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Discover it Secured Credit Card
Consumer Reviews, Credit Score and Income Needed, Credit Limits

Picture of Discover it® Secured
28 Reviews
Consumer Rating:
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Apply Here apply here 4.3
Lowest:
478
Average Score:
571
Highest:
720

Introduction

It's great when you can find a secured credit card with no annual fee. It is even better if it has a rewards program. And what can we say when you can graduate to an unsecured credit card as early as 8 months! And what would you say if this secured card is issued by one of the most well-known credit issuers? Well, the Discover It Secured is all of these and more. Let's dig a little deeper into this card.


Fees and Rates

Annual Fee $0
Minimum Deposit $200
Maximum Deposit $2,500
Regular APR 22.99%*V
Balance Transfer APR 10.99%
Balance Transfer Fee 3% of BT Amount for Intro Period
After That 5%
Foreign Transaction Fee 0%
Penalty APR None
Late Payment None for 1st late payment
Then $40


There are a few highlights with regards to the rates and fees of the Discover Secured Card.

  • No Annual Fee - This is one of the rare secured credit cards that has no annual fee.

  • No Late Payment Fee For First Late Payment - You will not be charged a late payment fee if you pay late for the first time.

  • No Increase in APR for late payment

  • No Foreign Transaction Fee - While it is great that Discover does not charge any foreign transaction fee, the reality is that Discover cards are not as widely accepted abroad compared to a Visa or Mastercard. Furthermore, I doubt you rebuilders are too concerned about this.

  • Balance Transfer for SIX months - Many credit cards targeted at rebuilders do not allow you to transfer a balance. Discover allows that and the balance transfer rate is pretty good at 10.99%. You are allowed a certain time period to transfer your balance (this will be given in the terms and conditions).


Earn and Redeem Cash Rewards

The Discover secured credit card is one of the rare secured cards that offers cash back rewards. Specifically, you can earn:

  • 2% Cash Back at gas stations and restaurants for up to $1,000 in purchases each quarter

  • 1% on other regular purchases

  • 1st Year Cash Back Match - Discover will match the amount of cash back you earn during your first year as a card member. For example, if you earn $300 in cash back, Discover will match that and you will have earned a total of $600 in cash back during your first year as a card members.

  • Cash Back Rewards Do NOT Expire - The cash back rewards do not expire at all so you can accumulate as much as you want before you redeem them.

This cash back rewards are similar to the regular unsecured Discover It Chrome card. You can redeem your cash back in the following ways:

  • Electronic Deposit Into Any Account - You can deposit your cash back into any bank account that you designate. The minimum amount you can deposit is $0.01.

  • Statement Credit - You can use the cash back you have earned as a statement credit to offset your balance.

  • Gift Cards - You can redeem cash back for gift cards starting at $20.

  • Pay with CashBackBonus at Select Merchants - Discover has partnered with Merchants and you can use your cash back when you shop through these merchants from Discover's portal.

  • Redeem At Amazon.com - You can also redeem your cash back when you shop at amazon.com.


Security Deposit Information

As with all secured credit cards, you need to fund a security deposit. Here are the details of Discover's deposit policy.

  • Minimum Deposit of $200 - You have to deposit a minimum of $200 to fund your security deposit. The amount that you deposit becomes your credit limit.

  • Maximum Deposit of $2,500 - The maximum amount you can deposit with Discover is more or less in line with most secured credit cards. The upper end tends to be $5,000.

  • Pays No Interest On Deposit - Discover does not pay any interest on your deposit amount.

  • Increase Deposit Amount By Calling CSR - You can increase your security deposit amount. However, you could have to call customer service at 1-800-347-3085 and do it over the phone. You would need your checking account number and routing number. You can only increase your deposit after 31 days of your first initial deposit.


Other Features

Discover has other features that makes this card really attractive. Most of these features can be found in regular unsecured Discover credit cards. This is what makes the Discover secured card so attractive.

  • Free FICO Score - Discover offers every card holder a free FICO score from TransUnion. Many cards offer "free credit score" but they are usually Vantage scores and not FICO score. The scores that you get from Discover are actual TransUnion FICO scores.

  • Identity Alerts - Identity Alert is a free service offered by Discover. It monitors your Experian Report and will alert you to any new credit inquiries on your Experian credit report. The dark web is also monitored for any of your personal information.

  • Freeze It - Freeze It is a feature of Discover cards where you can "freeze" our accounts either via your mobile app or from your website account. You would want to do this when you lose your card or cannot find it. However, a really neat feature is that even if you freeze your account, your auto-payments that you have set up with other services (like your Netflix payment) will still work.

  • 24 hour Card Replacement - If you lose your card in the US, Discover will send you a replacement within 24 hours.

  • US-based Customer Service Reps - All of Discover's customer service reps are from the US. That means you will not get funny accents from overseas reps when you call them.


