RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover today announced the launch of its Discover it® Secured Credit Card for consumers looking to build or rebuild their credit. The card comes with the same rewards and benefits as the Discover it® Card, including Cashback Bonus® rewards and FICO® Credit Scores for free on monthly statements and online1, all with no annual fee2.
The Discover it Secured Credit Card requires applicants to provide a security deposit, which Discover holds as collateral. After one year as a cardmember, Discover will begin to review Secured Credit Card accounts each month to see if cardmembers can transition to an account that does not require a security deposit. These reviews are based on responsible credit management across all of the consumers’ credit cards and loans.
“We know how essential it is to establish a healthy credit history when applying for a car or home loan, an apartment lease, and when determining interest rates on loans,” said Ryan Scully, Discover’s vice president of marketing. “Discover wants to help consumers build their credit. Our experience shows that 99% of new Discover it Secured cardmembers who didn’t previously have a FICO® Credit Score received one on their Discover statements within nine months.”
The Discover it Secured Credit Card had previously been available as a counteroffer to select online applicants. However, as of today, all consumers can apply at Discover.com/securedcreditcard.
The Discover it Secured Credit Card features 2% Cashback Bonus at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% Cashback Bonus on all other purchases. In addition, new cardmembers can double all the cashback they earn at the end of their first year as a cardmember3.
“Some secured cards in the marketplace are watered-down versions of other card products that have annual fees and don’t offer any rewards,” Scully added. “Discover’s Secured Credit Card comes with the same rewards and benefits that every Discover it cardmember enjoys, all with no annual fee.”
The Discover it Secured Credit Card offers:
- No annual fee, no late fee on first late payment, and no increase to APR for late payment
- Reporting to all three major credit bureaus
- FICO® Credit Scores for free on monthly statements and online
- $0 Fraud Liability Guarantee means cardmembers are never responsible for unauthorized purchases on their Discover card
- Freeze ItSM – an on/off switch that cardmembers can access on the Discover mobile app or website to prevent new purchases, cash advances and balance transfers if they misplace their card
- Award-winning 100% U.S.-based customer service available day or night
How the Discover it Secured Credit Card Works
The Discover it Secured Credit Card requires an application and collateral security deposit to open the account. The credit line is equal to the amount of the security deposit (minimum of $200; maximum of $2,500, based on creditworthiness). For example, a $500 deposit equates to a $500 credit line. Unlike many prepaid or debit cards, the Discover it Secured Credit Card reports to all three major credit bureaus, enabling cardmembers to build their credit with responsible use of the card. Cardmembers who manage their credit responsibly, after a year, may qualify to graduate to an unsecured line of credit, which would allow them to have their security deposit returned while continuing to enjoy all the rewards and benefits of their Discover card.
To learn more about the Discover it Secured Credit Card, visit Discover.com/securedcreditcard.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts and certificates of deposit through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.
1 FICO® Credit Scores are disclosed on monthly statements and online and are based on data from TransUnion and may be different from other credit scores. Limitations apply to the FICO® Credit Score benefit. See Discover.com/FICO to learn more. FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.
2 Intro Balance Transfer APR is 10.99% for six months; then the standard purchase APR applies. Standard Purchase APR: 23.24% variable. Cash APR: 25.24% variable. Call 1-800-DISCOVER for details about credit costs and terms.
3 After the first 12 consecutive billing periods that your new account is open, we will double all the cash back rewards you've earned and apply them to your account in the next one or two billing cycles. This promotional offer is available only to new cardmembers, and may not be offered in the future. See Discover.com to learn more.
