Wednesday, February 1, 2023

What Is The Best Discover Credit Card

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Discover It Cash Back Card

Discover Secured Card Best Secured Credit Card Review

If you like cash back, the Discover it Cash Back card is a great option for you. Discover it offers an impressive 5% cash back on certain purchases, with the categories rotating each quarter. These purchases may include spending at restaurants, gas stations, Amazon.com, or wholesale clubs. In addition, Discover it cardmembers earn a match on their total cash back earned at the end of their first year, effectively giving them up to 10% cash back on some purchases, making this the best Discover credit card during its first year.

  • : 0% for first 14 months 11.99%23.99% variable APR after that
  • Benefits: Qualify for 5% cash back on rotating categories
  • Category: Rewards Credit Card

Card Highlights

The Discover it credit card falls into the cash back category of credit cards given its rotating 5% cash back purchase categories each quarter , plus an unlimited 1% cash back on all other purchases. This card stands out because it also offers new cardmembers a cash back match at the end of their first year. Rewards can be redeemed in any amount for a variety of cash back options, including statement credits, charity donations, and gift cards. Adding to these rewards is the 0% APR offered for the first 14 months on both purchases and balance transfers. The card also has no annual fee, making it easy for cardmembers to take advantage of their earned cash back each year.

The best perk of the card is the fact that the Discover it credit card has no annual fee.

Rates & Fees

The Verdict

Best Discover Card For Travel Rewards

The best Discover card for travel rewards is Discover it® Miles. It is a decent offer for people with good credit, but this it cards terms really cant hang with the markets elite. There are simply too many great deals available these days to waste time and rewards potential on Discover it Miles.

Its also worth noting that Discover isnt accepted by as many merchants or in as many countries as Visa and Mastercard. International travelers and folks who shop from foreign-based merchants should make sure to take that into account.

Side-By-Side Comparison:Discover it® Miles vs. Barclaycard Arrival® Plus World Elite Mastercard®

Best Discover Cards For Students

Discover offers not one, but two different student credit cards that are among the best student cards available. The only difference between the two is the way you earn your rewards.

$0 New/Rebuilding

Its one of the few secured credit cards that offers cash back rewards. The card also sets itself apart from most other secured cards by offering cash advances, balance transfers, free overnight card replacement, and no fee the first time you pay late.

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No Purchase Protection Extended Warranty Or Standard Travel Benefits

Although these common card perks are offered on many major cards, Discover discontinued their purchase protection, extended warranty and auto rental collision insurance features in 2018. Discover it Miles doesnt provide standard travel features like airline loyalty program mile transfer, concierge services, priority boarding, travel accident insurance or luggage protection.

If youre a traveler who leans on these perks, you may want to look at other travel credit cards.

Enjoy 0% Apr Purchases And Balance Transfers

The Best Credit Cards of Discover Bank

If you need to make a large purchase or have high-interest credit card balances youd like to pay off, a 0% APR period can save you hundreds of dollars in interest charges.

Heres how Discover credit cards deliver the 0% APR benefit:

0% APR Discover Credit Card Purchases
  • Discover It Chrome
  • NHL Discover It
0% APR for 14 months 0% APR for 14 months 3% balance transfer fee
  • Discover It Balance Transfer
0% APR for 6 months 0% APR for 18 months 3% balance transfer fee
  • Discover It Miles
0% APR for 6 months N/A
0% APR for 12 months N/A
  • Discover It Student Cash Back
  • Discover It Student Chrome
0% APR for 6 months N/A

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Best Student: Discover It Student Cash Back

Discover will match all the cash back you’ve earned at the end of your first year, automatically.

$0
Rewards Earning Rate Earn 5% cash back on rotating quarterly categories, each time you activate. Plus, earn unlimited 1% cash back on all other purchases automatically.
INTRO PURCHASE APR
5% of the amount of each transfer.
Foreign transaction fee
  • Why We Chose This Card:
  • Pros & Cons:

The Discover it Student Cash Back card is our pick for best student option from Discover because of its enhanced cash back on the same popular rotating spending categories as the standard consumer version of the card , and then a base rate of 1% cash back on all other spending. The cash-back match then doubles all the cash back earned in the first year, making this a great reward value for students. The lack of an annual fee also makes this a student-friendly option.

  • High rewards on rotating spending categories, such as groceries and restaurants

  • Potential for a large bonus the first year with cash back match

  • Introductory 0% APR for six months on purchases

  • Reward for maintaining good grades

  • Rotating-category rate requires quarterly registration

  • No 0% APR offer on balance transfers

Read the full Discover it® Student Cash Back credit card review

Does Discover Offer 5% Cash Back

Discovers 5% Cashback Bonus program offers allow you to earn a 5% cash back bonus at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases. You must activate your bonus cash back each quarter by enrolling online, through the mobile app or by calling 1-800-347-3085. When you activate, youll have access to detailed information about eligible purchases and cash back limits.

