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The Discover it® Secured Credit Card credit card is the newest card in the Discover portfolio, designed to offer consumers a way to build their credit or rebuild it after having some sort of financial issue. With this card people get many of the same benefits that come along with the Discover card, including earning 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter and 1% back on all other purchases.
A healthy credit score is important for everything from signing a lease or a mortgage to getting a loan for a car. "Discover wants to help consumers build their credit. Our experience shows that 99% of new Discover it cardmembers who didn't previously have a FICO® Credit Score received one on their Discover statements within nine months," said Ryan Scully, Discover's vice president of marketing.
How it works
For the first year of holding the Discover it® Secured Credit Card credit card people must provide a security deposit, which Discover holds as collateral. An individual's credit line is based upon how much they deposit. For instance, a $1,000 deposit results in a $1,000 credit line.
Once the first year is up, Discover will review the individual's account on a monthly basis to see if they can be moved to a non-secured account. Their decision is based upon how well the individual manages their credit cards and loans.
Discover sends reports to the three major credit bureaus for people using their Discover it® Secured Credit Card credit card, so that they build or rebuild their score across all three streams.
With this card people get 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, and they earn 1% cash back on all other purchases.
Their account also comes with free access to their credit score, so can keep track of how they are doing. They can access their score via their monthly statement or online each month.
There is no annual fee with this card, and it also comes along with $0 Fraud Liability, so if there is an issue with their card they are not responsible. If their card is lost or stolen they can use the Freeze It option to put their account on hold either via the Discover App or the website.