Dec 31, 2022
Examining the similarities and differences between the Discover it® Secured Credit Card and the Capital One Platinum Secured Credit Card might help you decide which one is best for your needs. Both cards include useful features in addition to those one would expect from a secured credit card, making them stand out from the competition.
Winner of the Welcome Bonus: Discover it Secured
Compared to Capital One's Platinum Secured card, which provides no welcome bonus, Discover's Secured card comes out on top. Discover's Cashback Match program is available to cardholders of the Discover it Secured for the first year of card membership. This means Discover will match your cash-back earnings for the first year, doubling your benefits. With no caps on how much can be spent, this is a great opportunity to raise some serious points.
You may get 2% cash back at petrol stations and restaurants on purchases up to $1,000 every quarter (then 1%), plus an unlimited 1% cash back on everything else with the Discover it Secured. Not only is this a respectable rewards program for any credit card, but it is extremely unusual for a secured credit card to offer such benefits.
Neither card has an annual charge, making them good choices for frugal consumers.
Winner: Capital One Platinum Secured Minimum Security Deposit
Compared to other secured credit cards, Capital One Platinum Secured's $49 security deposit for a $200 minimum credit line is significantly lower and hence more competitive. These cards, and secured credit cards in general, have lower APRs than this. However, the Discover it Secured card has a minimum deposit of $200, which may be prohibitive for those with little financial resources.
While neither card provides a 0% initial APR on purchases, the Discover it Secured does for the first six months of card ownership (10.99%), followed by the standard variable APR of 25.99%). If you have outstanding amounts on other credit cards that are accruing a high rate of interest, this may be a good way to reduce your interest costs and make progress on your debt.
The Capital One Platinum Secured is a good option for people searching for a secured credit card with a low-security deposit requirement, making getting a secured credit card more feasible. If you can make a habit of paying off your credit card balance in full every month, you'll have a far better chance of repairing or establishing your credit score than if you carry a balance from month to month.
After six months, Capital One will automatically assess your account to determine if you are eligible for a credit line increase. In addition, your security deposit may be returned to you in the form of a statement credit if you use your card responsibly and make all of your payments on time.
Individualized exchange methods: Credit card companies typically allow customers to select their payment due date, simplifying budgeting.
Score monitoring alerts: Capital One's CreditWise is a helpful tool for monitoring credit ratings and making positive changes.
Gains from Traveling: Receive a new card in an emergency without paying any costs.
Added time to the guarantee: Coverage for purchases made with this card will extend beyond the standard manufacturer's warranty.
Currently, there is no rewards system for the Capital One Platinum Secured.
As a result of its generous sign-up bonus and cash-back rewards scheme, the Discover it Secured card is well worth considering. A secured credit card is an excellent choice to put one's maturity to the test, build one's credit history, and then graduate to an unsecured card as quickly as possible. The secret to avoiding expensive interest fees is paying your debt in full every month.
Similar to the Capital One Platinum Secured, the Discover it Secured can be authorized even if your credit history is nonexistent or your credit score is below 600.
The $49 minimum to open a Capital One Platinum Secured line of credit makes it a great option for those with low financial resources. And since it's a Mastercard, you can use it virtually anywhere.