When you’ve had financial issues in the past that resulted in a low credit score, it’s not easy to find a credit card. Most card issuers want you to have at least an average credit score before they’ll approve you.
The best way to improve your credit score is by using a credit card responsibly, but you can’t do that without a card. Enter the Discover it card. This is one of Discover’s premier cards, and they offer a secured version for those with bad credit. There’s no annual fee, and this is one of the few secured credit cards to earn cash back rewards. The card also has tons more benefits, and you can learn all about them in this breakdown.
Features of the Discover It Card
There is an unsecured and a secured version of this credit card, and if you have a low credit score, then you should apply for the secured version. With a secured credit card, you must pay a security deposit before you use the card. That security deposit becomes your credit limit and removes the risk on the part of the card issuer. Discover requires a minimum $200 security deposit with this card, although you can deposit much more if you want a higher credit limit.
Many credit cards, especially those that earn rewards, charge you a fee every year just for using them. That’s not the case with this card, as it has no annual fee. When it comes to cash back rewards, this card is one of the highest-earning secured credit cards. The cashback rate depends on the spending category of the purchase. Here is how much cash back you’ll earn on your spending:
• 2-percent cash back at restaurants
• 2-percent cash back at gas stations
• 1-percent cash back on all over purchases
The 2-percent cash back rates are for a combined $1,000 each quarter. If you maxed that bonus out every quarter, you’d have earned $80 cash back from that alone. By the way, Discover automatically matches all your cash back after your first year of using the credit card. If you earned $100 back, Discover is kicking in an extra $100. There are tons more benefits when you use this card, especially when it comes to building your credit. Discover allows you to check your FICO credit score free of charge every month, and you can do so on your statement, the Discover app or through your online account. This makes it easy to monitor your score. Discover also monitors risky sites and lets you know if your Social Security number pops up on any of them.
Applying for the Discover it Card
The application process for this card is quick and you can complete it on the Discover website. You’ll need to provide the type information for a credit application, including your address, your Social Security number, and your income. You need a bank account to apply for the card, and Discover will ask for your bank’s routing number and your account number when you apply. The card is intended for those who either have poor credit scores they’re looking to rebuild or those who haven’t established their credit history yet, which mean you won’t need good credit to qualify. If Discover denies your application, it will provide an explanation for that denial. After approval, you’ll need to pay the security deposit for the card. This is fully refundable, as long as you pay back whatever you spend. Credit cards usually arrive in the mail within seven to 10 business days after approval of an application.
Getting Your Security Deposit Back
There are two ways that you can get a refund on your security deposit for this credit card. Once you’ve had your Discover it secured credit card for eight months, Discover conducts a review of your account with them and any other credit card and loan accounts you have. If you’ve managed your credit well, Discover may refund your security deposit, changing your secured card to an unsecured card. The benefits will be the same.
Even if Discover doesn’t decide to refund your security deposit at this time, it will conduct reviews monthly from that point on. If you decide to close your credit card and you’ve paid off the full balance, Discover will refund the security deposit. Refund timeframes can vary, but the maximum time it will take is two billing cycles and an additional ten days. When it comes to secured credit cards, the Discover it is tough to beat. You’ll be able to start building or rebuilding your credit score while earning a great cash back rate on all your spending in the process.