The Discover it Secured Card is a practical route to building or repairing credit with a straightforward application process. It requires a minimum refundable security deposit of USD $200, approximately R3,800, and offers credit lines up to $2,500. The card’s interest rate is a variable 28.24% APR. Importantly, the card stands out for charging no annual fee while rewarding users with cashback on purchases. Many users see upgrades to unsecured cards after proving reliable payment behaviour for several months.

How to Apply for the Discover it Secured Card

• Complete an online application providing your identification and income details.
• Submit your security deposit to set your credit limit.
• Await approval, which is often quick if eligibility is met.
• Start using your card responsibly to build a positive credit record.
• Monitor your progress through regular account reviews.

Pros of the Discover it Secured Card

This card does not have an annual fee, making it affordable from the start. Additionally, cardholders earn cashback on every purchase, even while they are building or improving their credit.

After eight months, Discover reviews your account and may offer an upgrade to an unsecured card. You then get your deposit refunded, making this card a genuine stepping stone to better credit products.

Cons to Consider

The primary drawback is the high variable APR at 28.24%, so carrying a balance can be costly. Furthermore, you need to provide a security deposit upfront that may tie up a portion of your funds.

Cashback rewards, while appealing, are limited compared to premium cards. Additionally, starting credit limits may be low based on your financial circumstances.

Verdict

The Discover it Secured Card is an excellent choice for South Africans and others working to establish or rebuild credit. With no annual fee and tangible rewards, it remains cost-effective and rewarding, provided balances are paid off monthly.