The Discover it® Secured Credit Card is made to help people build or rebuild their credit rating. The card has no annual fee and no foreign transaction fee, making it probably the only such card on the market. Also, it offers 2% cash back at restaurants and gas stations (up to $1,000 in combined purchases per quarter) and 1% on all other purchases.
As part of the deal, users get complimentary access to their FICO® Credit Score (on monthly statements and online), and Discover will report their card activities to 3 major credit bureaus (so they could build/rebuild credit). Here are the details…
- 2% cash back at restaurants and gas stations (up to $1,000 in combined purchases per quarter), 1% on all other purchases.
- CashBack Match – at the end of the year, Discover will match the cash you’ve earned.
- Minimum deposit of $200.
- Monthly credit line reviews after the first 12 months of card use.
- Free access to FICO® Credit Score on monthly statements and online.
- Reports to 3 major credit bureaus so you can build or rebuild credit.
- 23.24% variable APR, first six months APR on balance transfers is 10.99%.
- No foreign transaction fee, and no annual fee.
How It Works?
Deposit: The Discover it® Secured Credit Card requires a security deposit of $200 or more. Your maximum credit limit (up to $2500) will be determined by your income and ability to pay.
Cash back: Even though this is a secured card, that doesn’t mean you won’t be rewarded for your card use. You get 2% cash back at restaurants and gas stations (up to $1,000 in purchases per quarter, after which you get 1%), and 1% on all other purchases. Also, at the end of your first year, Discover will match all the cash you’ve earned.
Redeem: The cash you earn can be redeemed starting at $20 for gift cards with Discover and retailers such as Lowe’s and Macy’s, or for statement credit or direct deposit in $50 increments.
FICO Credit Score: Available online and on monthly statements. This can come in handy for evaluating your progress while building or rebuilding your credit.
Discover Deals: Using which you can save on dining, travel, fashion, and more.
No foreign transaction fee: Makes this card great to use even when visiting other countries.
APR: 23.24% variable — it’s rather high, so you are best off paying your balance in full and on time. However, if you pay late, you won’t be penalized for that, at least not the first time you do so. Also, during the first 6 months of account opening, you get to benefit from the introductory APR on balance transfers of 10.99%.
Costs
- $200+ Deposit
- 23.24% Variable APR, First 6 Months It’s 10.99% on Balance Transfers
- 3% Balance Transfer Fee ($5 minimum)
- $0 Foreign Transaction Fee
- $0 Annual Fee
Pros
- Rewards program – this isn’t something many secured cards are offering. And we find it neat to see it being included with this card.
- Introductory APR on balance transfers – another option that is seldom included on a secured card.
- Access to FICO Credit Score – helps you be aware of your credit, so you can build or rebuild it.
Cons
- High APR – it usually comes included with secured cards. Luckily, Discover included an introductory period with lower APR on balance transfers.
- A Discover card is no Visa or MasterCard, and it isn’t as widely accepted as those two cards. Though the situation is getting better with the day.
Is This The Card For You?
If you are just starting off or are trying to rebuild your credit, the answer is YES. The Discover it® Secured Credit Card is one of the best such products on the market, and you can hardly go wrong getting it. It has no annual fee, and the same goes for the foreign transaction fee (which in turn makes it the only such secured card). As part of the deal, you also get complimentary access to your FICO Credit Score as well as the ability to get a percentage (or two) back on every dollar you spend with this card. Check it out.