Discover it® Student Cash Back review

When it comes to student cards, the Discover it® Student Cash Back card shines, offering one of the most forgiving and consumer-friendly credit card agreements around.

But unlike many credit cards with more affordable terms, the Discover it® Student Cash Back card doesn’t sacrifice rewards. Instead, it offers one of the most generous cash back programs available on a student card — especially in the first year.

Since it’s a category card with rotating bonuses, the Discover it® Student Cash Back card’s cash back program takes some time to master. But if you don’t mind tracking bonus-earning purchases and activating categories every three months, you could be surprised by how much cash you earn.

Why you might want the Discover it® Student Cash Back card

If you’re new to credit, the last thing you need is to worry about excess fees or unaffordable interest rates. Discover helps lessen this worry by offering consumer-friendly terms that are much more forgiving than what you’ll find on most rewards credit cards.

Lenient rates and fees

Since most students who open a credit card are likely new to credit, it helps to have a less punishing account that won’t spiral out of control after the first mistake. The Discover it® Student Cash Back is generous in this regard. It offers a reasonable APR of 18.24% - 27.24% Variable APR. The low-end APR on this card is impressive, considering our weekly rate report lists the average student card APR as hovering at nearly 20%.

It also doesn’t charge a penalty APR if you miss a payment, although missed payments can affect your credit score. So if you run into money trouble and have difficulty paying your bills, Discover won’t make your situation worse by dramatically hiking your interest rate.

Other niceties include a waived late fee the first time you miss a payment deadline (up to $41 late payment fee after), which gives some wiggle room in case you accidentally forget to make an on-time payment.

Finally, Discover skips foreign transaction fees, so you can take this card with you when you study abroad or travel for the summer and not worry about whether Discover will hit you with extra charges.

Excellent rewards rate for a student card

Where the Discover it® Student Cash Back card stands out is its rewards. Cards that offer comparable terms are often basic cards without a rewards program. By contrast, the Discover it® Student Cash Back card provides a robust cash back program that can deliver substantial value if you use it regularly.

Cardholders get 5% cash back when they enroll in rotating purchase categories (up to $1,500 in purchases per quarter, then 1%) — many of which cover everyday purchases, such as gas and groceries.

Just a few years ago, this reward rate would have been terrific on a non-student card, so seeing this rate on the Discover it® Student Cash Back is impressive. If you reach the maximum spend cap for each quarter, you’ll earn at least $300 in cash back by the end of the year.

Potent sign-up bonus

The Discover it® Student Cash Back card’s Cashback Match™ also matches your earned rewards at the end of your first year. Unlike a typical sign-up bonus, you won’t get any cash reward upfront. But if you can wait until the end of the year, you could get a much bigger bonus than typical for a student card.

Many other top student cards on the market offer much smaller sign-up bonuses — the Capital One Quicksilver Student Cash Rewards Credit Card, for example, rewards just $50 after you spend $100 in your first three months. Assuming you max out your spending caps for each quarter on the Discover it® Student Cash Back, you could expect at least a $300 welcome offer at the end of your first year with the card.

Comes with a decent intro APR on purchases

While we’d advise new credit card holders to practice paying off their balance in full at the end of each statement period, the six-month 0% intro APR on purchases (then 18.24% - 27.24% Variable APR) this card offers can prove helpful for students starting a new semester.

You can load up on books and other class materials after opening the account and pay them off interest-free during that period. Just make sure to pay off that balance in full before the end of the intro period or that debt will start racking up interest.

Why you might want a different card

The Discover it® Student Cash Back’s combination of lenient rates and fees and strong reward potential make it one of the top student cards on the market. However, you might find another student card a better fit for a few reasons.

Bonus categories require activation

You must activate the 5% earning rate on the Discover it® Student Cash Back each quarter. If you’re a hands-off rewards-earner, remembering to do this four times a year might be a hassle. And if you forget to activate for a quarter, you’ll only earn 1% back on all purchases for that period, which is the same rate you’d receive after reaching the $1,500 quarterly spending cap.

Cardholders are also at the whim of whatever bonus categories Discover chooses for each quarter. If you don’t often spend on an assigned category for the quarter, you might find it challenging to reach that quarter’s spending cap and maximize the card’s rewards rate.

