Discover it® Cash Back Card Review: Spin Tier Bonuses with No Annual Fee (2023)

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Spin category bonuses with no annual fee

found it®Cash back cards are the best mainstayscash back credit card.Changing bonus categories give cardholders the opportunity to earn the most rewards on everyday purchases, while first-year cash back matching offers an opportunity to earn more than traditional cash back credit card sign-up bonuses.

Also, in some cases, the Discover it Cash Back card may not be the best choice. Here's what you need to know to make your own decision.

The Discover it cash back card is a great way to maximize your rewards in specific spending categories that rotate every three months, giving you the chance to earn cash back in different areas of your budget.

The card offers 5% cash back on quarterly rotating categories and 1% cash back on all other purchases. However, in the first year, you will have the opportunity to double all bonuses you earn.

sign up bonus

The Discover it Cash Back Card does not offer traditional sign-up bonuses. Instead of giving you a fixed amount after you hit a minimum spending threshold, Discover simply matches all the cash back you earn in your first year as a cardholder.

In other words, you'll get 10% cashback on bonus categories that change quarterly, and 2% cashback on all other categories. Depending on how much you spend, you can easily earn more cash back over 12 months than any other card sign-up bonus.

By comparison, most cash-back credit cards with sign-up bonuses offer $150 or $200. However, if you can use the Discover it Cash Back card to increase your categories by up to 5% each quarter, you will receive an additional $300 or up to $75 on top of the quarterly maximum of $75 you already receive quarterly reward amount.

The only caveat is that Discover won't offer Cashback Match until the end of the year. But this dollar-for-dollar match could be perfect for big payouts.

bonus rate

The Discover it Cash Back Card offers 5% cash back on spending up to $1,500 in rotating bonus categories each quarter and 1% cash back on all other purchases. Bonus categories can include actual payout categories or individual suppliers.

You'll need to activate your cash back bonus every quarter, but it's as easy as clicking the button in your reminder email, logging into your online account, or calling 1-800-DISCOVER.

The quarterly maximum reward amount you can earn from your cash back bonus is $75.

How to redeem your Discover Cash Back

Card issuers offer a number of different cash back methods. For direct cash back, you can request cash to be deposited into your bank account or receive a credit on your card account.

Alternatively, you can use your rewards to shop online at Amazon.com or via PayPal, buy gift cards or donate your rewards to charity.

Depending on the retailer, Discover will give you up to 20% more value when you use Rewards to buy gift cards. For example, to get a $25 gift card, you only need to exchange $20 in cash.

Introduction to APR

This Discover card offers 15 months of 0% introductory APR on purchases and balance transfers.

You can take advantage of the promotional introductory APR at the time of purchase for bulk purchases and pay back interest-free over time. You can also take advantage of the promotion to make a balance transfer from another credit card and pay off your balance.

However, be aware of balance transfer fees. For approximately the first three months, the initial balance transfer fee is 3% of the amount transferred. For future balance transfers, the balance transfer fee is 5%.

Like other introductory APR offers, this card's promotion is a true 0% APR offer. In other words, you'll only pay interest on the balance if you don't pay it off by the end of the promotional period.

Note that there is another version of Discover it that offers a longer balance transfer promotion, although there is an APR fee for shorter purchases.

regular annual interest rate

After the introductory APR promotional period ends, the regular APR on the Discover it Cash Back Card will fluctuate based on your creditworthiness. In fact, it's a variable APR, which means your rate will fluctuate with market rates.

Fees: annual fee, foreign transaction fee, etc.

The Discover it Cash Back Card has no annual fee or foreign transaction fee. No annual fee is standard for cashback credit cards, but most charge for foreign transactions.

The only problem is that the Discover card is not widely accepted outside of the US. So even if you don't have to pay for purchases abroad, you might have a hard time finding different places to use your card.

There is no late fee for the first late payment, but there will be a $40 fee for subsequent late payments. There's also a $40 return fee plus a 5% cash-advance fee with a $10 minimum.

