Discover it® Secured Credit Card Review for 2022
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Benilyn has over a decade of experience as a banking officer. Her expertise is featured throughout Fit Small Business in personal finance, credit card, and real estate investing content.
This article is part of a larger series on Best Small Business Credit Cards.
The Discover it® Secured Credit Card is designed for business owners who need to build credit and can make a security deposit of between $200 and $2,500. Discover reports payment and usage history to the major credit bureaus, which means using this card responsibly can help you improve your credit score. It offers cash back on your purchases without charging an annual fee.
Discover it® Secured
BEST FOR:
Business owners who need help rebuilding personal credit
Intro APR
N/A
Regular APR
23.24% Variable
Annual Fee
$0
Credit Needed
N/A
- No annual fee, earn cash back, and build your credit with responsible use.
- It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history.
- Establish your credit line by providing a refundable security deposit from $200 to $2,500 after being approved. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at eight months to see if we can transition you to an unsecured line of credit and return your deposit.
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
- Get 100% United States-based customer service & get your free Credit Scorecard with your FICO® Credit Score
- We match all the cash back you've earned at the end of your first year automatically.
- Receive Free Social Security number alerts—Discover will monitor thousands of risky websites when you sign up.
Pros
- Earns ongoing cash back rewards
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- FICO® Credit Score: Receive free FICO® scores and monitoring.
- Discover® Identity Alerts: Get free Experian credit report and dark web monitoring.
- Freeze it®: Protect your account by stopping account activity in the event of suspicious card activity or if your card is lost or stolen.
Intro APR
N/A
Regular APR
23.24% Variable
Annual Fee
$0
Credit Needed
N/A
- No annual fee, earn cash back, and build your credit with responsible use.
- It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history.
- Establish your credit line by providing a refundable security deposit from $200 to $2,500 after being approved. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at eight months to see if we can transition you to an unsecured line of credit and return your deposit.
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
- Get 100% United States-based customer service & get your free Credit Scorecard with your FICO® Credit Score
- We match all the cash back you've earned at the end of your first year automatically.
- Receive Free Social Security number alerts—Discover will monitor thousands of risky websites when you sign up.
Pros
- Earns ongoing cash back rewards
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- FICO® Credit Score: Receive free FICO® scores and monitoring.
- Discover® Identity Alerts: Get free Experian credit report and dark web monitoring.
- Freeze it®: Protect your account by stopping account activity in the event of suspicious card activity or if your card is lost or stolen.
Do you want to compare the features of one card to another? You can do that by checking off up to three cards on this page (see Discover it® Secured Credit Card alternatives). Add them to your cart and view the details in a side-by-side comparison.
How We Evaluate Secured Credit Cards
When grading secured business credit cards like the Discover it® Secured Credit Card, we first consider the annual fee and ongoing annual percentage rates (APRs). We also take into account the card’s rewards, security deposit requirements, introductory APR, other fees, and additional features.
Grading Criteria | Card Score | Highest Possible Score |
|---|---|---|
Annual Fee | 25 | 25 |
Ongoing APR | 15 | 25 |
Ongoing Rewards | 8 | 10 |
Introductory Rewards | 8 | 10 |
Security Deposit | 10 | 10 |
Other Fees | 8 | 10 |
Introductory APR | 2 | 5 |
Additional Features | 3 | 2 |
Total Score | 79 | 100 |
Who the Discover it® Secured Credit Card Is Best For
- Business owners who need to build or improve credit: Discover reports your payment and usage behavior to the major credit bureaus, helping you build or improve your credit.
- Business owners with cash reserves of $200 to $2,500: You’re required to make a security cash deposit ranging from $200 to $2,500 to qualify for the Discover it® Secured Credit Card.
- Business owners who have up to $1,000 in quarterly expenses on gas and dining: You’ll earn 2% cash back on up to $1,000 in purchases from gas stations and restaurants per quarter, then 1% thereafter.
The Discover it® Secured Credit Card made it to our list of the best secured business credit cards because of its high cash back rewards on gas and dining expenses.
Discover it® Secured Credit Card Fees
- Introductory APR: 10.99% on balance transfers for the first six months after opening an account—no introductory APR on purchases
- Ongoing APR: 22.99%
- Annual fee: $0
- Balance transfer fee: 3% intro fee until May 10, 2022, and up to 5% fee for future balance transfers will apply
- Foreign transaction fee: Not applicable
- Cash advance fee: $10 or 5%, whichever is greater—APR is 24.99%
How to Make Payments on the Discover it® Secured Credit Card
- Online: Just log in to your online account to make an online payment. You may make up to two payments per day, using different bank accounts. You can also use the online bill pay service from your bank account.
