Discover it Secured Cash Back

A secured card for building or rebuilding credit that earns cash back and has no annual fee.

Who it's for

This card is for you if you're starting from zero or rebuilding after some setbacks. You put down a refundable security deposit, and Discover says a deposit as low as $49 gets you a credit line of at least $200. There's no annual fee, and unlike many secured cards, it earns rewards: 5% cash back on categories that rotate each quarter, up to the quarterly maximum when you activate, and 1% on everything else. Discover also matches all the cash back you earn in your first year.

Who should skip it

Skip it if you already qualify for an unsecured card, because you won't need to tie up a deposit. Skip it if you can't spare the deposit right now. And if you tend to carry a balance, remember that building credit is about paying on time, not about carrying debt.

How to get the most from it

Use the card for one or two small regular bills, like a phone bill or a streaming service, and pay the full balance every month on time. Keep your balance low compared with your limit; using less than 30% is a common rule of thumb, and less is better. Discover reviews secured accounts over time, and responsible use can lead to moving to an unsecured card and getting your deposit back. Check Discover's page for how that works today.

Pros

• No annual fee
• Earns cash back, unusual for a secured card
• 5% rotating quarterly categories and a first-year Cashback Match
• Deposit as low as $49 for a credit line of at least $200
• Path to an unsecured card

Cons

• Requires a security deposit
• Low starting limit
• High APR if you carry a balance

Frequently asked questions

How much deposit do you need for the Discover it Secured Cash Back?

Discover says a refundable deposit as low as $49 gets you a credit line of at least $200. A bigger deposit, made before you activate the card, gets you a higher line.

Does the Discover it Secured help build credit?

Yes. Discover reports to the credit bureaus, so paying on time every month builds your history.

Do you get your deposit back?

Discover may move you to an unsecured card after reviewing your account, and the deposit is refunded when you close or graduate the account in good standing. Check Discover's terms for details.

Does the Discover it Secured Cash Back earn rewards?

Yes: 5% cash back on categories that rotate each quarter, up to the quarterly maximum when you activate, and 1% on everything else. Discover matches all the cash back you earn in your first year.