Discover the Benefits of a Cash Back Card

Discover doesn't really offer a lot of standout extra card perks. In fact, most of the benefits you get with this card are available on most other cards. Some benefits of discovery lists include:

  • No Liability Fraud Protection
  • Access your FICO credit score for free
  • flower analyzer
  • Recurring Expenses Dashboard
  • contactless payment
  • Possibility of freezing the card
  • US customer service

A relatively unique benefit is social security number notification. If your social security number is found on one of the thousands of sites on the dark web, your card issuer will notify you. If you receive a notification like this, it means someone may be trying to steal your identity, so you can take steps to protect yourself, such as freezing your credit or adding a fraud alert to your credit report.

Odkryj Cashback vs. Chase Freedom FlexSM

The Discover it Cash Back Card is one of two major credit cards that offer quarterly rotating rewards. thisChasing Freedom FlexAlso offers quarterly 5% cash back on spending of up to $1,500 in various locations or categories.

As previously mentioned, Chase Freedom Flex does not publish bonus categories for the full year, but rather for the next quarter at a time.

This can be frustrating for someone who is considering buying the Chase Freedom Flex but isn't sure if these categories are right for their budget. The good news is that while they're not the same, both the Discover it Cash Back card and the Chase Freedom Flex offer similar enough categories that it shouldn't be a problem.

For new cardholders, Freedom Flex offers a one-time bonus of $200 after spending $500 in the first three months, plus 5% cash back on up to $6,000 in gas station purchases in the first year. Depending on how quickly you want to receive your sign-up bonus, this might be a better option than Discover's Cashback Match.

The Chase Freedom Flex's other bonus rates also give it an edge over the Discover card. Rates include 5% cash back on travel purchases through Chase Ultimate Rewards, 3% cash back at drugstores and restaurants (including takeout and eligible delivery services), and 1% cash back on non-reward spends cash back.

Finally, if you own a Chase Freedom Flex andChase Sapphire Preferred®,Chase Sapphire Reserve®orInk Business Preferred® Credit Card, you can transfer Freedom Flex Rewards to your travel card and enjoy greater flexibility and value through redemption. None of these cards charge an annual fee, but Freedom Flex charges a foreign transaction fee.

Discover Cash Back with Citi®double cash card

thisCiti® Dual Cash Card, from our partner Citi, is a flat rate cash back credit card that offers 2% cash back on all purchases - 1% on purchases and 1% on repayments.

The card also offers an introductory 18 months of 0% APR on balance transfers, though it doesn't offer a similar promotion for new purchases. The initial balance transfer fee is 3% for the first four months and 5% for balance transfers thereafter. The minimum fee is $5.

Unlike the Discover it Cash Back Card, the Citi Double Cash Card does not offer any initial cash back rewards. Likewise, Cashback Match guarantees that you'll effectively earn at least 2% back on all purchases within the first year.

After the first year, however, it doesn't hurt to use both cards to maximize your rewards. You can earn 5% cash back on bonus categories with the Discover it Cash Back Card and all other purchases with the Citi Double Cash Card.

Neither card has an annual fee, but the Citi Double Cash card charges a foreign transaction fee.

Is the Discover it Cash Back Card Right for You?

If you want a simple cash back credit card with the chance to earn higher rewards on everyday purchases in its rewards category, the Discover it cash back card is a great choice.

This might be a good option if your expenses typically fall into the quarterly category for the year listed by your lender. Plus, for the first year, Cashback Match Discover makes it a good idea to use this card for almost all purchases.

That said, after the first year, it might be a good idea to get another card, such as a Citi Double Cash Card or a Capital One® Quicksilver® Cash Rewards Credit Card, to cover all non-bonus expenses. This way you can ensure that you are always earning a return of just over 1%.

That said, even without foreign transaction fees, the Discover it Cash Back card isn't a great card for traveling abroad. If you want a card, plan to have a backup Visa or Mastercard in case you can't use the Discover card.

