Discover it Secured Credit Card Review : As of 2024, the Discover It Secured Credit Card is a popular choice for people looking to build or rebuild their credit history. In this comprehensive review, we’ll explore the key features, benefits, and potential drawbacks of the Discover It Secured Credit Card.
Discover it Secured Credit Card Review 2024
One of the unique features of the Discover It Secured Credit Card is its secure nature. To open an account, cardholders must make a security deposit, usually starting at $200. This deposit acts as collateral and determines the initial loan limit. Responsible use of the card by the cardholder may lead to switching to an unsecured credit card over time.
Cash Back Rewards Program
The Discover It Secured Credit Card isn’t just about building debt; It also offers a rewarding cashback program. Cardholders earn cash back on every purchase, up to 2% back quarterly at gas stations and restaurants, and 1% back on all other purchases. Plus, Discover doubles rewards by matching all cashback earned at the end of the first year.
Free FICO Credit Score
Understanding your credit score is critical to financial health. Discover offers cardholders free access to their FICO credit score, allowing them to track their progress and make informed decisions to improve their creditworthiness.
No Annual Fee
Financial products often come with hidden charges that can catch consumers off guard. With the Discover It Secured Credit Card, there is no annual fee. This transparency is a welcome relief for those who want to establish credit without incurring unnecessary expenses.
Introductory APR Period
For new cardholders, Discover offers an introductory 0% APR on purchases for a limited period. This is advantageous for those who wish to make significant purchases without incurring interest during the introductory period.
Read Also: Discover it Business Credit Card
Discover it Secured Credit Card Drawbacks
Security Deposit Requirement
Although a security deposit is a basic feature of secured credit cards, it can be a hindrance for individuals with limited funds. The high deposit requirement can be a challenge for those who want to establish a loan but lack the necessary initial funds.
Credit Limit Determined by Deposit
The initial credit limit is directly linked to the security deposit. While this ensures responsible use of credit, it may limit purchasing power for those with limited deposits.
Discover it Secured Credit Card Comparison
|Discover it Secured Credit Card
|Cash Back Rewards
|2% at gas stations and restaurants (up to quarterly maximum), 1% on all other purchases
|Free FICO Credit Score
|Introductory APR Period
|0% on purchases (for a limited time)
Frequently Asked Questions (FAQ)
Can I get my security deposit back?
Yes, Discover periodically reviews the account and you may be eligible for a security deposit refund if you have demonstrated responsible credit use.
Is the cashback applicable for the entire first year?
Yes, Discover doubles your rewards at the end of your first year in addition to refunding your earnings.
How long does it take to switch to an unsecured card?
Check review accounts periodically and switch to an unsecured card based on your creditworthiness. This process can take several months to a few years.
The Discover It Secured Credit Card is a solid choice for individuals looking to establish or rebuild their credit. With its secure nature, cash back rewards program and transparent payment structure, it offers a balanced approach to building a loan. However, potential applicants should carefully consider the security deposit requirement and how it fits into their financial situation.
In conclusion, the Discover It Secured Credit Card is a valuable tool for those on their journey to financial stability. By using its features responsibly, cardholders can not only improve their creditworthiness but also enjoy cashback rewards. Always remember to review the terms and conditions before applying and make an informed decision that aligns with your financial goals.