Everybody is interested in your credit these days. to: landlords, potential employers, insurance companies, and even cable and phone companies. So what if you're just beginning your credit journey, or you've made an unfortunate mistake that negatively impacts your score? There are many solutions that can help you rebuild your credit. For example, Self – Credit Builder Account with Secured Visa® Credit Card and Discover it® Secured Credit Card are two secure credit cards that help you build credit.
However, these cards have very different capabilities. To begin with, Discover it Secured has no annual fee, but using a self-visa (not just a card) will definitely cost you, especially in the long run. Still, depending on your personal situation, this can be well spent.
Before we get to the point, the interest rates for Self Visa and Discover it Secured are very high. be careful. Self Visa has a variable APR of 26.99% and Discover it Secured has a variable APR of 26.74%. So if you expect your balance to carry over month to month, try to find cheaper solutions.
- 1 Main details
- 2 Self Visa vs. Discover it Secured Highlights
- 3 Which card pays the most?
- 4 Why Get a Self-Visa?
- 5 Discover it Secured Why should I get a?
|Card||Find Secure Credit Card|
|Welcome Bonus||N/A||Discover equals cashback earned at the end of the first year|
|1st year APR||N/A||10.99% first year APR for 6 months of balance transfer, then 26.74% variable APR|
Self Visa vs. Discover it Secured Highlights
Welcome Bonus Winner: Discover it Secured
Self Visa has a Welcome Offer Discover it Secured wins this category because it is not included. This is not an upfront bonus, but it does equal all the cashback Earned by Discover at the end of his first year. For example, if you earned $100 in the first 12 months of your card membership, you'll receive another $100 from Discover at the end of the year for a total cash back of $200.
Reward Rate Winner: Discover it Secured
Discover it Secured offers 2% cash back at gas stations and restaurants (up to $1,000 on total purchases each quarter, then 1% cash back thereafter) and 1% cash back on all other purchases. In comparison, Self Visa does not offer a cashback program.
Annual Fee Winner: Discover It Secure
Discover it Secured has no annual fee, but Self Visa has a $25 annual fee. increase.
Foreign Transaction Fee Winner: Discover it Secured
Technically speaking, neither card charges any foreign transaction fees. , but in any case, the self-visa cannot be used outside the United States. Discover it Secured wins this category because it can be used overseas. Please note, however, that depending on your travel destination, acceptance of Discover outside the United States may be more restricted than Visa or Mastercard.
Which card pays the most?
Discover it Secured has a cashback program, Self Visa does not. Therefore, Discover it Secured will inevitably earn more.
Example of Self Visa and Discover it Secured spending
Maximizing 2% cash back at gas stations and restaurants quarterly isn't too difficult. It's not too difficult if you remember that many gas stations also sell food and household items, including takeout and food delivery. So if you can spend $1,000 each quarter on those two categories, you'll get $80 in cash back annually. Discover will receive an equal amount of that cashback at the end of his first year, so you can actually earn $160.
Please also note that unlimited 1% cash back applies to all purchases. So for the first year, it's like getting 2% cash back on all non-bonus purchases. In addition to maximizing the 2% bonus category, spending $1,000 per month on the 1% category will give you $120 in cash back. This will add up to $240 at the end of the year with Cashback Match on Discover. Then add $160 cash back and $240 cash back for a total of $400 cash back at the end of the first year. This is not bad at all.
Why Get a Self-Visa?
The main attraction of the Self-Visa is that it combines an installment loan with a revolving credit card account that allows access to all three major credit bureaus (Equifax, Experian). , TransUnion) to report progress. Credit scoring formulas FICO and VantageScore hope to be able to handle both types of accounts responsibly. This healthy mix of installment loans and revolving accounts is a small factor, but it can help boost your FICO score. In other words, if you need all the help in the world to boost your credit score a little faster, a self-visa is invaluable and well worth the extra cost.
Additionally, Self-Visa does not require a cash deposit to start, but Discover it Secured requires a cash deposit of at least $200. This makes the card worth it.
Self Visa Certificates of Deposit* (CD) Earn Interest
While this is not a surprising factor, credit builder loans especially since Self charges interest (credit card interest (which cannot be avoided, unlike ), earning something is better than earning nothing.
Basic Visa Benefits
Self Visa includes lost or stolen card reporting, cardholder referral service, emergency card replacement and cash payments, zero liability for fraudulent purchases, and pay-as-you-go We only offer basic Visa benefits, such as curbside delivery. ID Navigator Powered by NortonLifeLock.
There is no redemption option for Self Visas as there is no benefit program.
Recommended Credit Score
No credit history is required to apply for a self visa.
Discover it Secured Why should I get a?
As mentioned above, the credit mix is only a small part of the credit score formula. So, especially if you're not in a hurry, Discover it Secured can save you a lot of money compared to self-visa. Also, get cashback on every purchase. In addition, after paying on time for 7 months, you may get a card that is unsecured by Discover. In that case the deposit will be refunded.
Other benefits of Discover it Secured include access to your FICO credit score and late payment forgiveness on your first late payment (up to $41 thereafter). Discover also monitors Experian's credit report and alerts you to any changes. Plus, it monitors thousands of dark websites and notifies you when it finds your social security number. Discover also scans 10 handpicked user search sites for personal information and sends opt-out his requests on your behalf.
The easiest way to redeem your cashback is to apply it to your credit card bill as a statement credit. However, there are other redemption options as well. You can deposit cash into your bank account, use it with Amazon or PayPal, redeem it for gift cards, or make charitable donations. Whatever you do, Discover cashback never expires.
Recommended Credit Score
You don't need a credit history to apply for a Discover it Secured credit card.
While Secured Visa Self Credit Builder Accounts and Discover It Secured Credit Cards serve as excellent tools for consumers looking to build or rebuild credit, , Discover It Secured has three major advantages over its competitors. They charge a fee, but they have a solid cashback program that offers valuable protection benefits. That said, SelfVisa combines two products in one: an installment loan and a revolving credit card account, so if you need to speed things up, SelfVisa is an advantage. A healthy combination of accounts can improve your score.
So, if you're not particularly in a hurry and are willing to deposit at least $200 as collateral, do your research. With Discover it Secured. If your priority is to get as much help as possible to speed up your credit recovery, consider self-visa.
Keep in mind, however, that credit consumers and their circumstances are different. You can be sure that one product will help you more than the other. Of course, there are other credit-building cards available, so check other secure or less creditworthy cards before making a decision.