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Discover It Secured Credit Card

Great for: Credit builders

The Discover it® Secured Credit Card is a great option for anyone building credit for the first time or for those rebuilding their credit. It charges no annual fee, offers robust rewards, and has a low security deposit requirement. You can even get an automatic upgrade to an unsecured card.

Read the fullDiscover it® Secured Credit Card review

Capital One Credit Cards Vs Discover Credit Cards: Which Is Best For You

Is Discover the Best Credit Card Issuer?

Discover has a history of disrupting the credit card market. It offered some of the countrys first no-fee credit cards and is now expanding its lineup to include secured, travel rewards and cash back options. Capital One, meanwhile, is a well-known and trusted credit provider across the United States with its own stable of credit-building, miles-earning and cash rewards cards.

But which companys credit offerings best meet your needs? Lets break it down.

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A Brief History Of Discover

Discover Bank is a relative newcomer to the credit card industry, and has already established itself as both a major card issuer and payment network. But that didnt come without a fight. Now a part of Discover Financial Services, Inc., it provides retail banking services with a focus on U.S. consumers, and has been expanding its service portfolio and global reach.

The first Discover credit card had its official launch in 1986, in a national campaign featuring a commercial during Super Bowl XX. This first card was issued by Dean Witter Financial Services Group, Inc., a part of the Sears corporation. That might sound strange, but Sears had actually been in the credit business for decades at that point: It began offering in-store installment payment plans to farmers in 1911, with other credit products following.

The very first use of a Discover card was a trial run the year before: A $26.77 purchase at a Sears in Atlanta, on September 17th, 1985.

Discover cards caught on fast in the U.S., thanks in part to having no annual fees and higher-than-usual credit limits. They were one of the first to offer cash back for purchases, an attractive feature the company still focuses on today.

In 1987, Discover became the only card accepted by the U.S. Customs Service to pay customs duties, spurring its adoption even further. And by 1989, Discover signed its 1 millionth merchant , helping to cement its place as a payment network.

Quarterly 5% Bonus Categories

Receiving 5% cash-back on your purchases is a level to strive for!

While you wont find a credit card that delivers 5% cash-back on all of your purchases, Discover cards offer a respectable 5% cash-back on up to $1,500 for purchases in select categories that change each quarter.

Youll earn 5% cash-back on rotating categories such as department stores,gas stations, wholesale clubs, , restaurants, and more.

The following Discover cards offer 5% quarterly bonus categories:

  • Discover It Cash Back
  • Discover It Transfer Balance

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Discover It Chrome Student Card

Still planning for midterms or finals and hitting the books as a college student? If so, youre likely in the market for a credit card to help you pay for the important things coffee runs, groceries, gas fill-ups, and more. The Discover it Chrome for Students credit card is a cash-back credit card that offers extra perks designed just for college students.

  • : 0% for first 6 months 13.99%22.99% variable APR after that
  • Benefits: Qualify for 5% cash back on dining and gas
  • Category: Rewards Credit Card

Card Highlights

Cardmembers can earn 2% cash back on certain purchases, including gas stations and restaurants up to the quarterly maximum of $1,000 in purchases, and 1% cash back on all other purchases. There is a cash-back match at the end of your first year, which essentially doubles the rewards students receive.

Students with a GPA of 3.0 or higher each year receive a $20 statement credit for up to five years, and there is a cash-back match for new cardmembers for the first year. Rewards earned can be redeemed at any time and in any amount.

Rates & Fees

  • The Discover it Chrome for Students credit card has no annual fee
  • New cardmembers enjoy an intro APR of 0% for the first six months.
  • After that promotional period ends, the interest rate on the card is variable, ranging from 15.24% to 24.24% based on the credit history of the account holder.
  • Balance transfers do come with a fee of 3% per transaction
  • Cash advances come with a fee of $10 or 5%, whichever is greater.

What Are The Other Benefits Of Having A Discover Card

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In addition to the generous reward program and Cash Match, Discover cards also offer a number of other benefits. These include:

  • No annual fee: Many card issuers charge an annual fee for offering generous rewards. This is not the case with Discover cards. Regardless of which card option you choose, there are no annual fees. This could save you as much as several hundred dollars per year.
  • No minimum reward redemptions: While there are some minimums for gift cards, generally, there are no minimum reward redemptions. So, even if you only have one cent, you can claim your rewards.
  • No Reward Expiry: Another benefit of Discover cards is that there are no expiration dates to worry about for your rewards. Some card issuers require that you redeem your rewards within 18 months, so if you lose track of time, you can miss out.
  • Free Security Alerts: Discover will alert you if your social security number is used on Dark Web sites or if a new credit request appears on your credit report. You can also freeze your account within seconds if you detect any security issues.
  • Fraud Liability Protection: Youll not be responsible for any unauthorized purchases on your card.
  • Reasonable Fees: There are no foreign transaction fees or overlimit fees. Additionally, you wont be charged a late fee on your first late payment.
  • Flexible Payments: You can pay your bill online or by phone up to midnight on the day its due.

