The Discover It card has a number of advantages over other cash back cards, including no annual fees and a generous 0% APR introductory offer. In addition to the standard 1% cash back on purchases, the Discover It card offers 5% cash back on bonus categories that change quarterly (every 3 months).
For instance, the cash back categories for the months of October through December are for online shopping and department stores, so now is a great time to apply for this card for all of your holiday shopping.
This Discover It Card Review will highlight the pros and cons, key features, and consumer opinions of this cash back rewards card, helping you evaluate whether the Discover It is the best credit card for your needs.
Discover It Card – Key Features
Interest Rates. During the introductory period of 14 months, balance and purchase transfers have a 0% APR for the Discover It card, with a balance transaction fee of 3%. After this period, the interest rates for the Discover It card are between 10.99% and 22.99%, depending on your credit score and credit history.
This Discover card is a great option if you are planning to make a big purchase now and want to reduce your high interest rate debt. Only a few cash back rewards cards offer this 0% APR on both purchases and balance transfers.
Penalties and Fees. Discover also has an edge over its competitors due to the minimal fees associated with the card. There are no annual fees, no over-the-limit fee and no fees for pay-by-phone or foreign transactions. Discover does not charge a penalty on the first missed payment and never increases your APR. Very few credit cards do not charge customers a foreign transaction fee, which makes the Discover It card one of the best travel credit cards available.
Fraud Prevention Guarantee. Another advantage to using the Discover It card is that the company is very adept in identifying, handling and preventing fraud. If Discover suspects any unusual activity on your card, the credit card company is very quick to contact you to confirm whether or not there has been fraud committed on your account.
If so, Discover does not charge you for the purchases. Furthermore, if you report unauthorized charges to your card, the company will not charge you. If you have lost your card and request a replacement, Discover will overnight your new card free of charge at your request.
Flexible Payment Schedule. Cardholders can choose their own due date and make payments up to midnight Eastern Time online or by phone without incurring a late payment. For many customers, choosing their own due date for payments is an advantage since they can choose a date that coincides with the date they receive their paycheck.
Acceptance. One of the few drawbacks of the Discover card is that it is not as widely accepted as Visa or MasterCard, which can be inconvenient at times. This is because Discover is a pro-consumer company, choosing instead to charge fees to vendors instead of customers. Fortunately, Discover is growing in popularity and is now accepted at over 9.2 million merchants nationwide.
One way to overcome this problem and maximize cash back rewards is to have more than one rewards credit card. Since a number of rewards credit cards use rotating bonus categories for 5% cash back, having more than one will help you earn the highest cash back rewards every quarter.
Discover It Cash Back Rewards
No Limit on Cash Back Rewards. Most cash back credit cards limit your rewards, but with the Discover It card, you receive 1% cash back on all purchases with no minimum or maximum spending limit for rewards. While there is no initial sign up cash back bonus, the unlimited flat 1% cash back on all purchases with the additional 5% bonus categories make this card a great deal.
Cash Back Bonus Reward Categories. The Discover It offers 5% cash back, up to $1,500 per quarter, on quarterly bonus categories. The bonus categories for 2014 are as followed:
- January – March: Movies and Restaurants
- April – June: Home Improvement and Furniture Stores, and Bed Bath & Beyond
- July – September: Gas Stations
- October – December: Online Shopping and Department Stores
Earn Cash Back on Household Bills. You can set up automatic payments through your Discover It card for monthly expenses such as utilities, cable, phone, insurance, etc. Using this payment system allows you to earn cash back for every bill you pay. Not only does paying for groceries and gas on a credit card help you keep track of spending and make budgeting easier, you also gain rewards with the card, leading to a generous cash back reward for spending you will do anyway.
Redeeming Rewards. Cardholders have a number of options for redeeming their cash back rewards, including gift cards, merchandise, and cash. If you choose the cash option, the cash can be deposited directly to your bank account or credited towards your Discover account statement. The minimum rewards balance starts at $50.
For the best deals, check out gift cards from partner stores offering more than the cash value of your rewards. For instance, a $40 cash back reward can net a $100 gift certificate from Hyatt Hotels & Resorts. Some participating retailers can even pay double your rebates on gift cards and certificates. Rewards can also be used to pay directly for merchandise purchased at Amazon.com.
Discover It Card Bonuses
Free Flight Accident Insurance. Discover provides all account holders with up to $500,000 in flight accident insurance, rental car insurance and security protection services at no cost. Combined with no foreign transaction fee, these services make the card a favorable and smart choice for travelers.
FICO Credit Score. Discover now offers all account holders free monthly access to their FICO Credit Score. Your FICO can be found on your monthly statements as well as online. Your FICO score is the most commonly referenced credit information lenders use to evaluate you for home, car, business and personal loans. Viewing your credit score allows you to stay on top of your credit history and circumvent any possible chances of fraud.
Online Shopping. Discover has a unique agreement with retailers through ShopDiscover.com. Through ShopDiscover.com, you are able to receive anywhere from 5% to 20% off preferred retailers. These retailers range from Best Buy and Macy’s (5%) to Restaurant.com (15%) and ProFlowers.com (20%). Best yet, you can combine your 4th quarter cash back bonus of online shopping (5%) with ShopDiscover specials and receive up to 25% off.
Discover Card Consumer Reviews
Most consumers provided very positive reviews on the benefits of the Discover It card and found that the company offered excellent customer service from its U.S.-based call center. Discover Financial now provides a one-use-only number for online shopping so account holders do not have to use the actual credit card number when purchasing items online. This security feature has become popular with consumers since it helps minimize the chances of fraud.
Discover It cardholders were also extremely pleased with the rewards program. Many reported that, since they paid their credit card balances in full each month, they were at least happy to be saving money by using their credit card.
In general, Discover It Card Reviews from existing cardholders were glowing with positive experiences.
Discover It Card Review
Overall, the Discover It card is an excellent cash back rewards card that allows account holders to maximize their rewards with redemption programs. A large portion of consumers expressed great satisfaction with Discover’s customer service and reported that the company was proactive and excellent in answering questions or resolving issues with their accounts.
Additionally, it’s quite comforting to work with a credit card company like Discover, who prides itself on the quality and effectiveness of its anti-fraud program. Discover’s fraud-prevention services help account holders shop online safely and privately, avoiding identity theft and credit history issues.
We highly recommend the Discover It Card.