The Discover it® Cash Back card is a popular cashback credit card that provides cardholders with the opportunity to earn 5% cashback on rotating categories each quarter (up to a maximum spend of $1,500 per quarter, then 1%).
This makes it one of the most rewarding cards for those who frequently shop in specific categories, like grocery stores, gas stations, restaurants, and more.
Additionally, it offers 1% cashback on all other purchases, making it a versatile choice for everyday spending.
One of the key features of the Discover it® Cash Back is its cashback match for new cardmembers.
At the end of your first year, Discover will match all the cashback you’ve earned, making your rewards even more valuable.
This is a unique feature that sets this card apart from many other cashback cards.
Furthermore, the Discover it® Cash Back card does not charge an annual fee and offers 0% introductory APR on purchases and balance transfers for the first 15 months.
This makes it a good choice for those looking to make large purchases or transfer balances from high-interest cards while paying no interest during the introductory period.
Reasons to Choose the Discover it® Cash Back Card
- High Cashback Potential One of the primary reasons to choose the Discover it® Cash Back card is its exceptional cashback rates. The card offers 5% cashback on rotating categories, which change every quarter. These categories often include some of the most common spending areas, such as grocery stores, restaurants, gas stations, and even online shopping or Amazon purchases. For the remaining purchases, you’ll still earn 1% cashback, making it an excellent option for everyday spending as well.
- Cashback Match at the End of the First Year A standout feature of the Discover it® Cash Back card is the Cashback Match. At the end of your first year, Discover will automatically match the cashback you’ve earned, meaning if you earn $200 in cashback during your first year, you’ll get an additional $200. This makes the first year an especially rewarding time to use this card.
- No Annual Fee Unlike many other cashback and rewards cards, the Discover it® Cash Back card has no annual fee. This allows you to maximize your rewards without worrying about offsetting an annual cost. The lack of an annual fee makes it more accessible and attractive for those who are looking to get the most out of their spending without additional expenses.
- 0% Introductory APR for 15 Months The Discover it® Cash Back card offers a 0% introductory APR on purchases and balance transfers for the first 15 months. This is a great benefit for individuals who need to make a large purchase or transfer existing credit card debt from a higher interest rate card. After the introductory period, the standard APR applies, which typically ranges between 14.24% to 25.24% (variable).
- Cashback on Rotating Categories Every quarter, the Discover it® Cash Back card offers 5% cashback on a rotating list of categories. Previous categories have included things like Amazon, restaurants, gas stations, groceries, and select department stores. This structure allows you to earn higher cashback rates in categories where you spend the most, and it keeps the rewards program fresh and adaptable to changing shopping habits.
- No Foreign Transaction Fees The Discover it® Cash Back card does not charge foreign transaction fees, making it a great choice for traveling internationally. Many other cards impose foreign transaction fees of around 3%, but with this card, you can use it abroad without worrying about those extra charges.
Negative Factors of the Discover it® Cash Back Card
- Rotating Categories Can Be Inconvenient While the 5% cashback in rotating categories is an attractive feature, it can also be a downside for some users. You’ll need to keep track of the categories each quarter and activate the offer each time. If you forget to activate, you’ll earn only the standard 1% cashback for that quarter’s categories. Additionally, the categories may not always align with your spending habits, so you may miss out on the full cashback potential in some quarters.
- High APR After Introductory Period While the 0% introductory APR on purchases and balance transfers for the first 15 months is appealing, the card’s standard APR can be relatively high, ranging from 14.24% to 25.24%. If you carry a balance after the introductory period, the high interest rate could lead to significant interest charges, especially if you have a large balance.
- Limited Acceptance in Some International Locations Although Discover is widely accepted in the U.S., it is not as commonly accepted internationally as Visa or Mastercard. This could be a limitation for people who travel abroad frequently and need a credit card that is universally accepted.
What Are the Requirements to Apply for the Discover it® Cash Back Card?
To apply for the Discover it® Cash Back card, you’ll need to meet certain requirements:
- Credit Score Applicants typically need a good credit score of 670 or higher. People with higher scores will have a better chance of approval and may qualify for better terms.
- Income You must have a sufficient income to meet the card’s credit requirements and ensure you can make the necessary payments. Discover will evaluate your income along with your credit history to determine your eligibility.
- Age You must be at least 18 years old to apply for the card and meet the legal age of majority in your state of residence.
- U.S. Citizenship or Legal Residency Applicants must be U.S. residents or citizens with a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Credit History A clean credit history is important for approval. Discover will look at your payment history, outstanding debts, and other factors that make up your credit report.
Fees and Costs
Here’s a breakdown of the fees and costs associated with the Discover it® Cash Back card:
- Annual Fee: $0.
- APR: 0% intro APR on purchases and balance transfers for the first 15 months, then 14.24% to 25.24% (variable).
- Late Payment Fee: Up to $40.
- Cash Advance Fee: 5% of the amount or $10 (whichever is greater).
- Foreign Transaction Fee: $0.
- Returned Payment Fee: Up to $40.
Frequently Asked Questions
- What is the cashback rate for the Discover it® Cash Back card?
- You earn 5% cashback on rotating categories (up to $1,500 in spending per quarter, then 1%) and 1% cashback on all other purchases.
- How does the Cashback Match work?
- At the end of your first year, Discover will match all the cashback you’ve earned, making your total cashback even higher.
- Are there any foreign transaction fees?
- No, the Discover it® Cash Back card does not charge any foreign transaction fees.
- What happens if I forget to activate the 5% categories?
- If you forget to activate the rotating 5% categories, you will earn the standard 1% cashback on those purchases.
- Is there a sign-up bonus for the Discover it® Cash Back card?
- While the card does not offer a traditional sign-up bonus, the Cashback Match is a great reward for new cardholders during their first year.
Conclusion
The Discover it® Cash Back card is an excellent choice for those who want to earn high cashback rates on specific spending categories.
The 5% cashback in rotating categories, combined with the Cashback Match at the end of your first year, provides great value, especially for those who can maximize the rewards.
With no annual fee and no foreign transaction fees, it’s also a great option for people who want to earn rewards without additional costs.
However, the rotating categories and spending limits can be a drawback for some users. If you are looking for a card with unlimited cashback or a sign-up bonus, this might not be the best fit.
