Discover it® Secured Credit Card: A Comprehensive Review

Discover it® Secured: Build credit with 0% annual fee, cashback rewards, and no penalty APR

Discover it® Secured Credit Card: A Comprehensive Review


  • APR for Purchases: 28.24%, variable with the market based on the Prime Rate.
  • APR for Balance Transfers: 10.99% introductory rate for the first 6 months from the date of the first transfer for transfers posted by June 10, 2024. The post-introductory rate at 28.24%.
  • APR for Cash Advances: 29.99%, also variable with the Prime Rate.
  • Penalty APR: Not applicable.
  • Interest-Free Period: At least 25 days after the close of each billing cycle.
  • Minimum Interest Charge: Not less than $0.50.
  • Annual Fee: None.
  • Transaction Fees:
    • Balance Transfer: 3% intro fee on transfers by June 10, 2024. Afterwards, 5%.
    • Cash Advance: The greater of $10 or 5% of the advance amount.
  • Penalty Fees:
    • Late Payment: Up to $41 after the first late payment.
    • Returned Payment: Up to $41.
  • Calculation Method: Daily balance, including new transactions.


  • No Annual Fee: Cost-effective for those building or rebuilding credit.
  • Introductory APR: Lower initial cost on balance transfers.
  • Interest-Free Purchase Period: Avoid interest by paying the balance in full by the due date.
  • Cashback Rewards: Earn 2% at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% on all other purchases.
  • Flexible Redemption: Cashback can be redeemed at any amount, anytime.
  • Security Deposit: Refundable, providing a path to a traditional credit card.


  • High APR: The standard APR is relatively high, particularly for purchases and cash advances.
  • Initial Deposit Required: A security deposit is necessary, which might be a barrier for some applicants.
  • Fees on Balance Transfers and Cash Advances: Additional costs could add up.

Product Summary

The Discover it® Secured Credit Card is designed for individuals looking to build or rebuild their credit. With no annual fee, the card offers a practical way to manage credit while earning rewards on everyday purchases. The card's benefits, including cashback on gas and dining, interest-free periods on purchases, and the potential to transition to an unsecured card, make it a compelling option for those new to credit or working to improve their scores. However, its high APR and initial deposit requirement are factors to consider.

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