What the Discover It Secured Card Does
The Discover It Secured card is a secured credit card that requires a cash deposit as collateral. You put money into a deposit account, and that amount becomes your credit limit—typically between $200 and $2,500. Discover reports your payments to all three credit bureaus, so on-time payments build your credit history.
The card charges an annual fee of $0 (no annual fee). You earn cash back on purchases: 2% at gas stations and restaurants for the first $1,000 per quarter (then 1%), and 1% on all other purchases. The cash back appears as a statement credit each month.
After you demonstrate responsible use—usually 6 to 18 months of on-time payments—Discover may convert your account to an unsecured card and return your deposit. You keep the cash back you earned. This is not automatic; Discover reviews your account periodically.
Key Takeaways
- Your credit limit equals your cash deposit, which stays in a deposit account while you use the card.
- You earn 2% cash back at gas stations and restaurants (up to $1,000 per quarter) and 1% on everything else.
- Discover reports to all three credit bureaus, so on-time payments build your credit score from the start.
- There is no annual fee, and Discover may convert your account to unsecured after you show consistent on-time payment.
- Your deposit is held separately and is not at risk if you miss a payment—Discover will deduct from your deposit or charge interest instead.
How to Open an Account
You can open a Discover It Secured account online at Discover.com or by phone at 1-800-347-2683. You will need a Social Security number, a valid government-issued ID, and a U.S. mailing address. Discover performs a soft credit pull (which does not affect your credit score) and a hard inquiry (which does show on your report).
Once approved, you choose your deposit amount. Discover will ask you to fund the deposit account via bank transfer or by mailing a check. The deposit must clear before your card is activated, which usually takes 3 to 5 business days after Discover receives the funds.
Your credit limit will match your deposit dollar-for-dollar. If you deposit $500, your limit is $500. You can request a higher limit later by adding more to your deposit account, though Discover will review your account first.
Using the Card and Earning Cash Back
Once activated, use the Discover It Secured card like any other credit card. You receive a physical card in the mail and can set up a digital wallet (Apple Pay, Google Pay, Samsung Pay) for contactless payments.
Cash back is automatic. At gas stations and restaurants, you earn 2% on the first $1,000 per quarter (calendar quarter: January–March, April–June, July–September, October–December), then 1% after that. On all other purchases, you earn 1%. The cash back posts to your account each month as a statement credit—you do not have to redeem it or enroll in a program.
Your monthly statement shows your balance, minimum payment due, and cash back earned. You can pay online, by phone, by mail, or through automatic payments. Paying in full each month avoids interest charges and demonstrates the responsible use that leads to conversion to an unsecured card.
Interest Rates and Fees
The Discover It Secured card has no annual fee. The variable purchase APR (annual percentage rate) is typically 18.99% to 24.99%, depending on your creditworthiness at the time you open the account. Cash advances carry a higher APR and a 3% fee. Late payments incur a late fee of up to $39.
If you carry a balance, interest accrues daily on the unpaid amount. The best way to avoid interest is to pay your full statement balance by the due date each month. If you cannot pay in full, pay as much as you can—every dollar you pay down reduces the interest you owe.
Your deposit account earns no interest. It sits in a non-interest-bearing account at Discover Bank while your card is active. When your account converts to unsecured, Discover returns the full deposit amount to you.
When Your Account Converts to Unsecured
Discover does not publish a specific timeline for conversion, but it typically happens after 6 to 18 months of on-time payments. Discover reviews accounts periodically and decides whether to upgrade you. Conversion is not may provide—it depends on your payment history, credit score, and account activity.
When Discover approves your conversion, they will notify you by mail or through your online account. Your deposit is returned to the bank account you used to fund it, usually within 5 to 10 business days. Your credit limit on the new unsecured card may be higher than your original deposit, though Discover sets this amount.
You keep all the cash back you earned while the card was secured. The card itself remains active, and you continue to earn cash back at the same rates. Your credit history with the account continues to build.
Managing Your Account Online
Log in to your Discover account at Discover.com to view your balance, make payments, set up automatic payments, and read statements. You can also see your cash back earned in real time and track your spending by category.
Discover offers a free credit score through its website—you can check your score without logging in. You also receive a free FICO score on your monthly statement. Monitoring your score helps you track progress as you build credit.
If you need to contact Discover, customer service is available by phone at 1-800-347-2683 (24/7), by chat through the website, or by mail. Discover does not charge for customer service calls or account changes.
Comparing the Discover It Secured to Other Secured Cards
The main advantage of the Discover It Secured is the cash back—most other secured cards offer no rewards. The Capital One Secured Mastercard and the Citi Secured Mastercard have no annual fee but earn no cash back. The OpenSky Secured Visa charges a $35 annual fee and also earns no cash back.
Discover's deposit range ($200–$2,500) is wider than some competitors. Capital One's range is $200–$2,500 as well, but Citi's starts at $500. If you have a smaller budget, Discover and Capital One are better options.
All three major secured cards report to all three credit bureaus and may convert to unsecured after responsible use. The choice often comes down to whether you value cash back rewards enough to offset the slightly higher APR that Discover charges.
Frequently Asked Questions
What happens to my deposit if I miss a payment?
Your deposit is not automatically used to cover a missed payment. Instead, Discover charges you interest on the unpaid balance and may assess a late fee. Your deposit remains in the deposit account. However, if your account goes to collections, Discover may use the deposit to offset what you owe.
Can I increase my credit limit without adding more money to my deposit?
Not on the Discover It Secured card. Your limit is tied to your deposit. To raise your limit, you must add more money to your deposit account. Discover will review your account before approving the increase, and the new deposit must clear before the higher limit takes effect.
How long does it take to get the card after I open the account?
Once your deposit clears and your account is activated, Discover mails your physical card. Delivery typically takes 7 to 10 business days. You can use a digital wallet (Apple Pay, Google Pay) when ready after set up if you do not want to wait for the physical card.
Will the Discover It Secured card hurt my credit score?
Opening the account triggers a hard inquiry, which may lower your score by a few points temporarily. However, the account itself helps your score over time because Discover reports your payment history to all three bureaus. On-time payments build positive credit history, which outweighs the initial inquiry impact within a few months.
Can I use my deposit as a regular savings account?
No. The deposit account is held as collateral for your credit line and earns no interest. You cannot withdraw from it while your card is active. It is separate from any savings account you may have elsewhere. When your account converts to unsecured, Discover returns the full deposit to you.