The Discover secured credit card is one of the best, if not the best credit card for bad credit. This card is excellent for those individuals who have no credit, bad credit history, or have completed a bankruptcy. For a total refundable deposit of $200, an individual can establish a Discover secured credit card account. A customer needs to demonstrate responsible payment practices, and then the deposit is refunded
There is only one thing I don’t like about the Discover secured card. When you apply, Discover will do a hard pull inquiry on your credit file. I do think however, it is a small price to pay for an opportunity to rebuild credit. A hard pull credit inquiry will drop your credit score a few points, but a customer will recover from this drop when they begin to make on-time monthly payments. In two years the credit inquiry will entirely disappear from the credit report.
I did, however, contact Discover in writing and asked them to reconsider this practice. I stated that since each account is secured with a deposit, a soft pull could be performed instead. Hopefully, other people have communicated the same sentiment, and this practice of doing hard pulls can be discontinued.
The Discover Secured Credit Card is the Best Secured Credit Card
Despite Discover secured cards performing hard pulls, I still think that the benefits outweigh the negatives. That is why my review remains a five-star review. I have found no other secured credit card that offers such a low refundable deposit and has no other fees associated with it.
Why is The Discover it® Secured Credit Card Different?
Normally, when I review a secured credit card I give them low ratings. Most secured credit cards have fees associated with them. You must pay the secured deposit. There are other fees that must be paid.
Ranges on the fees of typical secured credit cards (fee types issued varies with each individual credit card company)
- minimum security deposit: $300-$500
- annual fee: $75-$125
- one time processing fee: $75 – $100
- authorized user fee: $20-$30
Benefits of Discover Secured Credit Cards
A key benefit of Discover secured cards is that you get FICO® credit score monitoring for free. As a cardholder, you have the ability to view your FICO credit score. You can view your positive progress while monitoring for any fraudulent activity. This is such a great benefit when rebuilding credit. Identity theft will not only destroy any progress made in raising your credit score, but it is often very difficult to remove from your credit report. This service Discover card provides is excellent. You could learn sooner, when an unauthorized credit trade account is established in your name, or when someone is making fraudulent charges to your existing accounts. I do not know of any other secured credit card that offers this service at no cost.
The security deposit of The Discover it® Secured Credit Card is refundable. The only thing the cardholder needs to do is to make monthly on-time payments for seven months. It is at seven months that Discover will review your credit card account to see if you qualify to have your security deposit refunded. Discover will refund the security deposit if a customer shows responsible credit management across all open lines of credit. This review of credit trade accounts includes Discover card, other credit cards, and installment loans.
I’m writing this article to inform consumers with bad credit that there is a better way to start or rebuild credit fast. Take a moment to review the Discover it® Secured Credit Card to see if it is right for you. It may save you a lot of money.