How Good Is Discover Credit Card

Discover It Student Chrome

Great for: College commutes

The Discover it® Student chrome is a flat-rate rewards student credit card ideal for commuting students who want to build credit and earn rewards. It offers 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants each quarter — no activation necessary — plus 1% cash back on everything else.

Read the fullDiscover it® Student chromereview

Types Of Discover Credit Cards

Discover has a diverse credit card lineup, and every last one of them offers useful purchase rewards that can be redeemed for cash or statement credits. Plus, benefits for Discover cardholders are available with all cards. However, each card has its own niche, offering specific perks for cardholders.

Whats The Best Discover Credit Card

Looking for a rewards card thatll earn an impressive 5% cash back in rotating reward categories? Go for the Discover it® Cash Back .

If youre still building your credit and you dont quite qualify for an unsecured card, the Discover it® Secured is arguably the best secured credit card available.

The Discover it® Miles is yet another solid card, offering flat-rate travel rewards for cardholders whod prefer to redeem for things like flights and hotel stays.

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How Do You Pay Your Discover Card Balance

There are three ways to pay your Discover card balance: online, by phone, and by mail.

• Paying online: Log in to your Discover account, and click make a payment.
• Paying by phone: Call Discovers 24/7 hotline at 1-800-DISCOVER . Enter the last four digits of your credit card number, then follow the prompts.
• Paying by mail: Send a personal check, cashiers check, or money order to the following address: Discover Financial Services, P.O. Box 6103, Carol Stream, Illinois 60197-6103. Write your account number on the memo line.

Accepted In Many Places

Discover cards are being accepted at more and more establishments each year. In fact, Discover cards are accepted at more places in the US than American Express cards.;According to the Nilson Report, Discover was;accepted by 9.3 million merchants nationwide in 2014, which is not very far behind the 9.5 million merchants that accepted Visa and MasterCard. So Discover is very close to being on par with both Visa and MasterCard domestically.

Internationally, Discover is accepted at fewer destinations, however. You can use their own map to see where they might be accepted. Just because a country is highlighted, that doesnt mean all or even most merchants will accept your card. While some places like China and Japan accept Discover widespread, its always a good idea to keep a back-up Visa or MasterCard on deck when traveling abroad.

Keep in mind that you can use Discover cards where some of their partners are accepted, such as Diners Club. If you see any of the logos below while abroad you should be able to use your Discover card at that merchant.

One fantastic thing about Discover cards is that they dont require you to pay foreign transaction fees, even for cards with no annual fees.

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Overview Of The Best Discover Credit Cards

The best Discover credit cards come in a variety of types, including several cash back options and a few credit-building cards for beginners. You can earn cash back rewards in a range of useful categories, including both rotating and year-round rewards. Plus, every Discover card comes with a unique sign-up bonus that matches the rewards you earn in the first year. Let’s take a closer look at the options.

How To Compare Discover Credit Cards

When you compare credit card offers from Discover, it will come down to two main factors:

• Your credit score
• Your rewards needs

If you have good credit, you’ll want to focus more on the type of rewards you want to earn. You’ll need to decide if you want rotating bonus categories with a higher rewards rate or static bonus categories at a slightly lower rate.

If you need to build credit, you have a few choices. College students who are first-time credit card users should choose one of Discover two student cards, which vary in the type of rewards you earn . If you’re not a college student and need to build credit, then go with Discover’s secured card.

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Is The Discover It Student Cash Back Card The Best Credit Card For Students

Few credit card;issuers offer cards strictly catered to students who want to establish credit without fretting over annual fees and minimum spending requirements. And of those limited options that are available to students, most have little to no benefits in the way of rewards or fun perks.

This is not true of the Discover it Student;Cash Back card, however, which offers students the same rewards cardholders get with the;regular Discover it. Zero annual fees and a high rewards rate make this card a terrific tool for students looking to jumpstart their credit journeys.

In this review:

• How it Compares to Similar Cards

Best Discover Card For Business: Discover It Business Card

Discover it® Business Card

• Earns 1.5% cash back on every purchase with no bonus categories to keep track of
• Discover matches your cash back after your first account year

Cons

• Other cash-back business credit cards offer higher rewards in certain spending categories

• The information related to the Discover it® Business Card has been collected by Business Insider and has not been reviewed by the issuer.
• Intro Offer: Get an unlimited dollar-for-dollar match of all the cash back you earn at the end of your first year, automatically. And no limit to how much we’ll match. So you could turn $350 cash back into $700 with Cashback Match.
• Earn 1.5% cash back on every dollar spent on all purchases.
• Redeem your cash back for any amount, any time. Your rewards never expire.
• Track business expenses. Download transactions easily into Quicken, QuickBooks, and Excel.
• Add up to 50 free employee cards.
• No annual fee.
• 100% U.S. based customer service. Talk to a real person at any time, day or night.
• Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.

