Discover it Secured Credit Card review: Earn rewards while building credit

Discover it Secured Credit Card overview

The Discover it Secured Credit Card is a good option for people with limited or poor credit history. It has no required credit score and gives cardholders a chance to have their security deposit refunded. This card also earns cash-back rewards, making it a good choice for any credit card beginner. Card rating*: ⭐⭐⭐

*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.

If you're building (or rebuilding) your credit, a secured credit card is an excellent option. You can be approved with a low (or sometimes no) credit score. Typically, secured cards require a deposit — which becomes your credit limit at the start.

While these can be a great option, they typically lack the benefits we expect from our top rewards cards — like a welcome bonus and solid earning rates.

The Discover it Secured Credit Card, however, offers more than just an opportunity to build credit. Cardholders can earn a refund on their security deposit, making this card a strong contender if you're looking to build credit. On top of that, you'll earn rewards on your purchases.

This card has no annual fee and no required credit score, but it does require a security deposit of at least $200 — and your deposit amount is what your credit limit will be.

Let's dig into the card details to see if it's a good fit for you.

The information for the Discover it Secured Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Discover it Secured Credit Card pros and cons

Discover it Secured Credit Card welcome offer

New Discover it Secured cardholders will earn a cash-back match at the end of the first cardholder year. There is no limit to the amount of cash back the cardholder can earn in this match.

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The value of this welcome offer will depend on how much you spend on the card in the first cardholder year. Still, many secured cards don't offer a welcome bonus at all, so the opportunity to earn an unlimited cash-back match is a valuable perk.

Related: This month's best welcome offers

Discover it Secured Credit Card benefits

As with most secured cards, the primary benefit of the Discover it Secured Credit Card is the ability to improve your credit score. However, this card also offers some additional perks that make it stand out against other secured cards on the market, such as a welcome offer and the chance to earn bonus rewards in some categories.

Additionally, cardholders can get their security deposit refunded after six consecutive on-time payments and six months of good status on all their credit accounts.

The card also comes with standard benefits like fraud protection and the ability to track your credit score.

These benefits fall short of what you'll find on our favorite travel rewards cards, but they're pretty standard for a card with no annual fee. Plus, the ability to get your security deposit refunded is a unique benefit that may sway you to choose this over other secured credit cards.

Related: How to check your credit score for free

Earning cash back on the Discover it Secured Credit Card

The Discover it Secured Credit Card earns 2% cash back on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1%) and 1% cash back on all other purchases.

These earning rates pale in comparison to our favorite travel rewards and cash-back credit cards, but they're solid for a secured card. Many secured cards don't earn any rewards, so the ability to earn cash back at all is an asset on this card, and earning bonus cash back on bonus categories is even better.

Redeeming cash back on the Discover it Secured Credit Card

You can redeem your rewards as cash back in the form of a deposit to your bank account or a statement credit to your account. Additionally, you can pay directly with your rewards through Amazon, Apple Pay and PayPal.

You can also redeem your rewards for gift cards or use them to make a charitable donation. This is a decent range of redemption options, given that this isn't a lucrative travel rewards card.

Related: How to redeem cash-back rewards from your credit card

Which cards compete with the Discover it Secured Credit Card?

If the Discover it Secured Credit Card isn't quite what you're looking for, consider one of these options instead:

• If you want to earn more cash back: The Capital One Quicksilver Secured Cash Rewards Credit Card earns an unlimited 1.5% back on all purchases, making it a good option if you want to earn more cash back on general purchases. To learn more, check out our full review of the Capital One Quicksilver Secured Credit Card.
• If you want a lower security deposit: The Capital One Platinum Secured Credit Card requires just a $49 security deposit and may give you a higher credit line than your security deposit. To learn more, check out our full review of the Capital One Platinum Secured Credit Card.
• If you don't need a secured card: The Citi Double Cash® Card (see rates and fees) allows you to earn 2% cash back on all purchases (1% as you buy and another 1% as you pay), making it a better option if you don't need a secured card. To learn more, check out our full review of the Citi Double Cash.

For additional options, check out our full list of the best secured credit cards and the best cash-back credit cards.

Related: How to choose the best credit card for you

Is the Discover it Secured Credit Card worth it?

The Discover it Secured Credit Card is a strong option for those building credit. It has no required credit score and allows you to earn rewards on all your purchases — including bonus rewards on dining and gas station purchases. Still, its earning rates are lower than many nonsecured cash-back cards, so you'll want to explore other options if you don't need a secured card.

Bottom line

The Discover it Secured Credit Card is a good way for cardholders to earn cash-back rewards while building credit. However, if you want different earning rates or a lower security deposit requirement, you'll want to research other secured credit cards before deciding on this one.

Related: 6 things to do to improve your credit score