Discover it® Credit Card Review
Similar Cards: Chase Freedom (Our Review)
The Discover it® card was launched in January of 2013 as a replacement of the Discover More card. While Discover also has a student version with the same name, it has different features. This review is of the normal consumer Discover it® card.
Discover generally requires average to above average credit to get this card. While a number of factors will go into the decision, Credit Karma lists the average approved score at 671, with a low of 602 and a high of 740. Based on reports from others, you do not need perfect credit to get this card.
Boasting a number of unique features, the Discover it® aims to provide a lot of cardholder value for no annual fee. Among the product’s most advertised features are 5% rotating cashback categories, providing a free FICO score monthlyand no late fees for your first last payment.
- 5% cash back on up to $1,500 in purchases in select categories each quarter.
- 1% cash back on all other purchases.
- Cash back never expires
- Cash back can be redeemed in any amount.
- Late payments don’t raise APR.
- No late fee on first late payment.
- Free FICO score on monthly statements.
Discover introduced a Double Cashback promotion in the summer of 2015 and has continued to offer this bonus ever since. Anyone who gets the card new will have all of their cashback doubled at the end of the first year. This includes cashback earned from a sign-up bonus, earned through their portal and earned through spend.
For more info on the Double Cashback promo, see: Discover Double Cashback – Everything You Need to Know
Best Offer/Sign-Up Bonus
The normal offer for the Discover it® card does not come with a cash sign-up bonus, but gives a 0% APR on balance transfers (3% fee) and purchases for 14 months. It is never a good idea to have debt, but if you do, that version may be preferable.
Historically the best offer pays a $150 bonus after spending $750 in the first three months. Unfortunately that $150 bonus offer is not currently available, but current cardholders can refer their friends and each person will receive $50. If you are enrolled in the Double Cashback promotion, that $50 will be doubled at the end of the first year to $100. Here is a referral link.
Annual & Other Fees
When launching it, Discover eliminated a lot of fees. The card has no annual fee, no foreign transaction fee, no penalty APR and no late payment fee on the first late payment. While they often advertise 0% APR on balance transfers as a sign-up perk, keep in mind that they do charge a 3% balance transfer fee.
Cash Back Redemptions
A couple of years ago Discover changed their policy to allow cardholders to redeem any amount of cashback. This means that as little as $.01 can be redeemed from your available cashback to your account. You can also redeem cashback for charity, gift cards and merchandise.
Discover Deals Portal
Discover Deals is the company’s shopping portal and it is one of the best around. I am big on using portals, since they represent an easy way to save tremendous amounts of money while shopping online. Discover Deals often has the best cash back rates and should be considered when formulating a shopping portal strategy.
From time to time Discover also runs other shopping related deals and bonuses for cardmembers. This targeted “Choose a Store” 5% bonus is a good example.
If you sign-up for the Discover it card as of the date of this review, then the company will double all of the cashback you earn during the first year. This means that your normal spending will earn 2%, the 5% categories will double to 10% and even cashback earned through the Discover Deals portal will double as well. You can find out more about the promotion here.
Our Discover it® Review
The Discover it® card is one of the most underrated credit cards on the market today. I don’t personally value the no late APR or late fee benefits since I don’t use them, however I do enjoy getting my FICO score for free and having access to Discover Deals.
Discover’s 5% rotating categories are also very useful, because they make it possible to earn an additional $300 per year in cashback with minimal effort. Additionally, the card doesn’t have an annual fee, meaning it is a good card to get and keep to extend your average age of accounts.
In my opinion Discover it® is a card that a lot of people should consider. Between Discover Deals and the 5% rotating categories, the card is a moneymaker and doesn’t have an annual fee. That is a wonderful combination.