Discover it Secured Credit Card

This is the rare secured card that actually pays rewards: 2% at gas and restaurants (on up to $1,000 combined each quarter) and 1% elsewhere, doubled by the first-year Cashback Match, so rebuilders aren't earning nothing while they repair credit. Automatic reviews start around month 7 to graduate you to an unsecured card and refund the deposit, which beats most secured cards that trap your money indefinitely. The deposit (typically $200 minimum) and a high ~28% APR mean you should pay in full monthly. Discover's overseas acceptance is limited, so don't rely on it abroad; verify the deposit and graduation terms on Discover's site.

Discover it Secured Credit Card at a glance

Rewards & perks

• Earns cash back, which is rare for a secured card
• Automatic monthly reviews kick in around month 7 to move you up
• The security deposit is refundable

Pros

• Carries no yearly fee
• Earns rewards plus the Cashback Match
• Reports to all three bureaus

Cons

• A refundable deposit is required
• A high ongoing APR
• Discover sees less acceptance overseas

Who should apply

• A refundable security deposit, usually $200 at minimum
• A U.S. Social Security number
• A bank account to cover the deposit

Before you apply: card terms change often. Confirm the current annual fee, APR, welcome offer and rewards on the official Discover site. CreditCardCompare is an independent comparison resource, not the card issuer, and this is not financial advice.