Discover it® Secured Credit Card is designed for business owners who need to build credit and can make a security deposit of anywhere from $200 to $2,500. It offers cash back on your purchases without charging an annual fee and can help you improve your credit score if you use it responsibly, as Discover reports payment and usage history to the major credit bureaus.
If you wish to compare one card over another, select a maximum of three cards on this page and click Add to compare to view the details in a side-by-side comparison.
Discover it® Secured
BEST FOR:
Business owners who need help rebuilding credit
Intro APR
N/A
Regular APR
28.24% 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: Equifax, Experian, and TransUnion.
- 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 each quarter. In addition, earn an unlimited 1% cash back on all your other purchases―automatically
- Get 100% US-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
- With cash back rewards for new and existing cardholders
- Does not charge annual fees
- Offers automatic monthly account review
Cons
- No 0% APR period on purchases and balance transfers
- High ongoing APR
- Updated FICO credit scores: You can get FICO® credit score, key factors, and other credit information on Discover.com and your statement.
- Data privacy: Remove personal information from selected people-search sites that may sell your data.
- Freeze it®: Freeze your account within seconds in the event you have misplaced your physical card
Intro APR
N/A
Regular APR
28.24% 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: Equifax, Experian, and TransUnion.
- 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 each quarter. In addition, earn an unlimited 1% cash back on all your other purchases―automatically
- Get 100% US-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
- With cash back rewards for new and existing cardholders
- Does not charge annual fees
- Offers automatic monthly account review
Cons
- No 0% APR period on purchases and balance transfers
- High ongoing APR
- Updated FICO credit scores: You can get FICO® credit score, key factors, and other credit information on Discover.com and your statement.
- Data privacy: Remove personal information from selected people-search sites that may sell your data.
- Freeze it®: Freeze your account within seconds in the event you have misplaced your physical card
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 | 5 |
Total Score | 79 | 100 |
Who the Discover it® Secured Credit Card Is Best For
- Those 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.
- Those with cash reserves of at least $200: You’re required to make a security cash deposit ranging from $200 to $2,500 to qualify for the card.
- Those who spend up to $1,000 on gas and dining each quarter: You’ll earn 2% cash back on up to $1,000 in purchases from gas stations and restaurants per quarter, then 1% thereafter.
See our recommended alternatives below if this card isn’t the best fit for your business.
Discover it® Secured Credit Card Fees
APR
- Introductory on purchases: None
- Introductory on balance transfers: Introductory APR of 10.99% is applied for balance transfers for the first six months from the date of the first transfer (note that the transfer must be posted to your account by Sept. 10, 2023)
- Ongoing and balance transfers: 27.99% variable, which adjusts with the prime rate
- Cash advance: 29.99% variable, which adjusts with the prime rate
- Penalty: None
Fees
- Minimum interest charge: No less than 50 cents
- Annual: $0
- Balance transfer: Intro fee of 3% of the amount of every transfer that’s posted to your account by Sept. 10, 2023, with the 10.99% intro APR balance transfer offer indicated above; after that, 5% of the amount of each transfer
- Cash advance: Either $10 or 5% of the amount of each cash advance, whichever is greater
- Late payment: None for the first time you pay late; up to $41 thereafter
- Returned payment: Up to $41
Your due date is at least 25 days after the close of each billing period and at least 23 days for billing periods that begin in February.
- Online: Just log in to your Discover it® 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.
- Discover mobile app: You can use the Discover mobile app to make on-the-go payments. Alternatively, you can text “APP” to DISCOV (347268) to download the app on your device.
- Phone: Call (800) DISCOVER or (800) 347-2683 at any time, enter the last four digits of your card number, and follow the prompts to make your payment.
- DirectPay: Discover debits your payment automatically from your bank account each month so that you don’t have to. This can be set up online or by phone.
- Check by mail: Send a check or money order to:
Discover Financial Services
PO Box 6103
Carol Stream, IL 60197
Discover it® Secured Credit Card Rewards
- Cashback Match: Get an unlimited dollar-for-dollar match of all the cash back earned at the end of your first year automatically
- 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
You can redeem your cash back for the following: statement credit, electronic deposit, pay with cash back bonus, gift cards, and as a donation to any charitable institution. Your cash back rewards never expire and can be used to check out Amazon purchases or pay with PayPal.
