Discover It Student Credit Card Review
Cash back, intro APR on purchases and no annual fee for college students
College students looking to build credit, earn cash back, and pay no annual fee should consider the Discover It Student Cash Back. With the combined generous rewards program, intro APR on new purchases and no late fee on the first late payment, it’s clear to see why this Discover student credit card is among the most popular offers for college students on the market today.
- Not all merchants accept Discover
Review: Is The Discover It Student Cash Back The Best Credit Card For You
Fortunately, some banks offer or those who are just starting out with credit. The Discover it® Student Cash Back is a solid choice if you’re looking for a no-annual-fee card that earns cash-back rewards, offers student-friendly features, and doesn’t require a security deposit.
With the Discover it® Student Cash Back, you can earn 5% cash back in popular rotating bonus categories when you activate, on up to $1,500 in combined spending each quarter , as well as 1% back everywhere else with no limits .
While there’s no traditional welcome bonus, Discover will match all the cash back you earned with the Discover it® Student Cash Back after the first 12 months through its Cashback Match program, and there’s no limit to the amount matched.
Parents: Read these strategies that can help your child build credit, and find out how adding children as credit card authorized users can give their .
If you’d rather not keep track of rotating bonus categories, Discover issues another student card the Discover it® Student chrome which offers 2% back at restaurants and gas stations on up to $1,000 in purchases each quarter , and 1% cash back on everything else.
Or if you want to earn points for travel, consider the Bank of America® Travel Rewards Credit Card for Students, which offers 25,000 points after spending $1,000 on purchases in the first 90 days of account opening.
How To Qualify For A Good Apr
Not everyone is going to be able to find, or qualify for, a credit card that charges less than 10% APR. If you want a super-low interest rate card, you may have to turn to a credit union or smaller bank. The biggest issuers generally compete on services and arent as competitive on price.
If you cant qualify for a low-rate card or prefer dealing with a bank, youre not likely to find a card offering much lower than 13% APR. But even this better-than-average rate can help you save money. If you reduce your APR by just three percentage points off the average, youll save yourself $150 in interest charges per year on a $5,000 balance.
What is a good credit score that will help you get a low APR? A score in the mid-700s or higher is ideal, but you probably wont know what you can qualify for until you apply, says Gerri Detweiler, education director for Nav, a company that helps entrepreneurs manage their business credit.
In fact, some consumers with great credit scores have been unpleasantly surprised after applying for a lower rate card when they end up with an APR in the higher range.
But you can take some steps to try to avoid nasty surprises when you apply for a new credit card. Heres what to do:
If youre looking for a lower interest rate, but you dont want to open a new card, another option is to call your current issuer and ask for a lower APR, Detweiler says. The worst the card issuer can do is say no.
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Should College Students Have Credit Cards
Legally, you must be 18 years old and have a source of income to be able to qualify for a credit card. For college students who meet these requirements, a credit card can be a useful tool to build credit which will be important after graduation for renting an apartment, getting a car loan and even for some job applications.
This Card Is Best For
- Seeks to maximize cash back earnings across spending categoriesCash Back Strategist
- Currently enrolled in an accredited four year college or universityCollege Student
The Discover it Student Cash Back card is an excellent option for students who are organized enough to activate the rotating spending categories each quarter. If you can remember to do thisor if you set up calendar reminders on your phone or through emailthe 5% rewards can add up.
Lets say you spend the maximum of $1,500 per quarter on qualifying purchases in the spending categories and earn 5% cash back. You’d earn $300 per year from these cash back rewards alone, which is a decent amount of extra spending money. Even better, your cash back is matched after your first year as a cardmember, so that $300 in rewards doubles to $600.
But if you have trouble remembering to activate the spending categories, this card is probably not for you. Instead, you’d be better off with another credit card that offers a flat cash back rate. For example, the Discover it Chrome for Students card allows cardholders to automatically earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. And, you also get 1% cash back on all other purchases with both cards.
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Discover It Student Cash Back Credit Card: Review
- Discover it® Student Cash Back Credit Card: Review
Paying for college can be stressful. Tuition rates are increasing, and figuring out how to cover it all can make you feel like you dont know where to start. Many college students are turning to credit cards to help pay for some necessary day-to-day expenses. To take the confusion out of which credit card to choose, were breaking down the Discover it® Student Cash Back Credit Card. From rates and fees to the perks offered, our guide will help you decide if this card is the right fit for you.
Can Tuition Be Paid With A Student Credit Card
Some colleges and universities do accept credit cards for tuition payments, but theres a catch. The institution will impose a charge for the merchant interchange in the form of a convenience fee. This is usually an expense of 2%-3% of the tuition charge. And that could be a significant sum that wipes out any rewards you earn, and probably more. Another disadvantage of putting tuition on a card is that the hefty charges would likely max out your credit line. That could leave you with little leeway for other purchases, and might even impair your credit score by increasing your credit utilization. Then theres the possibility that you might not be able to pay off a massive tuition charge in time to avoid paying interest, which even for a month could be substantial.
For these reasons, tuition is best covered by other forms of payment, such as the proceeds of a student loan or a check from your bank account.
It could certainly make sense, though, to use a student credit card to purchase textbooks, school supplies, and other more modest expenses. This is especially appealing if youre enjoying an initial period of 0% APR on purchases. Just be sure to have a plan for paying down the balance before interest charges kick in after the promotional period ends.
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Best Student Credit Cards
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Student credit cards are designed for students meaning people with limited or no credit history, and relatively low income. But before you get one, it’s important to understand how credit cards impact your credit history. If you use a credit card irresponsibly you could end up with lots of expensive debt, negative items on your credit reports, or both.