Before you apply for a Discover it Cash Back card, please take the time to research and compare other cards. In addition to rewards programs, you'll want to consider new cardholder bonuses, introductory APR promotions, and other features. No credit card is right for everyone, so it's important to understand what you want from a credit card and which one best suits your needs.

No matter which card you choose, it's a good idea to consider using multiple credit cards to maximize your rewards and other value you can get from different credit cards.

FAQs

Will Discover still match my Cash Back bonus? ›

Cashback Match: We'll match all the cash back rewards you've earned on your credit card from the day your new account is approved through your first 12 consecutive billing periods or 365 days, whichever is longer, and add it to your rewards account within two billing periods.

Is there a catch to Discover Cash Back? ›

Is there a limit on cash back with Discover? There's a limit on bonus cash back you can earn. You can earn 5% back within the bonus category each quarter, up to the quarterly maximum. Plus, you'll still score 1% back on other purchases — and there's no limit on the total cash back you can earn each year.

What is the best way to use Discover Cash Back bonus? ›

The best ways to redeem credit card rewards
  1. Redeem rewards at select retailers. One way to redeem your credit card rewards is to put them towards a purchase. ...
  2. Redeem rewards for travel. ...
  3. Redeem rewards as a statement credit. ...
  4. Redeem rewards as a direct deposit into your bank account. ...
  5. Use rewards to donate to charity.
Apr 27, 2023

What is the Cash Back bonus limit for Discover it? ›

Discover It Cash Back Rewards

The Discover it® Cash Back earns 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated.

Can I use my Discover cashback bonus to pay my bill? ›

From Cashback Bonus to cash in the bank

You can choose to deposit your Cashback Bonus directly in your bank account, or you can apply it as a statement credit to your next Discover credit card bill, reducing the amount you owe. Either way, you'll have extra cash to spend!

When should I redeem my Discover cashback bonus? ›

Your Discover rewards never expire1 but other credit card issuers may have expiration dates for their cash back rewards. If your cash back rewards have an expiration date, it's best to redeem those cash rewards as soon as you can; otherwise, you may lose the bonus cash accumulated through each eligible purchase.

How many credit cards is too many to have open? ›

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

How many times does Discover match Cash Back? ›

Discover does not match cash-back rewards every year. It only matches cash back earned during the first 12 months after opening a new account. After the first year, Discover pays cash-back rewards as stated in its card terms but does not match any cash-back rewards earned.

Does Discover offer Cash Back for Amazon? ›

The Discover it® Cash Back, for instance, offers bonus rewards on everyday purchases at different places each quarter, including Amazon.com.

Should you use cashback bonus immediately? ›

Cash in your cash back ASAP

You should redeem cash back as soon as you can because it continually loses value due to inflation. Even though your cash back won't lose much of its value year to year, it doesn't make sense to hold on to it. Maximize its value by redeeming it immediately.

Is cashback bonus free money? ›

Many rewards credit cards offer cash back, and you may even find some debit cards that offer cash back on certain purchases. Cash back is not free money, but rather a reward for making purchases on expenses like gas, groceries, restaurant meals or even streaming services.

Does Discover always double cash back? ›

2. Cashback Match. Another reason to sign up for the Discover it Cash Back is its Cashback Match program. This program essentially doubles all the rewards you earn after the first year regardless of how much you spend and how much cash back you earn.

What is the highest credit limit on a Discover card? ›

The highest credit card limit we've come across for the Discover it® Cash Back is $56,500. That's much higher than the minimum starting credit limit of $500. The card has a 0% intro APR on new purchases and balance transfers. Once the introductory period ends, the regular interest rates apply.

Will Discover increase my credit limit automatically? ›

Discover may automatically increase your credit limit depending on your account history and creditworthiness. If you consistently make on-time payments on your Discover card account, for example, you might be more likely to receive an automatic credit limit increase than someone who regularly misses payments.

