Discover It Secured Credit Card Vs Citi Secured Mastercard
The Discover it® Secured Credit Card is a much better offer than the Citi® Secured Mastercard®, as the latter comes with no rewards.
One possible advantage of the Citi® Secured Mastercard® is the fact that the Mastercard is generally more accepted worldwide than Discover. So, if you travel and would like to use your credit card outside of the U.S., it will likely be easier to do so with the Citi® Secured Mastercard®.
All else being equal, we recommend consumers favor the Discover it® Secured Credit Card over the Citi® Secured Mastercard® option.
This Card Is Best For
- Seeks to maximize cash back earnings across spending categoriesCash Back Strategist
- Motivated to create positive credit historyCredit Builder
This cards an excellent option if you need to establish or rebuild your credit and you spend frequently on gas and dining out, since spending on both will earn you a decent 2% in cash back. Even if you arent a big driver or diner, the 1% cash back on all other purchases can really add up, especially in your first year with the card, when these rewards are matched at the end of the initial12 months of account opening.
This card also has appeal if youre currently carrying a balance on another card with a high interest rate. If you transfer a balance during the eligibility window , you’ll receive an intro APR of 10.99% for 6 months on the balance transfer, which is almost certainly lower than what youre currently paying.
Theres also a nice, albeit modest and one-time, perk if you miss a payment on the card. The $40 fee is forgiven on your first late payment, though not the interest charges youll incur on the balance by not paying it off in full by the deadline.
Reports To All Three Major Credit Bureaus
The Discover it® Secured Credit Card reports your payments to all three major credit bureaus:
This is a key factor in choosing a credit card for rebuilding credit. Some secured cards, especially ones from small or regional banks, may not report secured bank accounts to the proper institutions in such a case, your good credit history will go unrewarded. We urge consumers to always verify whether a card reports to the credit bureaus before applying.
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Open Sky Secured Credit Card
- The Good: Deposits are $200-$3,000. This one tends to be more for those with really bad credit. Thats why theres no credit check and no checking account required to make the initial deposit or qualify. They report to all three credit bureaus.
- The Bad: Annual fee of $35, and look out for inactive late fees after the 12-month mark. Late fee of up to $38, but this wont matter if you pay off your balance monthly and on time. You cant graduate to an unsecured card because they do not offer one. Open Sky.
Manage Other Financial Accounts Responsibly
Along with paying bills on time for your secured credit card account, you also need to manage the rest of your financial life responsibly. If you have any other credit card accounts, debts, loans, or monthly bills, make sure to pay those bills on time. To get approved to graduate to an unsecured credit card, your overall financial life needs to be in good order not only that specific secured credit card account.
For example, say that you have a Discover it® Secured Credit Card and a credit card from a different bank or issuer if you consistently make the required payments for your Discover it® Secured Credit Card on time, but miss a payment on your credit card with the other issuer, your missed payment will affect your ability to graduate from a secured to unsecured card with Discover.
This is because Discover looks at the bigger picture of your entire financial history across all of your accounts when deciding whether you are ready to graduate from your unsecured card not just your history of paying your Discover bills.
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Can I Use My Credit Builder Card To Withdraw Money
Yes! You can use your Credit Builder card to get cash fee-free at any in-network ATM, just like your Chime debit card. You can withdraw cash from any atm, but theres a $2.50 fee for out-of-network withdrawals. Check out the ATM map to find a fee-free location near you.
Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Chime Visa® Credit Builder Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see back of your Card for its issuing bank.
¹To be eligible to apply for Credit Builder, you need to have received a qualifying direct deposit of $200 or more to your Spending Account within the last 365 days of your application. The qualifying direct deposit must have been made by your employer, payroll provider, or benefits payer by Automated Clearing House deposit. Bank ACH transfers, Pay Friends transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, and cash loads or deposits are not qualifying direct deposits.
