Discover Card Did Not Start From Zero Again

Snapshot

iv.0

Bankrate rating

Bottom line

Cardholders that don't mind a little elbow grease to make their rewards cards smooth will find the Discover it Cash Back is one of the all-time no annual fee credit cards for low rates and fees, greenbacks dorsum, start-year offers and customer service.

Best for rotating cash back categories

Find it® Cash Back

Intro offer

Cashback Match™

Regular Apr

12.24% - 23.24% Variable

Recommended Credit Score

Adept to Excellent  (670 - 850)

Discover it® Cash Back Credit Menu Overview

Earning cash back from your credit card is an easy way to save a little bit of coin on your everyday expenses, and the Discover it® Cash Back Credit Card is the perfect low-risk way to get started. Non only does the card charge no annual fee, simply information technology also gets you 5 percent back on up to $i,500 in rotating category purchases each quarter when you activate the bonus category (so 1 pct), as well 1 percent cash back on all other purchases.

Combined with its low fees, the rewards-earning power could make the Discover it Greenbacks Back a frontrunner if you prioritize ongoing value. But is it the right card for you? If y'all're not a fan of the extra legwork it takes to rail rotating categories, the quarterly spending limits or the sparse perks beyond rewards, then another no annual fee credit bill of fare might be a better fit for your wallet.

What are the pros and cons?

Pros

• Earn v percent cash dorsum on up to $1,500 in purchases each quarter on rotating categories after you activate, then one percent
• No annual fee, foreign transaction fees, punishment APR or fee on your beginning late payment (then up to $40)
• Cashback Friction match programme essentially doubles all greenbacks earned within the first year
• Notice announces its entire 5 percent greenbacks dorsum calendar the previous twelvemonth instead of a quarter ahead of time
• 15-month 0 percent intro purchase and balance transfer APR, so an incredibly low 12.24 percent to 23.24 percent variable Apr
• Detect's renowned J.D. Power credit card satisfaction survey track record makes it ane of the best issuers for customer service
• Remarkably accessible, but requiring a "good" credit score (670+ FICO score)

Cons

• Rewards tin can be hit or miss depending on whether your spending aligns with the cycling categories
• No opportunity to get more value from rewards by transferring them to other loyalty programs
• The rotating category rewards program requires quarterly activation and may be too complex for offset-time rewards cardholders

A deeper await into the current carte du jour offer

Quick highlights

• Rewards charge per unit:five percent cash back later on activation on rotating categories each quarter (upwards to $one,500 in purchases, and then 1 percent), ane percentage for all other purchases
• Welcome offer: Automated Cashback Match for the starting time year
• Annual fee: $0
• Purchase intro April: 0 percentage for the start 15 months
• Balance transfer intro April: 0 percent for the first xv months
• Regular April: 12.24 percent to 23.24 pct variable

Current welcome offering

The welcome offering for the Observe it Cash Back card is a chip unlike from the typical sign-up bonus other cards offer. Discover offers its Cashback Match program, which takes the full amount of cash back yous accumulate in your first year and matches information technology.

With this program, the size of your new cardholder bonus is up to y'all—the more you use your Discover cash back card, the bigger your bonus will be. In fact, only maximizing your 5 per centum categories' $1,500 spending cap each quarter after activation will stack another $300 on meridian of the $300 y'all already earned, then 1 percent. That's a worthwhile advantage for your patience since it's well above the usual $150 to $200 upfront welcome offer from other no annual fee cash dorsum cards.

Cash dorsum rates

Earning cash back with Discover does take a footling effort, as you'll demand to keep track of the rotating bonus categories and enroll each quarter, merely the bonus cash is well worth information technology.

Bankrate insight

Based on a $15,900 average yearly spend and the Bureau of Labor Statistics'* latest information, the Discover it Greenbacks Back has the potential to earn more rewards each year than nigh other no annual fee cash back cards from major issuers—almost $399. Simply the Chase Freedom Flex℠ eclipses it with $493 per year using the same spending formula.

