Marc Serafino
The Discover it® card is best known for its 5% cash back in categories that are changed each quarter (and which should be activated from Discover’s website). There’s a cap of $1,500 after which you will no longer be earning 5% but 1% on all purchases. The same 1% cash back applies to all other purchases — those that are not selected by Discover.
During the second and third quarter of this year, cardmembers will get 5% back on their Amazon.com purchases, making this card that much more appealing to everyone frequently buying stuff from Amazon (and who doesn’t).
In addition to Amazon.com, during the July-September period, cardmembers can get 5% at home improvement stores. And as we said, the Amazon.com promotion will be extended by the end of 2016, with possibly another product category coming in as well.
Beyond Cash Back
There’s more to the Discover it® card. And here’s where Wallet Weekly’s personal finance expert kicks in to share his two cents about this credit card.
Expert Review: Discover it® Credit Card
by Charles H. Miller
There are a few reasons to love the Discover it® Credit Card. It has a fair APR, no annual fee, and if used right — it can get you hundreds of dollars in cash back every year. Also, new cardmembers get to benefit from the Cashback Match™ under which Discover will match their cash back earnings after the first 12 months of using the card. Here are the details:
5% cash back on rotating categories: That’s 5% cash back on Amazon.com purchases by the end of 2016. You earn 5% on purchases (up to $1,500) in categories that change each quarter. After $1500, you earn 1% cash back, and the same percentage applies to all other purchases.
Cashback Match™ sign-up offer: For new cardmembers, Discover will match all the cash back they’ve earned at the end of their first year – automatically.
0% Intro APR: Get first 18 months 0% APR for balance transfers and 6 months on purchases. After that, purchase APR comes to 11.24% – 23.24% based on your creditworthiness. Also, there is no penalty APR.
No foreign transaction fees: Makes Discover it® great for traveling abroad.
Easier on time payments: Discover will let you make your payments up until midnight on the due date. Even if you do end up paying late, you won’t be hit with a penalty APR.
No annual fee: When you get the Discover it® card you don’t have to pay a single dime upfront.
And more: Additional Discover it® perks include a free FICO score (on your monthly statement and online), flight accident and rental car insurance, and access to the 100% U.S. based customer service call center.
Great for Students!
There is also a version of this card made for students — Discover it® for Students. It offers all of the same bells and whistles as the “regular” card, plus an additional $20 cash back each school year if a student’s GPA is 3.0 or higher (for up to the next 5 years). APR is slightly different with Discover it® for Students. There’s a 0% introductory APR for six months on purchases and 10.99% introductory APR for six months on balance transfers (terms apply). After that, it goes to 13.24% – 22.24%.
Is This the Card For You?
Discover it® is a great everyday card for savvy shoppers who will find their way around rotating categories to get 5% cash back on their purchases. By the end of this year, it is also an amazing choice for Amazon.com fans.
During the first 18 month, you don’t have to worry about balance transfer fees, so you can use the card to potentially save hundreds on interest payments. Finally, some of the included perks make Discover it® a solid choice for travelling abroad — there are no foreign transaction fees, and you’ll get flight accident and rental car insurance free of charge.