Competition

There are many secured credit cards in the market because every bank (including credit unions) issue their own version of secured credit cards. Aside from banks and credit unions, there is another group of issuers who target folks with really bad credit. These cards have slightly different characteristics from mainstream banks and credit unions.

Comparison with Mainstream Bank Secured Credit Cards

Compared to other mainstream bank issuers, the Discover It Secured compares favorably. There is no annual fee. It has a cash back rewards program. And more importantly, the card becomes with all the bells and whistles that you get with a regular unsecured credit card from a mainstream bank. For example, you get a great mobile app, free FICO scores and great customer service. The key defining feature of the Discover Secured Card is that you will be evaluated for a graduation to their unsecured version after 8 months. While other issuers will graduate you, none will potentially graduate you as fast as 8 months.

Comparison with Specialist Secured Credit Card Issuers

There is another group of secured credit card issuers that specializes in those with really bad credit. Examples include Opensky credit card and First Progress. These cards have annual fees and do not graduate to an unsecured credit cards. However, these cards have one thing going for them. And that is that they do not perform any credit checks and you will definitely be approved. That means even if you have just emerged from bankruptcy, or have recent late payments, you will can get approved. In contrast, it is difficult to get approved for the Discover Secured Card if you have just emerged from bankruptcy and have recent late payments. Hence, for those with really bad credit, Discover is probably not the most appropriate secured credit card.


Pros and Cons

Pros

  • No Annual Fee - Most secured credit cards charge an annual fee. Even mainstream issuers like Citi and Wells Fargo charge annual fees for their secured credit cards. The fact that they do not charge any annual fee is quite rare (though getting common) in the world of secured cards.

  • Cash Back Rewards - Most secured cards do not offer any rewards on their card. However, Discover offers card holders a cash back reward program that is similar to their Chrome card.

  • Free FICO Score - You get a FREE FICO score from TransUnion.

  • Can Graduate To Unsecured Credit Card In As Little As 8 Months - One of the best feature of this card is that you can graduate to the unsecured version of the Discover Chrome It. You can graduate in as little as 8 months.

  • Can Increase Deposit Amount - You can increase your deposit amount after your initial deposit. However, you do have to ask "permission" to do so.

  • Has Mobile App - Discover has a great mobile app where you can manage your account just from there.


Cons

  • Deposit Does Not Earn Interest - While I list this as a "con", the reality is that interest rates are so low that I think this does not really matter.

  • Have To Inform Discover If You Want To Increase Deposit Amount - While you can increase your deposit

  • Discover Not Accepted Widely Outside the US - Discover is not widely accepted as a credit card outside the US. However, I suspect this is not an issuer for most of you rebuilders.

  • Need to Have a bank Account - You do need a bank account to fund your deposit so for those of you who do not have a checking account (due to CHEX problems), this card is not for you.


Our Take

The Discover It Secured Credit Card is perhaps one of the best secured credit cards. It has no annual fee, has a cash back rewards program and will check if you can graduate to the unsecured version after just 8 months. Discover as a company also ranks as having one of the best customer service among credit card issuers. You also get the standard features like mobile app, free FICO scores from a big credit card bank issuer.

Who Is Most Likely To Be Approved?

You should apply for the Discover Secured Card if you have little or no credit history. You can also apply if you are a rebuilder and have no recent late payments on your other accounts.

Who Is Most Likely To Be Denied?

Discover (on their website) has stated that if you are in the middle of or have just emerged from a bankruptcy, you will most likely be denied. If you have recent late payments, you will also likely be denied. Discover also requires that you have a bank and checking account (to fund your deposit). If you do not have a bank account (perhaps due to CHEX problems), then this is not the card for you. We would suggest a card like the Opensky Secured Visa instead if you are in such a situation.
 


How To Increase Your Chance of Early Graduation

To increase your chance of graduating after 8 months, I would do the following. Firstly, make sure that you have enough security deposit in your account so that you have enough credit limit. Having enough credit limit allows you to have a lower credit utilization rate. You should also ideally pay in full and on time. It is best to set up autopay through your app or through you online account. If you use your secured credit card wisely, you will greatly increase your chances of early graduation.


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Credit Score: 634 Credit Limit: 500 Age: 35-44
Approved 10/19/2002 discharge after Bankruptcy
Income On Application: $80000
Posted 10/29 2020
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
Easy process. preapproved then applied was approved. blessing it is. approved one week after bankruptcy discharge. Last post needed to be updated. I did not update scores. No annual fee plus review after eight months for unsecured possibly.
 