Earning cash back

You tin earn 5 percentage back on upwards to $one,500 in purchases in different categories each quarter based on Discover's 5 percent cash back calendar. You take to activate the bonus each quarter to take advantage of this rate. If you don't activate a bonus category or if you exceed the $one,500 cap in a bonus category, you'll earn just 1 pct greenbacks back on your purchases. You'll also earn ane percent back on full general purchases outside of the quarterly bonus category.

Likewise the first-year cash back friction match offering and the ongoing rewards, Observe also currently offers a $l referral bonus (up to $500/ten referrals per yr) if you refer a friend to select Find cards, including the Discover it Greenbacks Dorsum.

Redeeming cash back

Y'all can redeem your Discover rewards for common cold, hard cash dorsum as an electronic direct eolith to your chosen account or as a statement credit to your carte balance. Yous also take the option to use your rewards for souvenir cards (partner gift cards range from $five to $200 in increments of $5), charitable donations to select charities or even payments toward Amazon.com and PayPal.com checkout purchases.

To designate a method for redeeming greenbacks back, visit your card account or telephone call the customer service line at 1-800-347-3085.

How much are the rewards worth?

Each greenbacks back "cent" is worth an equivalent 1 cent when y'all redeem it. For example, if you spend $1,500 buying gifts for your entire family from Amazon.com during the quaternary quarter of 2022 after activating the bonus category, you would earn $75 cash back on those purchases because they fall into i of the 5 per centum categories for that quarter (activation required, then 1 percent).

All reward options carry a i:ane redemption rate, which isn't e'er common when it comes to Amazon.com or PayPal.com checkout reward payments and mile-to-cash dorsum conversion. However, Find is unique in how its partner gift cards sweeten the bargain by calculation an actress five percent to 20 percent value to the balance (depending on the merchant).

Other cardholder perks

In addition to the great greenbacks back benefits, the Find it Cash Dorsum carte du jour comes with a light platter of other features. If yous rely on traditional perks like purchase and travel protections, yous might want to weigh other options since Observe has trimmed its carte features to focus on its signature low-cost advantage offerings.

Customer service

Discover is well-known for its client service, consistently ranking at or near the top of J.D. Power'southward credit card customer satisfaction surveys. In fact, Discover ranked second overall in the almost recent 2022 study, having previously won get-go place v times and tying for the peak spot in 2014.

The issuer offers a 24/7 customer service line, free overnight shipping for menu replacements and gratis FICO credit score access on each month's statement.

Freeze Information technology

If your carte du jour is e'er lost or stolen, Discover can freeze any new purchases, transfers or cash advances on your account, protecting yous from potential identity theft. Keep in mind that some activity will still occur on your carte, similar prior recurring expenses (such as utility bills), returns, credits, delayed payments, account fees and interest.

If at that place are ever whatsoever unauthorized transactions or purchases on your card, you can still rest assured with Find's $0 Fraud Liability do good, significant that y'all won't be held accountable for those transactions.

Social Security protection

For those who choose to opt-in to this benefit, Discover tin search the web and notify you if your Social Security number is found on the dark spider web or whatever malicious websites, giving you time to put protections in place around your identity.

Rates and fees

The Discover it Cash Back card offers new account holders a 0 percent intro APR on purchases and balance transfers for the outset 15 months after signing up. Once the intro period is over, the regular variable Apr applies and ranges from 12.24 percent to 23.24 per centum variable—which could be well below the boilerplate electric current interest rate, even for a low-interest card.

The dandy thing near this carte du jour, though, is that at that place's no annual fee, no penalisation Apr for late payments and no penalty fee for the start time you brand a tardily payment. For all tardily payments later on that, Discover charges up to a $xl fee.

There is an intro balance transfer fee of 3 percent, up to five per centum fee on futurity residual transfers (see terms). The cash advance APR is currently at 25.24 percent variable. Cash advance fees are either 5 percentage of the amount or $x of the amount of each cash advance, whichever is greater.