Compare Our Secured Credit Card
Make the right call to build your credit history
Annual Fee: None.22.99% standard variable purchase APR. Intro Balance Transfer APR10.99%6 monthsCash APR: 24.99%$.50. Cash advance fee:$105%Balance transfer fee: 3%5%Annual Fee: None.22.99% standard variable purchase APR. Intro Balance Transfer APR10.99%6 monthsCash APR: 24.99%$.50. Cash advance fee:$105%Balance transfer fee: 3%5%Annual Fee: None.22.99% standard variable purchase APR. Intro Balance Transfer APR10.99%6 monthsCash APR: 24.99%$.50. Cash advance fee:$105%Balance transfer fee: 3%5%Annual Fee: None.22.99% standard variable purchase APR. Intro Balance Transfer APR10.99%6 monthsCash APR: 24.99%$.50. Cash advance fee:$105%Balance transfer fee: 3%5%
Cash back rewards Discover: 2% at gas stations and restaurants on up to $1,000 in combined purchases each quarter. 1% on all other purchases.
Chart comparisons conducted by an independent research firm and based on competitor info compiled in July 2021.
Compared card issuers may provide a FICO® Credit Score or other credit score and other credit information. See issuers’ websites for further details.
+Discover’s free alerts are based on information from your Experian® credit report.
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Best Secured Credit Cards
Credit Card Insider is an independent, advertising supported website. Credit Card Insider receives compensation from some credit card issuers as advertisers. Advertiser relationships do not affect card ratings or our Editors Best Card Picks. Credit Card Insider has not reviewed all available credit card offers in the marketplace. Content is not provided or commissioned by any credit card issuers. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. When you click on any Apply Now button, the most up-to-date terms and conditions, rates, and fee information will be presented by the issuer. Credit Card Insider has partnered with CardRatings for our coverage of credit card products. Credit Card Insider and CardRatings may receive a commission from card issuers. A list of these issuers can be found on our Editorial Guidelines.
If you have bad or limited credit you won’t qualify for the best credit cards on the market. But there are still options available to help you rebuild, including secured cards. Secured credit cards require a refundable security deposit when you’re approved. This deposit will fund your credit limit for the card. Card issuers require a security deposit because it makes the deal less risky for them.
Boost Your Chances Of Scoring An Unsecured Card
Whether you are trying to graduate or apply for a new product, there are some basic steps everyone can follow to improve their credit score and boost their chances of being approved for an unsecured card.
- Pay on time.
- Keep low, if possible.
- Stay within your deposit limit.
- Keep track of your credit score and other accounts.
- Pay your other debts, including loans and other credit cards.
- Consider increasing your deposit amount to increase your available credit.
- Make payments in excess of the minimum payment.
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Comparison: Discover It Secured Vs Other Secured Credit Cards
- No annual or hidden fees. See if you’re approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Monitor your credit with CreditWise from Capital One. It’s free for everyone and checking your credit does not hurt your credit score
Is The Discover It Secured Credit Card Worth It
For cardholders attempting to improve their credit scores, the Discover it® Secured Credit Card is one of the best options on the market. With a mere $200 deposit you can start establishing your credit history, and you can get your deposit back in as little as eight months with responsible credit usage. Plus, you get the benefit of a great rewards program.
The information related to Discover it® Secured Credit Card, Capital One Platinum Secured Credit Card and Citi® Secured Mastercard® has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.
These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site . ValuePenguin does not include all financial institutions or all products offered available in the marketplace.
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What Happens If I Miss A Payment
If you miss a payment, well disable your Credit Builder card and ask you to pay your overdue balance. See How and when do I pay off the card? on how to make a payment.
If your balance due isnt paid in full after 30 days, we may report information about your account to the major credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected on your credit report.
Pay The Minimum Payment Every Month
Sometimes, when money is tight, people feel that they can afford to skip a payment on a credit card. Thats not a good idea. Missing a payment can cause lenders to classify you as a higher-risk borrower. This can cause big damage to your FICO® Score.
To avoid falling behind on your credit-building goals, make sure that you are paying at least the minimum payment on each of your credit accounts every month. Even if you cannot currently afford to pay more than that, just paying the minimum on time will help you build credit by establishing a positive payment history, and should help you avoid the most damaging hits to your credit report.