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Tips For Getting A Better Credit Card Apr
If youd like some even more in-depth statistical data about average credit card interest rates, WalletHubs Credit Card Landscape Report has everything youre looking for.
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Whats The Difference Between A Student Card And A Secured Card
Student cards are unsecured cards geared toward applicants who are college students. Secured cards are available to any applicant, college student or otherwise and require you submit a security deposit to the credit card issuer, protecting them in case you dont pay back what you charge to the card. Typically, the amount of your security deposit will become your credit limit.
Do Discover Student Credit Cards Build Credit
When used responsibly, Discover student credit cards are a great way to build credit while earning cash back rewards on every purchase. Thats because Discover reports your credit history to the three major credit bureaus so it can help build your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your other credit card accounts and loans may adversely impact your ability to build credit. So be sure to make smart choices with your student credit card, like always making at least your minimum payment or more on time.
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Does Discover Allow Balance Transfers
Balance transfers allow you to consolidate the balances from two or more credit cards onto a single card. All Discover cards do indeed permit balance transfers and several cards offer introductory 0% APR promotional financing to new cardmembers, after which the promotional APR will revert to the standard purchase APR.
However, the 0% APR promotion isnt available on the Discover it® Miles, Discover it® Secured Credit Card, Discover it® Student Cash Back, Discover it® Student chrome, or Discover it® Business Credit Card. Some of these cards may offer a lower promotional APR for a minimum of six months.
With a Discover card balance transfer, you instruct a Discover representative to transfer the balances from your other credit cards. Alternatively, you can submit a balance transfer application online.
Either way, each transfer will usually take one to two weeks and will incur a one-time fee. You can transfer only up to your cards credit limit minus any outstanding balance. The reasons to transfer credit card balances include:
If you do go through with a balance transfer, consider how you can stay out of debt during the process. You can start by curbing spending so you dont accumulate more debt as you pay down your transferred balances. Its helpful to choose a card with a 0% APR promotion period of at least 12 months so that you have enough time to pay off your balance.
What Is The Best Type Of Card For First Time Credit Card Users
The answer may depend on if youre in college. The best credit cards for college students are usually no-annual-fee student credit cards. Credit card companies use slightly different criteria when deciding whether or not someone qualifies for a student credit card and generally dont require the same kind of credit history or income they would for a standard consumer card. The best credit cards for college students also come with rewards on every purchase and top benefits like being able to track your credit score over time.
If youre not a college student and are using credit cards for the first time, you may consider a secured credit card that requires a security deposit if youre not approved for a standard credit card. Secured credit cards are a great way for non-students to build their credit history.
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Can My Apr Change After I Get My Credit Card
If your credit card came with an intro APR, the APR will rise when the introductory period expires. Your card issuer may also raise your APR if your credit score goes down, because a lower credit score makes you riskier to lend to.
Federal law requires credit card issuers to give notice before changing your APR, so you will normally have 45 days to agree with the new rate or cancel your card. Your credit card may also have a variable APR that is adjusted based on the prime rate, but this type of change doesnt require advance notice since it is already in your cardmember agreement.
Best Bonus Offer: Discover It Student Cash Back
Discover will match all the cash back you’ve earned at the end of your first year, automatically.
|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 is our pick for the best bonus offer because it offers a match of all cash back earned during the first year of usage. If you were to be strategic with the purchases you planned to make during that time, then that offer could have substantial benefit. The card also has no annual fee and offers a 5% cash back on rotating spending categories so it’s not only good for that first year. Students who maintain a grade-point average of 3.0 or better receive a $20 statement credit each year for up to five years which is a unique incentive for keeping your grades up.
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
Read the full Discover it® Student Cash Back credit card review
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How Can A Student Apply For Credit Card In India
- Student credit cards are the latest entrants in the credit card industry that help college students manage their expenses on their own. However, not all the students are eligible to get a student credit card.
- Various banks and financial institutions have come up with a different set of eligibility criteria to issue a student credit card. Only those who meet the criteria would become eligible to apply for a credit card.
- While some banks such as the State Bank of India provide credit cards only to its education loan customers.
- Whichever is the process, if you are a student above 18 years of age and would like to apply for a student credit card, you must first know which bank is offering best student credit cards and process to apply for the same.
- Once you meet the eligibility criteria set by the bank, you can check with the bank about the procedure to apply for the same.
- Not all the banks follow the same process. Hence, it’s imperative to talk to the bank personal about the bank-specific process of applying for a student credit card.
- While a few banks allow you to apply online, others may require you to visit the bank branch and submit an application directly.
Who Qualifies For A Student Credit Card
You must meet two sets of qualifications to get a student credit card. The first is the credit qualification and the other is the student qualification. Every credit card company has different standards for deciding whether you meet the necessary criteria in either case.
No credit card company publishes its minimum credit score requirements for credit card application approval. Each credit card has a market it serves.
For example, you may find one group of . Another set of cards may target applicants who have good credit and others may only consider applications from consumers who have excellent credit.
Student credit cards tend to fall in the middle of that spectrum. Thats because banks expect students to have little or no credit, as well as limited income. To that end, you do not need very good credit to qualify for these kinds of cards.
But since the cards consider applicants who have little or no credit history, you will likely find higher interest rates to offset the risk involved with these products. Most of the best student credit cards will not charge an annual fee a common practice among cards for bad credit. But student credit cards will typically charge interest rates that jump into the mid-20% range.
Other card issuers may consider a student as someone who is enrolled at a trade school or in a technical program. A few companies, namely Capital One, reportedly do not check your enrollment status at all when you apply for the card.
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