What credit card has the highest credit limit? ›

On our list, the card with the highest reported limit is the Chase Sapphire Preferred® Card, which some say offers a $100,000 limit. We've also seen an advertised maximum credit limit of $100,000 on the First Tech Odyssey Rewards™ World Elite Mastercard®, a credit union rewards card.

Do you get Cash Back when you pay bills with credit card? ›

In most cases, yes. Always check with the company that issues the credit card to be sure. However, most cards view bill payments as transactions. With rewards cards, you can earn points or cash back based on these transactions, as well.

Can you use Discover Cash Back on Walmart? ›

Discover cards have a “cash over” benefit that other credit card companies may not offer. Because of this, you can sometimes use this card to get cash back at Walmart.

Can you pay a bill with a rewards card? ›

Yes, you can pay most bills with a credit card for points, as long as you have a credit card that offers this type of rewards. Plus many issuers will offer you extra points for paying certain bills with a credit card. Some eligible expenses include utilities, rent, medical bills, and taxes, among others.

Does Cash Back hurt your credit? ›

Cash advances can impact credit scores like any other loan. While they don't inherently hurt your credit score, they can lead to future credit issues. For example, using too much of your available credit or paying your cash advance back late can ding your credit score.

How many credit cards do you need to get a 800 credit score? ›

Consumers with 800+ credit scores have an average of 8.3 open accounts. High credit score consumers have an average of 8.3 open accounts — similar to the 7.9 we found in 2021.

Is it bad to have a lot of credit cards with zero balance? ›

It is not bad to have a lot of credit cards with zero balance because positive information will appear on your credit reports each month since all of the accounts are current. Having credit cards with zero balance also results in a low credit utilization ratio, which is good for your credit score, too.

Is it bad to have a credit card and not use it? ›

If you stop using your credit card for new purchases, your card issuer can close or curb your credit line and impact your credit score. Your credit card may be closed or restricted for inactivity, both of which can hurt your credit score.

Why did Discover send me two cards? ›

If you get two of the same cards from a credit card issuer after applying for a card, it is likely due to an error on the part of the bank.

How do I check my Discover cash advance limit? ›

The amount of your cash advance will depend upon what you have available in your cash credit line. Other balances, such as purchases and balance transfers affect how much is available for cash. To check your available cash credit line, visit your Account Center and select "Card Info."

What are the Discover Rewards for this quarter? ›

Discover's 5% cash back calendar for 2023
Quarter2021 Discover it categories
Q1: January-MarchGrocery stores Walgreens CVS
Q2: April-JuneGas stations Wholesale clubs Select streaming services
Q3: July-SeptemberRestaurants PayPal
Q4: October-DecemberAmazon.com Target.com Walmart.com

Why can't I use my Discover card? ›

Key Points About: Why was my card declined? If you reach your credit limit (or if your limit decreased), you may get a declined card when you make a purchase. Sometimes large purchases may appear suspicious to your credit card company and cause them to decline your purchase.

How much Cash Back does Amazon give? ›

5% back or 3% back at Amazon.com, Whole Foods Markets and the participating Amazon stores and sites: You'll earn 5% back with an eligible Prime membership or 3% back without an eligible Prime membership for each $1 of eligible purchases made using your card account at Amazon.com (including digital downloads, Amazon.com ...

What is the 5% cash back on Discover Card 2023? ›

Discover has released details for its 5% cash back categories for the third quarter of 2023. From July 1 through September 30, you can earn 5% back on purchases made at gas stations or with digital wallets up to $1,500, activation required.

Does Discover double your rewards at the end of the year? ›

You do get your rewards essentially doubled at the end of the first year, but this is different from other cash back credit cards that offer $200 or more when you meet a minimum spending requirement in the first few months.

What percentage does Discover cashback debit give? ›

While the Discover Cashback Debit Account doesn't earn interest, you can benefit from earning 1% cash back on up to $3,000 in debit card purchases each month. You can only earn cash back on debit card purchases.

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