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FG Trade/Getty Images August 15, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Andy Shuman is a contributing writer to Bankrate. He is a New York-based freelance writer with strong expertise in consumer credit and travel loyalty programs. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
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Cards Self Credit Builder Account with Secured Visa Discover it Secured Credit Card Welcome bonus N/A Discover will match the cash back you’ve earned at the end of your first year Rewards rate N/A 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases per quarter, then 1%); 1% cash back on all other purchases Intro APR N/A 10.99% intro APR for 6 months on balance tranfers, then a variable APR of 25.99% (Terms apply). Annual fee $25 N/A Self Visa vs Discover it Secured highlights
Welcome bonus winner Discover it Secured
The Self Visa doesn’t include a welcome offer, so the Discover it Secured wins in this category. While it’s not an upfront bonus, Discover will match all of the cash back you earn at the end of your first year. For example, if you earn $100 in the first 12 months of card membership, you’ll get another $100 from Discover at the end of the year, for a total of $200 in cash back. Rewards rate winner Discover it Secured
The Discover it Secured offers 2 percent at gas stations and restaurants (on up to $1,000 in combined purchases per quarter, then 1 percent back) and 1 percent back on all other purchases. In comparison, the Self Visa doesn’t offer a cash back program. Annual fee winner Discover it Secured
The Discover it Secured has no annual fee while the Self Visa has a $25 . Foreign transaction fee winner Discover it Secured
Technically speaking, neither card charges a , but the Self Visa can’t be used outside of the U.S. anyway. Since the Discover it Secured can be used overseas, it wins in this category. However, note that Discover acceptance outside of the U.S. can be more limited than Visa or Mastercard, depending on where you’re traveling. Which card earns the most
The Discover it Secured has a while the Self Visa doesn’t, so the Discover it Secured will inevitably earn more. Self Visa vs Discover it Secured spending example
at gas stations and restaurants each quarter is not that hard, if you remember that many gas stations also sell food and household items, and that takeout and food delivery qualify too. So if you can spend $1,000 per quarter in these two categories, you’ll pocket $80 a year in cash back. Discover will match that cash back at the end of the first year, so you’ll actually get $160. Also, keep in mind the unlimited 1 percent cash back on all purchases will be matched too, so that’ll be like earning 2 percent cash back on all non-bonus purchases for the first year. If you spend $1,000 a month on 1 percent categories — in addition to maximizing your 2 percent bonus categories — you’ll earn $120 in cash back, which will be $240 at the end of the year with Discover’s Cashback Match. Then, add your $160 in cash back and your $240 in cash back and you’ll get $400 in total cash back at the end of the first year, which is not bad at all. Why should you get the Self Visa
The main appeal of the Self Visa is that it combines an installment loan with a revolving credit card account and reports your progress to all : Equifax, Experian and TransUnion. Credit scoring formulas, FICO and VantageScore love to see that you can responsibly handle both types of accounts. This of an installment loan and a revolving account is a minor factor, but it can help you boost your FICO score. In other words, if you need all the help in the world to a little bit faster, the Self Visa can be invaluable and well worth the extra fees. Additionally, the Self Visa doesn’t require a cash deposit to get you started, while the Discover it Secured of at least $200. Additional benefits
Self Visa s certificate of deposit* CD earns interest
While this is hardly a wow factor, especially since Self charges interest for your credit builder loan (which, unlike credit card interest, you can’t avoid), earning something is better than earning nothing. Basic Visa benefits
The Self Visa offers only , which include lost or stolen card reporting, a cardholder inquiry service, emergency card replacement and cash disbursement, zero liability for unauthorized purchases, pay-per-use roadside dispatch and ID Navigator Powered by NortonLifeLock. Redemption options
Since the Self Visa doesn’t have a rewards program, there are no redemption options. Recommended credit score
No credit history is required to apply for the Self Visa. Why should you get the Discover it Secured
As mentioned, credit mix is only a minor factor in the credit score formulas. So if you’re in no particular hurry, using the Discover it Secured will save you quite a bit of money compared to the Self Visa. You’ll also earn cash back on all purchases. In addition, you might qualify for an with Discover after seven months of timely payments. In that case, your . Additional benefits
Discover will monitor your Experian credit report and alert you about any changes. Plus, it will monitor thousands of Dark Web sites and let you know if it finds your Social Security number. Discover will also scan 10 select people search sites for your personal information and submit opt-out requests on your behalf. In addition, you’ll get access to your FICO credit score and late payment forgiveness on your first late payment (then up to $41). Redemption options
The easiest way to redeem cash back is to apply it toward your credit card bill as a . However, there are other redemption options as well. You can deposit your cash back to your banking account, use it on Amazon or with PayPal, redeem it for gift cards or make a charitable donation. Whatever you do, know that your Discover cash back . Recommended credit score
No credit history is required to apply for the Discover it Secured credit card. The bottom line
While the and the can serve as excellent tools for consumers trying to build or , the Discover it Secured has three major advantages over its competitor: It doesn’t have an annual fee, it has a solid cash back program and it offers valuable protective benefits. That said, the Self Visa can give you an edge if you need to speed things up since the Self Visa offers two products in one — an installment loan and a revolving credit card account. That healthy mix of accounts can play a role in boosting your score. In other words, if you’re in no particular hurry and you don’t mind depositing at least $200 as collateral, take a closer look at the Discover it Secured. If your priority is to get as much help as you can to , look into the Self Visa. However, keep in mind that every credit consumer and their circumstances are different, so no one can say for sure that one product will help you more than another. Of course, there are more credit-building cards available, so make sure to take a look at other or before making a decision. *All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Bank, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC. SHARE: Andy Shuman is a contributing writer to Bankrate. He is a New York-based freelance writer with strong expertise in consumer credit and travel loyalty programs. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Related Articles