Discover it® Secured: Credit Building with Cash Back
Building credit doesn't have to be dull. The Discover it® Secured card offers no annual fee and cash back rewards, but watch out for that high APR.
The Quick Version
The Discover it® Secured Credit Card is a smart pick if you're looking to build credit while earning some rewards. With no annual fee and a 2% cash back rate on gas and restaurants, it's got perks for new users. But brace yourself for a hefty 28.24% APR if you don't pay in full each month.
Discover it® Secured Credit Card overview
Discover it® Secured Credit Card
What's Inside
This card offers a 2% cash back at gas stations and restaurants, capped at $1,000 per quarter. Everything else gets you 1%. The kicker is the Cashback Match: Discover doubles your rewards after the first year. Also, there's no annual fee, but you'll need to put down a refundable security deposit to get started.
What's Actually Good
The no annual fee is a big win, making it cheaper to hold onto while you build your credit. Plus, the card is pretty accessible, even if you're starting from scratch without any credit history. And let’s not forget the Cashback Match, which effectively doubles your first-year rewards.
- ✅ No annual fee
- ✅ Earn 2% cash back on gas and dining
- ✅ Cashback Match doubles your first-year rewards
- ✅ Security deposit is refundable
The Catch
The APR is a sky-high 28.24% variable, so if you're not paying off your balance each month, you could end up in a financial bind. Plus, the 2% cash back rate is capped at $1,000 in purchases per quarter, and the 1% on everything else isn't exactly groundbreaking. Also, you need to fork over a security deposit to get started.
- ❌ High APR of 28.24%
- ❌ Cash back capped at $1,000 per quarter for 2% category
- ❌ Requires a security deposit
- ❌ Limited rewards on non-category purchases
Who It's For
If you're new to credit or rebuilding, this card is tailored for you. It's ideal for someone who spends a good chunk on gas and dining and can pay their balance in full to avoid the high interest rate. Think of it as a stepping stone to better credit.
The Bottom Line
If you're dead set on building credit while snagging some cash back, the Discover it® Secured is worth considering — just keep that APR in mind. If you're looking for a similar option without the security deposit, check out the Barclays Initial Credit Card.
