Discover it Cash Back Review
The is a great annual fee card that provides a quarterly rotating cashback program where you can benefit from various 5% bonus categories. You may not benefit from all the categories, but there’s a good chance at least one quarter’s categories will suit your spending. This card also has many of the perks Discover is … Continue reading Discover it Cash Back ReviewThe post Discover it Cash Back Review appeared first on MagnifyMoney.
Posted — UpdatedThe Discover it® Cash Back is a great $0 annual fee card that provides a quarterly rotating cashback program where you can benefit from various 5% bonus categories. You may not benefit from all the categories, but there’s a good chance at least one quarter’s categories will suit your spending. This card also has many of the perks Discover is known for, including no foreign transaction fees and no penalty APR, which add value beyond the cashback program.
on Discover Bank’s secure website
In this review, we will cover:
Breaking down the rewards
What we like about this card
What to watch out for
What other cards should I consider?
Bottom line
This card offers a cashback program where you can earn 5% cash back at different places each quarter — like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs — up to the quarterly maximum each time you activate. You earn 1% unlimited cash back automatically on all other purchases.
The quarterly maximum is $1,500, allowing you to earn up to $75 cash back in the 5% cashback categories each quarter. Purchases exceeding $1,500 in the bonus categories earn an unlimited 1% cash back.
This card also comes with a new cardmember offer where Discover will automatically match all the cash back you earn at the end of your first year. So, if you earn a total of $200 cash back during your first 12 consecutive billing periods, Discover will match it and apply your cash back within the next one to two billing periods.
What are the 5% cashback categories?
- January – March 2018 – Gas Stations & Wholesale Clubs
- April – June 2018 – Grocery Stores
- July – September 2018 – Restaurants
- October – December 2018 – Amazon.com & Wholesale Clubs
What can cash back be redeemed for?
- Statement credits
- Direct deposits
- Gift cards starting at $20 (with at least $5 free added to each card)
- Purchases at Amazon.com when you pay with rewards
- Donations to charity
How do I activate the 5% cashback categories?
There is no automatic activation — you’ll have to either manually log in to your account and activate or call 1-800-DISCOVER (1-800-347-2683). And while you may worry about forgetting to activate the 5% cashback categories, Discover makes the process a bit less stressful by providing plenty of time for you to activate. You typically can activate two months before the new 5% cashback categories start. For example, if you want to utilize the 5% cashback categories for October-December, you can activate starting August 1st. Plus, you can sign up for email alerts and push notifications via the Discover app.
Does cash back expire?
No, cash back doesn’t expire. If your account is closed or if you haven’t used it within 18 months, Discover will credit your account with any cash back remaining.
No fee on your first late payment. If you miss a payment, don’t fret about incurring a late fee — Discover waives your first late payment fee. Use this as a reminder to set up autopay or payment reminders.
No penalty APR: If you pay late, your interest rate won’t increase, unlike other cards that may charge penalty APRs near 30%.
No foreign transaction fee. This card doesn’t charge the typical 3% fee some other cards charge on purchases made outside the U.S.
on Citibank’s secure website
on Citibank’s secure website
Annual fee$0*Intro Purchase APR0%* for 18 months on Purchases*Intro BT APR0%* for 18 months on Balance Transfers*Regular Purchase APR15.74% - 25.74%* (Variable)Balance Transfer Fee5% of each balance transfer; $5 minimumCredit requiredgood-creditExcellent/GoodThe Citi Simplicity® Card - No Late Fees Ever is a good alternative to the Discover it® Cash Back if you’re looking to finance new purchases. There is an intro 0%* for 18 months on Purchases*, which can help you pay off purchases over time without accruing interest. After the intro period ends, a 15.74% - 25.74%* (Variable) APR applies. While there are no rewards, this card has less fees than typical credit cards — there are no late fees and no penalty APR. Although this can be helpful if you forget to pay a bill, we encourage you to always make on time payments so you don’t rack up interest charges.
If you don’t mind activating quarterly bonus categories, the Discover it® Cash Back is a great choice for a $0 annual fee cashback card. Plus, you can benefit from the unique new cardmember offer in which Discover will automatically match all the cash back you earn at the end of your first year.
Copyright 2024 Magnify Money. All rights reserved.