Credit Score: 620 Credit Limit: 1000 Age: 25-34
Posted 02/02 2018
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I thought that my scores were good enough for an unsecured credit card but I kept getting denied. So I decided to start off with a secured credit card and finally decided on this one. What attracted me was that it was Discover, had no annual fee and even a cash back program. I applied and gave my bank login credentials but somehow it failed! So I was asked to give my a/c and routing number. They also did the "bank verification test" whereby they sent an amount less than $1 and I had to tell them the correct amount. I was also taken to a page where I had to upload my w2, DL, and SSN. Once that was all done, my money was taken out of my checking account in 2 days. I then called them and was told that the card will come 2 weeks later.

The card itself is great. The website and app are easy to use. You can set up autopay or pay through the website or app. The rewards can be used as credit for your statements. Discover reports as secured and I think they reported even before I got my first statement. After 10 months of using the card, I got an email saying I will get my deposit back within 7 days and that my new credit limit was $3000. That was when it hit me that I had graduated.

Two weeks later, I checked my credit report and they changed from reporting as secured to unsecured. My score was 690 when this all happened.
 
Credit Score: 480 Credit Limit: 600 Age: 35-44
Income On Application: $65000
Posted 01/15 2018
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
My credit was so poor when I applied (below 500). I had also went into and emerged from a bankruptcy chapter 7 in 2013. I was glad that I was approved. They sent 2 test deposit into my checking account and once I verified the amount, the withdrew the deposit 2 days later and sent me the card about 2 weeks later. I love the card because I can check my fico score and the website and app are easy to use. You can track everything including rewards and your payments and charges. I hope to graduate within a year.
 
Credit Score: 537 Credit Limit: 500 Age: 35-44
Posted 11/23 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
My experience with the Discover secured card has been great. When I applied, I decided to put a deposit of $500. They deposited less than $1 two times into my checking account and I had to verify them. Two days later, they took the money out of my checking account and a couple of days later, I got an email telling me my card would arrive about 2 weeks later.

The more I use the card, the more I love Discover. Customer service is great (americans answer you calls and very quickly too). The website and app are great. 5 months later, I decided to deposit another $500. I had to call them and after a couple of questions on my income and mortgage payment, I was approved. Another 5 months later, I got an email saying that my deposits will be returned to me in the form of a check in 7 days and that I had graduated to an unsecured card.

I would highly recommend this card.
 
Credit Score: 534 Credit Limit: 300 Age: 25-34
Posted 10/18 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I recently applied for the Discover it secured card with a credit score of 534 (TU). I put down $300 as a security deposit. I got my card 2 weeks later and have just started using it. After my first statement arrived (just 2 days ago), I checked my credit reports and found out that Discover has reported already as secured. And my scores are already up about 70 points on both TU and EQ. Would definitely recommend this card if you are rebuilding.
 
Credit Score: 478 Credit Limit: 200 Age: 35-44
Income On Application: $50000
Posted 09/28 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
Let me start by revealing my score when I applied for this card - it was 478. Yes - below 500. Aside from the score, I had a repo from 6 years ago and have a few late payments in my report (though I am current on my payment now). I was really surprised that Discover approved me. I put in the bare minimum deposit of $200 and figured that the lower the deposit, the less I would spend on the card.

I honestly never thought I would get approved. Now there seems to be light at the end of the tunnel for me.
 
Credit Score: 580 Credit Limit: 1000 Age: 25-34
Posted 08/12 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I finally graduating after 1 year (or rather after my 12th billing statement to be more precise). Was told they were sending back my deposit within 5-7 business days. I love this card, the rewards and customer service.

When I first applied, my score was about 580 with TU. I deposited $1000 and after 4 months, deposited another $1000. I always paid in full. However, there were 2 months when I used close to 80% of my limits on a computer and a couple of other gadgets. But I still paid in full. For the most part, I spent about $400 a month on the card.

I guess I showed Discover that I was a responsible user of their card and they decided to graduate me!
 
Credit Score: 547 Credit Limit: 1000 Age: 25-34
Posted 05/13 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I initially deposited $1000 when I applied. 5 months later, I wanted to increase my credit limit. I called customer rep and was asked to verify my income and mortgage expense. I was told that the max I could increase my limit was up to $2500. I added another $1000, taking the total to $2000. Rep said that it would take 8 days for the limit to show up. The whole process took a few minutes though you have to call the rep and you cannot do this over the website or the app.
 
Credit Score: 617 Credit Limit: 500 Age: 25-34
Posted 04/18 2017
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I decided to get the Discover It secured to build a credit history. Prior to this, I had no credit card and paid in cash for my second hand car years ago. Though I do not have any credit history, I do have a couple of unpaid medical bills that are in my report (delinquent). Still I was approved and after I put in all the information online, I was asked to give my bank account details like routing number. My card arrived about a week later.

I have to say that the customer service is excellent. The website and app are easy to use. I would definitely recommend this card.
 
