Discover It Cash Back Credit Card Review 2020

Rating:
4.5/5
4.5 stars out of 5

The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

This card is offered by Discover, which is a credit card company based in the US. The card is perfect for people with good – it also offers many rewards for using it, plus there is a welcome offer when you first apply for it. 

You shall also get a 5% cash back rate on all the purchases you make up to $1,500. Purchases that are beyond the $1,500 receive a 1% cashback, as you already get on all other purchases

It also offers alengthy 0% APR intro period on purchases and balance transfers giving you time to pay off your balance without interest. The additional bonus of matching your cash back earned in your first 14 months can be a lucrative incentive if your comparing maximum rewards value versus other cash back credit cards. This card is not for consumers with are focused on paying down a credit card balance.

The Discover It Cash Back has no annual fee.

Let’s take a closer look at the benefits and drawbacks of the Discover It Cash Back Credit Card – and whether or not it’s right for your wallet.

Discover It Cash Back Card

Discover It Cash Back review

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Our Bottom Line

  • Competitive Rewards, Attractive Sign Up Bonus

Credit Rating Requirements

  • Good – Excellent

PROS

  • 5% Cash Back for Select Spending Categories
  • 14 Month 0% Intro APR Period

CONS

  • Limit on Cash Back Spending Per Quarter
  • 3% Balance Transfer Fee

Highlights

  • No annual fee
  • 11.99% – 22.99% Variable APR
  • Redeem cash back at any time and any amount, except gift cards which start at $20
  • Free access to your FICO score, Free social security monitoring

Here’s a summary of the main pros & cons (click to see explanation or scroll down):

Pros

Cons

Discover It Cash Back Card – Benefits

Let’s take a look at the benefits of the Discover It Cashback card and see if it’s the right one for your wallet or not.

  • 14 Month 0% Intro APR Period

The first benefit of having this credit card is the 14 month intro period where you’ll pay 0% interest on new purchases and 0% interest on your existing balance you are transferring. 

The 14 month 0% purchase APR is longer than most credit cards which works well if you plan to spend right away with it and pay it off slowly.

  • 1% Cash Back Automatically on All Purchases

As with all Discover It credit cards, you’ll receive 1% cash back on all purchases automatically. 

This is easy to remember for consumers who like cash back systems that are simple.

  • 5% Cash Back for Select Spending Categories

Every quarter, specific spending categories will be allowed to earn a bonus 5% cash back rate.

This may apply to gas stations, grocery stores, restaurants, Amazon and more. Here you can find a schedule for each quarter

  • Discover Matches Cash Back Earned Your First 12 Months

One of the key benefits of the Discover It Cash Back credit card is that Discover will match ALL of the cash back you’ve earned at the end of your first year having the credit card. 

During your first 12 months as a Discover credit card holder, you’ll have ALL of your cash back that you’ve earned, matched. This can add up and be quite lucrative if you’re a high spender with credit cards.

  • No Annual Fee

As with all Discover credit cards, you won’t have to pay an annual fee. You also don’t have to pay a foreign transaction fee, but you will have a balance transfer fee of 3%. 

Keep in mind, however, that 3% is still on the low end considering some credit cards charge 5% on balance transfers.

Discover It Cash Back Card – Drawbacks

  • Balance Transfer Fee

The Discover It Cash Back card does have a balance transfer fee of 3% which could be a drawback for some consumers

If you have a high balance you’re transferring over, this 3% fee could add up to a lot of money as compared to a credit card that offers 0% transfer fee.

  • Limit on Cash Back Spending Per Quarter

While the 5% bonus cash back reward is a benefit of this credit card, the drawback is that Discover limits this reward to the first $1,500 spending per quarter. 

If you max it out every quarter that will accrue $300 in bonus cash back while still earning 1% on all other purchases. 

But this may still be a disappointment if you easily clear the $1,500 limit since other cards out there may have higher limits.

  • Keeping Track of Bonus Categories

It can be confusing trying to keep track of which spending categories are eligible for the 5% bonus cash back reward each quarter. 

If you like a simple cash back system, there are other cards that do not have rotating bonus categories.

  • Less Merchant Acceptance

Discover credit card is that merchants may not recognize the card at some stores in the US. 

Getting acceptance outside the United States may also be more difficult as compared to Visa or MasterCard.

Alternatives to Discover It Cash Back

Several other credit cards offer similar benefits to the Discover It Cash Back card in terms of cash back rewards, low fees, and lengthy 0% intro APR periods. 

Let’s look at them next and see if one is better suited for you than the Discover Cash Back card.

Like its name, the discover it gas & restaurants card offers a 2% cash-back rate on gas stations and restaurants, up to $1,000 in combined purchases each quarter . In addition, you shall get a 1% cashback on any other purchase you shall make. For most shoppers, this is an extremely lucrative card to keep.
The card has an uncommon sign-up bonus for all new members in the first year of using the card. Discover company shall match ALL of your cash backs you earn at the end of the first year. This is done automatically.
Okay. For example, if you shall earn $1,000 in cashback rewards, Discover, shall give you an extra $1,000 dollars. This is an offer for all new cardholders, but in the first year only, which is pretty amazing, as most credit cards do not offer this.

Discover it® Chrome Gas & Restaurants

American Express Blue Cash Preferred is a cashback card that offers rewards on similar purchase categories. The Blue Cash Preferred Card has a $300 cashback bonus after spending $1,000 in the first three months. 

This card offers 6% cash back at grocery stores & streaming subscriptions, 3% cash back at gas stations & transit , and 1% cash back on all other purchases. The 6% cash back at grocery stores does have a $6,000 annual spending limit. 

This card has an annual fee of $95 and comes with an  0% intro APR on purchases and balance transfers for 12 months, then a variable APR, 12.99% to 23.99%. This card is different in that it is cash back and not points that are earned on spending.

The Wells Fargo Rewards Card starts out with a bang, offering 5x points for every dollar spent for the first 6 months. After the 6 months the reward points drop down to 1 point for every dollar spent. All other spending outside of gas, grocery and drugstores is also 1 point for every dollar spent.

One of the biggest benefit to this card is that it does not have an annual fee and has a long introductory 0% APR rate, which makes it very popular among consumers who would like to pay their debt and get rewards on everyday purchases while you don’t have to be a big spender in order to get cashback.

Is the Discover It Cash Back Card Right for You?

If you’re looking for a cash back credit card with a high pay rate, the Discover It card offers an attractive 5% on spending categories you’d likely use frequently like food and transportation. 

The additional bonus of matching your cash back earned in your first 12 months can be a lucrative incentive if you’re comparing maximum rewards value versus other cash back credit cards.

This card is not for consumers with are focused on paying down a credit card balance. There are other card options with longer 0% intro APR periods than the 14 months and that doesn’t have a balance transfer fee, unlike the 3% rate of the Discover It Cash Back card.