First-year carte du jour value vs. ongoing value

When it comes to get-go-year value with no almanac fee, Notice it Cash Back is definitely a frontrunner. Cheers to Discover'south advantage friction match offer, all of the cash back yous earn in your first 12 months is essentially doubled. This could brand the Discover it Cash Back card a significantly better option for first-year value than competing cards, depending on how much you spend. Notwithstanding, go along in mind that you'll only get 5 per centum cash back on up to $6,000 across the whole year, which amounts to $300 dorsum (earn 5 percent back on up to $one,500 in rotating category purchases each quarter when you activate the bonus category, then 1 percentage).

Considering that the Detect information technology Cash Dorsum is already a low-cost card with ane of the lowest ongoing APRs among the elevation issuers, you accept considerable ongoing value with no costs to commencement—unless you eventually want more consistent reward categories or beefier benefits. Every bit far equally rotating category cards go, though, Discover gives yous enough of planning time since it announces the next twelvemonth's quarterly categories beforehand. That'southward much more than advance notice than Hunt provides for next wheel'due south categories: less than a quarter to a month in advance.

Benefits and costs	First-year value	Ongoing value (no welcome offers)
Yearly rewards*	+$399	+$399 (may change depending on announced quarterly categories and your personal spending)
Welcome offers	+$399 (matches first-twelvemonth rewards)	—
Perks (of monetary value)	N/A	Due north/A
Annual fee	-$0	-$0
Full value	$798	$399

*Based on our formula used to calculate each card's boilerplate rewards rates and boilerplate ongoing rewards value, using Agency of Labor Statistics spending data and an assumed $15,900 yearly spend over three years ($1,325 per month).

Bankrate staff experience

Effectually the Bankrate office, at that place are enough of Discover it Cash Dorsum fans that have found it valuable well across its honeymoon flow. In fact, Ana Staples, one of our credit bill of fare and personal finance experts, wrote an unabridged column virtually why she picked the Notice it Cash Back card.

I saved over $300 when furnishing my apartment from scratch with this carte. I retrieve I will love it forever.

— Ana Staples, Reporter for Bankrate

Kelley King, another Bankrate staffer, said that the Discover it Cash Back was her start credit menu and she still uses it in her daily life.

I honey the rotating cash dorsum categories, especially in the last quarter when Amazon.com is included. This helps me earn cash back on almost all of my vacation gifts and my Prime number Membership for adjacent year.

— Kelley Rex, Bankrate Staff

How the Discover information technology® Cash Back compares to other greenbacks dorsum cards

The Discover information technology Cash Back is one of the top rotating category cards thanks to its depression-cost terms, merely you may be able to earn more rewards and savor richer card features by going with some other card.

Discover it® Cash Dorsum

4.0

Use at present

on Discover'southward secure site

Intro offering

Cashback Match™

Recommended credit

Good to First-class(670 - 850)

Find it® chrome

Intro offer

Cashback Friction match™

Recommended credit

Proficient to Splendid(670 - 850)

Hunt Freedom Flex℠

Recommended credit

Adept to Fantabulous(670 - 850)

Notice it Greenbacks Back vs. Find information technology® chrome

Since the Notice it® chrome carries the aforementioned welcome offers and depression fees, the Discover it Greenbacks Back vs. chrome debate boils downwards to reward consistency. The chrome carte du jour may be a more than manageable choice since you can rely on its ii percent cash back at gas stations and restaurants, but that rate is limited to $1,000 in combined purchases per quarter across those categories. All other purchases earn i percent, like with the Discover it Cash Back.

Although the Observe it chrome appears to offer steadier rewards, its categories' spending limit scuttles the card'southward cash dorsum potential compared to the Find it Cash Back. Based on the budget from the commencement-year versus ongoing value table above, the Greenbacks Dorsum card would earn $399 per twelvemonth while the chrome menu would scrape past with $205 per yr. Keep in mind that this meaning rewards divergence also affects your first-yr cash dorsum friction match bonus, pregnant the chrome card's welcome offering is worth $194 less. And then although the Detect it chrome appears more than reliable, the Notice it Cash Back is a much more valuable card to take in your corner.

