Capital One Platinum Secured vs. Discover it Secured
Key takeaways
- When comparing the Discover it® Secured Credit Card vs. the Capital One Platinum Secured Credit Card, it comes down to whether you have a limited budget and need to establish a line of credit or have a little more cash to spare for a security deposit and want to earn rewards.
- The Discover it® Secured Credit Card features cash back rewards, a first-year welcome offer and an introductory APR offer on balance transfers.
- The Capital One Platinum Secured Credit Card, on the other hand, allows you to make a minimum security deposit starting at $49 and features a variety of credit-building tools (though you won’t earn rewards).
If your goal is to establish or rebuild your credit, a comparison of the Discover it® Secured Credit Card and the Capital One Platinum Secured Credit Card is worth your time. Both cards offer noteworthy benefits for being secured credit cards, plus a few added perks you won’t typically find with similar cards on the market.
A secured credit card requires you to put down a cash deposit to establish a line of credit. In return, you have the benefits and conveniences from a credit card and the chance to improve your credit.
Not all secured cards are created equal, though. Below, we compare the major card details and earning potential of the Capital One Platinum Secured vs. Discover it® Secured Credit Card, as well as highlight further information to help you determine which card is right for your wallet.
Main details
| Details | Discover it® Secured Credit Card | Capital One Platinum Secured |
|---|---|---|
| Welcome bonus offer | Discover will match all the cash back you’ve earned at the end of your first year. | None |
| Rewards rate |
|
None |
| Annual fee | $0 | $0 |
| Intro APR offer | 10.99% intro APR for 6 months on balance transfers (3 percent intro balance transfer fee, up to 5 percent fee on future balance transfers, see terms) | None |
| Regular APR | 28.24% variable APR | 29.99% variable APR |
| Minimum security deposit | $200 | $49, $99 or $200 depending on qualifications |
Capital One Platinum Secured vs. Discover it® Secured Credit Card highlights
Discover it® Secured Credit Card
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The Discover it® Secured Credit Card wins big in this category compared to the Capital One Platinum Secured, which offers no welcome bonus at all. The Discover it® Secured Credit Card includes access to Discover’s Cashback Match program for your first year of card ownership, meaning Discover will match whatever cash back you earn at the end of your first year with the card — essentially doubling your rewards. And with no minimum or maximum spending requirements, this is a chance to earn significant rewards.
Discover it® Secured Credit Card
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With the Discover it® Secured Credit Card, you’ll earn 2 percent cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter (then 1 percent), plus an unlimited 1 percent cash back on everything else. Not only is this a decent cash back opportunity for any credit card, but it’s one that you don’t typically see for secured credit cards.
The Capital One Platinum Secured, like most secured credit cards, does not feature any ongoing rewards.
Tie
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Both cards offer a $0 annual fee, making them affordable options for those looking to keep down costs.
Capital One Platinum Secured
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The Capital One Platinum Secured comes out far ahead in this category by requiring a security deposit starting at $49 for a $200 minimum credit line. This is on the lower side not only between these two cards, but for secured credit cards in general.
However, not everyone will qualify for the $49 security deposit. Depending on Capital One’s decision over your application, you might have to pay $99 or $200 to get a $200 minimum credit line. Still, the potential for a lower minimum deposit sets the Capital One Platinum Secured card apart from other secured cards.
The Discover it® Secured Credit Card requires a $200 minimum deposit no matter what, making it tougher for those who are on a tighter budget.
Discover it® Secured Credit Card
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Neither card offers an introductory annual percentage rate (APR) on purchases, but the Discover it® Secured Credit Card has an introductory balance transfer offer, making it the winner in this category. Discover offers an introductory APR of 10.99 percent on balance transfers for the first six months of card ownership, along with a 3 percent introductory balance transfer fee. This is followed by a fee of up to 5 percent on future balance transfers and a 28.24 percent variable APR after the introductory period ends.
This could prove beneficial if you have high-interest balances from other credit cards that you want to transfer to your secured card, giving you a chance to pay less in interest while knocking out debt.
It is also important to compare the ongoing regular interest rates, or variable APRs, charged by these cards in case you wind up carrying a balance at any point. The Capital One Platinum Secured comes with a 29.99 percent variable APR, which is much higher than the Discover it® Secured Credit Card’s variable APR of 28.24 percent.
Which card earns the most?
