers you did within the first 6 months; then onwards, it charges you a Balance Transfer Fee of 5%.
Introductory APR
Having an introductory APR gives you some relief from hefty interest rates that are charged after making the purchases using the card you are holding. Unlike many cards in the same segment, Discover It Secured Card offers you an introductory APR of 10.99% on all purchases and Balance Transfers made by you.
Ease of Building Credit
As a Secured Credit Card, Discover It Secured Credit Card makes the process of credit building easier for many people since you can get approved for this card with a credit score of 500. Moreover, if you do not have a credit history, you can still apply for this card.
In addition to that, Discover It reports to all the major Credit Bureaus in the US, which fast tracks the process of Credit Building for you, thereby making you more creditworthy. Moreover, responsible usage of this card will be rewarded to you in refunded security deposits.
Top-Notch Customer Care Services
Discover It is known for their top of the line customer care services. According to JD Power Institute’s study of customer care services of credit card issuers, Discover offers you one of the finest customer care services, matched by none other than American Express. Customer Care Services of Discover are ranked second in this report.
Why might you want to go for a different credit building card?
Lower Maximum Credit Limit
Discover It Secured Credit Card requires you to deposit a minimum amount of $200 for a security deposit, which serves as a credit limit for you. This amount is refunded when you upgrade the card or close your Discover Account. The maximum deposit for this card can be $2,500, which is your maximum credit limit. Other Card issuers offer you a maximum credit limit of $3,000-$5,000, which is relatively higher.
Lack of Visa and MasterCard Perks
There are numerous Credit Card issuers in this segment who either offer you Visa Cards or MasterCards. This makes such cards more acceptable internationally when compared to these cards. Moreover, these cards also offer you numerous perks like Rental Automobile Insurance Coverage, Travel Accident Coverage, Warranty Extensions, etc.
Quick Comparison
What are the better alternatives of Discover It Secured Credit Card?
We have analyzed a variety of credit cards that may provide you with a better value for your money spent. These include the following:
- Secured MasterCard by Capital One.
- Petal 1 No annual fee visa credit card
Discover It Secured Credit Card Vs. Secured MasterCard by Capital One
| TYPES | Discover It Secured Credit Card | Secured MasterCard by Capital One |
|---|---|---|
| Welcome Bonus/Sign-up Bonus | Introductory Cashback Reward of 2% on purchases made worth $1,000; after that, an unlimited 1% cashback is applicable. | None |
| Cashback Rewards | 2% Cashback on purchases made worth $1,000 (within each quarter); after that, an unlimited 1% cashback is applicable. | None |
| Intro APR | Introductory APR of 10.99% is applicable on Balance Transfers for the first 6 months of Account Opening | None |
| Regular APR | 22.99% | 26.99% |
| Annual Fee | None | None |
| Foreign Transaction Fees | None | None |
| Balance Transfer Fee | 3% introductory Balance Transfer Fee, then Balance Transfer Fee of 5% is applicable. | None |
Cashback Reward Rate
Discover It Secured Credit Card offers you an introductory Cashback Reward of 2% on the first year of account opening. The Cashback Reward Rate of 2% is applicable for the first year of Account Opening with a quarterly spending cap of $1,000. Once you reach the $1,000, you can still earn a limitless cashback reward of 1%.
On the other hand, Secured MasterCard by Capital One does not offer you any Cashback Reward.
Sign-up Bonus
Discover It offers you a sign-up bonus in the form of an introductory Cashback Reward of 2% on all the purchases you make with a quarterly spending cap of $1,000, then onwards, a limitless cashback reward of 1% is applicable. On the other hand, Secured MasterCard by Capital One does not offer you any sign-up bonus.
Annual Fee
Both Discover It Secured Credit Card and Secured MasterCard from Capital One do not charge you any Annual Fee.
Foreign Transaction Fee
Both Discover It Secured and Secured MasterCard from Capital One do not charge you any Foreign Transaction Fee.
Balance Transfer Fee
Discover It Secured Card charges you a Balance Transfer Fee of 3% for the introductory period of 6 Months. Then onwards, you are charged a Balance Transfer Fee of 5%. On the other hand, Secured MasterCard from Capital One does not charge you any Balance Transfer Fee.
Introductory APR
Discover It Secured Credit Card offers you an introductory APR of 10.99% for an introductory period of 6 Months. On the other hand, Secured MasterCard by Capital One does not offer you any Introductory APR.
Regular APR
Discover It Secured Card charges you the Regular APR of 22.99%. On the other hand, Secured MasterCard by Capital One charges you a Regular APR of 26.99%.
