Pros

Helps Build Credit: This secured credit card reports to all three major credit bureaus, helping users establish or rebuild their credit.

Cashback Rewards: Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases.

No Annual Fee: The Discover it® Secured Credit Card has no annual fee, keeping costs down for cardholders.

Refundable Security Deposit: Users can graduate to an unsecured card after 7 months of responsible use, and their security deposit will be refunded.

Cons

Security Deposit Required: Users must provide a security deposit of at least $200 to open an account.

Limited Rewards Categories: The 2% cashback rate is only applicable to gas stations and restaurants, up to $1,000 in combined purchases each quarter.

No Intro APR: The card does not offer an introductory APR on purchases or balance transfers.

High Regular APR: The ongoing APR for this card is 27.74%, which can be costly if cardholders carry a balance.

Why Choose It

The Discover it® Secured Credit Card is an ideal choice for those looking to build or rebuild their credit while enjoying cashback rewards. With no annual fee and the ability to earn cash back on purchases, this card offers value beyond just credit-building. Although it requires a security deposit, responsible use can lead to graduation to an unsecured card and refund of the deposit after 7 months. While the rewards categories are somewhat limited and the card lacks an intro APR offer, the overall benefits make this card a solid choice for individuals seeking to establish a strong credit foundation while earning rewards on everyday spending.