Discover it Secured Credit Card review

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

The Discover it® Secured Credit Card is worth considering if you're new to credit or are working on rebuilding your score, since it's unlikely you'll be approved for any of the best credit cards on the market. It's unique because it earns strong rewards when most other secured credit cards do not.

Review: Is the Discover it Secured the best credit card for you?

Building a positive credit history and score takes time and diligence. If you're opening your first credit card or want to rebuild a tarnished credit history, the Discover it® Secured Credit Card is an attractive option if a regular credit card isn't available to you. 

Like other secured credit cards, Discover requires a security deposit equivalent to the credit line you want. So if you pay a $500 deposit, you'll get a $500 credit line. The deposit is refundable (more on that below). 

Unlike most other secured credit cards — which typically don't earn rewards — the Discover it® Secured Credit Card offers up to 2% cash back and other benefits like no foreign transaction fees.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Who should consider the Discover it Secured credit card?

The Discover it® Secured Credit Card is a good option for those with little to no credit history, like new US residents or students. Those with poor credit history who want to increase their credit score can also benefit from using a credit card and making all payments on time.

All three credit bureaus receive payment reports from Discover, and on-time payments with the Discover it® Secured Credit Card will help build a positive credit history.

Even if you don't have a credit history or have a low credit score, you might qualify for a non-secured starter credit card. Students may also qualify for cards targeted to them, so you should see if you can qualify for a non-secured credit card before looking at the Discover it® Secured Credit Card. 

Opening a new credit card isn't the only way to develop a positive credit history. If you have a parent with a good credit history they can help by adding you as an authorized user. 

How to apply for the Discover it Secured card

When you apply for the Discover it® Secured Credit Card, your credit report will be reviewed. If approved, you will immediately provide your banking information to pay the security deposit, which will be automatically withdrawn from your bank account. 

Your credit line is equal to your security deposit — so if you deposit $500, your credit line will be $500. The minimum amount is $200, and the maximum is $2,500, and you can pay in $100 increments. 

The security deposit is refundable. After seven months, Discover will evaluate your account monthly to determine whether to "graduate" your card away from secured status and refund your security deposit. Your security deposit is also refunded if you close the card and pay the balance in full. If the balance is not paid in full, your security deposit will be used to pay the balance, and the remainder refunded. 

How to use rewards from the Discover it Secured card

With the Discover it® Secured Credit Card you can earn 2% cash back on the first $1,000 spent in combined purchases at gas stations and restaurants each quarter (then 1%). All other purchases earn 1% cash back with no limit. 

At the end of your first year, Discover will match all the cash back you earned in the first year. So if you earned $200 in your first year, Discover would deposit an additional $200 within two billing cycles after your 12th bill. 

You can redeem cash-back rewards any time for a statement credit, or use them instantly at checkout at Amazon or through PayPal. Rewards never expire and are automatically redeemed as a statement credit if you close your card or if you don't use your card for 18 months. 

If you're looking for a card that earns cash-back rewards and you have a good credit score, check out our guide to the best cash-back credit cards for more options.

Discover it Secured card benefits and features

For a secured credit card, the Discover it® Secured Credit Card has a decent list of benefits.

Complimentary credit score and security monitoring

When you're building your credit history, it's useful to keep track of how your score changes. The Discover it® Secured Credit Card gives you complimentary access to your FICO credit score and reports information with TransUnion. 

Discover also searches for unauthorized uses of your Social Security Number and will alert you to suspicious activity. Further, they will alert you if any new account, such as a credit card, mortgage, or car loan shows up on your credit report. These tools will help protect you against identity theft. 

Freeze your card instantly 

You can temporarily freeze/unfreeze your credit card using the Discover mobile app or on their website. This is helpful if you misplaced your credit card somewhere in your home.

Pay your bill up to midnight on the due date

Most credit cards need to be paid a day or two before the due date to make sure the payment posts in time. With Discover, you can pay your bill by phone or online up to midnight (Eastern Time) on the due date.

Late payment protection

If you pay your bill late, your APR won't increase and one late fee is also waived for your first late payment — but you should always pay your bill on time to help build a positive credit history. 

Additional late payments will incur up to a $41 fee.

Complimentary overnight shipping for card replacements in the US

If you lose your card, Discover will ship a new card overnight to anywhere in the US for free. 

No foreign transaction fees

You won't pay foreign transaction fees when making purchases outside the US with the Discover it® Secured Credit Card, so it's a good card to take along on international trips.

Zero fraud liability

You will not be liable for unauthorized transactions made to your Discover it® Secured Credit Card if you immediately contact Discover if your card is lost or stolen, if your credentials are compromised, or if your account has been accessed without your permission. 

Discover it Secured card fees and costs

The Discover it® Secured Credit Card has no annual fee and no foreign transaction fees, and the late fee is waived for your first late payment (up to $41 per occurrence thereafter).

Like most other cards, there are also fees for returned payments, balance transfers, and cash advances.

Compare Discover it Secured vs other secured credit cards

Discover it Secured vs other starter credit cards

Discover it Secured frequently asked questions (FAQ)