Cash Back Rewards Explained
To calculate the cash back rewards cardholders earn when using the card, let’s assume that the annual spending in gas stations and restaurants is $5,000, and a total of $20,000 in annual spending on all other purchases. The breakdown of the rewards that cardholders can earn is as follows:
- Earn $80 after maxing out the quarterly earnings for gas stations and restaurants, which is currently $1,000 per quarter ($4,000 per year).
- The rest of the annual spending, which is at $21,000, will give cardholders an additional cash back earning of $210.
The cardholder will earn a total of $290 in combined cashback earnings. For new cardholders, this will be doubled through Cashback Match—making their total first-year rewards total to $580.
Discover it® Secured Credit Card Features
Cardholder Security
- Online privacy protection: Discover it® gives you the liberty to remove personal information from selected people-search sites that may sell your data. This can be activated through the Discover mobile app.
- Zero fraud liability: Cardholders are protected against unauthorized purchases made on their credit card through its $0 fraud liability.
- Freeze it®: Freeze your account within seconds in the event you have misplaced your physical card. This can be activated through Discover’s website and mobile app.
- Discover® identity alerts: Discover bank offers daily monitoring on your Experian® credit report and thousands of Dark Web sites that reveal your personal information.
Cardholder Services
- Updated FICO Credit Scores: 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.
- Automatic Monthly Account Review: After seven months of card ownership, Discover will begin automatic monthly account reviews to see if you qualify for a standard, unsecured credit card. It will refund your security deposit if you have made all payments on time for the last six billing cycles.
- Free overnight card replacement: Discover offers free overnight shipping for card replacements. Note that this does not apply to post office boxes or addresses outside the United States.
Discover it® Secured Credit Card Alternatives
First National Bank of Omaha Business Edition® Secured® Mastercard®
First National Bank of Omaha Business Edition® Secured Mastercard® Card
BEST FOR:
Secured credit lines of as much as $100,000
Intro APR
None
Regular APR
APR: 25.99% variable
Annual Fee
$39
Credit Needed
Very Poor to Good
- While FNBO does not offer any rewards for their new and existing cardholders for this card, you can still earn rewards through Mastercard Easy Savings®, where cardholders are able to save on purchases with automatic rebates from over 40,000 participating merchant locations available.
Pros
- Available for those with very poor to good scores
- Can set credit limits between $2,000 and $100,000
- Offers free management reports
Cons
- With annual fee
- Charges foreign transaction fee
- No introductory and ongoing rewards
- Requires a security deposit of 110% of the credit limit required
- TurboTax discount: Get a discount of up to $20 on TurboTax federal products when using First National Bank of Omaha Business Edition® Secured Mastercard®.
- QuickBooks Online or QuickBooks Self-Employed discount: Receive either a 30% off of a 12-month subscription on QuickBooks Online (Simple Start, Essentials, Plus, or Advanced) or a 30% off of a 12-month subscription on QuickBooks Self-Employed. This is applicable only to new QuickBooks Online customers.
- Free management reports: First National Bank of Omaha provides free management reports to help track expenses, monitor spending, note tax deductions, prepare tax filings, and predict costs easily.
- Zero liability: FNBO guarantees that you won’t be held responsible for any fraudulent charges made with both your card and account information.
Intro APR
None
Regular APR
APR: 25.99% variable
Annual Fee
$39
Credit Needed
Very Poor to Good
- While FNBO does not offer any rewards for their new and existing cardholders for this card, you can still earn rewards through Mastercard Easy Savings®, where cardholders are able to save on purchases with automatic rebates from over 40,000 participating merchant locations available.
Pros
- Available for those with very poor to good scores
- Can set credit limits between $2,000 and $100,000
- Offers free management reports
Cons
- With annual fee
- Charges foreign transaction fee
- No introductory and ongoing rewards
- Requires a security deposit of 110% of the credit limit required
- TurboTax discount: Get a discount of up to $20 on TurboTax federal products when using First National Bank of Omaha Business Edition® Secured Mastercard®.
- QuickBooks Online or QuickBooks Self-Employed discount: Receive either a 30% off of a 12-month subscription on QuickBooks Online (Simple Start, Essentials, Plus, or Advanced) or a 30% off of a 12-month subscription on QuickBooks Self-Employed. This is applicable only to new QuickBooks Online customers.
