Discover’s Double Cashback Is the Deal of the Year
As you may have heard Discover has launched a new double cashback promotion for both new
and existing cardholders of their Discover it product. (The promotion has been extended through September 30.) This is a pretty amazing deal because the earnings potential is astronomical in a few ways. Now that we have some confirmation on what cashback is doubled, I thought I would break this down.
The Discover it card (my review) normally earns 1% on everyday spending and 5% in rotating categories every quarter. Now under this promotion it earns:
- 2% on everyday spending
- 10% in rotating categories (up to $1,500 in spend each quarter.)
Lets take a look at that for a moment. The Discover it just became a 2% cashback card with even more opportunities in bonus categories. That is pretty amazing. None of the other 2% cards have the bonus categories, which puts the Discover It in a league of its own during the promo.
According to Doctor of Credit, Discover has confirmed that cashback earned through their Discover Deals portal will be doubled at the end of the year. Discover often has some of the best cashback rates around, so this has a huge potential. (Although I wouldn’t be surprised if they lower the rates somewhat to compensate.)
I’ll leave it up to you to search each store, but quite a few large merchants pay 5-10% back. Leaving out the potential double dip opportunities that Frequent Miler wrote about, you can still get 10-20% back for many fantastic merchants. This could be potentially huge for MSers and resellers.
Discover also has a referral program. Every time you refer someone to the Discover it card, you earn $50 and they earn $50 for signing up. (Up to 10 referrals per year.) Guess what. If you are enrolled in that program, the $50 is DOUBLED! And the good news is that the $50 offer is currently the best around.
From time to time Discover does offer up to $150 as a sign-up bonus, but currently the best offers are either the $50 referral offer or an Amazon offer giving $50 in Amazon credit. I would personally rather take the cash. I’m not sure we will see a higher bonus soon, mainly because the double cashback is so generous and the Amazon offer was just lowered at the same time the Double Cashback promo went live.
I’m going to be leaving a referral link below if anyone wants to use it. I’ll also link to the Amazon offer. Those are the best two I am aware of if you are looking for the card. If anyone has found a better sign-up offer let me know and I’ll add it.
Should You Apply
As I always say, the decision as to whether or not to apply for a card really is a personal one. So many factors play into it so all I can do is tell you how I see this offer. From where I am sitting, it is pretty AMAZING. Keep in mind I am a huge fan of the Discover portal and thus my wife and I both have Discover it cards already. In other words, I find value in this product.
Current Cardholders Timing for Adding the Offer
Update: Current cardholders are no longer eligible to add this offer to their account.
For existing cardholders, the double cashback begins on the statement date following when you add the offer. (Simply call Discover at 1-800-347-3085 to have them add it.) Some people may want to consider waiting until their statement closes in June to add the offer, so that it will begin in July. The main reason to do this would be to have access to the 3Q 2016 bonus categories.
I’m not sure what the right move is here, but I have decided to add the offer right away to my wife’s card and then I’ll wait until July for my card. That way I can take advantage of some of the great portal deals right now and still have some sort of access to 3Q 2016 bonus category doubling.
Best Promotion Ever?
Now to tackle the title of this article. Is this promotion too good to be true? Nope, it seems like it is better than expected. I cannot remember a time where a credit card company gave customers the potential for such a large bonus. For people who maximize portals and 5% categories, there should be a nice chunk of cash waiting for you in a year.
That is one thing to mention though. You do have to wait a year for your cashback, so take that into consideration. Some are also worried about Discover shutting down their accounts or implementing limits for people who hit the promo too hard. While I can’t speak to that, I’m sure most of you will be fine.
I am still sort of in shock that Discover is doubling all cashback including earnings from their portal and referral programs. With that said, the company is clearly trying to grab market share and is willing to spend to get it. That creates an amazing situation for us.
Do you have the card? What do you think about this promotion? When are you going to be adding it? Let me know in the comments!