As you look to create or renovate your credit, a secured credit card can be an essential tool. A secure card allows you to get approved for a card, even with bad or no credit, by requiring a cash deposit that acts as your spending limit.
The secured It Discover Credit Card is one option worth considering. Responsible use can help establish a good payment history and credit utilization ratio to build your score.
This article will outline what you need to know about the secured it Discover card to determine if it’s the right choice for your needs and goals.
How Does Secured it Discover Credit Card Work?
To determine if the secured Discover Credit Card is correct for you, it’s crucial to understand how it works.
- You provide a refundable security deposit, and the card hands by as backup while your account remains open. The amount of your security deposit is your credit line.
- Discover reports your credit limit, balance, and payment information to the three major credit bureaus. If used responsibly, this can help build your credit history.
- Your APR depends on your creditworthiness. The card has no annual fee but charges penalty APRs for late or returned payments. Interest charges accrue on balances after the grace period.
- You can increase your credit limit without another deposit after making on-time payments for several months. Discover will periodically review your account and may increase your limit.
Secured It Discover Credit Card Sign-Up Bonus
To take advantage of this promotion, you'll need to do the following:
Apply for the Discover it® Secured Credit Card and get approved. You'll have to provide a minimum security deposit of $200 to open a new account.
Purchase any amount within the first three months of account opening to qualify for the bonus. Purchases can include essentials like gas, groceries, or dining.
Discover will match all the cash back you've obtained when your first year is over. So if you earn $200 cash back within the first 12 months, Discover will match that for $400.
Fees and APRs: What You Need to Know
Annual Fees
There is no annual charge for the Discover it® Secured Credit Card. This means you can use the card as often as you’d like without worrying about paying a yearly bill just to keep the account open.
APR for Purchases
The APR for purchases on the Discover it® Secured Credit Card is a variable 23.99% APR. The APR is higher for secured cards, so you’ll want to pay the balance in full each month to avoid interest charges. If you carry a balance, the interest charges can add up quickly.
Penalty APR
It does not have a penalty APR. Some credit cards will increase your APR if you pay late or exceed your credit limit.
Secured It Discover Credit Card Review
Some secured it discover credit card benefits are:
No Credit History Required
The secured it discover Card is ideal if you have no credit history or a poor credit score. Since a refundable cash deposit secures the card, Discover will approve applicants with limited or no credit.
Earn Cash Back Rewards
secured it discover Card allows you to earn cash back on purchases. You'll receive 2% cash back at petrol stations and cafes every four months. You'll also earn 1% cash back on buying. Cash back rewards earned will be deposited into your account each month.
Credit Limit Increase
After seven months of responsible credit card use, Discover will review your account to determine if your deposit can be refunded and your credit line increased. Discover will refund your initial deposit and improve your credit limit if approved, allowing you to qualify for an unsecured Discover card.
Annual Fee
The secured it discover Card charges zero fees per year, so you can start rebuilding your credit at no cost. Paying annual fees on top of finance charges and interest payments can make it more challenging to pay off card balances and improve your credit utilization ratio. The secured it discover Card provides an affordable way to build your credit.
Here are some drawbacks you should consider before making a decision:
- You must make refundable security to get approved and open the card.
- Interest charges apply if you don’t pay the entire balance each month.
- Strict credit requirements mean not everyone will qualify. You’ll need a bank account and social security number to apply.
Can I Apply for secured it discover Credit Card
To apply for the Discover it® Secured Credit Card, follow these steps:
Gather the Required Documentation
You must provide personal information to verify your identity, including your Social Security number. You must also provide proof of income, such as recent pay stubs, tax returns, or bank statements, to determine your security deposit amount.
Complete the Online Application
Visit Discover.com to fill out the online application. The application will ask for your name, address, date of birth, and income details.
Submit a Refundable Security Deposit
Once your application is approved, you must submit a minimum security deposit of $200, based on your creditworthiness.
Wait for Your Card to Arrive
If approved, your Discover it® Secured Credit Card should arrive in the mail within 7 to 14 business days. Activate your card immediately, and you can use it for purchases and payments while building your credit history.
Conclusion
The secured it discover Credit Card is an excellent choice for individuals looking to build or rebuild their credit score while enjoying some perks, such as cashback rewards programs, without paying hefty annual fees!
Do your research, crunch the numbers, and trust you can make the best decision for your wallet. The secured it discover card could be the first step to access more credit and financial freedom responsibly. The power is in your hands to change your credit destiny.