- Free management reports: First National Bank of Omaha provides free management reports to help track expenses, monitor spending, note tax deductions, prepare tax filings, and predict costs easily.
- Zero liability: FNBO guarantees that you won’t be held responsible for any fraudulent charges made with both your card and account information.
- Is best for those needing an alternative secured business credit card with a credit limit of anywhere from $2,000 to $100,000
- Requires a security deposit of 110% of the amount of your credit limit
- Charges an annual fee of $39
- Does not offer rewards for new and existing cardholders
- Is in our roundup of the:
- Best secured business credit cards
- Best business credit cards with instant approval
- Best business credit cards for fair credit
- Best business credit cards for bad credit
- Best high-limit business credit cards
- Best sole proprietorship business credit cards
- Best business credit cards with instant approval
- Best credit cards for new businesses with no credit history
Capital One® Spark® Classic for Business
Capital One® Spark® Classic for Business
BEST FOR:
Those with fair credit
Intro APR
N/A
Regular APR
30.74% variable
Annual Fee
$0
Credit Needed
Fair
- 1% cash back every time you swipe
- Build your business credit through responsible usage
- Issue employee cards for free
Pros
- Opportunity to build business credit
- Only requires fair credit to qualify
- Doesn’t charge annual and balance transfer fees
Cons
- Charges high ongoing APR
- Has no 0% introductory APR
- No sign-up bonus
- Automatic payments: Setting up AutoPay in the Capital One mobile app will save you from having to worry about signing in to your account every month
- $0 fraud liability: If your card is either lost or stolen, you can get an emergency replacement and cash advance.
- Purchase records: You can download all purchase records quickly and securely in multiple formats, including Quicken®, QuickBooks®, and Excel®.
- Extended warranty: Get free additional warranty and protection on eligible items purchased with your business credit card.
- Free employee cards: You can create multiple employee cards, track employee spending, and customize spending limits while earning all the rewards from their purchases.
Intro APR
N/A
Regular APR
30.74% variable
Annual Fee
$0
Credit Needed
Fair
- 1% cash back every time you swipe
- Build your business credit through responsible usage
- Issue employee cards for free
Pros
- Opportunity to build business credit
- Only requires fair credit to qualify
- Doesn’t charge annual and balance transfer fees
Cons
- Charges high ongoing APR
- Has no 0% introductory APR
- No sign-up bonus
- Automatic payments: Setting up AutoPay in the Capital One mobile app will save you from having to worry about signing in to your account every month
- $0 fraud liability: If your card is either lost or stolen, you can get an emergency replacement and cash advance.
- Purchase records: You can download all purchase records quickly and securely in multiple formats, including Quicken®, QuickBooks®, and Excel®.
- Extended warranty: Get free additional warranty and protection on eligible items purchased with your business credit card.
- Free employee cards: You can create multiple employee cards, track employee spending, and customize spending limits while earning all the rewards from their purchases.
- Is best suited if you have fair credit and do not want annual, balance transfer, and foreign transaction fees
- Lacks 0% introductory APR for purchases and balance transfers
- Lets you earn unlimited 1% cash back on all purchases, with no minimum to redeem
- Is in our guides to the:
- Best business credit card for fair credit
- Best business credit cards for consultants
- Best cash back business credit cards
- Best business credit cards for startups
- Best business credit cards for nonprofits
- Best business credit cards for travel
- Best sole proprietorship business credit cards
- Best credit cards for self-employed
- Best business credit cards with no foreign transaction fees
- Best business credit cards with no annual fee
- Best credit cards for new businesses with no credit history
Emburse Spend Card
- Is a great option for those wanting a business prepaid card with rewards
- Offers unlimited 1% cash back on all purchases
- Does not charge fees for domestic transactions and adding virtual and physical cards
- Lets you deposit up to a maximum of $100,000
- Is on our lists of the:
You can also head over to our review of the best small business credit cards for more options.
Bottom Line
Discover it® Secured Credit Card is a great option for business owners who need to build or improve their credit, spend up to $1,000 on gas and dining each quarter, and have cash reserves of at least $200 given the cash deposit requirement.
