Discover it Secured Credit Card Reviews - What Is It?
WARNING: DO NOT BUY Discover it Secured Credit Card Until You Read This Review!
Is it a Scam? Does It Really Work?
Like other secured credit cards, the Discover it Secured Credit Card has no annual fee; however, it requires cardholders to deposit at least $200. The deposit is held by Discover as collateral against money you borrow on the card. What differentiates it from most other secured cards is the rewards it offers. Thus, you can earn 2% back on up to $1,000 while spending money on restaurants and gas stations each quarter, for as much as $80 a year. And you can earn 1% back on all other purchases. As it was already mentioned, the annual fee is absent. In addition, there is a sign-up bonus. You can automatically get a dollar for each dollar of all the cash you have earned at the end of your first year. Another thing that sets Discover it Secured Credit Card apart from other cards is that eight months after you open the account, your account will be reviewed regularly to check whether you are able to get an unsecured card with more rewards. You are going to like this deal. In order to know more about this card, let us take a look at some other benefits it offers, as well as at the real customers' reviews left online.
Customer Reviews - Does Discover it Secured Credit Card Really Work?
There are many actual cardholders' testimonials about their experience of using the card online. They carry a mixed character, which means that there are both positive and negative opinions. At first, let us take a look at what people like about the Discover it Secured Credit Card. The first thing that attracts new cardholders is an opportunity to benefit from rewards on a secured credit card; however, it is difficult for people with bad credit to receive a rewards credit card. Discover has made it possible, though. They pay 2% cash back on restaurant and gas purchases on up to $1,000 (at least $20 per quarter) and 1% on other purchases. You can get double cash back after the first year of using the card. There's no bonus cash back later on, but you are still promised to earn rewards regularly. By the end of the second year, you will have a chance to get a better card that pays up to 5% on quarterly rotating categories.
Be aware of the fact that your deposit is your credit limit; however, you will need to pay at least $200 of deposit for a $200 credit limit. Maximum deposit is $2,500. You can use the security deposit only if you default on your credit card. In other cases, you will get your deposit back after closing your account or converting your card to an unsecured credit card. You will be qualified for an unsecured credit line after a year, thus, you are advised to use your credit card correctly. Ensure that you make your credit card payment on time to avoid problems with Discover. Subsequent late payments will be charged up to $35 late fee. What is good is that there is no penalty APR. It is quite easy to monitor your credit score. You can get a free FICO score on your credit card billing statement monthly. There is no need to sign up for additional services or pay a monthly fee. You will see the score automatically, which is vital for consumers trying to rebuild their credit. Your credit score will improve if you handle your credit card responsibly and make your payments on time. Here is a less optimistic story of one of the cardholders of the Discover it Secured Credit Card.
The man writes in his testimonial that he had secured credit card with Discover. As soon as he applied he was said to pay $200 of deposit. Just several months before his second year anniversary he made a payment. His balance reflected $200. According to his words, he always spent $200 and paid it back before the 2nd of each month (on his due date). Once he used the card his balance became $402. Once the cardholder had an issue with is bank and made the payment a little bit later, but he called Discover to warn them about that. The customer service representative told the man that his account would be fine because he had a wonderful payment history. The man was shocked to see that his secured payment was applied to the account and his card had been closed. They also had closed his secured account. The cardholder called 18003470261, complained of what has happened to him and all the customer representatives could tell him that they were concerned about his story after he had been with them for more than two years. The man felt really disappointed. Here are some of the actual customers' reviews found online.
"I got my DiscoverIt Secured Credit Card in May of 2016 in order to build a good credit history when I had none. I had always used cash to pay for everything. In this period of time I also had got two other non-secured cards. I used to pay the balance in full on all three cards on a monthly basis. Signing up for this card gave me a 12 month probation period to receive my money back. I believed their promises after reading a few reviews where other clients had received their deposit back really soon. The probation period was just seven months at that time. It's been 16 months already but they still hold my deposit. I call them regularly but I am never explained anything. I am close to closing the account and dealing with my other two cards. These have a higher limit"
"I have had Discover it Secured CreditCard for 16 months and an increase of more than 100 points on my credit score but I still haven't been provided with an unsecured card. I am still waiting for my deposit back. The cash back match money I gathered has simply disappeared. I used to pay in full every month and saw that my last four or five payments were taken from my bank account but were not credited to card for 10 days. No other card I have had has ten-day hold on its crediting account. I am not going to use this card anymore"
"I have had the Discover it Secured credit card since June of 2016. It's been 14 months of having the card. Today I called them to see when they would provide me with a non-secure card but I didn't get an exact answer. I have always made my payments on time every month and I have never missed a payment. In the past half a year I have been issued a non-secure card from Capital one and Navy Federal Credit Union. On both cards I have great credit scores. I don't understand why Discover refuses to issue me a non-secure card. They do not want me to cancel my card either"
My Final Summary
Discover it Secured Credit Card has a great number of drawbacks. The first one concerns security deposit. Being a secured credit card, it requires a security deposit of minimum $200 when a new account is created. The cardholder receives their security deposit when Discover finds the account suitable for being transitioned to a traditional credit card. The users of this card can enjoy a number of benefits but very often they are associated with some issues and concerns, as described in many customers' reviews left on third-party websites. The most common complaint is that cardholders are not given a new card with better rewards after building a great history with the first one within a year of usage. According to the Discover, Discover it Secured Credit Card is suitable for those who are building or rebuilding their credit score. One can apply for this kind of card directly through the official website. Taking into account all pros and cons, of Discover it Secured Credit Card, I cannot recommend this card to usage.
Discover it Secured Credit Card Pricing and Rates
There's no annual fee. The regular purchases APR is 23.24%. It is a lot when compared to other secured credit cards but you can avoid paying interest on your balance if you pay your balance in full regularly. The Discover it Secured Card comes with a low introductory rate on balance transfers: 10.99% for the first 6-months on transfers made by May 10, 2016. Then balance transfers get a 23.24% APR. You will be charged a 3% balance transfer fee from balance transfers. Cash advances are charged an APR of 25.24%.