Discover it® Secured Credit Card Review
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.
Nancy Fernandez is a Credit Card and Insurance Expert at Fit Small Business, specializing in business credit cards and business insurance.
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 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 personal credit
Intro APR
N/A
Regular APR
25.24% 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
- Ongoing cash back
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- Updated FICO credit ccores: 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
25.24% 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
- Ongoing cash back
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- Updated FICO credit ccores: 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
How We Evaluate Secured Business 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 | 5 |
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 at least $200: You’re required to make a security cash deposit ranging from $200 to $2,500 to qualify for the card.
- Business owners 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. The card is on our roundups of the leading credit cards for bad credit and secured business credit cards for its gas station rewards.
If this card doesn’t fit your business needs, then check our guide to the best small business credit cards.
Discover it® Secured Credit Card Fees
APR
- Introductory APR: 10.99% on balance transfers for the first six months after opening an account—no introductory APR on purchases
- Ongoing APR for purchases and balance transfers: 24.49% variable, which adjusts with the prime rate
- Cash advance APR: 26.49% variable, which adjusts with the prime rate
Fees
- Minimum interest charge: No less than $0.50
- Annual fee: $0
- Balance transfer fee: Intro fee of 3% of the amount of every transfer that’s posted to your account by October 10, 2022, with the 10.99% intro APR balance transfer offer indicated above; after that, 5% of the amount of each transfer
- Foreign transaction fee: Not applicable
- Cash advance fee: $10 or 5%, whichever is greater
- Late payment fees: None for the first time you pay late; up to $41 thereafter
- Returned payment fees: Up to $41
- Due date: At least 25 days after the close of each billing period and at least 23 days for billing periods that begin in February
Discover it® Secured Credit Card Rewards
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
- Automatic unlimited 1% cash back on all your other purchases
- Automatic unlimited dollar-for-dollar match for all the cash back earned at the end of your first year
You can redeem your rewards for cash in any account at any time. Your cash back rewards never expire and can be used to either check out purchases made on Amazon or pay with PayPal.
How To Make Payments on the Discover it® Secured Credit Card
- 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, available for Apple and Android users, to make on-the-go payments. Alternatively, you can text “APP” to DISCOV (347268) to download the app on your device.
- Automatic payment: You can set up a recurring monthly automatic payment through your online banking account.
- Phone: Call (800) DISCOVER or (800) 347-2683 at any time. Discover has no pay-by-phone convenience fee.
- Check by mail: You can mail in your payment to the address written on the payment coupon at the bottom of your statement. Alternatively, you can mail your check with your account number to any of the following:
PO Box 6103
Carol Stream, IL 60197-6103
PO Box 45909
San Francisco, CA 94145-0909
PO Box 70176
Philadelphia, PA 19176-0176
PO Box 71242
Charlotte, NC 28272-1242
It should be noted that payments made before midnight Eastern time will be credited to your account that day, except for payments made on the cycle date.
Discover it® Secured Credit Card Features
Discover it® Secured Credit Card is best for business owners wanting to rebuild their credit and needing to travel for business. We categorized its features into Cardholder Security and Cardholder Services.
Cardholder Security
- Data privacy: 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 your 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 Alerts: Activate free alerts to inform you of instances of possible fraud, any new transactions that show up on your credit reports, such as credit card, mortgage, car loan, and other account, and whether your Social Security number is found on any Dark website.
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.
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 anywhere from $200 to $2,500 to qualify for this card. |
| No annual fee: The card doesn’t have an annual fee, reducing your overall credit cost. | No 0% APR period: There is no interest-free financing option for purchases or balance transfers. |
| Automatic monthly account review: After seven months of card ownership, Discover will perform a monthly review of your account automatically to see if you qualify for an unsecured credit card. | High ongoing APR: The card comes with an ongoing APR of 24.49% for both purchases and balance transfers, which is higher compared to other secured business credit cards. |
Discover it® Secured Credit Card Alternatives
Wells Fargo Business Secured Credit Card
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. It’s our leading secured business credit card and business credit card for bad credit, and it made it to our roundup of the top business credit cards for fair credit since it allows cardholders to choose either a 1.5% fixed cash back on qualifying purchases or rewards points. It should be noted that as a secured credit card, it requires a security deposit of anywhere from $500 to $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
- Businesses with low or bad credit scores can qualify
- Your choice of fixed-rate cash back or points rewards
- No annual fee
Cons
- Requires a security deposit of at least $500
- Credit limit will be based on the security deposit
- 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
- Businesses with low or bad credit scores can qualify
- Your choice of fixed-rate cash back or points rewards
- No annual fee
Cons
- Requires a security deposit of at least $500
- Credit limit will be based on the security deposit
- 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.
OpenSky® Secured Visa® Credit Card
OpenSky® Secured Visa® Credit Card from Capital Bank made it to our list of the best business credit cards for fair credit, secured business credit cards, and business credit cards for bad credit. It can help you build your credit since it reports to Equifax, Experian, and TransUnion and requires a lower security deposit of $200 to $3,000. However, it doesn’t offer any introductory and ongoing rewards.
OpenSky® Secured Visa® Credit Card
BEST FOR:
Business owners with a credit score below 580
Intro APR
N/A
Regular APR
18.89% 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
18.89% 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.
Chase Ink Business Unlimited®
Chase Ink Business Unlimited® is best if you have good personal credit but wish to build business credit and get rewards for business-related purchases. It’s our top choice for the best small business credit cards and best credit cards for new businesses with no credit history. It offers a fixed-rate cash back of 1.5% on all purchases with no spending categories and has interest-free financing on purchases for the first 12 months after opening an account.
Ink Business Unlimited® 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:
Pocketing 1.5% cash back on every single purchase
Intro APR
0% Intro APR on Purchases
Regular APR
16.24% - 22.24% Variable
Annual Fee
$0
Credit Needed
- Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring.
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
Pros
- 0% introductory APR on purchases
- Unlimited cash back rewards on all purchases
Cons
- Introductory APR period doesn’t apply to balance transfers
- 5% balance transfer fee
- Charges foreign transaction fees
- Requires excellent credit to qualify
- Auto rental collision damage waiver: Coverage is primary—meaning it replaces any coverage your personal insurance might offer—when renting for business purposes; it provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the US and abroad
- Purchase protection: Covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account per year
- Extended warranty protection: Extends the time period of the US manufacturer’s warranty by an additional year on eligible warranties of three years or less
Intro APR
0% Intro APR on Purchases
Regular APR
16.24% - 22.24% Variable
Annual Fee
$0
Credit Needed
Good, Excellent
- Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring.
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
Pros
- 0% introductory APR on purchases
- Unlimited cash back rewards on all purchases
Cons
- Introductory APR period doesn’t apply to balance transfers
- 5% balance transfer fee
- Charges foreign transaction fees
- Requires excellent credit to qualify
- Auto rental collision damage waiver: Coverage is primary—meaning it replaces any coverage your personal insurance might offer—when renting for business purposes; it provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the US and abroad
- Purchase protection: Covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account per year
- Extended warranty protection: Extends the time period of the US manufacturer’s warranty by an additional year on eligible warranties of three years or less
Bottom Line
The 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. If this card isn’t for you, visit our Credit Card Marketplace to find suitable options.
