Discover it® Secured Credit Card Review – Is It Best for you
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Discover it® Secured Credit Card
This card is a card that can be used to build credit when you use it wisely. You will receive 10.99% introductory APR on balance transfers for six months starting from the date of your first transfer ( 23.99% alterable APR later).
Regular credit card is said to have a high credit limit than the secured credit card that requests for a security deposit. The secured credit card may be an efficient tool which will help you to build your credit when they are used wisely. So the Discover it® Secured Credit Card is a good option if you wish to build credit, which then helps you to become eligible for traditional and insecure cards.
Facts and Highlights
- It has no annual fee.
- You are to pay a minimum security deposit of $200.
- Purchases APR is 23.99%, but it is unsteady.
- You get 2% rewards after making a combined purchase of $1,000 at gas stations every quarter and in the restaurant, 1% reward on every other purchase.
- You will receive 10.99% introductory APR on balance transfers for six months starting from the date of your first transfer
Good Points of The Discover it® Secured Credit Card
- Using this card, you will receive a 2% rewards after making a combined purchase of $1,000 at gas stations every quarter, restaurant and 1% reward on every other purchase. And all the cash back gotten in the first year will be added to your card.
- Also, you will have to pay no annual fee therefore, you will be able to build your credit with no added cost.
- In addition, Discover will check your account monthly once it is up to 8 months, to see if they deposit you paid can be given back to you. So, you are to make your payments complete and early as this shows an excellent credit card behavior and could make you eligible to get your deposit back.
- Surprisingly, Discover gives you your FICO® credit score together with your monthly statement. Or simply get it using your online account and on Discover’s mobile app.
Why You are Required to Pay Deposit.
Paying the security deposit is a must since you have poor or limited credit. This is because giving you a credit card is like taking a risk, so the issuer will request for a security deposit which is equivalent to your credit limit on this card to protect itself. That is covering up for their losses whenever you default. Know that the deposit you make will determine your credit limit you are given for this card.
Things to consider before you apply for this credit card.
Your credit limit will be determined using your income and your ability to pay back. And you are to increase your security deposit if you wish to make larger your credit limit after your first monthly statement. This credit card has its maximum credit limit as $2,500.
I advise that you should be very mindful of the way you use your credit card because the variable purchase APR for this card is 23.99% which is high. One thing you must do is to try to pay off your balance early and fully every month to escape interest charges.
To Apply for the Card
- Go to the card’s webpage
- Click on the Apply Now Tab
- on the subsequent pages fill in all the necessary details required to complete the application.
- once you are done wait to receive a confirmation that your application was successful.
How to get the best out of the Discover it® Secured Credit Card
- You are to be mindful of the unsteady purchase APR of 23.99% and it’s $2,500 high credit limit. Because maxing out your credit card may bring about a high credit utilization rate and a prolonged interest fee which can affect your credit scores.
- Another thing is to use the credit card wisely: that is making sure you complete your payments early.
Comparing the Discover it® Secured Credit Card with other cards.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is a card that has no annual fee, has an unsteady APR of 24.74% basically for balance transfer and purchases, and demands a minimum security deposit of $200. Also, it does not give cash back or any of its kind just as the Discover it® Secured Credit Card do give.
Capital One® Secured Mastercard®
This card demands no annual fee and surprisingly it increases your credit line when your first five monthly payments are paid on time.
Unlike the Discover it® Secured Credit Card that you will have to make a call for them to do that for you. Notwithstanding the fact that you might not be approved for it.
It is a credit card that demands a security deposit of $49, $99, or $200. Although it’s a minimum security deposit of $200 gives you the lowest credit limit. But the maximum is $1,000.
How to know if the Discover it® Secured Credit Card is the right choice for you.
- This credit card company sends information about your account to the three major credit bureaus and this can help in building your credit if it is used wisely.
- Do not forget the cash back given after purchases.
- In a situation whereby you were not approved for the credit card, Discover will give you the reasons why this happened and you will be able to concentrate on credit issues like avoiding late payment, removing errors on your credit report and clearing your large balances on other credit cards.