Discover Secure Card Do They Check Credit History

The Discover it Secured credit card is a popular option for those looking to build or rebuild their credit history. This card is designed specifically for individuals with limited or no credit history.

To be approved for the Discover it Secured card, Discover does check credit history, but it's not the only factor considered. Discover also looks at income, employment history, and other financial information.

A credit check is a normal part of the application process, and it's usually done through one of the three major credit bureaus: Equifax, Experian, or TransUnion.

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The Discover it Secured Credit Card is a great option for those looking to build credit and earn rewards. It's a secured card, which means you'll need to make a security deposit to open the account.

The primary benefit of this card is improving your credit score, but it also offers some additional perks. These include a welcome offer and the chance to earn bonus rewards in certain categories.

The card comes with standard benefits like fraud protection and the ability to track your credit score. This is pretty standard for a card with no annual fee.

You can get your security deposit refunded after making six consecutive on-time payments and six months of good status on all your credit accounts. This is a unique benefit that sets it apart from other secured credit cards.

If you're looking for a card with a low barrier to entry, this might be a good option. However, you'll need to have at least a $200 deposit to open the account.

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The Discover it Secured Credit Card offers a range of benefits and features that make it a great option for those building credit. You can get a free FICO credit score to help track your credit, which is a valuable tool for those focusing on their credit.

The card's interest rates are worth considering, especially if you need to carry a balance from month to month. The high variable purchase APR of 27.24% might cost you, but it's in line with what you can expect from many secured credit cards.

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One of the card's unique features is that it doesn't have a penalty APR, so you won't be penalized with a higher ongoing purchase APR if you miss a payment. This is a plus for those who might be late with a payment or two.

The Discover it Secured Credit Card also offers a late-payment waiver, which means you won't be charged a fee for your first late payment. However, keep in mind that other missed payments will trigger a fee of up to $41, plus the possibility that your missed payment will be reported to the credit bureaus.

Here are some of the card's key benefits:

The card's rewards program is also worth considering, with bonus rewards on dining and gas station purchases. However, its earning rates are lower than many non-secured cash-back cards, so you'll want to explore other options if you don't need a secured card.

The Discover it Secured Credit Card is a great option for those who want a card with a low barrier to entry and a chance to upgrade if they make timely payments. It's also a good choice for those who want a card that's more forgiving on late payments.

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The Discover Secure Card offers a range of benefits, but it's essential to weigh these against some potential drawbacks.

One of the advantages of this card is that it comes with more features than many other cards designed for building credit.

Paying the minimum security deposit might not be possible for everyone, which could be a challenge for those who need to establish a credit history.

The card also offers a potential path to graduate to an unsecured account, which is a significant advantage for those looking to improve their credit score.

This credit card offers more features than many cards designed for building credit, making it a great option for those who want to access a wide range of benefits.

One of the biggest advantages of this card is the potential path to graduate to an unsecured account, which can be a huge step towards financial freedom.

The card also comes with a no penalty APR, which means you won't be charged extra interest for late payments, and the first late payment fee is waived, providing a bit of a safety net.

However, paying the minimum security deposit might not be possible for everyone, which can be a major drawback for those who need to establish credit.

A low credit line can slow your ability to build credit, which is a crucial factor in establishing a strong financial reputation.

The high regular purchase APR could cost you in interest, especially if you're not paying off your balance in full each month, which can be a significant financial burden.

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Secured credit cards often get compared to unsecured credit cards, and for good reason. A secured credit card requires a cash security deposit, which can be a barrier for some people.

The credit score requirement for unsecured credit cards is typically good to excellent, ranging from 670 to 850. Secured credit cards, on the other hand, offer more flexibility, making it possible to qualify with poor credit.

Secured credit cards tend to have higher APRs compared to unsecured credit cards. This can lead to higher interest charges over time.

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The credit limit on a secured card is typically linked to the size of the deposit, usually starting at $200. This can be a limiting factor in building credit.

Here's a comparison of secured and unsecured credit cards:

The Discover it Secured Credit Card is designed to be accessible to a wide range of applicants.

To qualify, you'll need to be at least 18 years old and have a U.S. bank account with a bank routing number.

The card is available to new cardholders with no credit history, making it a great option for those starting from scratch.

However, having serious detractors on your credit report, such as a pending bankruptcy, may still result in a decline.

