The Discover it® Secured Credit Card stands out as one of the best secured cards available because it offers real cash-back rewards — unlike most secured cards that offer nothing. If you are new to credit or rebuilding after financial difficulty, this card provides a genuine path to an unsecured card within 7 months.
Pros & Cons
✅ Pros
- 2% cash back at gas stations and restaurants (up to $1,000/quarter)
- 1% cash back on all other purchases
- Unlimited Cashback Match at end of year 1
- No annual fee, no credit check required for application
- Discover automatically reviews for upgrade to unsecured card after 7 months
- Deposit refunded when you upgrade or close in good standing
- Free FICO® score monitoring
❌ Cons
- Requires a security deposit of $200–$2,500 (this is your credit limit)
- High APR — not suitable for carrying balances
- Discover acceptance is slightly lower than Visa/Mastercard internationally
- Low credit limit until you increase deposit or upgrade to unsecured
Rates & Fees
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Minimum Deposit | $200 (becomes your credit limit) |
| Maximum Deposit | $2,500 |
| Regular APR | 28.24% Variable |
| Cash Back (Gas/Restaurant) | 2% (up to $1,000 combined/quarter) |
| Cash Back (All Other) | 1% |
| Late Payment Fee | Up to $41 (first late fee waived) |
| Foreign Transaction Fee | None |
Who Should Apply
This card is ideal for: students with no credit history, recent graduates, immigrants establishing US credit, or people recovering from bankruptcy or late payments. It requires no credit check — only that you have a bank account for the deposit. The clear upgrade path to an unsecured Discover card makes it one of the most strategic credit-building tools available.
How to Apply
- Visit discover.com/credit-cards/secured.
- Apply online — no hard credit inquiry is required.
- Choose your deposit amount ($200 minimum, linked to a bank account).
- Once approved, your card arrives in 5–7 business days.
- Use the card responsibly — keep utilization below 30% and pay in full monthly.
- After 7 months, Discover automatically reviews your account for an unsecured upgrade.
Frequently Asked Questions
Will I get my security deposit back?
Yes. When Discover upgrades you to an unsecured card or when you close your account in good standing, your security deposit is fully refunded to your bank account.
How quickly can I build credit with this card?
With on-time payments and low utilization, most cardholders see significant credit score improvement within 6–12 months.
Can I be rejected for this secured card?
You can be rejected if you have an active bankruptcy or if Discover cannot verify your identity. Otherwise, approval rates are very high.