If you’re worried about this card’s value slipping through the cracks, you might find a flat-rate student card, like the Capital One Quicksilver Student Cash Rewards, a more reliable fit for earning cash back.

Discover cards less widely accepted abroad

Though the card lacks a foreign transaction fee, you’ll still want to do a little research before traveling abroad. Discover cards are accepted at many retailers abroad but not supported quite as widely as Visa and Mastercard credit cards.

If you plan on using the Discover it® Student Cash Back abroad, you may want to carry some spare cash or another credit card in the event your Discover card isn’t accepted.

How does the Discover it® Student Cash Back compare to other student cards?

While the Discover it® Student Cash Back Card offers an impressive cash back rate in various spending categories, you’ll only earn 5% cash back on your first $1,500 in eligible purchases per quarter, then 1%. You’ll also need to track and enroll in bonus categories, which could prove a headache. Consider one of these alternative student cash back cards if you want something simpler.

Card name	Capital One Quicksilver Student Cash Rewards Credit Card	Capital One SavorOne Student Cash Rewards Credit Card	Discover it® Student Chrome
Rewards	Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024Earn unlimited 1.5% cash back on every purchase, every day	Earn 10% Cash Back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024Earn 8% Cash Back on Capital One Entertainment purchasesEarn 3% Cash Back on dining and at grocery stores (excluding superstores like Walmart® and Target®)Earn 3% Cash Back on popular streaming services and entertainmentEarn 1% cash back on all other purchases	Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarterEarn 1% unlimited cash back on all other purchases – automatically
Welcome bonus	Early spend bonus: Earn $50 when you spend $100 in the first three months	Early spend bonus: Earn $50 when you spend $100 in the first three months	Cashback Match™
Annual fee	$0	$0	$0
Other things to know	No foreign currency conversion fees	No foreign currency conversion fees	0% intro APR on purchases for six months, then 18.24% - 27.24% Variable APR

Discover it® Student Cash Back vs. Capital One Quicksilver Rewards for Students

The Capital One Quicksilver Student Cash Rewards offers a more relaxing alternative to the categorical earning of the Discover it® Student Cash Back.

It earns 10% back on purchases made through Uber and Uber Eats through November. 14, 2024 and a flat 1.5% cash back on all purchases. This card is an ideal alternative if you want to earn steady cash back on all types of purchases rather than set categories.

Discover it® Student Cash Back vs. Capital One SavorOne Student Cash Rewards

Another valuable category earnings card, the Capital One SavorOne Student Cash Rewards edges out the Discover it® Student Cash Back when it comes to raw earning potential.

It earns 3% on categories students are likely to spend in, such as dining, grocery stores and entertainment, without spending caps or the need to activate each quarter. Discover’s welcome offer, however, remains much more valuable than the $50 you can earn after spending $100 in the first three months with this Capital One Card.

Discover it® Student Cash Back vs. Discover it® Student Chrome

The Discover it® Student Chrome is a more specialized version of the Discover it® Student Cash Backk, earning 2% back at gas stations and restaurant purchases (on up to $1,000 each quarter, then 1%).

These set categories make it a more predictable option for earning cash back than the Discover it® Student Cash Back, especially if you’re unsure what you’ll spend in each quarter’s categories.

How to use Discover it® Student Cash Back

Here are a few quick tips for making the most of your Discover it® Student Cash Back.

• Activate your bonus categories each quarter to ensure you don’t miss out on cash back.
• If you take advantage of the card’s six-month introductory offer on purchases, make a plan for how you’ll pay back your balance before the card’s interest-free offer expires (then N/A).
• Make any major purchases you need on the card during the first year to capture the additional cash back of the welcome offer.
• Take advantage of the card’s credit-building and safety features by signing up for Social Security monitoring and regularly reviewing your FICO score.

Is the Discover it® Student Cash Back right for you?

Earning one of the top rewards rates available on a student card, the Discover it® Student Cash Back is a great way to kick off your credit journey while scoring some cash back along the way. The card’s intro APR on purchases and Cashback Match features also help boost the value during your first year. But if activating quarterly categories isn’t your style, you’ll want to check out some of the other best student credit cards to find one that aligns with your preferences.

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