It is an excellent first step for those interested in rewards-earning cards. With Discover it Cashback credit card, you can earn 5% cash back on purchases at different places every quarter, up to a quarterly maximum of $1,500 when you activate.
Additionally, you will receive unlimited 1% cashback on all additional purchases – automatically. In addition, Discover will match the cashback you earn at the end of the first year you hold the card, which might be more beneficial than a more traditional welcome bonus. There is no annual fee for the Discover it® Cash Back card.
There are better cash-back cards, but Discover it® Cash Back is a good one. The best features of the company are its customer service and first-year cash-back match. However, the 1% ongoing cash back rewards make it a second-tier rewards card.
Benefits Discover cashback credit cards
1. Cashback matches are unlimited
Your Cashback will be automatically matched dollar-for-dollar at the end of your first year
2. We provide security 24/7
Having unauthorized charges on your Discover Card account is never your responsibility as we monitor every purchase every day
3. Get a free credit score from Fico
Your fico credit score is available online and via our mobile app on your monthly statement
4. 100% US-based customer support
Get our powerful, fast online and mobile services anytime, plus talk to a real person with our customer service
5. 99% acceptance across the country
Discover is accepted at 99% of the establishments across the country that accept credit cards
6. Redeem easily
Your Cashback never expires, and rewards can be redeemed at any time and in any amount.
7. There is no annual fee.
Discover it® Cash Back credit cards have no annual fee. Not anymore. No more hiding it a year from now. Introductory April of 0% on purchases and balance transfers for 14 months. A fee of 3% for balance transfers until January 10, 2022. For future balance transfers, the Standard Variable Purchase APR will fluctuate between 11.99% and 22.99%, along with a 5% fee.
Credit Card Overview of Discover it® Cash Back
Discover it® Cash Back Credit Card score is the low-risk way to earn Cashback on your everyday expenses, and it’s an easy way to save a little bit of money. This card does not charge an annual fee and rewards you with 5 percent cash back on rotating category purchases every quarter for the first $1,500 (then 1 percent), plus 1 percent on all other purchases.
If you value ongoing value, Discover it Cash Back’s rewards-earning power, combined with its low fees, could make it one of the best choices. But is it right for you? No annual fee credit cards can be frustrating if you don’t like the extra legwork it takes to track rotating categories, the quarterly spending limits, or the limited perks.
Is there advantage and disadvantages?
- Cashback of 5 percent per quarter on up to $1,500 in purchases after you activate, then 1 percent
- Fees for your first late payment are $20, no annual fee, no foreign transaction fees, no APR penalty, and no foreign transaction fees.
- The Cashback Match program basically doubles all Cash earned during the first year.
- Discovery announces its entire calendar of 5 percent cashback in advance rather than a quarter in advance.
- Zero percent intro APR for a 14-month period on purchases and balance transfers, then an incredibly low variable APR range of 11.99 percent to 22.99 percent for the rest of the term
- Discover’s high rating from the J.D. Power survey track record as a responsible credit card issuer makes it one of the best in terms of customer service.
- Amazingly accessible, only requiring a FICO score of 670 or above to be considered.
- Depending on whether your spending aligns with the cycling categories, you may or may not receive rewards.
- You cannot transfer rewards to other loyalty programs to get more value from them.
- Rewards cardholders may not be able to understand the rotating category rewards program’s quarterly activation requirements.
current card offer here are some quick highlights
- Rewards rate: 5 percent Cashback after activation on rotating categories each quarter (up to $1,500 in purchases before 1% kicks in), 1% for everything else
- The first year you sign up, we will automatically match your cashback.
- The annual fee is $0
- Introductory APR: 0% for the first 14 months
- The first 14 months of the balance transfer APR are 0%
- APR is variable between 11.99 percent and 22.99 percent
Current welcome offer
- The annual fee is $0
- First 14 months of purchase APR: 0 percent
- The first 14 months of the balance transfer APR are 0%
- The variable APR ranges from 11.99% to 22.99%
This MasterCard sign-up bonus is different from those offered by other cards. As part of Discover’s Cashback Match program, it matches the total Cashback you earn during your first year.
In this program, the size of your new cardholder bonus depends on how much you use your Discover cash back card; the more you use your card, the bigger your bonus. You can earn another $300 on top of the $300 you earned from activating your 5 percent categories and then 1 percent each quarter after that. If you’ve waited long enough, you’ll get a reward well above the $150 to $200 upfront welcome offer you’d get from most other no annual fee cashback cards.
Rates of Cashback
You will need to monitor Discover’s rotating bonus categories every quarter and enroll for Cashback every quarter to be able to earn Cashback, but the rewards are great.
1. Cashback earning
Discover’s 5 percent cash back calendar allows you to earn 5 percent back on purchases up to $1,500 in different categories each quarter. Each quarterly bonus must be activated in order to apply. You will only earn 1 percent cashback on your purchases if you do not activate a bonus category or if you exceed the $1,500 cap. As well as the quarterly bonus, you’ll also earn 1 percent back on general purchases.
Discover is currently offering $50 referral bonuses (up to $5k/10 referrals per year) along with the cashback match offer, which is available for Discover it Cash Back.
2. Redeeming your Cashback
The Discover rewards can be redeemed in the form of an electronic direct deposit to your chosen account or as a credit to your account balance. In addition to redeeming rewards for gift cards, you can make charitable donations to selected charities or even use them at Amazon.com and PayPal.com checkouts.
You may designate a method for redeeming Cashback by visiting your card account or calling customer service at 1-800-347-3085.