The Discover it® Business Card is a solid option if you’re looking for a business credit card without an annual fee. You’ll earn 1.5% cash back for each dollar you spend, as well as a FICO score on your credit card statement each month.

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Great Cash Back Cards

Discover cards were originally an invention by Sears in the 1980s back when Sears was on top of the world. In fact, Discover actually pioneered cash back rewards when it started offering them in 1986 and so its no surprise that Discover is still offering some of the best cash back credit cards.

My favorite Discover credit card is the;Discover it, which comes in several different varieties. The two I value the most are the;Discover it® Cashback Match and the;Discover it® Miles Unlimited 1.5x Rewards Card.

The;Discover it® Cashback Match offers rotating categories just like the Chase Freedom where you can earn 5% back each quarter on up to $1,500 in spend. And the;Discover it® Miles Unlimited 1.5x Rewards Card functions just like the Chase Freedom Unlimited except that it allows you to earn 1.5% back on all purchases to go towards travel.

What makes both of these cards special is that Discover doubles all of your earnings for the first year you have the card. So its like earning 10% back on quarterly purchases or 3% back on all purchases. Both of those offers are hard to beat and are terrific options for people just getting started with credit card rewards.

The Bottom Line On Discover Credit Card Benefits

To be clear, there certainly are credit cards with more benefits than Discover. And if travel- or purchase-related benefits are at the top of your priority list, a Discover card may not be the right credit card product for you.

Having said that, the Discover card rewards program offers some unique features, such as Discover’s sign up bonus. Plus, some of Discover’s other perks are valuable, such as access to 100% U.S.-based customer service and the lack of foreign transaction fees.

The bottom line is that if you’re looking for a solid rewards credit card with no annual fee, and aren’t really concerned with travel and purchase benefits, a Discover credit card could be just what you’re looking for.

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Where Is Discover Accepted

Discover boasts widespread global acceptance. But its not quite as universal as some of its big-league network competitors.

Discover is accepted almost everywhere in the United States. Its also accepted in more than 190 other countries, though acceptance is a bit more sporadic in Africa, western Europe, and the Middle East than in most other areas.

Just remember that while a credit card network may be accepted in a country to some degree, that doesnt mean its widespread within that country. You may be better off with a Visa or Mastercard if youre a serious international traveler .

What Discover Card Is Best For Rewards

Every Discover Card provides rewards on every purchase, every day. The best rewards credit card for you will be the one that rewards you most where you like to shop. See the Discover Cash Back Credit Cards or our Travel Credit Card to find a great rewards credit card. If you own a small business and want to earn rewards on your business purchases, you should consider our;Business Credit Card.

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What Can I Do If Discover Rejects My Application

If your application for a Discover card is rejected, your first step is to find out why. The Equal Credit Opportunity Act requires credit card providers to explain, usually in a letter, why your credit application was denied.

Common reasons include a low credit score, monthly income that is too low, a short credit history, missed payments on your credit reports or a high level of debt.

You should also order copies of your credit reports. Each of the three credit bureaus maintains a credit report on you. You can order one copy of each of these reports once a year at AnnualCreditReport.com. These reports will list the amount of money you owe in loans and on credit cards. It will also list any late payments from the last seven years and any bankruptcies or foreclosures from the last seven to 10 years.

Armed with this information, you should be able to determine why your credit card application was denied. Maybe your monthly income is too low. If you boost that with a side job or a raise if you have a job already, you might get approved next time you apply for a student credit card from Discover. Or maybe your credit score is too low. You can improve that by paying your bills on time and reducing any debt you are carrying.

What Credit Scores Do I Need To Qualify For The Discover It Cash Back

Its recommended that you have good credit before applying.

To be counted as having good credit, your FICO scores would need to be at least 670, or your VantageScores would need to be at least 700.

But credit card issuers will look at more than just your credit scores. When deciding your creditworthiness, issuers will take into account factors including income and monthly rent or mortgage payments. The additional information could lead to your approval, even if your scores are lower than whats recommended. However, that also means theres a chance you could be denied even if theyre high enough.

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Bankrates Takeis The Discover It Cash Back Card Worth It

The Discover it Cash Back credit card is perfect for people who can adjust their spending to take advantage of Discovers cash back calendar each quarter. Its high-earning rewards scheme maximizes Discovers cash back match bonus, potentially making it one of the best first-year reward offers for a no annual fee card. The Discover it Cash Back carries perhaps the lowest rates and fees youll find, and its accessible with just a good or higher credit score .