Credit Score: 580 Credit Limit: 500 Age: 25-34
Posted 12/11 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
So this is my approval process. Applied online and it was "instantly approved". I made my deposit online with my checking account credentials and 2 days later, the money got taken out of my checking account. Despite that, the status on the website said "application finalized and expect your card to arrive in 2 weeks". Then after a few more days, I checked the website and it said "you have been approved". I got my card a week later.

My experience has been great. I use the app all the time to check my account. You can even pay from the app but I set up autopay so there is never a chance that I am late.
 
Credit Score: 513 Credit Limit: 300 Age: 35-44
Posted 11/24 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I was very nervous about applying for this card because I had a few derogatory reports (delinquent medical bills) in my reports. To my surprise, I was approved. I deposited $300 online by giving them my bank account information and two days later, the money was withdrawn. Think my example goes to show that even if you have bad credit, Discover it secured will give you a chance. After my first billing statement, I checked my credit reports and found that Discover has reported to all three bureaus.
 
Credit Score: 558 Credit Limit: 500 Age: 35-44
Approved 2 years after Bankruptcy
Posted 10/09 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I filed BK and was discharged 2 years ago. After spending hours researching secured cards, I decided to go with the Discover and Cap One secured cards. I applied for both and was approved. Discover pulled EQ and Cap One pulled all 3. The put down $500 for the Discover and $49 for the Cap One but got a $200 limit. So in total, I had $700 limit from 2 cards.

I like both of these cards. They have not given me any problems or issues so far. 8 months in and I got a credit limit increase on the Cap One to $500 without having to put down any more deposit. My scores have also improved from about 558 to 620. I hope to graduate from both after one year. Keeping my fingers crossed.
 
Credit Score: 603 Credit Limit: 300 Age: 25-34
Posted 09/25 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
4 months ago, I applied for the regular Discover it and was denied due to "insufficient credit history". So I decided to apply for this secured card. After I applied, I did not hear from them, no email or anything. Then the next day, I got an email telling to get my deposit in to finish the application. I gave my bank account details (a/c number and routing number) and after another 3 days, the money was taken out of the bank account. After a week and a half, I finally got my card.

Once I got the card, I took the advice of a couple of friends and immediately set my payments to autopay so that I would not be late. Every month, I spend about $70 on the card. I have put my hulu account and utilities on the card. After the first statement, I checked my credit report and saw that Discover had reported (as secured). I then checked my credit score (EQ) found out that it had increased by about 35 points just from opening the account.

I really like the website and the app. They are easy to navigate and use. You can check all your account activities on the app and even pay your bill from there. The customer service is also very good in that you get American phone reps and not overseas ones where you cannot understand them.

After 11 months, I got an email from Discover telling me that have sent a refund for the initial deposit and that my card was now unsecured. My credit limit had also been increased to $1000. I checked my score is it was now 690 and the credit report has also reported as unsecured just after I was informed of the changes.

This has been a wonderful experience for me and I would highly recommend this card.
 
Credit Score: 505 Credit Limit: 500 Age: 35-44
Approved 4 months after Bankruptcy
Posted 06/16 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
My score was about 640 when I tried to apply for the regular Discover card. I was denied but counter offered the secured version. I decided to put down $200 as a deposit and received my card within the week. I was also told that I would be reviewed for a graduation to the unsecured card. I intend to use this card to fill up my gas tank and some small items.

I really love Discover's website and app. I could check my FICO score with the card and pay bills with it. This is simply an awesome card.
 
Credit Score: 540 Credit Limit: 1500 Age: 25-34
Posted 05/27 2016
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
I am so pleased with my Discover secured card. I deposited $1500 into my account and used it carefully. I never used more than $300 of my limit and I always pay in full. I decided to get Discover after doing a lot of research. The thing that really attracted me was that there is no annual fee and they even have a reward program. However, my experience has been better than I thought.

The website and app are great. I can monitor all my activity from the app. I also like the fact that I can check my FICO score with Discover. Customer service is also great. I would highly recommend this secured card.

One more thing, I graduated after 13 months.
 
Credit Score: 579 Credit Limit: 500 Age: 35-44
Posted 12/07 2015
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
What can I say...this is such a great card. One of the few secured cards with no annual fee and a reward program. I have a couple of others like cap one, citi and merrick bank. I really Discover's app - so easy to use. I pay my bills with the app and found out that it post the next day and my available credit will be immediately available. In contrast, Merrick bank will put a hold even after you pay!
 
Credit Score: 605 Credit Limit: 300 Age: 25-34
Posted 10/26 2015
Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating
My credit is not exactly the best because I made some very bad decisions when I was younger. My score was about 605 when I applied for Discover. I was denied but was offered the secured version. I took the offer and deposited $300. I like the fact that there is no annual fee and there are rewards as well. I could also check my FICO score. I was told that if I use the card and pay off my bills on time, I will be considered for graduation to an unsecured card in the future. This is a great card and I would recommend it if you cannot get their unsecured card.