Christie Matherne, Credit Card Writer
@christie_matherne
The best Discover card for bad credit is definitely the Discover it® Secured Credit Card. In fact, it’s the only Discover card that will consider you despite having a bad credit score. Here’s how it works: When you apply, you place a security deposit of at least $200, which will become your credit line if you’re approved. This refundable deposit acts as collateral for Discover, reducing their risk.
But that’s not all you need to know about Discover it® Secured Credit Card. There’s more to learn, both in terms of its benefits and some fine print details.
The Discover it® Secured Credit Card is the best Discover card for bad credit because:
- You won’t pay an annual fee. This card does not charge an annual fee. There’s a 0% foreign transaction fee. But do keep in mind that you’ll have to temporarily part with at least $200 to make the security deposit.
- There are rewards. It’s unusual for a secured card to have rewards, but the Discover it® Secured Credit Card does. You get 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases.
- Credit-building potential is equal to unsecured. There’s no difference in the way secured cards and unsecured cards report information to the credit bureaus.
- Graduation to unsecured is possible. After you’ve had Discover it® Secured Credit Card for at least 7 months, Discover will review your credit every so often. They might decide to refund your security deposit and transition you to an unsecured card.
So, the Discover it® Secured Credit Card is designed for rebuilding credit and has a lot of benefits. But if you want options with no security deposit and are open to cards from other companies, you can check out the Credit One Bank® Platinum Visa® for Rebuilding Credit and the OneMain Financial BrightWay® Card. They’re some of the best offers for bad credit.
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William Pope, Member
@william_pope_1
Definitely the Discover it® Secured Credit Card. If you have bad credit, secured cards are generally the only ones you can get. The Discover it® Secured Credit Card card doesn't charge annual fees, and even has cash back rewards, so I think that would be your best bet.
Monet Paul, Member
@monet_lespaul
Just get the Discover it® Secured Credit Card. You can apply for it, even if you have bad credit. Plus, if you make payments on time, your score will go up.
People also ask
What's the minimum credit score needed for Discover cards?
The minimum credit score needed to get most Discover credit cards is 700 or above. There are a few Discover cards for which there’s no minimum credit score requirement, such as the Discover it® Secured Credit Card which you might be able to get with a below-average credit score (below 640).
Minimum Credit Score Needed for Each Discover Card
- Discover it® Secured Credit Card: No minimum score, applicants with bad credit are eligible for approval (below 640).
- Discover it® Student Cash Back: Available to applicants...
What should I do if I was denied for a Discover it card?
If denied for a Discover card, the first step is to find out why Discover rejected the application. The reasons will be listed in the denial letter Discover sends out shortly after its decision. They may include an annual income below what’s needed to make minimum monthly payments, a low credit score, too many recent credit inquiries or a high amount of debt, among others. Discover will also deny people who already have two open...
read full answer by Chip Lupo, Credit Card WriterWhat are the best credit cards for a 550 credit score?
One of the best credit cards for a 550 credit score is the opensky® Plus Secured Visa® Credit Card because it has a $0 annual fee and there’s no credit check when you apply, so approval is almost guaranteed. You just need $300 for a refundable security deposit and enough income to make monthly payments. This card also reports to all three major credit bureaus (Equifax, Experian, and TransUnion) every month, which is your ticket to a better credit score.
However, this isn’t...
read full answer by William Memphis, WalletHub Credit Card AnalystDid we answer your question?
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