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, charges a $0 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.
Discover it® Secured
BEST FOR:
Business owners who need help rebuilding credit
- 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% annual percentage rate (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
- 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% annual percentage rate (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 | 18 | 25 |
Ongoing Rewards | 7 | 10 |
Introductory Rewards | 0 | 10 |
Security Deposit | 8 | 10 |
Other Fees | 8 | 10 |
Introductory APR | 2 | 5 |
Additional Features | 3 | 5 |
Total Score | 71 | 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: This card requires you 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: This card lets you earn 2% back on up to $1,000 in purchases from gas stations and restaurants per quarter, then 1% thereafter.
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
- Cashback Match: Get an unlimited dollar-for-dollar match of all the cash back earned at the end of your first year automatically
Discover it® Secured Credit Card Calculator
Based on your monthly expenses, determine the estimated annual cash back value from a Discover it® Secured Credit Card. In our rewards calculator, enter your expected monthly spending to compute your potential rewards.
How To Redeem Discover it® Secured Credit Card Rewards
Earned cash back will never expire so long as your account is active. You can receive your earned cash back as credit to your account. You can also use your earned rewards to pay for your purchases made in Amazon and PayPal.
Discover it® Secured Credit Card Features
Cardholder security
- Online privacy protection: Be assured that Discover it® will remove personal information from selected people-search sites that may sell your data. Note that this can be activated through the Discover mobile app.
- Zero fraud liability: Receive protection 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.
- Free social security alerts: Be secured as Discover it® offers daily monitoring on your Experian® credit report and thousands of Dark Web sites that reveal your personal information.
Cardholder services
- Free access to FICO credit scores: View your FICO® credit score, key factors, and other credit information are available on Discover.com and your statement. Note that your credit scores were created based on data from TransUnion® and may differ from credit scores and credit information provided by other bureaus.
- Automatic monthly account reviews: Secure automatic monthly account reviews after seven months of card ownership and see if you qualify to be upgraded to an unsecured business credit card—which will give your deposit back.
- Free overnight card replacement: Get 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 Fees
APRs
- Introductory: None on purchases; 10.99% for balance transfers is applied for the first six months from the date of first transfer Note that the transfer must be posted to your account by June 10, 2024.
- Ongoing and balance transfers: 28.24% variable, which adjusts with the prime rate (with a minimum interest charge of no less than $0.50)
- Cash advance: 29.99% variable, which adjusts with the prime rate
- Penalty: None
Fees
- Annual: $0
- Balance transfer: Intro fee of 3% of the amount of every transfer that’s posted to your account by June 10, 2024, 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. 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.
- Phone: Call (800) DISCOVER or (800) 347-2683 at any time, enter the last four digits of your card number, and follow the prompts.
- 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 Alternatives
Valley Visa® Secured Business Credit Card
Discover it® Secured Credit Card does not have a 0% introductory period on purchases. If this is a feature you need, consider the Valley Visa® Secured Business Credit Card as it offers a 0% introductory period on purchases and balance transfers for the first six billing cycles.
Valley Visa® Secured Business Credit Card
BEST FOR:
Those who need a secured business credit card with fixed-rate cash back rewards
- 1% unlimited cash back on all purchases
Pros
- Customers with limited credit history or credit issues can still qualify
- Offers 0% APR on both purchases and balance transfers for six billing cycles
- $0 annual fee
- Offers 1% unlimited cash back on all purchases
Cons
- Credit limits are up to $25,000 only
- Requires a security deposit equivalent to 110% of requested credit limit
- Up to 25 free employee cards only
- Online account access
- Immediate fraud protection alerts for suspected fraudulent transactions
- Visa purchase alerts
- The card reports account information and transactions to major credit bureaus each month, helping users build credit with responsible use
- 1% unlimited cash back on all purchases
Pros
- Customers with limited credit history or credit issues can still qualify
- Offers 0% APR on both purchases and balance transfers for six billing cycles
- $0 annual fee
- Offers 1% unlimited cash back on all purchases
Cons
- Credit limits are up to $25,000 only
- Requires a security deposit equivalent to 110% of requested credit limit
- Up to 25 free employee cards only
- Online account access
- Immediate fraud protection alerts for suspected fraudulent transactions
- Visa purchase alerts
- The card reports account information and transactions to major credit bureaus each month, helping users build credit with responsible use
Coast Fuel Card
While the Discover it® Secured Credit Card offers cash back on purchases made at gas stations, there is a cap for each quarter. We suggest the Coast Fuel Card as an alternative as you can receive rebates on gas stations, cash back on all other purchases, and discounts on notable brands and applications.
Coast Fuel Card
BEST FOR:
Businesses with small to large fleets
- Up to 6 cents off per gallon at 5,000 gas stations and 2 cents off per gallon everywhere else
- 1% back on non-fuel purchases
Pros
- Universally accepted fleet card
- 1% cash back on nonfuel purchases
- Doesn’t require personal guarantee
Cons
- Charges monthly fees to active users
- Balance is due in full each month
- Doesn’t support cash withdrawals
- Customizable controls
- Spend reports
- Exclusive discounts from large partner networks
- Integrations with Quickbooks, Fleetio, Samsara, Geotab, Verizon Connect, Azuga, and more
- Up to 6 cents off per gallon at 5,000 gas stations and 2 cents off per gallon everywhere else
- 1% back on non-fuel purchases
Pros
- Universally accepted fleet card
- 1% cash back on nonfuel purchases
- Doesn’t require personal guarantee
Cons
- Charges monthly fees to active users
- Balance is due in full each month
- Doesn’t support cash withdrawals
- Customizable controls
- Spend reports
- Exclusive discounts from large partner networks
- Integrations with Quickbooks, Fleetio, Samsara, Geotab, Verizon Connect, Azuga, and more
Emburse Spend Card
Discover it® Secured Credit Card charges interest rates and requires a security deposit of up to $2,500. If you do not want to incur credit card debt, we recommend the Emburse Spend Card as the funds loaded up to your Emburse Spend Account can be used for your business transactions.
 Emburse Spend CardBEST FOR: Earning unlimited cash back rewards | |
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Frequently Asked Questions (FAQs)
Yes, card issuers will pull a hard inquiry on your credit report when applying for a secured credit card.
Discover it® does not have physical branches where you can make business transactions.
In February 2024, Capital One announced that it was setting up to acquire Discover Financial Services in a $35.3 billion all-stock deal. While this was already noted by the Wall Street Journal, there are no final announcements on whether the acquisition will push through.
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.