- Mobile app: You can use the Discover® mobile app to pay. You can text APP to DISCOV (347268) to download the app to your phone.
- Automatic payment: You can set up a recurring monthly automatic payment through your online banking account.
- Via phone: You can pay your credit card by phone by calling (800) DISCOVER or (800) 347-2683 at any time.
- Check by mail: You can also mail in your payment with the payment coupon on your statement.
Discover it® Secured Credit Card Rewards
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
- Unlimited 1% cash back on all your other purchases
- 2x cash back match of all the cash back earned at the end of the first year
You can redeem your rewards as a statement credit or as an electronic deposit into your bank account. You can also use your cash back to pay directly at Amazon.com and PayPal or redeem as partner gift cards starting at $5. You can also use your rewards to donate to a charitable cause.
Discover it® Secured Credit Card Additional Features
Automatic Monthly Account Review
After seven months of card ownership, Discover will begin automatic monthly account reviews to see if you qualify to convert to a standard, unsecured credit card. Discover will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles.
Zero Fraud Liability Guarantee
With the zero fraud liability guarantee, you won’t be held accountable for unauthorized purchases on your Discover it® Secured Credit Card. You should exercise caution and practice reasonable care to protect your card from theft and shouldn’t share your card information with employees, relatives, or friends.
Freeze it® Account Lock
If you misplace your card, you can freeze your account, through the mobile app or website, with an on/off switch. This is to prevent new transactions such as purchases, cash advances, and balance transfers. However, some transactions will continue, including recurring bills, returns, credits, dispute adjustments, delayed authorizations, payments, credit card fees, interest, rewards redemptions, and other exempted transactions.
Discover® Identity Alerts
You have the option to receive identity alerts online at no additional cost. Discover will monitor your Experian® credit report and will notify you when a new inquiry or account is listed on your report. It also monitors thousands of Dark Web sites known for revealing personal information and will notify you if your Social Security number is found on such a website.
Free FICO® Credit Score
Your FICO® credit score, key factors, and other credit information are available on Discover.com and your statement. These are based on data from TransUnion® and may be different from credit scores and credit information provided by other bureaus. You’ll see up to a year of your recent score online.
Pros & Cons of the Discover it® Secured Credit Card
| PROS | CONS |
|---|---|
| Ongoing cash back: You can earn ongoing cash back on your purchases. This card even doubles your cash back rewards for your first year. | Security deposit is required: You need to make a security deposit of $200 to $2,500 to qualify for this card. |
| No annual fee: The Discover it® Secured Credit Card does not charge an annual fee, reducing your overall credit cost. | No 0% APR period: There is no zero-interest financing option for purchases or balance transfers. |
| Automatic monthly account review: After seven months of card ownership, Discover will automatically perform a monthly review of your account to see if you qualify for an unsecured credit card. | High ongoing APR: This secured credit card comes with an ongoing APR of 22.99%, which is higher compared to other secured business credit cards. |
Discover it® Secured Credit Card Alternatives
Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card is a great alternative if you want a secured credit card that charges no annual fee and offers fixed-rate ongoing rewards. This card allows you to earn 1.5% cash back on all purchases. This is also a good option if you need a higher credit limit—you can make a security deposit of between $500 and $25,000.
Wells Fargo Business Secured Credit Card
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
Business owners with poor credit
Intro APR
N/A
Regular APR
Prime + 11.90% on purchases
Annual Fee
None
Credit Needed
N/A
- Cash Back option:
Earn 1.5% cash back on every $1 spent - Reward Points option:
Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period - $0 annual rewards program fee
- $500 to $25,000 credit line
- Zero liability protection
Pros
- Approval with credit scores below 580
- Your choice of fixed-rate cash back or points rewards
Cons
- Requires a security deposit of at least $500
- Has an annual fee
- Purchase assurance: Wells Fargo will repair, replace, or reimburse you for items that are damaged or stolen within 90 days of purchase.
- Design studio: Include a personal image or business design on your credit card.
Intro APR
N/A
Regular APR
Prime + 11.90% on purchases
Annual Fee
None
Credit Needed
N/A
- Cash Back option:
Earn 1.5% cash back on every $1 spent - Reward Points option:
Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period - $0 annual rewards program fee
- $500 to $25,000 credit line
- Zero liability protection
Pros
- Approval with credit scores below 580
- Your choice of fixed-rate cash back or points rewards
Cons
- Requires a security deposit of at least $500
- Has an annual fee
- Purchase assurance: Wells Fargo will repair, replace, or reimburse you for items that are damaged or stolen within 90 days of purchase.
