Discover it® Balance Transfer Card Review

The Discover it® Balance Transfer Card is one of the most versatile credit cards available in the market, offering a range of features that cater to various financial needs. Whether you are looking to transfer a balance, earn cash back on everyday purchases, or enjoy a long introductory APR period, this card has something for everyone. In this comprehensive review, we will delve into all aspects of the Discover it® Balance Transfer Card, providing you with detailed insights to help you decide if this card is the right fit for you.

Discover it® Balance Transfer Card Review

Overview

The Discover it® Balance Transfer Card is designed for individuals who have good to excellent credit scores, typically ranging from 670 to 799. This card is particularly appealing due to its extensive cash back rewards program and its generous balance transfer offers. With a 0% Intro APR on purchases for the first six months and on balance transfers for the first 18 months, this card provides a significant opportunity to save on interest payments.

Key Features

– 5% Cash Back: Earn 5% cash back on everyday purchases at different places each quarter, such as Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal, up to the quarterly maximum of $1,500, then 1%. This requires activation each quarter.
– 1% Cash Back: Earn 1% cash back on all other purchases.
– 2x Cashback Match: Discover will automatically match all the cash back you’ve earned at the end of your first year.
– 0% Intro APR: Enjoy a 0% Intro APR for six months on purchases and 18 months on balance transfers from the date of the first transfer.
– Variable APR: After the introductory period, the APR ranges from 17.24% to 28.24% for purchases and balance transfers, and 29.99% for cash advances.
– No Annual Fee: The card comes with no annual fee.
– Credit Score Monitoring: Free credit score monitoring is available to help you keep track of your credit health.

Discover it® Balance Transfer Card Key Takeaways

Pros

1. Long Introductory APR Period: The 0% Intro APR for 18 months on balance transfers and six months on purchases is highly competitive and allows you to save on interest payments during the introductory period.
2. Generous Cash Back Rewards: The 5% cash back on rotating categories and 1% on all other purchases make it easy to earn rewards on your everyday spending.
3. Cashback Match: The 2x Cashback Match at the end of the first year can significantly boost your rewards, essentially doubling your cash back earnings for the first year.
4. No Annual Fee: The absence of an annual fee makes this card cost-effective for long-term use.
5. Free Credit Score Monitoring: This feature helps you stay informed about your credit health and can alert you to potential issues.

Cons

1. Rotating Bonus Categories: The need to activate categories each quarter may be inconvenient for some users. Additionally, if you don’t spend much in the specified categories, you may not maximize your cash back earnings.
2. Short Intro APR for Purchases: While the 0% Intro APR for balance transfers is lengthy, the six-month intro APR for purchases is relatively short compared to some other cards.
3. Balance Transfer Fee: The 3% introductory fee on balances transferred by June 10, 2024, and up to 5% fee for future balance transfers can add up if you are transferring a large balance.

Discover it® Balance Transfer Card Pros and Cons

Pros

– Long 0% Intro APR Period: The extensive 18-month 0% intro APR on balance transfers is a standout feature, ideal for those looking to consolidate debt or manage existing credit card balances.
– Great Cash Back Rewards: With 5% cash back on rotating categories and 1% on other purchases, this card offers lucrative rewards on everyday spending.
– No Annual Fee: There is no annual fee, making it a cost-effective option for budget-conscious consumers.
– Cashback Match After the First Year: The 2x Cashback Match essentially doubles your rewards for the first year, providing a significant boost to your cash back earnings.
– Free Credit Score Monitoring: Helps you keep track of your credit health and can alert you to any potential issues.

Cons

– Short 0% Intro APR Promotion Period for Purchases: The six-month 0% intro APR on purchases is shorter than some competing cards, which may offer up to 12 months.
– Rotating Quarterly Bonus Categories: The need to activate categories each quarter and the possibility that the categories may not align with your spending habits can be a drawback.
– Balance Transfer Fee: A 3% introductory fee on balances transferred by June 10, 2024, and up to 5% fee for future balance transfers can add up, particularly if you are transferring a large balance.

Discover it® Balance Transfer Card Benefits

Cash Back Rewards

One of the most appealing features of the Discover it® Balance Transfer Card is its cash back rewards program. Here’s a detailed look at how you can maximize your rewards:
1. 5% Cash Back on Rotating Categories: Each quarter, Discover offers 5% cash back on select categories such as Amazon.com, grocery stores, restaurants, gas stations, and PayPal. These categories rotate every three months, and you must activate them to earn the bonus cash back. The maximum spend to earn the 5% cash back is $1,500 per quarter, after which you will earn 1% cash back.
2. 1% Cash Back on All Other Purchases: For all other purchases that don’t fall into the rotating categories, you will earn 1% cash back, which is a standard rate among cash back credit cards.
3. 2x Cashback Match: At the end of your first year as a cardholder, Discover will match all the cash back you’ve earned, effectively doubling your rewards. This is a unique feature that can significantly boost your cash back earnings.

0% Intro APR Offers

The Discover it® Balance Transfer Card offers two introductory APR promotions:
1. 0% Intro APR on Purchases: Enjoy a 0% Intro APR on purchases for the first six months from the date of account opening. This is ideal for making large purchases and paying them off over time without accruing interest.
2. 0% Intro APR on Balance Transfers: Benefit from a 0% Intro APR on balance transfers for 18 months from the date of the first transfer. This is one of the longest introductory periods available and is perfect for consolidating debt from high-interest credit cards.

No Annual Fee

The Discover it® Balance Transfer Card comes with no annual fee, making it a cost-effective option for long-term use. You can enjoy all the benefits and rewards without worrying about an annual charge eating into your earnings.

Free Credit Score Monitoring

Discover offers free credit score monitoring to all cardholders. This feature allows you to keep track of your FICO score and monitor any changes. It can also alert you to potential issues, helping you maintain a healthy credit profile.

Additional Benefits

1. Purchase Protection: Discover offers purchase protection on eligible items, covering them against damage or theft for a certain period after the purchase.
2. Fraud Protection: You are not held responsible for unauthorized purchases on your card, giving you peace of mind.
3. No Foreign Transaction Fees: Unlike many other credit cards, the Discover it® Balance Transfer Card does not charge foreign transaction fees, making it a great option for international travel.
4. Payment Flexibility: You can pay your bill online, by phone, or through the Discover mobile app, offering convenience and flexibility.

Conclusion

The Discover it® Balance Transfer Card is an excellent choice for individuals with good to excellent credit who are looking to take advantage of cash back rewards, long introductory APR periods, and no annual fee. Its rotating 5% cash back categories and 2x Cashback Match at the end of the first year provide significant earning potential, while the 0% intro APR offers on purchases and balance transfers can help you save on interest payments.
However, it’s important to consider the potential drawbacks, such as the short introductory period for purchases and the need to activate rotating categories each quarter. Additionally, the balance transfer fee can add up, especially if you are transferring a large balance.
Overall, the Discover it® Balance Transfer Card offers a robust set of features and benefits that make it a strong contender in the cash back and balance transfer credit card market. If you are looking for a card that provides excellent rewards, flexible payment options, and valuable introductory APR offers, this card is definitely worth considering.
By understanding its features, benefits, and potential drawbacks, you can make an informed decision and determine if the Discover it® Balance Transfer Card aligns with your financial goals and spending habits.