Charles H. Miller
In order to compete with Visa and MasterCard, Discover had to come up with an amazing offer; and that’s pretty much the idea behind the Discover it® card — pack a number of perks to make it® appealing to as many people as possible. The card packs generous cash back bonus, some travel benefits, and long introductory APR rate of 0%. Let’s delve into details…
Highlights
- Cashback Match™ for new users.
- 5% cash back on rotating bonus categories that change each quarter.
- 0% introductory APR for 18 months on balance transfers, 6 months for purchases.
- Regular APR of 11.24% – 23.24%.
- No foreign transaction fees.
- No annual fee.
How It Works
5% cash back on rotating categories: 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.
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.
Costs
- $0 Annual Fee
- 0% introductory APR for six months on purchases and for 18 months on balance transfers
- After that you go up to 11.24% – 23.24% depending on your creditworthiness
- 3% Balance Transfer Fee
- $0 Foreign Transaction Fee
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%.
Pros
- Cashback Match™ in your first year – new cardmembers, only.
- 5% cash back on rotating categories, up to $1,500, after which you get 1% back.
- 18 months of 0% Introductory APR for balance transfers, 6 months for purchases.
- No annual fee, and no penalty APR for late payments.
- No foreign transaction fee, along with included flight accident and rental car insurance make Discover it® great for travelers.
- Additional perks like free FICO Credit Scores and local customer service.
Cons
- Rotating categories can be hard to manage; but since you can get 5% cash back, some effort on your side is worth it.
- Limited card acceptance – Discover cards aren’t as widely accepted as Visa or MasterCard.
Is This the Card For You?
Discover it® is great everyday card for savvy shoppers who will find their way around rotating categories to get 5% cash back on their purchases. Also, 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.
