A new discover card has joined the list of the best secured credit cards.
Who should apply?
This card is designed to help consumers who are building or repairing their credit score. Applicants should expect to go through a credit check and should have a fixed source of income. Both the people are being targeted that are new to this world of credit and also people who have struggled with some issues in the past, This secured credit card was available only for online applicants who were denied for regular discover credit card. People looking for secured cards couldn’t apply directly. But now this card can be applied directly.
Here is how it works:-
- Apply and provide a deposit: – If approved, secure your line of credit with an equal deposit. That means a $250 deposit for a $250 credit line. Or $500 deposit for a credit limit of $500.
- Use your card responsible: – Make sure that all the bills are being paid in full and on time every month so that interest can be avoided on purchases.
- Repair or build credit history: – Responsible use of card may help you to build a decent credit score. Now chances are high that a regular card will replace your secured card and you will get your security deposit back.
- Reports to all the three credit bureaus.
- Reports as a secured card.
- Can graduate to an unsecured card.
- Security deposit does not earn interest.
- No annual or sign up fee.
- Rewards program earns between 1-2% cash back (doubled first year).
- Most of the time, Discover always check Equifax credit report. In rare cases, your TransUnion can be checked.
- User can earn 1% cash back on every purchase made by the card. 2% cash back at eateries or gas filling stations on up to $1000 in combined purchases each quarter.
- It is very much secured. You can freeze your account in seconds so that new purchases cannot be made.
- This card is accepted at 9.6 million merchants.
- Rewards earned on this secured card can be used at Amazon.com.
- Discover will give you free access to your FICO scores once a month.
- Cash back bonuses can be redeemed in any amount for a credit to your account, it can be deposited directly to your bank account, charitable donations or online shopping at selected retailers.
Interest rates: –
Annual Percentage Rate (APR)
Introductory APR length
Only for balance transfers, 10.99% for six months
Cash Advance APR
Minimum Interest charge
Cash Advance Fee
10% or $5, whichever is more
Balance Transfer Fee
Over the credit line
Late Payment Fee
$0 on first late payment, from second $35
Foreign Transaction Fee
A minimum security deposit is $200 and your security deposit decides your line of credit. Card provider will determine the maximum line of credit (up to $2500) by your income and ability to pay. Security amount is refundable.
There are two ways to get a refund of your security deposit: –
- Automatic monthly reviews will be started after 12 months to check if you qualify for a regular credit card after paying all the bills in full and on time each month.
- When your account is being closed and you are paying in full, your security deposit will be refunded to you. The process can take up to two billing cycles plus ten days.
After completion of a cardholder’s first year, discover will start the review process on the account. Customers who have been using the card responsibly and have a decent credit score may qualify for a regular, unsecured Discover card. Review process of Discover card will look at two things: –
(1.) Activities on secured card
(2.) How carefully customer handles his/her other loans and other credit accounts.
The card is not a good option for people with no bank accounts because customer will need to transfer money from a checking, savings or money market account.
Ratings and reviews: –
Contact information: –
- US: – 1-800-347-2683 (24/7)
- Outside US: – 1-801-902-3100 (24/7)