But, remember, following the advice in this article is not a definitive guarantee that you will graduate from your secured credit card in a certain amount of time. Every secured cardholder is evaluated based on their unique financial situation and credit history.
However, if you follow these simple guidelines by paying your secured credit card on time, staying within the credit limit, and regularly making at least the minimum payments on time on any credit accounts that you have you may be able to maximize your chances of graduating to an unsecured credit card. Plus, in the meantime, youll be establishing the sound financial habits that will serve you well in the future.
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Secured Cards That Graduate
Some credit card issuers will re-evaluate your credit history to determine if you qualify for an unsecured product. If this assessment is favorable, the account will transition and youll get your deposit back. If not, it remains secured.
Your secured card offers a credit limit equal to the amount of your refundable deposit until you get approved to graduate to an unsecured credit card. The next step is getting an unsecured card with a credit line.
The amount of time to wait before graduating to an unsecured credit card can vary by issuer. You can expect to wait up to one year, but some lenders consider an upgrade to an unsecured card in as little as five or six months.
When transitioning to an unsecured card, it is customary for lenders to be conservative with a credit limit. As your credit score increases, you may be able to request a higher credit limit.
Heres a sampling of secured cards and whats required to upgrade to an unsecured card:
|Secured card name|
|Account is reviewed after 18 months|
|First National Bank of Omaha Secured Visa||Account is reviewed after 11 months|
How To Use Discover It Secured
Discover it Secured is a secured credit card, so youll need to submit your bank information and agree to a cash deposit of at least $200 with your application, which youll be charged upon approval.
Because this deposit acts as your credit limit, you should think about the amount you choose to deposit. One of the most influential factors in your credit score is , or the amount of credit you have available in relation to your credit limit. Experts recommend keeping your utilization 30% or less, which can be difficult with a low credit limit. If you start with a credit limit of just $200, for example, a $100 balance on your monthly statement would report to the credit bureaus as 50% utilization on this card.
Over time, begin using your credit card for small purchases you can afford to pay off each month. You can maximize your cash back rewards by using your card at gas stations and restaurants to earn 2% back .
Most importantly, pay your credit card bill in full by the due date without fail. This will help you build a positive payment history the most influential factor in your credit score and record of responsible credit use with the credit bureaus.
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Discover It Secured Card Fees And Costs
Like most other cards, there are also fees for returned payments, balance transfers, and cash advances.
Avery Campbell is a personal finance writer focusing on credit cards and travel rewards. He holds a law degree, specializing in air and space law.
Who Should Consider The Discover It Secured Credit Card
The Discover it® Secured Credit Card is a good option for those with little to no credit history, like new US residents or students. Those with poor credit history who want to increase their credit score can also benefit from using a credit card and making all payments on time.
Read more: The best credit cards for students
Even if you don’t have a credit history or have a low credit score, you might qualify for a non-secured starter credit card. Students may also qualify for cards targeted to them, so you should see if you can qualify for a non-secured credit card before looking at the Discover it® Secured Credit Card.
Opening a new credit card isn’t the only way to develop a positive credit history. If you have a parent with a good credit history they can help by adding you as an authorized user, and you can improve your chances of credit card approval in other ways, too.
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How To Use The Discover It Secured:
- Put down a larger deposit than the $200 minimum if you can afford it. This will boost your credit limit on the card and improve your overall credit utilization ratio a major factor in your credit score.
- Dont miss a payment. Discover will waive the penalty fee the first time, but youll still get hit with interest, and it could go on your credit report and reduce your chances of getting approved for a higher limit with Discover once your eight-month review comes around.
- Keep your credit utilization on the card below 30 percent limit your purchases with the card and make multiple monthly payments if you need to.
- That said, make sure youre making at least one purchase with the card each month. Consider putting a repeating monthly purchase on the card and creating an automatic payment from your bank this will help you build up a credit history, without the temptation of spending more than you can afford.
- Avoid carrying a balance on the card since the APR is high.
- Use the card for restaurant and gas purchases you earn the most cash back on these categories.
Our reviews and best card recommendations are based on an objective rating process and are not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners.