Discover Card Pros and Cons: A Comprehensive Review

Discover Card is a popular credit card option known for its cashback rewards and no annual fee. It's a great choice for those who want to earn rewards without paying a yearly fee.

One of the biggest pros of the Discover Card is its cashback rewards program, which offers 5% cashback on various categories throughout the year. This can add up to a significant amount of money over time.

Another perk is the card's sign-up bonus, which can be worth up to $150 in cashback rewards. This is a great incentive for new cardholders to sign up and start earning rewards right away.

Overall, the Discover Card is a solid choice for anyone looking for a no-fee credit card with rewards.

Additional reading: Penfed Platinum Rewards Visa Signature Card

The Discover card has its fair share of advantages and disadvantages. One of the biggest pros is its high cash back rate, which can earn you up to 5% cash back at different places each quarter. This is especially useful for people who like to try new restaurants and eat at home.

Here are some of the key benefits of the Discover card:

However, the card also has some drawbacks. For one, the rotating categories may not be useful if your spending doesn't align with the categories for that quarter. Additionally, the bonus category spending for the maximum reward rate is capped at $1,500 per quarter, which may not be enough if you have a bigger budget.

The Discover it Cash Back Card isn't perfect, and there are some downsides to consider.

One of the biggest cons is the rotating categories, which require activation and have a $1,500 combined purchase limit each quarter before your cash back rate drops to 1% back on all purchases.

The card's bonus categories may not be useful if your spending doesn't align with the categories for that quarter, which Discover typically announces approximately one month in advance.

Bonus category spending for the maximum reward rate is capped at $1,500 per quarter, which may not be enough if you have a bigger budget.

Intriguing read: Interest Rate for Discover Card

The rotating category rewards program requires quarterly activation and may be too complicated if you're a first-time rewards cardholder.

The card lacks travel-specific perks, such as travel insurance, airport lounge access, or other benefits typically associated with travel rewards cards.

Individuals seeking a credit card primarily for travel-related benefits might find other options more suitable.

There's also no guarantee which categories Discover will prioritize in any given quarter or whether they'll align with your spending.

If you're stuck with incompatible categories for three months, the card loses value, regardless of the high earning rates.

Here are some of the key cons of the Discover it Cash Back Card:

Getting approved for the Discover it Cash Back card isn't a guarantee, as Discover will assess your financial profile, including your income, credit score, and history.

The decision to issue a credit card is based on a variety of factors, including your overall financial health.

If you're denied the Discover it Cash Back, you might consider looking into Discover's other credit card options.

The Discover card offers a generous rewards program, with the potential to earn 5% cash back on everyday purchases at different places each quarter, up to a quarterly maximum of $1,500 when activated. This can result in a significant bonus, as seen in Example 1, where the cash back can be doubled at the end of the first year.

You can also earn unlimited 1% cash back on all other purchases, making it a great option for everyday spending. The rewards are simple to redeem, with options including direct deposit, statement credit, or redemption for gift cards, charitable donations, or travel statement credits, as mentioned in Example 6.

One of the standout benefits of the Discover card is its Cashback Match program, which matches the total amount of cash back earned during the first year, as seen in Example 4. This can result in a total of $1,000 in cash back for the first year, making it a potentially best-in-class welcome offer, as mentioned in Example 9.

The Discover it Cash Back rewards program is one of the most attractive features of this credit card.

You can earn 5% cash back on everyday purchases at different places each quarter, up to the quarterly maximum when you activate, which is $1,500 in spending per quarter.

The rewards categories change each quarter, but they often align with seasonal expenses and include at least one everyday category, making it easy to maximize your cash back.

One of the standout features of the Discover it Cash Back is its Cashback Match program, which matches the entire cash back you earn during your first year, making it a great deal for new cardholders.

You can redeem your rewards for cash back as a direct deposit to your selected account or as a statement credit to your card balance.

Here are some redemption options for your Discover rewards:

Remember, all reward redemption options carry a 1:1 rate, which is rare for non-cash redemption.

The Discover mobile app is also user-friendly and feature-rich, allowing you to manage your accounts, track expenses, redeem rewards, and even activate the 5% cash back categories seamlessly.

If you're looking for a credit card with travel-specific perks, you might be out of luck with this one. The card lacks travel insurance, airport lounge access, and other benefits typically associated with travel rewards cards.

Individuals seeking travel-related benefits might find other options more suitable, such as cards that offer travel insurance or airport lounge access. These cards can provide peace of mind and enhance your travel experience.

Broaden your view: Cash Back Card vs Travel Card

The Discover it Cash Back card has a very favorable fee structure. There's no annual fee, which is a significant perk. This can help you save money on your credit card expenses.

No foreign transaction fees are charged on the Discover it Cash Back card. This makes it a great option for travelers who need to make purchases abroad. Just be sure to check if Discover is accepted in the countries you plan to visit.

