Discover It Cash Back Card review 2022

Discover It Cash Back Card

 

Overview: best for cash back rewards with no annual fee

Discover is one of the leading financial services provider in U.S., offering online banking, personal and student loans, mortgages and credit cards. With 35 years experience, it operates in a global network enabling the connection of payments on a large scale. The Discover it Cash Back Card is one of the company’s product designed with consumers in mind.

In a nutshell, this card has very appealing rewards: 5% cash back on quarterly rotating categories, 1% reward on other purchases. This structure makes it ideal for everyday expenses: if you plan to spend a lot over months to go, especially in the first year, this card is a great choice, because it offers higher rewards than most of other cards on the market.  Despite providing these and more benefits, the card doesn’t carry an annual fee.

 

How does Discover it Cash Back Card work?

Before we go deep into details, here are the card features at a glance:


Credit limits

$500- $20,000

Annual fee

$0

Welcome bonus

100% matching of cash back earned in the first year

Rewards

5% back in rotating quarterly categories up to $1,500 combined, then 1% (this  percentage if not activated) ; 1% on all other purchases

Purchase APR

0% introductory for 15 months, then 11.99%- 22.99% variable

Balance transfer APR

0% introductory for 15 months, then 11.99%- 22.99% variable

Other costs

Late payment up to $40 (on the first occurrence the fee is waived); max $40 returned payment. 24.99% APR for cash advances. $0 foreign transaction fee

 

Credit score requirement

       670+


Discover operates by leaning on its own network: the company is both the issuer of the card and the network operating for it.

The average credit amount for the Discover it card customers is around $3,000, with limits highly dependable on your financial standing.

Discover it has a significantly long intro 0% APR period: in the first 14 months on both purchases and balance transfers you won’t pay any interest, which gives you a neat advantage over any personal loan. Having a hefty 1+ year of no interest gives you peace of mind about repaying your purchases. Once this period expires, the applied APR will be between 11.99% and 22.99%, depending your financial standing, and this interest rate is variable.

On top of this, there is a bonus for your first year of card ownership: in the end of the first year, all that you earned in cash back is automatically matched at a 100% rate: this is a unique feature of Discover it. The “Unlimited Cashback Match” works doubling any amount you earned, with no minimum spending. If you were able to obtain say $300 in rewards, you’ll get $600 by the first year!

Here comes the best part. The Discover it edge is about its relatively high percentage rewarding cash-back. A 5% on several (rotating) categories is better than many other credit card offers. The categories for which you get the 5% cash back with Discover it are:


  • Wholesale clubs including grocery stores
  • Gas stations
  • Restaurants
  • Gyms
  • Amazon.com, Walmart.com, Target.com

For up to $1,500 quarterly, you have right to the 5%. However, be aware that you’ll have to directly activate each category to earn that 5%, otherwise you’ll get only a 1% cash back, which is also applied to the remainder of categories.

Discover it has flexible options when it comes to redeeming the earned cashback:

– Direct deposit into your bank account

– As a statement credit on your Discover card balance

– Payments using the rewards at checkout for purchases at Amazon.com and with Paypal

– Gift cards.

The cashbacks never expire, and you can redeem whatever amount at any time, which gives this card great flexibility.

As with any credit card, there are potential fees for things like late or returned payments. Only punctual repayments by your side will make this card zero-cost, with the exception of cash advances: if you decide to borrow a certain amount directly against your line of credit, you will pay interest.

Anyway, Discover is generous about the fees on this credit card: the first time you are late with a repayment, the regular late payment penalty is waived.

Moreover, in case your Discover it card is stolen, or you mismatch it, you can quickly freeze your account without having the contact an emergency number: you will just login to your account from your mobile device or laptop and click on the “freezing button”. Then, if you were able to recover the card, the account can be unfrozen following the same step.

If you go abroad, you won’t have to worry about a foreign transaction fee, as Discover it has no such fee. Instead, you’ll have a 3% balance transfer fee (until 10 May, 2022) then on the next transactions it can be up to 5%.

 

Is the Discover it Cash Back Card right for you?

While this is one of the most seeked card, with millions of Americans already holding it, it’s worth taking the time to consider both pros and possible cons. Here is a summary of what you should be considering.