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What Is The History Of Discover

Discover was launched in 1985 and made its public debut in a Super Bowl commercial in early 1986. It is both a card network and a direct issuer of cards to consumers through Discover Bank, formerly Greenwood Trust Company. The Discover network ranks fourth in terms of dollar volume of processing and merchant acceptance, behind Visa, Mastercard, and American Express, and sixth in terms of cards issued. Discover was originally owned by Sears, Roebuck and Company and was part of the Sears Financial Network that also included Dean Witter Reynolds and Coldwell Banker as its brokerage and real-estate arms. Discover disrupted the card industry by issuing no-annual-fee cards and offering higher-than-normal credit lines. It later introduced its innovative Cashback rewards program, which was novel for its time.

Discover Cash Back Credit Card Benefits

Get an unlimited dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.

You can talk to a real person from our customer service any time. Plus get powerful, fast mobile and online service.

We monitor every purchase, every dayand you’re never responsible for unauthorized charges on your Discover Card account.

Discover is accepted by 99% of the places across the country that take credit cards.

See your FICO® Credit Score for free on monthly statements, online and on our mobile app.

Your cash back never expires. Redeem your rewards in any amount, at any time.

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For Flat Rate: American Express Simplycash Preferred*

If you want a cash-back credit card but dont want the fuss of figuring out how the spending categories work, consider the American Express SimplyCash Preferred card. You get a flat rate of 2% cash back on everything you buy, periodwith no limit to how much you can earn. Plus, for new members, theres a juicy 10% cash-back promotional offer for the first four months . Additional cards are free , which will appeal to couples or families who want to combine their reward earnings. The drawback to be aware of is that rewards can be redeemed only once per year.

  • Annual fee: $99

How Do You Choose A Credit Card

What Credit Card Should I Get? How to Find the Best Credit Card

When you compare credit cards, consider which is the best rewards credit card for how you spend. Do you prefer the straightforward rewards of cash back credit cards? Or do travel credit cards suit your spending better? Also, see which fees you can avoid. And keep in mind what your credit history looks like today. If you want credit cards for good credit or excellent credit, Discover has Cash Back Credit Cards and a Travel Credit Card. If youre building your credit history, Discover offers a Secured Credit Card. Discover also has Student Credit Cards and a Business Credit Card.

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Does My Discover Credit Card Cover Rental Car Insurance

If youre renting a car on your next trip, you may be eligible for rental car insurance with your Discover credit card. This benefit removes the added expense of secondary rental insurance by using built-in car rental coverage from your card. If you rent a car with your credit card, you may be eligible for collision coverage. Although, coverage types vary, and limitations could apply. Be sure to check out your issuers policies.

Your Discover credit card can offer you a host of other savings benefits as well. Youll match your rewards or earn cash back by booking your travel with your credit card. Find out if your credit card offers an online shopping portal or rewards mall. With this feature, youll find exclusive deals and discounts on airfare, hotels, car rentals and cruises. You may also be eligible for flight accident insurance for you and your family when you purchase your airline tickets using your credit card.

Please Note: Information about the Discover cards have been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.

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What Is The Discover Rewards Program

Unlike many issuers that have specific minimum spends or time restrictions, the Discover Rewards Program offers some great bonuses. The Cash Match scheme allows you to get a dollar for dollar, mile for mile bonus.

Discover calculates the amount of your rewards in your first year and provides a credit for the same amount.

This is a fantastic incentive that doesnt require you, as the cardholder to do anything. Unlike other cards where you need to meet spending requirements within a specific timeframe to qualify for the introductory reward bonus, the Discover Cash Match doesnt require that you do anything.

This means that you dont need to track your spending or watch the calendar to make sure you qualify. Just make purchases with your card as normal and every dollar you spend will effectively qualify for double cash back or double miles.

There are no stipulations on how you redeem your bonus cash back. It will simply accumulate on your account after your one year card anniversary. Discover will process your rewards and add them to your account within two billing periods. There are no purchase minimums to qualify.

You need to maintain an active account to receive your bonus rewards. Discover will not pay the bonus on a closed account. So, if youre planning on closing out your account, be sure to wait until your bonus rewards have been processed.

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