Because only the Discover it® Secured Credit Card offers rewards, it’ll earn you more than the Capital One Platinum Secured by default. An example of what those earnings could look like per quarter is broken down below:
| Spending categories | Total spending | Cash back earned |
|---|---|---|
| Gas station purchases at 2% cash back | $400 | $8 |
| Restaurant purchases at 2% cash back | $600 | $12 |
| Miscellaneous purchases at 1% cash back | $2,000 | $20 |
| Total per quarter | $3,000 | $40 |
If you spent $3,000 broken down this way, you’d earn $40 in cash back per quarter. Yearly, that would equate to $160. With Discover’s CashBack Match, however, you’d get to double that amount — meaning you’d earn $320 in cash back after your first year of card use.
The Capital One Platinum Secured, on the other hand, will earn you $0.
Why you should get the Capital One Platinum Secured
The Capital One Platinum Secured is worth it for those looking for a low security deposit threshold. The minimum deposit starting at $49 puts the card within reach for more potential users, giving them the chance to start building credit with a secured card. Paying off the card each month will not only help you avoid substantial interest rate fees, but also gives you a solid chance at establishing or rebuilding credit.
Additional benefits
Some additional benefits for the Capital One Platinum Secured include:
- Automatic credit line reviews: Capital One automatically reevaluates your account after six months to see if you qualify for a higher credit limit. Plus, if you use your card responsibly by making on-time payments, you could earn back your security deposit as a statement credit.
- Personalized payment options: You can pick your own credit card payment due date, making it easier to fit your budget.
- Credit score alerts: You can keep track of your credit score through CreditWise from Capital One — an advantageous perk for those trying to improve their credit scores.
- Travel benefits: The card doesn’t charge foreign transaction fees, and you can get emergency card replacement services if your card is ever lost or stolen.
Redemption options
Currently, the Capital One Platinum Secured does not have any rewards program in place for redemption opportunities.
Recommended credit score
It may be possible to get approved for the Capital One Platinum Secured if you have no credit history or if your FICO credit score is less than 600.
Why you should get the Discover it® Secured Credit Card
The Discover it® Secured Credit Card is easily worth it thanks to its welcome bonus and cash back rewards program. It’s a strong secured option for someone who wants to test their responsibilities, improve their credit profile and eventually move on to an unsecured card as soon as possible. The key is to pay the balance off each month to avoid high interest rate charges.
Additional benefits
The Discover it® Secured Credit Card also provides perks and benefits like:
- Automatic account reviews: Automatic reviews starting at 7 months to see if Discover can transition you to an unsecured line of credit and return your deposit. This is ideal for those who want to build a stronger credit profile by adding an unsecured credit card with a higher credit limit.
- FICO score access for free: Users receive free access to their FICO credit score through the Discover app. This makes it both easy and convenient for those monitoring their scores closely.
- Card freeze: The Freeze it® feature allows users to instantly turn their card usage off or on if their card has gone missing or is stolen.
- Travel benefits: Like the Capital One Platinum Secured, the Discover it® Secured Credit Card also charges no foreign transaction fees. Cardholders can also expect a free replacement card from Discover within 6 business days if their card is lost or stolen.
Redemption
If you earn any cash back, you have the option to redeem at any time. There is no minimum redemption amount or an expiration date on rewards either.
Recommended credit score
Like the Capital One Platinum Secured, the Discover it® Secured Credit Card may be best for those with no credit history or those with a FICO credit score that’s less than 670.
The bottom line
The Capital One Platinum Secured is an excellent choice for someone who has a limited budget for establishing a secured line of credit since the minimum deposit required starts at $49 for those who qualify. And it’s a Mastercard, which is accepted almost everywhere in the world.
Meanwhile, the Discover it® Secured Credit Card offers an impressive welcome bonus where your cash back rewards are matched at the end of your first year with the card. Having a cash back rewards program tied to a secured credit card is unusual, and if you envision using your card for multiple purposes and can pay the balance in full each month, the cash back could be an enticing perk. Keep in mind, though, it will cost a minimum of $200 to establish a credit line with this card.
Before you apply, be sure to review Bankrate’s current list of the best secured credit cards. If you’re looking at secured credit cards because you think that your credit score is too low for a more traditional card, consider also checking out our list of the best cards for those with bad credit. By researching the cards on these lists and comparing your options, you can make sure you’ve found the one that best suits your needs.
