Discover it Secured Cash Back Review: Double Your Cash Back While Building Credit
The Discover it Secured Cash Back card truly stands out, offering impressive rewards like 5% cash back that Discover effectively doubles in your first year. It's a powerful tool to build or rebuild credit while earning significant cash back, all with no annual fee.
| Annual Fee | $0.00 |
| Sign-up Bonus | Unlimited dollar-for-dollar cash back match. |
| Rewards Rate | 5% and 1% cash back. |
Overview
The Discover it Secured Cash Back card stands out by offering a rewards program that rivals many unsecured credit cards, making it a top-tier choice for building credit. Cardholders can earn an impressive 5% cash back on rotating quarterly categories like gas stations, restaurants, and grocery stores (on up to $1,500 in quarterly purchases upon activation), plus 1% on all other purchases. The real game-changer is Discover's first-year bonus: an unlimited, dollar-for-dollar match of all the cash back you've earned. This effectively doubles your rewards in the first 12 months, all with no annual fee.
As a secured card, its primary purpose is to help those with poor or no credit history establish a positive payment record. You'll provide a refundable security deposit (starting at $200) which typically becomes your credit limit, and Discover reports your account activity to the three major credit bureaus. This accessibility, combined with user-friendly features like free FICO score access, makes it an excellent educational tool for managing credit responsibly. After demonstrating reliable use, many cardholders are able to graduate to an unsecured Discover card and have their deposit refunded.
For anyone starting their credit journey or looking to recover from past financial missteps, the Discover it Secured Cash Back is hard to beat. It removes the typical trade-off between building credit and earning valuable rewards. If you want a low-cost card that not only helps you improve your credit score but also pays you back for your spending, this card should be at the top of your list.
Pros & Cons
What's great
- No annual fee
- Generous sign-up bonus
- Cashback on purchases
- Rotating bonus categories
- Low credit score requirement
Things to consider
- No intro APR period
- Requires a security deposit
Benefits
Outstanding Rewards on a Secured Card
The Discover it® Secured Cash Back card stands out by offering a rewards program that is exceptionally rare in the secured card market. You'll earn an impressive 5% cash back on everyday purchases at different places each quarter—such as gas stations, grocery stores, or restaurants—up to the quarterly maximum when you activate. All other purchases automatically earn an unlimited 1% cash back. This structure allows you to maximize earnings on common spending categories, a feature typically reserved for more premium, unsecured credit cards.
A Unique and Valuable Sign-Up Bonus
What truly sets this card apart is its sign-up bonus. Instead of a standard one-time bonus, Discover offers an unlimited dollar-for-dollar match of all the cash back you earn at the end of your first year. There's no cap on how much they'll match, which effectively doubles every reward you earn for the first 12 months. This turns the 5% rotating categories into a massive 10% back and the 1% base rate into 2% back. For a no-annual-fee card designed to build credit, this bonus provides an unparalleled return on your spending.
Drawbacks
As a secured credit card, its primary requirement is a refundable security deposit, which you must provide upfront to open the account. This deposit typically sets your credit limit, and while it's returned to you if you graduate to an unsecured card or close the account in good standing, it does mean your own cash is tied up for the duration you hold the card. For those with limited available funds, this could be a significant barrier to entry.
This card is also not a good choice for anyone who plans to carry a balance. It has a high regular APR and does not offer an introductory 0% APR period on purchases or balance transfers. Any balance that isn't paid in full each month will start accruing interest immediately, which can quickly outweigh the value of the cash back rewards you earn.
Finally, to get the most value out of the rewards program, you'll need to be proactive. The 5% cash back categories change every three months and require you to activate them online. If you forget to opt-in for a quarter, you'll only earn 1% back on those purchases. This hands-on approach may not appeal to everyone, especially those who prefer a simpler, flat-rate rewards structure that doesn't require tracking categories or activation deadlines.
Decision Guidance
This card is an excellent fit for those with limited or poor credit who want to earn rewards while they build a positive payment history. Its generous cash back program and first-year bonus are exceptional for a secured card, making the required security deposit a worthwhile investment for improving your credit without an annual fee.
Summary
The Discover it Secured Cash Back is an exceptional choice for building credit, offering a robust rewards program that is virtually unheard of in the secured card market. With valuable rotating 5% categories and a full first-year Cashback Match, this card eliminates the typical trade-off between establishing a positive credit history and earning significant rewards. For those who can provide a security deposit, it offers an unmatched combination of value and credit-building potential without an annual fee.