- Design studio: Include a personal image or business design on your credit card.
Capital One Platinum Secured
The Capital One Platinum Secured credit card charges no annual fee and requires a minimum security deposit of $49, $99, or $200. This is a good alternative if your business cannot afford to make the minimum $200 security deposit required by the Discover it® Secured Credit Card.
Capital One® Platinum Secured
BEST FOR:
Rebuilding your personal credit
Intro APR
N/A
Regular APR
26.99% Variable
Annual Fee
None
Credit Needed
N/A
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the three major credit bureaus
- You will get an initial $200 credit line after making a security deposit of $49, $99, or $200
- Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
- Easily manage your account 24/7 with online access, by phone or using our mobile app
- It's a credit card accepted at millions of locations worldwide
Pros
- Receive an initial credit line of $200
- Access higher credit limits after making your first five monthly payments on time
- Pick your own monthly due date and payment method
Cons
- High ongoing APR
- Minimum security deposit of $49, $99 or $200
- No rewards program
- Travel accident insurance: Get travel insurance for a covered loss at no extra charge when you use your credit card to purchase your travel fare.
- Extended warranty protection: You’ll receive additional warranty protection at no charge on eligible purchases.
- Car rental insurance: When you rent a car using your card, you can be covered for damage due to collision or theft.
Intro APR
N/A
Regular APR
26.99% Variable
Annual Fee
None
Credit Needed
N/A
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the three major credit bureaus
- You will get an initial $200 credit line after making a security deposit of $49, $99, or $200
- Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
- Easily manage your account 24/7 with online access, by phone or using our mobile app
- It's a credit card accepted at millions of locations worldwide
Pros
- Receive an initial credit line of $200
- Access higher credit limits after making your first five monthly payments on time
- Pick your own monthly due date and payment method
Cons
- High ongoing APR
- Minimum security deposit of $49, $99 or $200
- No rewards program
- Travel accident insurance: Get travel insurance for a covered loss at no extra charge when you use your credit card to purchase your travel fare.
- Extended warranty protection: You’ll receive additional warranty protection at no charge on eligible purchases.
- Car rental insurance: When you rent a car using your card, you can be covered for damage due to collision or theft.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is an excellent option for those who want to take advantage of the features that come with a Visa® card, including purchase security, extended protection, and auto rental insurance. This card comes with a low annual fee of $35 and an APR of 17.39%.
OpenSky® Secured Visa® Credit Card
BEST FOR:
Business owners with a credit score below 580
Intro APR
N/A
Regular APR
17.64% Variable
Annual Fee
$35
Credit Needed
No Credit Check
- No credit check needed to apply—OpenSky® won’t pull your credit so there’s no impact on your credit score.
- You can set your own credit limit by making a refundable deposit ranging from $200 to $3,000.
- OpenSky® reports your activities to credit bureaus including Equifax®, Experian® and TransUnion® to help you build or improve your credit score.
Pros
- No credit check required
- Helps build credit
- Low annual fee
Cons
- No introductory APR
- No rewards
- Requires security deposit
- Email Alerts: Set up email alerts as a reminder to make a payment, or when you almost use up your credit limit.
- Automatic payments: You can set up recurring automatic payments to ensure your card is paid on time.
- All benefits of a Visa®: This card comes with all the benefits of a Visa® credit card, including worldwide acceptance and fraud protection.
Intro APR
N/A
Regular APR
17.64% Variable
Annual Fee
$35
Credit Needed
No Credit Check
- No credit check needed to apply—OpenSky® won’t pull your credit so there’s no impact on your credit score.
- You can set your own credit limit by making a refundable deposit ranging from $200 to $3,000.
- OpenSky® reports your activities to credit bureaus including Equifax®, Experian® and TransUnion® to help you build or improve your credit score.
Pros
- No credit check required
- Helps build credit
- Low annual fee
Cons
- No introductory APR
- No rewards
- Requires security deposit
- Email Alerts: Set up email alerts as a reminder to make a payment, or when you almost use up your credit limit.
- Automatic payments: You can set up recurring automatic payments to ensure your card is paid on time.
- All benefits of a Visa®: This card comes with all the benefits of a Visa® credit card, including worldwide acceptance and fraud protection.
For other credit card alternatives, check out our guide to the best small business credit cards.
Bottom Line
The Discover it® Secured Credit Card is a great option for business owners who need to build or improve their credit. This card is best if you’re a contractor, run a delivery service, or are always on the road because it offers 2% cash back rewards on gas station and restaurant purchases. If this card isn’t for you, visit our Credit Card Marketplace to find other more suitable options.
