Reviews Discover it Cash Rewards card review

Discover it Cash Rewards card review

Published: April 21, 2017
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Ratings Policy
Balance Transfer Rating:
3.3 rating
3.3 rating
3.3 / 5
Introductory Offer: 3.0
Net Value: 4.4
Features: 2.0

In a nutshell:

The Discover it cash back offers a low minimum APR and a generous cash back program for motivated cardholders who don’t mind tracking rotating bonuses; however, the card’s maximum APR is too high for carrying a balance and its interest-free promotional period is relatively short.

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0% Introductory Period
14 months

Transfer Fee
3%

Introductory Purchase APR
0%

Regular APR
11.49-23.49% (variable)

Annual Fee
$0

Other Notable Features: Fraud protection, Discover Deals, free FICO credit score, no penalty for first late payment, instant account freeze, 100% U.S.-based service

Cash Back Rating:
3.1 rating
3.1 rating
3.1 / 5
Rewards Value: 2.5
Annual Percentage Rate: 3.9
Rewards Flexibility: 4.1
Features: 2.0

In a nutshell:

The Discover it cash rewards card offers the most value in the first year of membership when it matches all your rewards.

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Rewards Rate

  • 5% cash back on quarterly rotating categories
  • 1% cash back on general purchases

Sign-up Bonus
Matches cash back at end of first year

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$226

APR
11.49-23.49% (variable)

Rewards Redemption
Pros

  • Rotating categories
  • Redeem at any time
  • Redeem as gift cards, donations, credit to your account, direct deposit into any account, payment at select retailers

Cons

  • Enrollment required
  • 5% cash back is limited to $1,500 in purchases

Other Notable Features: Fraud protection, Discover Deals, free FICO credit score, no penalty for first late payment, instant account freeze, 100% U.S.-based service

No Annual Fee Rating:
2.9 rating
2.9 rating
2.9 / 5
Rewards Value: 1.4
Annual Percentage Rate: 4.1
Rewards Flexibility: 4.7
Features: 2.0

In a nutshell:

For the first year, the Discover it card doubles all of the cash back that you earn without any limits, making a great deal for cardholders able to charge a large amount on the card; however, the average spender can find no-annual-fee cards with better sign-up bonuses,  and the rewards rate on the card over the long haul is less impressive.

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Rewards Rate

  • 5% cash back on quarterly rotating categories
  • 1% cash back on general purchases

Sign-up Bonus
Matches cash back at end of first year

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$226

APR
11.49-23.49% (variable)

Rewards Redemption
Pros

  • Rotating categories
  • Redeem at any time
  • Redeem as gift cards, donations, credit to your account, direct deposit into any account, payment at select retailers

Cons

  • Enrollment required
  • 5% cash back is limited to $1,500 in purchases

Other Notable Features: Fraud protection, Discover Deals, free FICO credit score, no penalty for first late payment, instant account freeze, 100% U.S.-based service

Rewards Rating:
2.9 rating
2.9 rating
2.9 / 5
Rewards Value: 1.4
Annual Percentage Rate: 4.1
Rewards Flexibility: 4.7
Features: 2.0

In a nutshell:

Nearly identical to the Chase Freedom card, the Discover “it” card offers a substantial amount of value for cardholders who don’t mind keeping track of rotating bonus categories; but what really sets this card apart from its competitors is its consumer-friendly terms and ultra generous sign-up bonus, which doubles the amount of cash back you earn at the end of the card’s first year.

Learn more about this card

Rewards Rate

  • 5% cash back on quarterly rotating categories
  • 1% cash back on general purchases

Sign-up Bonus
Matches cash back at end of first year

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$226

APR
11.49-23.49% (variable)

Rewards Redemption
Pros

  • Rotating categories
  • Redeem at any time
  • Redeem as gift cards, donations, credit to your account, direct deposit into any account, payment at select retailers

Cons

  • Enrollment required
  • 5% cash back is limited to $1,500 in purchases

Other Notable Features: Fraud protection, Discover Deals, free FICO credit score, no penalty for first late payment, instant account freeze, 100% U.S.-based service

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The Discover it cash rewards card is an good no-fee cash back card with a generous 5 percent bonus rate for quarterly rotating categories.

One incredible feature sets the Discover it card apart from other 1 percent cash back cards with rotating bonus categories: the card matches all your cash back at the end of your first year of membership. Thus, your 1 percent cash back becomes 2 percent, and your 5 percent cash back turns into 10 percent.

Double rewards at the end of the first year

With your rewards rate doubled, you can earn massive rewards in your first year of membership. Even with the $1,500 limit on purchases, you can earn up to $600 in the rotating bonus categories alone at the end of your first year. And there is no limit to the 1 percent cash back that you can earn on general purchases.

Up to 40 percent cash back on Discover Deals

Discover has an online shopping mall known as Discover Deals. When you shop at Discover Deals, you can earn an even higher rate of cash back. The bonus rate can reach as high as 25%, which Discover will also double at the end of your first year of membership. For example, Macy’s currently offers 10 percent cash back and Papa John’s offers 25 percent. With the year-end bonus, those rates would double to 20 percent and 50 percent respectively.

Excellent U.S.-based customer service

Discover makes prompt customer service a priority. When you have an issue that needs to be resolved quickly, Discover won’t subject you to a series of prompts to avoid connecting you with a human. They will let you speak with a well-trained, U.S.-based customer service representative immediately.

Reasons to sign up for it:

  • You plan to use your new card heavily in the first year of owning it.
  • You’re looking for a card that offers a large bonus in the first year.
  • You’re willing to do some extra work in registering for bonus categories and keeping track of bonus spending.
  • Quality customer service is a priority for you.

 How to use it:

  • Use it for all your purchases in the first year to take advantage of the 2 percent cash back rate (1 percent doubled at the end of the first year).
  • Remember to register and use your card for rotating bonus categories every quarter.
  • Before making a purchase, check Discover Deals to see if you can use your card to maximize the bonus.

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