Find it Cash Dorsum vs. Chase Freedom Flex℠

Every bit far as rotating category cards go, the Chase Liberty Flex℠ may exist the best on the market. Choosing between the Discover it Cash Back and the Freedom Flex may seem like a no-brainer cheers to the Flex card's boosted yr-round 3 to v pct back categories, superior benefits (including fantastic travel insurance and Globe Elite Mastercard perks) and ability to improve reward value toward travel with a Chase Sapphire card, only there are a few other elements at play you should consider.

The Freedom Flex has an equivalent xv-month 0 percent intro purchase and balance transfer APR (Intro Balance Transfer Fee: $5 or three pct of the amount of each transfer, whichever is greater in the showtime 60 days), but the Discover information technology Cash Back has minimal fees, including a much lower interest rate: 12.24 pct to 23.24 percent (variable APR) versus xiv.99 percent to 23.74 per centum (variable APR). Unlike the Freedom Flex, the Observe too doesn't charge foreign transaction fees, a penalization April or a commencement-fourth dimension late payment fee (up to $40 afterward). Information technology'due south also worth noting that Chase only announces its 5 percent quarterly categories a month or so ahead while Discover provides its bonus categories the year before. Notice's cash dorsum match offer likewise has the potential to be a lot more rewarding than the Freedom Flex'due south $200 cash sign-upward bonus (must spend $500 within the showtime three months).

Granted, the Hunt Liberty Flex will provide more than value for most cardholders—specially if you lot already take a Hunt rewards card. However, the Discover it Cash Dorsum may be wiser for cardholders that may want lower rates and fees for emergency expenses, more predictable rotating categories or a meliorate-rated customer service feel (Chase ranked quaternary in J.D. Power's latest card satisfaction survey).

Best cards to pair with the Discover it Cash Back bill of fare

Stacking different cards is a peachy way to make sure you go the nigh rewards. While the Detect it Cash Dorsum card earns a fantastic charge per unit on its quarterly categories, information technology's not the best for travel purchases and purchases outside each of those seasonal categories.

A top-tier flat-rate card like the Wells Fargo Active Cash℠ Card would be fantabulous for covering purchases beyond your rotating categories and their quarterly spending limits since it can earn two pct greenbacks rewards on purchases . In the same vein, the Chase Freedom Unlimited® would too be a prime choice for its additional ane.five pct cash back flat-rate, plus its additional unlimited categories can lend a bit of stability for staple purchases outside Discover's cash back agenda. These categories volition rake in 5 percent dorsum on Lyft purchases (through March 2022), 5 percentage on travel booked through Hunt Ultimate Rewards and iii percent on dining and drugstore purchases.

Using a flexible travel card, like the Chase Sapphire Preferred® Card, with your Discover card will reward your travel spending and other everyday categories that Discover tin can't encompass year-round. For a slight $95 annual fee, y'all'll be able to earn 5X Hunt Ultimate Rewards points on travel through Chase'due south online portal and on Lyft purchases (Lyft offering through March 2022), plus 3X points on dining (including eligible delivery services), select streaming services and online grocery purchases (excluding Walmart, Target and wholesale clubs). Other travel purchases will net 2X points while all other purchases get 1X points. What's more, you can then redeem these points toward travel through Chase Ultimate Rewards for an boosted 25 percent value boost.

Bankrate'southward Take—Is the Discover information technology Greenbacks Back card worth it?

The Observe it Cash Back credit card is perfect for people who can adjust their spending to take advantage of Discover'due south cash back calendar each quarter. Its high-earning rewards scheme maximizes Discover's greenbacks back match bonus, potentially making it one of the best get-go-year reward offers for a no annual fee card. The Observe information technology Cash Back carries peradventure the lowest rates and fees you'll find, and information technology's attainable with just a "good" or higher credit score (670+ FICO score).

Although isn't the about feature-rich or newcomer-oriented menu in its class, the Detect information technology Cash Back bill of fare's focus on accessibility, affordability and splendid customer service give information technology all the hallmarks of a great beginning rewards menu for those who don't mind putting in a little elbow grease to make it polish.

Often Asked Questions

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Source: https://www.bankrate.com/finance/credit-cards/reviews/discover-it/

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