Although isnt the most feature-rich or newcomer-oriented card in its class, the Discover it Cash Back cards focus on accessibility, affordability and excellent customer service give it all the hallmarks of a great first rewards card for those who dont mind putting in a little elbow grease to make it shine.

Consider Applying For A Secured Credit Card First

Consider, too, applying for a secured credit card before aiming for more valuable traditional cards such as the Discover it Student Cash Back card. A secured card acts much like a traditional credit card, except its credit limit is tied to a deposit you make with the issuing bank. If you deposit $500 with the issuing bank, your secured credit card will have a credit limit of $500. If you dont make your payments, the bank can withdraw what you owe from your deposit.

This makes it easier to qualify for a secured card because the bank is taking on less risk. You should be able to qualify for a secured card even if you have a low credit score or no credit score at all.

Once you have your secured card, make regular purchases throughout the month and then pay all of them off on or before your due date. Doing this will steadily boost your credit score. Just make sure to pay off everything you charge by each due date. If you dont, your balance will roll over into the next month, and youll be hit with high interest rates on the money you owe.

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What Are The Advantages And Disadvantages

Advantages

• Earn 5 percent cash back on up to $1,500 in purchases each quarter on rotating categories after you activate, then 1 percent
• No annual fee, foreign transaction fees, penalty APR or fee on your first late payment
• Cashback Match program essentially doubles all cash earned within the first year
• Discover announces its entire 5 percent cash back calendar the previous year instead of a quarter ahead of time
• 14-month 0 percent intro purchase and balance transfer APR, then an incredibly low 11.99 percent to 22.99 percent variable APR
• Discovers renowned J.D. Power credit card satisfaction survey track record makes it one of the best issuers for customer service
• Remarkably accessible, only requiring a good credit score

Disadvantages

• Rewards can be hit or miss depending on whether your spending aligns with the cycling categories
• No opportunity to get more value from rewards by transferring them to other loyalty programs
• The rotating category rewards program requires quarterly activation and may be too complex for first-time rewards cardholders

Rotating Cash Back Categories Provide Lots Of Potential Value

Unlike many cash back cards, the Discover it® Cash Back card changes its bonus categories on a rotating basis every quarter and youll need to activate your categories every quarter to earn the bonus rate.

The cards rewards program includes a stellar 5% cash back on up to $1,500 in qualifying purchases in those rotating categories each quarter . That means you can earn a maximum of $300 from the bonus rate every year.

Cash back can be redeemed as a deposit to a bank account or as a statement credit, which are both good options if you want a straightforward rewards experience. You can also redeem your rewards for gift cards or purchases on Amazon or through PayPal, or you can choose to donate them to select charities.

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Discover Student Card Benefits

The Discover it Student;Cash Back card boasts one of the industrys best rewards programs for student cardholders, with cash back on every purchase and statement credits for good grades.

Cash Back;Rewards

The most enticing aspect of the Discover credit card for students is the chance to earn bonus cash. Each quarter, Discover chooses a different category for its rotating rewards whereby cardholders get 5% cash back on up to $1,500 in qualifying purchases. The 5% cash back schedule is as follows:

• Grocery stores
• Gas stations, Uber, and Lyft
• ;Restaurants and PayPal
• Amazon.com, Target, and Walmart.com

For all other purchases, cardholders automatically get 1% unlimited cash back. Cash back rewards, which never expire, can be redeemed as statement credits or gift cards or can be applied to your total at Amazon.com checkout.

Signup Bonus

Instead of a traditional signup bonus that involves minimum spending for qualification, new Discover it Student;Cash Back cardholders have a chance to double their cash back. With Cashback Match, Discover matches dollar-for-dollar the amount of cash back you earn in your first year, which means you could get as much as 10% back on qualifying purchases a fantastic rate for a no-fee student;credit card.

Good Grade Reward

Discover also incentivizes great work in the classroom. New cardholders who are currently enrolled in college and maintain a 3.0 GPA or higher can apply for a $20 statement credit for up to five consecutive school years.

Discover It Secured Credit Card Rewards

Cardholders of the Discover it Secured Credit Card earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter . They also earn unlimited 1% cash back on all other purchases automatically.

Discover offers a unique welcome bonus for its new users: In their first year only, new card members will automatically have all the cash back they’ve earned during the first 12 billing cycles matched by Discover. So, if you earned $200 cash back at the end of your first year, Discover will give you an additional $200. There’s no limit on how much cash back Discover will match in the first year, so this could potentially be a large windfall of rewards.

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