To get an idea of your chances, you can use Discover's tool to estimate your approval odds.

This tool runs a soft credit pull, which won't impact your credit score, and provides an estimated approval rate based on your credit history.

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Using a secured card is a great way to build credit, but it's essential to use it wisely. Pay your bill on time, as payment history makes up 35% of your FICO credit score.

To maximize the benefits, consider putting down a larger deposit than the minimum $200 if you can afford it, which will boost your credit limit and improve your credit utilization ratio. This is a major factor in your credit score.

To keep your credit utilization ratio low, limit your purchases with the card and make multiple monthly payments if needed. You can use a credit utilization calculator to help you maintain a low ratio.

Here are some tips to keep in mind when using your secured Discover it card:

You can establish a credit limit as high as $2,500 with the Discover it Secured Credit Card, but you'll need to secure the entirety of that credit line with a deposit.

The minimum deposit required is $200, and you can even use your tax return for the refundable security deposit.

The credit limit determines your spending power and is an important factor in the calculation of your credit scores, with most models considering your credit utilization rate.

Aiming to use less than 30% of your available credit is recommended, so every bit you can afford to put down as part of your deposit can make a difference to your scores.

You can choose a credit limit up to $2,500, which is a fairly high limit for a secured card, but you'll need to be able to foot the deposit to take advantage of it.

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Improving your credit score with a secured credit card is a great way to get back on track. Pay your bill on time to boost your payment history, which makes up 35% of your FICO credit score.

Paying off all or most of your balance can keep your credit utilization ratio low, responsible for 30% of your FICO score. This will help you maintain a good credit score.

You can also improve your credit utilization ratio by limiting your purchases with the card and making multiple monthly payments. Our credit utilization calculator can help you make sure you maintain a low ratio.

To build your credit with a secured credit card, make at least one purchase with the card each month. Consider putting a repeating monthly purchase on the card, like your gym membership, and creating an automatic payment from your bank.

Here are some key tips to keep in mind:

Remember, avoiding carrying a balance on the card is a good idea, especially since the APR is high. By following these tips, you can improve your credit score and put yourself on the path to qualifying for an unsecured card.

The Discover it Secured Credit Card has a 4-star rating based on member reviews, with many users praising its ability to help build credit and earn rewards.

Some users have reported having their security deposit returned after 6 bill cycles, with one reviewer receiving their $300 deposit back and being given an $1800 credit line.

However, some users have had negative experiences, including one reviewer who was asked to mail their social security card for ID verification, which they suspected was a scam.

If you're looking for alternative secured credit cards, consider the Capital One Quicksilver Secured Cash Rewards Credit Card, which earns an unlimited 1.5% cash back on all purchases.

Other options include the Capital One Platinum Secured Credit Card, which requires a security deposit as low as $49, and the Citi Double Cash Card, which earns 2% cash back on all purchases.

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Member reviews can be a great way to get a sense of how a credit card works in real life. The overall rating for this card is not specified, but we can learn from some of the reviews.

One Credit Karma member had a very positive experience with the card. They initially paid a $300 deposit, which they got back after 6 bill cycles, and were given an $1800 credit line.

However, another member had a very different experience. They were asked to mail their SS card for ID verification, which they were not comfortable with.

It's worth noting that the card issuer could have handled the ID verification process differently. Instead of asking for the SS card, they could have asked the member to verify their identity in person or over the phone.

The negative reviewer decided to close the card due to their concerns about the ID verification process. They recommended going to a different bank, such as Capital One or Chase.

If you're considering the Discover it Secured Credit Card, you might want to explore other options. The Capital One Quicksilver Secured Cash Rewards Credit Card earns an unlimited 1.5% back on all purchases, making it a good option if you want to earn more cash back on general purchases.

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You can also consider the Capital One Platinum Secured Credit Card, which requires a security deposit as low as $49 and may give you a higher credit line than your security deposit. This could be a good option if you're looking for a lower barrier to entry.

If you don't need a secured card at all, the Citi Double Cash Card is a great alternative. It allows you to earn 2% cash back on all purchases, with no annual fee.

Here are some key competitors to the Discover it Secured Credit Card:

These cards offer different benefits and earning rates, so it's worth exploring each one to see which one is the best fit for your needs.