Discover it® Cash Back Credit Card Review

Discover it® Cash Back Review

The Discover it® Cash Back credit card has an ultra-generous bonus offer that matches the rewards in the first year — but that’s not all. A combination of benefits — like a 5% cash back in quarterly rotating categories on up to $1,500 in purchases per quarter (then 1%) and no annual fee — ensures that cashback fans will find it valuable.

Keep reading to find out all that this card has to offer and whether it’s right for you.

Discover it® Cash Back: pros and cons

Rewards system in a nutshell

With this credit card, you’ll earn 5% cashback — up to $1,500 in purchases per quarter — on quarterly rotating bonus categories (then 1%). In addition, you earn 1% cashback on all other purchases.

You must activate the bonus categories every quarter to earn at the 5% rate. You can activate it online at Discover.com, through the mobile app, or over the phone (1-800-347-2683).

The rewards system is flexible and comes without a minimum redemption amount, except in the case of instant eCertificates and gift certificates, both of which start at $5. Also, your rewards don’t expire as long as you keep the account open.

Once you’ve earned rewards, you can redeem them in any of the following ways:

• Redeem for cash – You can request an electronic direct deposit to your bank account or apply your rewards as a statement credit to your credit card balance.
• Gift cards – You can redeem your rewards for gift cards or instant eCertificates from Discover’s partners (ranging from $5 to $200 in $5 increments).
• Charitable donations – You can use your rewards to make donations to select charities.
• Shopping at PayPal.com or Amazon.com – To do this, first link your Discover it® Cash Back credit card to your PayPal or Amazon account. Next, make the payment using this card and apply the cashback at checkout.

If you’ve closed your account or not used it in the last 18 months, Discover will either send you a check or credit your account with the reward balance.

Who can benefit from getting the Discover it® Cash Back Credit Card?

If any of the following statements apply to you, this card might be a good choice.

You spend heavily in its bonus categories.

As a category bonus card, the Discover it® Cash Back credit card offers a wide variety of bonus categories. And given that they include gas stations, grocery stores, restaurants, and Amazon, among others, spending a lot in them may be easy to accomplish for many.

Its great sign-up bonus, which doubles the amount of cashback you collect in the first year of card membership, sweetens the deal further. You could turn $300 cashback into $600.

You want flexible redemption options.

The Discover it® Cash Back credit card not only offers several redemption options but also lets you redeem your cash back for amounts as low as $0.01. This makes it a good option for those who don’t use their credit card much. Since there is no minimum redemption limit, users can redeem their rewards as they earn them instead of waiting until they accrue enough rewards to top the minimum requirement.

You have a big purchase coming or are paying a high-interest balance on another credit card.

This card offers you an opportunity to finance a big purchase interest-free if you manage to pay it off in the first 14 months. The same intro APR period of 14 months is applied to balance transfers too. If you’re currently dealing with high-interest debt, this card is an excellent option, and if you do it during a designated period, you’ll pay the intro balance transfer fee of 3% (5% after).

Are there any other benefits?

Yes, there are quite a few of them.

• Free overnight card replacement - If your card gets stolen or lost, you can request free overnight shipping to any street address in the US. Once you receive the card, you can activate it online or over the phone.
• $0 Fraud Liability - You will not be liable in case of any unauthorized charges.
• Turn your account on/off with Freeze it® - If you lose your credit card, you can freeze it through Discover’s mobile app or website so that there are no new cash transfers, balance transfers, or purchases.
• FICO Score for free - Discover provides Credit Scorecard for the cardholders with access to FICO Score and additional information related to the credit history
• No late payment fee the first time - The Discover it® Cash Back credit card forgives your first late payment — but a fee of up to $40 may apply from the second time onward.
• No penalty APR - Missing a credit card payment is never good, especially if you want to maintain a good credit score. But with the Discover it® Cash Back credit card, at least it won’t raise your APR.
• Social security protection - At no extra cost, Discover Bank will send you an alert when a new inquiry or account is listed on your Experian credit report or if your Social Security number is found on any Dark Web website.

Conclusion

If you don’t mind keeping track of how much you’re spending in each category, the Discover it® Cash Back credit card is an attractive option. Its Cashback Match offer matches your rewards at the end of your first year, dollar for dollar, and the rewards program is quite generous. Plus, features like no annual fee and 0% intro APR for 14 months on purchases and balance transfers ensure this card remains light on your pocket.