Discover It Secured Card Vs. Petal 1 “No Annual Fee” Visa Credit Card.
| TYPES | Discover It Secured Credit Card | Petal 1 “No Annual Fee” Visa Credit Card |
|---|---|---|
| Welcome Bonus/Sign-up Bonus | Introductory Cashback Reward of 2% on purchases made worth $1,000; after that, an unlimited 1% cashback is applicable. | None |
| Cashback Rewards | 2% Cashback on purchases made worth $1,000 (within each quarter); after that, an unlimited 1% cashback is applicable. | 2-10% on purchases made at Select Merchants. |
| Intro APR | Introductory APR of 10.99% is applicable on Balance Transfers for the first 6 months of Account Opening | None |
| Regular APR | 22.99% | Variable 19.99%-29.49% |
| Annual Fee | None | None |
| Foreign Transaction Fees | None | None |
| Balance Transfer Fee | 3% introductory Balance Transfer Fee, then Balance Transfer Fee of 5% is applicable. | None |
Cashback Reward Rate
Discover It Secured Card offers you an introductory Cashback Reward of 2% on your everyday purchases (with a quarterly spending cap of $1,000), then onwards, a limitless cashback reward of 1% is applicable. On the other hand, Petal 1 “No Annual Fee” Visa Card offers you a Cashback Reward of 2%-10% on purchases made at select merchants..
Sign-up Bonus
Discover It Secured Card offers you a sign-up bonus in the form of introductory Cashback – 2% cashback on purchases made by you with a quarterly spending cap of $1,000 within each quarter. Once you reach the threshold of $1,000, a limitless Cashback Reward of 1% is Applicable.
On the other hand, Petal 1 “No Annual Fee” Visa Credit Card does not offer you any Sign-up Bonus.
Annual Fee
The Discover It Secured Credit Card and Petal 1 “No Annual Fee” Visa Credit Card does not charge you any Annual Fee.
Foreign Transaction Fee
The Discover It Secured Card and Petal 1 “No Annual Fee” Visa Credit Card does not charge you any Foreign Transaction Fee.
Balance Transfer Fee
Discover It Secured Credit Card charges you an introductory Balance Transfer Fee of 3% for the introductory period of the first 6 months. Then it charges you a Balance Transfer Fee of 5%. On the other hand, Petal 1 “No Annual Fee” Visa Credit Card does not charge you any Balance Transfer Fee.
Introductory APR
Discover It Secured Card offers you an Introductory APR of 10.99% for the first 6 months of Account Opening. On the other hand, Petal 1 “No Annual Fee” Visa Credit Card does not offer you an Introductory APR.
Regular APR
Discover It Secured Credit Card charges you the Regular APR of 22.99%.On the other hand, Petal 1 “No Annual Fee” Visa Credit Card charges you the Regular APR of 19.99%-29.49%.
Verdict: is It a Good Credit Card
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Discover It Secured Credit Card offers you an Introductory APR of 10.99% for the first 6 months of account opening. Then onwards, it offers you the Regular APR of 22.99%.
Another advantage of the Discover It Secured Card is the low maintenance costs involved. It does not charge you any Annual Fee, Balance Transfer Fee and Foreign Transaction Fee. Moreover, you can build your credit from scratch and still earn Cashback.
There are certain disadvantages to consider before going for this card. These disadvantages include a Low Maximum Credit Line and a Lack of Visa & MasterCard perks. The maximum Credit Limit of the Discover It Secured Credit Card is $2,500, which is relatively lower than the Petal 1 “No Annual Fee” Visa Card, which has a maximum Credit Limit of $5,000, which is double, thereby giving you leverage to boost up your expenses without breaking a sweat.
Moreover, since Discover It Secured Credit Card is not a Visa or a MasterCard, you do not get easy access to Visa & MasterCard perks (including Travel Accident Insurance, Automobile Insurance, Warranty Extension, etc.).
If you make purchases at select merchants, then the Petal 1 “No Annual Fee” Visa Card might be a better pick for you since it offers you a lucrative range of Cashback Rewards ranging from 2%-10%. Plus, you also get Visa Perks (Travel Accident Insurance, Automobile Insurance, etc.)
But if you make most of your purchases at select merchants, then you might be better off with the Petal 1 “No Annual Fee” Visas Card since it offers you a lucrative range of Cashback Reward Offers ranging from 2%-10%. In addition, you also get Visa Perks like Travel Accident Insurance, Automobile Insurance, etc.