The card also offers a 0% APR on purchases for the first 14 months, which can be a huge help if you need to finance a large purchase. However, be aware that the variable APR that applies after this period can be relatively high, so it's essential to pay off your balance before the introductory period ends.

Consider reading: Does Discover Card Charge International Fees

The Discover it Cash Back Credit Card has some of the lowest rates and fees on the market. No annual fee means it's an attractive option for budget-conscious individuals.

There's also no foreign transaction fee, making it a useful card to use when traveling abroad. Discover is accepted in many places, but be sure to check the specific locations you plan to visit.

The ongoing variable APR is often well below the average current interest rate. This can make the card a great low-interest option for those who carry a balance.

One thing to keep in mind is the potential high APR after the introductory period. If you carry a balance beyond the intro period, you may face relatively high-interest rates.

The card offers a 0% intro APR on purchases for the first 15 months (then 18.49% - 27.49% Variable APR). This can be a valuable feature for those looking to make significant purchases and pay them off over time without incurring interest charges.

The typical intro balance transfer fee is 3 percent and 5 percent on future balance transfers. This is something to consider if you plan to transfer existing credit card debt to the Discover it Cash Back.

Related reading: Discover Student Card Foreign Transaction Fee

Application restrictions can be a bit tricky when it comes to Discover credit cards. There's an unwritten rule that says any additional Discover applications made beyond the first in one year will likely be denied.

Some readers have reported being approved for a second card before one year was up, so your mileage may vary. It's essential to keep this in mind when considering applying for multiple Discover cards.

Walmart accepts Discover credit cards, including the Discover it Cash Back. This makes it a great option for those who shop at Walmart regularly.

You can use your Discover it Cash Back card at Walmart, just like you would with any other Discover credit card. This is a convenient option for those who want to earn cash back rewards on their purchases.

Walmart accepts Discover credit cards, including the Discover it Cash Back.

You can use your Discover it Cash Back credit card at Walmart.

When traveling abroad, it's essential to consider the credit card's acceptance globally. Discover is not as widely accepted internationally as some other credit card networks.

You might be able to use Discover in some major cities, but it's not as widely accepted as Visa or Mastercard.

The Discover it Cash Back is a reliable option, but what about security? The good news is that it's not a secured card, so you'll have access to a revolving credit limit each month. This means you can make purchases up to your total credit limit and pay your statement balance when you receive your monthly bill. The card is unsecured, which is a big plus for many users.

If you're considering a Discover card, you might also want to look into other options. For example, American Express credit cards offer a range of rewards and benefits that could be a good fit for you.

The Chase Freedom Unlimited card has a 4.1 WalletHub rating and offers 1.5 - 5% Cash Back rewards, which is a great option if you're looking for a card with flexible earning potential.

If you're interested in a card with a higher rewards rate, the Capital One Savor Cash Rewards Credit Card is a good choice, with a 4.6 WalletHub rating and rewards of up to 8% Cash Back on certain purchases.

Here are some key features of these alternative cards:

Ultimately, the best card for you will depend on your individual needs and preferences, so be sure to do your research and compare features before making a decision.

If you're considering the Discover it Cash Back credit card, it's essential to determine if it's right for you. The card offers an excellent rewards rate on various popular everyday categories, making it a great addition to your wallet if you're trying to accrue the most cash back possible.

This card is ideal for those with seasonal expenses, such as holiday shopping or summer vacations, which often fall within the issuer's rotating categories. You can also use it for everyday expenses like gas and dining.

One of the standout features of the Discover it Cash Back is its lack of annual fees, foreign transaction fees, strict late payment penalties, and sky-high interest. This makes it an attractive option for those who want to avoid these common credit card pitfalls.

If your purchases align well with the card's rotating categories, you may find that the Discover it Cash Back is the best option for you. However, if you have spending habits that don't fit within these categories, another card may be a better fit.

Here are some key characteristics of the Discover it Cash Back cardholder profiles:

Our experts have put the Discover it Cash Back card to the test and shared their honest opinions. Bankrate credit cards writer Ryan Flanigan loves the bonus categories on this card, which he can easily max out every quarter.

The Discover it Cash Back card offers a first-year value that's hard to beat. Ryan estimates that he could earn at least $600 in cash back during his first year, thanks to the quarterly bonus categories and Discover matching his earnings.

One of the standout features of this card is its low-cost terms. It's a great option if you're looking for a rotating category card without breaking the bank.

Here's a comparison of the Discover it Cash Back card to other cash back cards. While it's a top contender, you may find that another card offers more rewards or richer features.

Recommended credit score is not explicitly mentioned, but based on the article, it's safe to assume that a good credit score is required to apply for this card.

Additional reading: Discover It Credit Score Card