Who should get Discover it® Cash Back?
Looking for a cash back credit card means finding a card with a decent rewards structure and other card perks that suit your lifestyle. If you want to make money on some of your main spending categories without paying an annual fee, you should check out the Discover itÂ® Cash Back card.
With this card, not only can you get an excellent cash back rate on major categories of everyday spending, but you can also enjoy the other benefits offered by the card. If the Discover it Cash Back card is on your list, here’s what you need to know to see if it will meet your needs.
What does the Discover it Cash Back card offer?
- Reward rate: 5% cash back after activation on rotating categories each quarter (up to $ 1,500 in purchases, then 1%), 1% for all other purchases
- Welcome offer: Cashback Match – all the money you earn in the first year will be matched
- Annual subscription : $ 0
- APR purchase intro: 0 percent for the first 14 months
- Introductory APR to Balance Transfer: 0 percent for the first 14 months
- Regular APR: 11.99% to 22.99% variable
Ultimately, the Discover it Cash Back card gives cash back seekers plenty of opportunities to earn respectable rewards on rotating bonus categories each quarter. At 5% cash back (up to $ 1,500 in purchases, then 1% on all other purchases), these bonus categories tend to be areas that many people spend a good chunk of their budget on. , as :
- Petrol stations
- Pharmacies like CVS and Walgreens
- Target.com, Amazon.com and Walmart.com
As you can see, you can easily go over the $ 1,500 limit for at least one or more of the quarterly bonus categories. The only downside is that you have to activate your bonus category every quarter to start earning money on your corresponding spending.
If you want to know the exact timing of the bonus categories, here is an overview of the 2020 and 2021 bonus categories for the four quarters:
|Q1: from January to March||
|Q1: from April to June||
|Q1: July to September|
|Q1: October to December||
From this table, you can see that the bonus categories are roughly the same for 2020 and 2021. You will notice that streaming services replaced Lyft in the second quarter of 2020 to 2021. Due to the pandemic, de many issuers have offered more rewards on streaming services. , and Discover followed suit.
Welcome bonus and introductory offer of 0% APR
In addition to the generous rewards structure for this card, Discover will match the cash back you earn for the first year of owning the card. For the big spenders, this can be much higher than the traditional signup bonus of around $ 200.
Another cool feature is the 0% introductory APR offer. You will not have to pay interest on balance transfers or purchases during the first 14 months of having the card. After the 14 month promotional rate ends, the interest rate is 11.99% to 22.99% variable.
Earn rewards with the Discover it Cash Back card
You can earn 5% on purchases of up to $ 1,500 in different categories each quarter, according to Discover’s 5% cash back schedule. You must activate the bonus quarterly to take advantage of this rate.
If you forget to activate a bonus category or exceed the spending limit of $ 1,500 in a bonus category, you will only earn 1% cash back on your purchases, whether in a bonus category or no. So if you do get this card, make sure you stay on top of the task of activating your bonus categories each quarter.
To make sure that you have activated the bonus categories for each quarter, you can go to the Cash Back Calendar page on the Discover website and click “log in to see if you are activated”.
In addition to the first year cash back offer and ongoing rewards cash back, Discover is also currently offering a $ 50 refer a friend bonus if you refer a friend for certain Discover cards, including the cash back in Discover it silver. You can earn up to $ 500 for a total of 10 referrals each year.
Redeem rewards with the Discover it Cash back card
When you are ready to redeem your rewards with the Discover it Cash back card, you can get a cash deposit to your account or a credit to your account statement. You can also use your rewards for gift cards (available increments from $ 5 to $ 200), charitable donations to select charities, or payments for Amazon.com and PayPal purchases.
Find out more Cash Back Benefits
While the Discover it Cash Back card is by no means a premium credit card, it does offer some benefits that can make it attractive as an entry-level rewards card. For example, there are no overseas transaction fees and the card is accepted in 185 countries. If you lose your card, there is a 24/7 customer service line and free next day delivery for card replacements.
Discover offers other features that can be useful in the fight against identity fraud and good âcredit hygieneâ. Your monthly Discover card statement gives you access to your FICO score at no cost, and you can opt for Discover’s notification service which alerts you if your social security number is found on the dark web or any other malicious website.
Finally, if your card is lost or stolen, Discover can block any new purchase, transfer or cash advance on your account. If there are any unauthorized transactions or purchases on your card, Discover’s $ 0 fraud liability benefit means you will not be held responsible for those transactions.
How does the Discover it Cash Back card compare to other high income cash back cards?
The Discover it Cash Back offers a high cash back rate on rotating bonus categories with a small offer of card benefits that might be considered useful, but become standard offers for similar cards anyway. If you like the higher cash back rates, there are other cards to compare the Discover it Cash Back card with, including:
The Chase Freedom Flex card has no annual fee and has an impressive cash back structure:
- Earn 5% Cash Back on grocery store purchases (excluding Target or Walmart purchases) up to $ 12,000 spent in the first year
- 5% cash back on bonus category purchases activated each quarter (up to $ 1,500 in purchases, then 1%) and on Chase Ultimate Rewards travel purchases
- 5% Cash Back on Lyft trips (until March 2022)
- 3% cash back on meals (including restaurants, take out and qualifying delivery services) and pharmacy purchases
- 1% cash back on all other purchases
Additionally, there’s a $ 200 cash bonus after spending $ 500 in your first three months and a 0% APR introductory offer for 15 months. After the 15 months, the regular APR is 13.99 percent to 23.99 percent variable.
The Citi Custom Card also offers a 5% cash back rate up to $ 500 per bill cycle, then 1% on your highest spend category each bill cycle. There is a welcome bonus of 20,000 Thank You Points, worth $ 200 in cash back, after spending $ 750 on purchases in the first three months.
Finally, the Capital One SavorOne card offers a decent cash back rate for ‘food and entertainment’ categories like groceries, restaurants, streaming, and event tickets:
- 3% on restaurants, entertainment, popular streaming services, and grocery store purchases (excluding big box stores like Walmart and Target)
- 1 percent on all other purchases
- 8% cash back on purchases from Vivid Seats (until January 2023)
All of these cards offer slightly different reward structures, welcome bonuses, and other perks with no annual fees. If you are looking for a more profitable cash back card, these are comparable cards that you should consider if the Discover it Cash Back card is not for you.
Is the Discover it Cash Back worth it?
Since the Discover it Cash Back Cash card is one of the most profitable cash back cards with no annual fee on the market, you could be making a lot of money, especially with the freshman game. But what do you have to gain?
By strategically making purchases in qualifying categories until you hit the cap of $ 1,500 each quarter, you can earn $ 75 per quarter ($ 300 per year) on bonus category spending. Using our average consumer spend of $ 15,900, that leaves $ 9,900 spent on 1% purchases. In total, that’s $ 399 per year. With the freshman game, you would win $ 798.
Who should benefit from the Discover it Cash Back Reward?
The Discover It Cash Back card is intended for anyone whose spending habits match the categories of cash back bonuses offered on the card. If your goal is to earn the most cash back with no annual fee, this card might do the trick due to the higher reward rate and automatic Cashback Match for the first year.
Plus, the introductory APR offered on balance transfers and purchases could help those with a lot of spending on the horizon or looking to pay off high-interest debt.
While the Discover it Cash Back card isn’t the most sophisticated and feature-rich card, it does have enough to offer for you to make a net profit. Since there is no annual fee, as long as you pay little or no interest on your balances, you will always have the benefit with this card.
* All Capital One Savor Cash Rewards credit card information has been independently collected by Bankrate and has not been reviewed or approved by the issuer.