The Discover it® Secured Credit Card Review for 2019

The Discover it® Secured Credit Card Review for 2019
Amy Fontinelle
on April 3, 2018
Read in 2 min

Do you need to build or rebuild your credit?

The Discover it® secured credit card could help you get there.

It’s designed for consumers with no credit or fair credit. And when compared against some other secured credit cards, this Discover secured credit card is much more consumer friendly.

Features of the Consumer-Friendly Secured Discover Card

-It has no annual fee, monthly fee, or activation fee.

-It offers a free monthly FICO score and free Social Security number monitoring.

-It offers rewards of 2% back on up to $1,000 in purchases at restaurants or gas stations each quarter and 1% back on all other purchases.

-Discover will report your payment history to all three major credit bureaus, which can help you build your credit score if you always make your payments on time.

-And Discover will automatically match all the cash back you’ve earned at the end of your first year as a cardholder.

Why would a secured card offer such great terms?

Probably because if you like this card and use it to build your credit, you’ll want to use one of Discover’s regular, unsecured credit cards, such as the Discover it credit card, Discover it Gas & Restaurants card or Discover it Miles Travel Card.

Starting when you’ve been a Discover secured credit card holder for 8 months, the company will automatically review your account for an upgrade to an unsecured card.

The other card details you need to know are that it has a late fee of up to $37  (but no late fee on your first late payment); a cash advance fee of 5% or $10, whichever is greater; no foreign transaction fee; a regular purchase APR of 24.24% variable; and no penalty APR.

The cash advance APR is 26.24%.

Where the Discover Secured Card Falls Short

In our review of numerous credit cards available in 2019, we’ve learned that the Discover secured credit card isn’t the best card for balance transfers, with an introductory APR of 10.99% — but it’s not the worst, either.

You could achieve some savings vs. paying 29.99% on another card, just not as much as you would with a 0% balance transfer.

Discover’s 3% balance transfer fee is typical.

If you transfer a balance, all new purchases will have no grace period, and you will pay interest on your purchases until your entire balance, including the transferred amount, is paid off.

Secured Credit Line Amount

To get approved, you’ll need some form of income, a bank account, not too much debt, and no pending bankruptcies.

If you’re approved, Discover will decide on the maximum credit line you qualify for.

You can then choose any amount up to the maximum based on the size of the refundable deposit you want to make to secure your card.

The maximum credit line is $2,500, based on your income and ability to pay.

Your deposit will be returned once your close your card or pay your balance in full and graduate to an unsecured card.

Due to all the limitations, a secured credit card like this really only offers benefits to someone that is building or rebuilding their credit.

If you can qualify, an increasingly popular alternative to prepaid and credit card products is a personal loan.

In fact, a personal loan could be used to consolidate high-interest credit card debt and diversify your debt mix at the same time.

If you’re considering a loan, get started with our easy online form to connect with a potential lender fast.

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Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate,, The Simple Dollar,, Yahoo,,, Bankaholic,, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.

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