Discover it® Cash Back Credit Card Review

The Discover it® Cash Back Credit Card is a formidable contender in the competitive field of rewards credit cards. Tailored for individuals with good to excellent credit, this card offers a robust combination of cash back rewards, introductory APR offers, and zero annual fees. As a financial expert, I am here to delve deeply into the features, benefits, and potential drawbacks of this card, offering you a comprehensive understanding to help you decide if it suits your financial needs.

Discover it® Cash Back Credit Card Review

When evaluating a credit card, especially one that promises a high return on everyday purchases, it’s crucial to understand how it stands out from its peers. The Discover it® Cash Back Credit Card distinguishes itself with a generous 5% cash back on rotating categories, up to a quarterly maximum, and an enticing 2x cash back offer for new cardmembers in the first year. Let’s break down the specifics.

Rewards Structure

One of the most appealing features of the Discover it® Cash Back Credit Card is its rewards structure. Cardholders can earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations, and when paying using PayPal, up to the quarterly maximum when activated. After reaching the quarterly cap of $1,500 in purchases, cardholders will still earn 1% cash back on all other purchases.
For the mathematically inclined, this means that if you maximize the 5% categories each quarter, you can earn up to $300 in cash back annually from these purchases alone. And the 1% cash back on all other purchases is a nice baseline that ensures you’re always earning, no matter where you shop.

Introductory Offers

The Discover it® Cash Back Credit Card sweetens the deal with a couple of compelling introductory offers:
– 0% Intro APR for 15 months from the date of account opening on purchases.
– 0% Intro APR for 15 months from the date of the first transfer on balance transfers. After the introductory periods, a variable APR of 17.24% – 28.24% will apply.
Additionally, new cardmembers can take advantage of the 2x Cash Back offer in the first year. Essentially, all the cash back you earn during the first year will be matched at the end of the year. If you earn $300 in cash back, Discover will match it, giving you a total of $600.

Fees and Rates

The Discover it® Cash Back Credit Card is designed to be user-friendly:
– Annual Fee: $0
– Balance Transfer Fee: 3% intro fee on balances transferred by June 10, 2024, and up to 5% fee for future balance transfers.
– Cash Advance Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater.
– Penalty Fees: No late fee on the first late payment, up to $41 thereafter. No returned payment fee.
– Foreign Transaction Fees: $0, making it a great card for international travelers.

Discover it® Cash Back Key Takeaways

Here’s a quick summary of the standout features of the Discover it® Cash Back Credit Card:
– 5% Cash Back: On rotating categories each quarter, up to $1,500 in purchases, then 1% cash back.
– 1% Cash Back: On all other purchases.
– 2x Cash Back: In the first year for new cardmembers.
– 0% Intro APR: For 15 months on purchases and balance transfers.
– No Annual Fee: Enjoy all these benefits without an annual fee.
– No Foreign Transaction Fees: Ideal for international use.
– Generous Introductory Offers: Including balance transfer options and no late fees on the first missed payment.

Discover it® Cash Back Pros and Cons

Pros

1. Generous Rewards Program: The 5% cash back on rotating categories is one of the highest rates available.
2. Flexible Redemptions: Cash back can be redeemed in various ways, including statement credits, gift cards, and direct deposits.
3. 0% Intro APR: For 15 months on purchases and balance transfers, helping you save on interest.
4. No Annual Fee: There’s no cost to carry the card.
5. No Foreign Transaction Fees: A boon for travelers.
6. First-Year Cash Back Match: Doubling your cash back in the first year provides exceptional value.

Cons

1. Activation Required: You must activate the 5% cash back categories each quarter, which can be cumbersome.
2. Rotating Categories: The 5% cash back categories change quarterly, which might not align with your spending habits.
3. Quarterly Cap: The 5% cash back is limited to $1,500 in purchases per quarter, then drops to 1%.

Discover it® Cash Back Benefits

Cashback Program

The primary benefit of the Discover it® Cash Back Credit Card is its cash back program. The 5% cash back on rotating categories provides an excellent opportunity to earn substantial rewards on everyday purchases. Whether it’s groceries, gas, or online shopping, the rotating categories ensure that you can maximize your rewards throughout the year.

Redemption Flexibility

Discover offers several options for redeeming your cash back, including:
– Statement Credits: Apply your cash back directly to your credit card bill.
– Direct Deposit: Transfer your cash back to your bank account.
– Gift Cards: Redeem for gift cards to popular retailers.
– Charitable Donations: Donate your cash back to a charity of your choice.

Introductory APR Offers

The 0% Intro APR for 15 months on purchases and balance transfers can be particularly beneficial if you have a large purchase planned or want to transfer a balance from a higher-interest card. This feature can save you a significant amount of money on interest charges.

No Annual Fee

One of the most appealing aspects of the Discover it® Cash Back Credit Card is that it has no annual fee. This means you can enjoy all the benefits and rewards without worrying about an annual cost eating into your earnings.

No Foreign Transaction Fees

For those who travel internationally, having a credit card with no foreign transaction fees is a significant advantage. You can use your Discover it® Cash Back Credit Card abroad without incurring additional charges, making it a cost-effective option for travelers.

Security Features

Discover provides robust security features, including:
– Free Social Security Number Alerts: Get notified if your Social Security Number is found on any of thousands of risky websites.
– Freeze it® on/off Switch: Instantly freeze your account in the event of a lost or stolen card to prevent new purchases, cash advances, and balance transfers.
– $0 Fraud Liability: You’re never responsible for unauthorized purchases on your Discover card.

Customer Service

Discover is known for its exceptional customer service. With 24/7 access to customer support and a user-friendly online platform, managing your account and addressing any issues is straightforward and stress-free.

Conclusion

The Discover it® Cash Back Credit Card is a versatile and rewarding option for those with good to excellent credit. Its generous cash back program, coupled with flexible redemption options, makes it a standout choice for everyday spending. The 0% Intro APR offers on both purchases and balance transfers provide added financial flexibility, and the lack of an annual fee means you can enjoy these benefits without any additional costs.
However, it’s essential to consider the need to activate the 5% categories each quarter and the quarterly cap on these rewards. If you can navigate these requirements, the Discover it® Cash Back Credit Card can be a powerful tool in your financial arsenal, helping you maximize your rewards and manage your finances more effectively.
In conclusion, the Discover it® Cash Back Credit Card offers a comprehensive package that caters to various spending habits and financial goals. Whether you’re looking to earn substantial cash back on everyday purchases, save on interest with 0% Intro APR offers, or simply manage your finances more efficiently, this card provides a robust solution. As always, ensure you assess your personal financial situation and spending habits to determine if this card aligns with your needs and goals.