Since December, 2013 – Discover has been experimenting with offering a secured credit card. We’ve finally been able to find out some more information about the Discover Secured Credit Card and it looks like it’ll easily become the best secured card on the market, eclipsing our current favorite Harley-Davidson® Visa® Secured Card.
Quick Look At The Discover Secured Card
- No annual fee
- 1% cash back on all purchases with 5% rotating categories
- Reports to all three credit bureaus
- Security deposit of $200-$2,500, this is set at the time you apply and it’s not possible to add funds to increase the credit limit
- Free FICO score (version is TransUnion 2008 classic score)
- Doesn’t report as a secured card
- Conflicting reports about whether this card graduates to an unsecured card or not
- No interest earned on security deposit
- Unsure if this card is eligible for the $150 sign up bonus or 0% intro APR
- 10.99-22.99% APR
All the terms and conditions for this card are the same as the regular Discover it card, the only difference is that a security deposit is required, whatever the security deposit is, that’s what the credit limit will be.
Apply For The Discover Secured Card
Unfortunately applying for this card is far from straight forward. It’s not possible to directly apply for this card currently, the only way to get offered this card is to apply for one of the Discover products which is publicly available, for example:
If you’re denied for either of these cards you MAY be eligible to apply for the secured version of this card. We’re unsure what triggers the secured offer for Discover but it’s likely they are testing out the secured market and will hopefully offer this to the general public soon.
If you apply for one of the regular Discover cards and get denied, going the secured route is a great option if you’ll never be approved for an unsecured card. It has by far the best rewards program out of the secured cards, no annual fee and it reports to all three bureaus. The only downside is that it’s not possible to add funds to the card to increase the credit limit and it may not graduate to an unsecured card. Hopefully Discover iron out all of these details before the card goes fully public.
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Great to see a 5% cashback possible on a secured card. I just got a mail credit card offer for Discovery IT but I know my credit isn't more than 4 months old so this looks like a great fallback if I don't get an unsecured.