Discover, a US-based financial services firm, has rolled out Secured Credit Card for consumers looking to build or rebuild their credit.
The card, which has no annual fee, offers similar benefits as the Discover it Card, including Cashback Bonus rewards and FICO Credit Scores free on monthly statements and online.
The card requires applicants to provide a security deposit, which will be kept as collateral.
After a year of membership, the company will review credit card accounts each month to see if cardholders can shift to an account that does not require a security deposit.
The secured credit card also features other benefits like 2% cashback bonus at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% cashback bonus on other purchases.
Discover vice president of marketing Ryan Scully said: "Discover wants to help consumers build their credit. Our experience shows that 99% of new Discover it Secured cardmembers who didn’t previously have a FICO Credit Score received one on their Discover statements within nine months.
"Discover’s Secured Credit Card comes with the same rewards and benefits that every Discover it cardmember enjoys, all with no annual fee."