The Discover it Cash Back Card is a popular choice for anyone looking to earn rewards on everyday spending.
With its rotating 5% cashback categories and first-year Cashback Match, it offers value without an annual fee.
This guide breaks down what you can expect to help you decide if it fits your wallet.
Key Benefits
The Discover it Cash Back Card offers several standout features that cater to smart spending. Here are seven key benefits:
- 5% Cashback on Rotating Categories: Earn 5% back on select categories like groceries, gas, and restaurants (activation required).
- 1% Unlimited Cashback: Receive 1% cashback on all other purchases with no caps.
- First-Year Cashback Match: Discover matches all cashback earned in your first year, doubling your rewards.
- No Annual Fee: Enjoy rewards without the burden of yearly fees.
- Flexible Redemption Options: Redeem rewards as a statement credit, bank deposit, or gift card with no minimum threshold.
- Zero Fraud Liability: Get peace of mind with protection against unauthorized transactions.
- FICO Credit Score Access: Monitor your credit score for free through your account dashboard.
Fees and Rates
Understanding the fees and rates of the card is essential for making an informed decision. Here’s a breakdown of the key details:
- Annual Fee: $0.
- Introductory APR: 0% for 15 months on purchases and balance transfers.
- Regular APR: Variable APR ranges between 17.24% and 28.24%, depending on your creditworthiness.
- Balance Transfer Fee: 3% for transfers made during the introductory period and up to 5% afterward.
- Cash Advance Fee: $10 or 5% of the amount, whichever is greater.
- Late Payment Fee: No fee on the first missed payment; up to $41 for subsequent late payments.
- Foreign Transaction Fees: None.
Eligibility and Requirements
You must meet specific eligibility criteria to qualify for the Discover it Cash Back Card. Here’s what is typically required:
- Minimum Age: You must be at least 18 (19 in some states).
- Credit Score: A good to excellent credit score, generally 670 or higher, increases your approval chances.
- U.S. Residency: You must be a U.S. citizen or permanent resident with a valid Social Security Number.
- Income Verification: Proof of sufficient income to meet credit card payments is required.
- Contact Information: A valid address, phone number, and email.
- Pre-Qualification Option: You can check for pre-approval online without impacting your credit score.
Drawbacks to Consider
While the card offers great benefits, knowing its potential drawbacks is essential. Here are some limitations to consider:
- Category Activation Required: You must manually activate the 5% cashback categories each quarter.
- Spending Cap on Bonus Categories: The 5% cashback applies only up to a $1,500 quarterly spending limit.
- Limited International Acceptance: Discover cards are not as widely accepted overseas as Visa or Mastercard.
- High Regular APR: The variable APR can range up to 28.24%, which may be costly for those with a balance.
- Balance Transfer Fee: While the introductory APR is helpful, the 3%–5% transfer fee can add up.
- No Travel-Specific Rewards: It’s not ideal for frequent travelers who prioritize travel perks or miles.
- Rewards Reset Annually: Unused rewards do not roll over, requiring you to redeem them regularly.
Rewards Redemption Options
The Discover it Cash Back Card offers flexible options for redeeming your rewards, making it easy to use your cashback earnings.
Here’s how you can redeem your rewards:
- Statement Credit: Apply cashback directly to your card balance.
- Bank Deposit: Transfer your rewards to a linked checking or savings account.
- Gift Cards: Redeem cashback for gift cards, often at a bonus value.
- Amazon Purchases: Use your cashback instantly at checkout on Amazon.
- Charity Donations: Donate your rewards to select charitable organizations.
- No Minimum Redemption: Redeem any amount of cashback with no minimum threshold.
Security and Customer Service
The card prioritizes security and customer satisfaction, offering features to protect your account and provide support when needed.
Here’s what you can expect:
- Zero Fraud Liability: You’re not responsible for unauthorized charges on your account.
- Freeze It Feature: Instantly freeze your card through the mobile app to prevent new transactions.
- Secure Account Monitoring: Alerts for unusual account activity help detect potential fraud.
- 24/7 Customer Support: Access U.S.-based customer service representatives anytime.
- Social Security Alerts: Get notified if your Social Security Number is found on risky websites.
- Encrypted Transactions: Advanced encryption ensures secure purchases online and in-store.
Mobile App and Online Tools
The card has a robust mobile app and online tools that make managing your account convenient and straightforward.
Here are the features available:
- Account Management: View transactions, check balances, and make payments directly through the app or website.
- FICO Credit Score Tracker: Monitor your credit score for free with regular updates.
- Reward Redemption: Redeem cashback rewards instantly through the app.
- Category Activation: Activate the 5% cashback categories easily each quarter.
- Freeze It Feature: Quickly freeze your card to block new purchases, cash advances, and balance transfers.
- Spending Analysis: Access detailed spending reports to track and manage your expenses.
- Push Notifications: Get alerts for payment due dates, suspicious activity, and category activation reminders.
Comparison to Competitors
The Discover it Cash Back Card competes with several top cashback cards. Here’s a quick comparison:
- Chase Freedom Flex: Offers 5% on rotating categories and bonus rewards for travel and dining but requires activation like Discover.
- Citi Custom Cash Card: Automatically gives 5% on your highest spending category (up to $500) without activation.
- Capital One Quicksilver Cash Rewards Card: Flat 1.5% cashback on all purchases, ideal for simple rewards.
- American Express Blue Cash Everyday® Card: 3% cashback on groceries and online retail, great for families.
- Bank of America Customized Cash Rewards Card: This lets you choose a 3% cashback category, offering more control.
- Wells Fargo Active Cash® Card: Unlimited 2% cashback on all purchases, better than Discover’s 1% for non-categories.
- Amazon Prime Rewards Visa Card: 5% cashback for Amazon and Whole Foods, ideal for frequent shoppers.
Is It Right for You?
Whether this card is correct depends on your spending habits and financial goals. Here are the factors to consider:
- Frequent Category Spending: Spending in rotating categories like groceries, gas, or dining is best.
- No Annual Fee: Ideal for those who want rewards without paying a yearly fee.
- First-Year Rewards Boost: Great for maximizing cashback with the first-year Cashback Match.
- Limited International Use: This may not suit those traveling outside the U.S. due to limited acceptance.
- Low Spending Flexibility: This is not the best option if you don’t want to activate categories or have irregular spending patterns.
- Intro APR Benefits: A good choice if you need a 0% APR period for purchases or balance transfers.
- Straightforward Redemption: Perfect for those who want easy cashback redemption options.
How to Apply
Applying for the Discover it Cash Back Card is a simple process. Here’s how you can get started:
- Visit the Discover Website: Access the official Discover website to complete the application form.
- Check Pre-Qualification: Use the pre-qualification tool to see your approval chances without affecting your credit score.
- Fill Out the Application: Provide your personal, financial, and contact details accurately.
- Submit Required Documents: Be ready to submit proof of income or identification.
- Review Terms and Conditions: Carefully read the card’s terms, rates, and fees before submitting.
- Submit Your Application: Once complete, submit the application and await a decision.
- Receive Your Card: If approved, your card will arrive by mail within 7–10 business days.
To Wrap Up
The Discover it Cash Back Card offers valuable rewards, no annual fee, and flexibility for everyday spending.
While it shines with rotating categories and first-year Cashback Match, it’s best suited for those willing to activate categories and optimize rewards.
If this card fits your needs, apply online today to earn cashback.
Last updated on January 7th, 2025 at 01:38 pm