How much are the rewards worth?
Each cashback “cent” is worth an equivalent 1 cent when you redeem it. For example, if you had spent $1,500 buying gifts for your entire family from Amazon.com during the fourth quarter of 2020 after activating the bonus category, you would earn $75 cashback on those purchases because they fall into the 5 percent category for that quarter (activation required, then 1 percent).
All rewards come with a 1:1 redemption rate, something that you don’t always find with Amazon.com and PayPal.com checkout reward payments or when converting miles to Cashback. Nonetheless, Discover adds an additional 5 percent to 20 percent value to its partner gift cards, making these cards unique in the credit card industry.
Other cardholder perks
Discover it Cash Back is not only a great cashback card, but it also offers a few other benefits as well. Because Discover has trimmed its card features in favor of its signature low-cost reward offerings, you might want to consider other options if you need traditional benefits like purchase and travel protections.
Service to customers
According to the most recent 2021 study, Discover ranked second overall out of all credit cards, having previously won first place five times and tied for the top spot in 2014.
Customer service is available 24/7, replacement cards are shipped free overnight, and credit scores are included on every monthly statement.
Discover can freeze your account, along with their recent and future purchases, transfers, and cash advances, if your card is lost or stolen, therefore protecting you from potential identity theft. There will still be some activity on your card, including pre-existing expenses (like utility bills), returns, credits, delayed payments, or account fees and interest.
Discover’s $0 Fraud Liability benefit means you won’t have to worry about being held responsible for unauthorized purchases.
Protection from Social Security
Those who opt for this benefit will receive a notification from Discover if their Social Security number is found on a dark web or malicious website, so they can take steps to protect their identities.
Rates and fees
For the first 14 months after you sign up, Discover it Cash Back offers a 0 percent introductory APR on purchases and balance transfers. As soon as the intro period is over, the monthly APR will be variable between 11.99 percent and 22.99 percent, which is still well below the current average for a low-interest card.
However, with this card, you won’t pay an annual fee, you won’t get a penalty APR for late payments, and there will be no penalty for making your first late payment. Discover charges a $40 late fee for any late payments after that.
There is a three percent fee for the first balance transfer and a five percent fee for future transfers (see terms). There is a $5 fee for a cash advance or $10 for a $10 advance, whichever is greater. The variable APR for cash advances is 24.99 percent at present.
Cash Back from Discover it® vs. Discover it® chrome
There is no difference between Discover it Cash Back vs. Discover it Chrome since it has the same welcome offers and low fees. Chrome offers a more manageable cashback rate of 2 percent at gas stations and restaurants, but you are limited to $1,000 of combined gas and restaurant purchases per quarter. Otherwise, you earn 1 percent, akin to Discover it.
Discover it Chrome seems to offer steadier rewards. However, its category-based spending limit is less generous than Discover it Cash Back, resulting in lower Cashback earning potential. The Cash Back card would earn $496 per year based on the budget from the previous table, whereas the Chrome card would eke out $349 annually based on the budget from the above table. Taking into consideration this significant rewards difference also affects your first-year Cashback match bonus, which means the chrome card’s welcome offer is worth $294 less. Despite the Discover it Chrome appearing more reliable, the Discover it Cash Back is a much more valuable card.
Discover the difference between Chase Freedom FlexSM and its Cash Back.
One of the most popular rotating category cards on the market is Chase Freedom FlexSM.
Discover it Cash Back versus the Freedom Flex may seem like a no-brainer thanks to the Flex card’s superior benefits (such as excellent travel insurance and World Elite Mastercard perks) and additional year-round 3 to 5 percent back categories.
While a Chase Sapphire card offers enhanced rewards value, there are a few other elements at play that you should keep in mind.
However, the Discover it Cash Back has lower fees and an introductory 0 percent APR (15 months) rather than Freedom Flex’s 14.99 percent to 23.74 percent.
In addition to not charging foreign transaction fees or a penalty APR, Discover does not charge a first-time late payment fee (up to $40 afterward). It’s also worth noting that Chase doesn’t release its 5 percent bonus categories until a month or so prior, whereas Discover does it the year before. A cashback match offer from Discover could be even better than Freedom Flex’s $200 cash welcome bonus (must spend $500 within the first three months).
Chase Freedom Flex has some limitations but is more valuable for many cardholders if they already have a Chase rewards card. The Discover it Cash Back card may be the better choice for those who favor lower fees and rates, a familiar rotating category structure, and superior customer service (Chase ranked fourth in J.D. Power’s latest survey).
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With freeze it, you can turn your account on and off
For protection against new purchases and balance transfers, freeze your account if you lose your card.
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What credit score do you need for Discover it?
Discover it Cash Back credit card applicants should know their credit score before applying. If you have established good credit, you’ll need a 670 or higher FICO credit score to apply to Discover.
Discovery is a good credit card, right?
The Discover credit card company is not bad in general. It offers credit cards for all types of credit and has no annual fees. Its rewards cards also have no annual fees. Discover is actually a good credit card provider for most people because it offers cards for people of all credit levels.
Is discovery better than Capital One?
In the beginning, the bonus is the most significant difference. When you spend $1,000 in your first three months with Discover, you’ll get 50,000 miles, and Capital One matches all cash back you’ve earned. You’ll get $500 in travel rewards. You get 1 cent for every mile you earn on both cards.
Does Chase Freedom Flex require a certain credit score?
690 or above are considered good credit.
New Discover credit cardholders get an attractive bonus of doubling their rewards earned in the first year. Discover credit cards do not charge annual fees.