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Discover it® Secured Credit Card

Discover

No Annual Fee
Annual Fee
discoverFair → Poorcash-backno-annual-feesecured5 months ago

Welcome Offer

No Welcome Offer
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OpenCard editorial analysis

Our take

A secured credit-building card that adds rewards without requiring the cardholder to pay an annual fee. The refundable security deposit is not a fee, but it ties up cash and establishes the credit line. The primary goal should be on-time payment, low utilization, and eventual graduation—not maximizing category spending.

Best for

  • ✓ People building or rebuilding credit
  • ✓ Applicants comfortable placing a refundable deposit
  • ✓ Cardholders seeking bureau reporting and no annual fee

Not ideal for

  • — Established borrowers who qualify for stronger unsecured cards
  • — People who cannot comfortably tie up deposit funds
  • — Anyone likely to carry a balance

Conservative break-even test

Measure the opportunity cost of the deposit and compare graduation, reporting, fees, and rewards with other secured cards. Never carry interest-bearing debt to earn cash back; credit-building behavior is the real return.

OpenCard analysis

Is the Discover it Secured Credit Card right for you?

The Discover it Secured is a no-annual-fee secured cash-back card from Discover. Its strongest everyday earning is 5% on Rotating Categories (activate quarterly), with 1% on most other purchases. With no fee, the question is simply whether 5% on Rotating Categories (activate quarterly) beats what your current card earns there.

Who it's for

  • ✓ People building or rebuilding credit with a refundable deposit
  • ✓ People who spend steadily on Rotating Categories (activate quarterly), where it earns 5%
  • ✓ Anyone who wants Rotating Categories (activate quarterly) rewards without paying an annual fee

Who should skip it

  • — People who want a set-and-forget card
  • — Heavy spenders outside Rotating Categories (activate quarterly) — everything else earns 1%

First-year value estimate

Welcome bonus
$0
Rewards on spending
$240
Annual fee (year 1)
−$0
Year 1, before credits
$240

Year two, without the welcome bonus: about $240 before credits ($240 in rewards minus the $0 fee).

Assumptions

  • $3,000 a year in Rotating Categories (activate quarterly) (5%) and $9,000 on everything else (1%) — $12,000 total, about $1,000 a month.
  • Rewards valued at 1¢ per point or 1% cash back (cash-equivalent).
  • No welcome bonus is listed in our record, so none is counted.
  • No annual fee in any year.

An illustration, not a promise of value. Change the spending to match yours; rewards are not cash until redeemed. Card data reviewed 2026-04-27.

Rules and gotchas

  • Bonus cap on Rotating Categories (activate quarterly): 5% cash back on rotating categories (up to $1,500/quarter then 1%)

Frequently asked questions

Does the Discover it Secured have an annual fee?
No. Our record lists a $0 annual fee for the Discover it Secured.
What does the Discover it Secured earn?
5% on Rotating Categories (activate quarterly), and 1% on other purchases. Some bonus rates are capped; see the rules and gotchas above.
Is the Discover it Secured worth it in the first year?
Using our illustration ($12,000 of yearly spending, $3,000 of it in Rotating Categories (activate quarterly)), the first year comes out around $240 before credits, including a welcome bonus valued at $0. Year two drops to about $240 before credits.
What credit do I need for the Discover it Secured?
Our record lists "Fair to Poor" credit as the typical target for the Discover it Secured. It's a secured card, so a refundable deposit is part of the application. Discover makes the final decision based on its own criteria.

Earning Rates

5×Rotating Categories (activate quarterly)5% cash back on rotating categories (up to $1,500/quarter then 1%)
1×All Other Purchases1% unlimited cash back on all other purchases

Other Benefits

Other Benefits

Free FICO score

Free access to your FICO credit score

No credit score required to apply

Can apply with no credit history

Fraud protection

$0 fraud liability for unauthorized charges

Insurance

Rental InsuranceSecondary
Purchase Protection

Sources

Last Updated: Apr 27, 2026