 

Pros:

  • Substantial cash back rewards
  • 100% automatic cash-back match in the 1st year
  • 15-month intro 0% APR on purchases and balance transfers
  • No annual fee
  • Enhanced security options
  • Free FICO score access
  • Prequalification without affecting the credit score

The card gives you precise and ample rewards based on your purchases especially in your first year as a card holder. Its payoff is among the highest of credit card.

Put it in another way, the Discover it card will make you save on everyday purchases, and won’t cost you additional interest for more than one year.

A free FICO score check for one year is another perk of Discover it, accessible from the dashboard of your account: with monthly reports, you will be aware of any change, and thus have more control over your finances.

Among the extras, the $0 fraud liability feature guarantees that you won’t be considered responsible for unauthorized purchases using the Discover it credit card. The Discover Identity Alerts safeguard your data online, by daily monitoring of several websites known for revealing sensitive information: you’ll be noticed if your SSN is retrievable on such a website.

If you were looking for great support by flawless communication, you won’t be disappointed: the customer service is available 24/7, as well as 100% U.S.-based.

 As a plus, you can even choose among a hefty 25 different card designs.

 

Cons:

  • 5% balance transfer fee
  • Not accepted everywhere
  • Categories must be activated

Just like any card, Discover it isn’t perfect. You must be a proactive card user if you want to benefit the meaty rewards: the allowed rotating categories have to be activated before the quarter in which they are valid starts. This may just not be so practical for some people. If you don’t, you will get only a regular 1%.

Discover it alos isn’t a special deal as for balance transfers. Each transfer will lastly cost you a 5%, which is not much convenient. Moreover, your balance transfers can’t exceed your credit limit.

Another potential drawback is that it isn’t accepted worldwide: Discover just doesn’t have the same reach of a Visa, Mastercard or American Express. Despite Discover itself claims to be 99% accepted in U.S., there is still that 1% chance that some vendor, retailer or online ecommerce don’t have the Discover it as payment option.

 

How is applying for Discover it Cash Back Card like?

With all the benefits it provides, the Discover it card isn’t for everyone. The minimum credit score requirement is a good FICO score, that is to say at least 670. Unlike many credit cards ,you’ll have the chance to verify online if you prequalify with absolutely no harm to your credit score (soft credit pull), by providing information such as your annual gross income, housing status and payments, owned bank accounts.  You can even decide to skip disclosing personal data such as SSN, date of birth, and ZIP code.

The approval process at this stage is quite fast, taking a few minutes most of the times. The final application is also easy to go through, and can be completed in minutes. Only if there is any issue with your application, the qualification verdict can delay of several business days.

Once approved, you’ll get the card in a timeline which is common for credit cards , that is to say 7-10 days.

 

How is the Discover it card rated?

The Cash Back Card from Discover is among the most reviewed of credit cards. Discover received accreditation by the Better Business Bureau only a few years after the company launched, and at today it ranks with an A+ rating from it. The bureau evaluatues mostly the management of complaints, where Discover performs quite well.

Discover it Cash Back is widely appreciated to be an excellent card for its rewards on quarterly categories.  Most reviewers agree by saying the Discover’s customer service is outstanding, helpful and professional, committed to go the extra mile for solving issues.  Many people feel they are actually earning money on their spending. We found most of these feedbacks on the ConsumerAffairs portal, which is definitely about unbiased reviews: the card gets roughly 4/5 stars on almost 1700 customers ratings. On the Discover portal itself, there are 30k+ additional reviews, with an impressive 4.8/5 overall feedback.

The minority of negative reviews are about some varied circumstances; we could’t find any flaw in particular that’s commonly complained of for this card. Surely, several customers coulnd’t be served as they expected, but that just happens for the law of big numbers.

 

Bottom line

The Discover it Cash Back Card is among the best options on the market if you are seeking plenty of rewards from your spending, especially in the short term, whereas you benefit from a signinficantly long 0% interest period. If you are willing to put in a little effort to search for and activate categories, the choice is definitely worth it, and everything  comes at no annual cost.

If you are after things such as the lowest rates, frequent balance transfers, and or universal card acceptance,  Discover it isn’t the best pick, being outperformed by several other cards offering similar perks.

Just take the time to compare credit cards to find the right one for you. We recommend to look at our need-oriented selection for this year, and we hope you’ll find a great deal!