Discover It Card Review Benefits and Drawbacks

Discover It Card Review Benefits and Drawbacks

Discover It Card Review

Anyone who is looking for a quality cash back rewards card should try the Discover It card. As far as rewards cards go, it offers multiple opportunities to save and earn. All you do is use your card as you normally would. It’s quite popular, and it continues to stay popular even with new cards out.

Discover itself is a lender that is well-known for great introductory offers and its cash back rewards. When you combine this with the Discover It credit card, you have a recipe for success. There are downsides to using this card, and we’ll outline them as well. That way, you’ll have all the tools you need to make an informed decision about the Discover It card.

Discover It Card Benefits

1. Introductory APR Offer

As we mentioned, Discover is well-known for it’s extended APR offer. When you get the Discover credit card, you’ll get a 14 month 0% APR. This means that you won’t pay any interest for the first 14 months you have the card. If you’re planning to buy a more expensive item, now would be a great time. You can buy it as soon as you have the card and split the payment into 14 smaller ones. You do want to pay it off before the introductory offer ends, but this is doable.

2. No Annual Fee

Cardholders will enjoy a $0 annual fee for as long as they have the Discover It credit card. Considering the large rewards potential with this card, this is an excellent perk. It’s also rare when it comes to rewards cards in general. You’ll pay nothing for having the card, so you can use it less. You’ll never have to worry about making your rewards outweigh your annual fee cost. So, anything you do manage to earn is pure profit, and it’s yours to keep.

3. 5% Cash Back Rewards Rate

Each quarter, you have a chance to earn up to 5% cash back on rotating categories. These categories can be anything from gas and groceries to restaurants, Amazon, or wholesale clubs. Because of quarter one which includes gas stations the Discover it has made our best gas card list. You do have to keep track of which categories will give you the best rewards rate each quarter, but it’s worth it. Also, whatever categories aren’t featuring the 5% cash back will give you 1% cash back. You earn either way, and you get this just for using your card for everyday purchases.

4. Cash Back Match

Cardholders with the Discover card will have the opportunity to earn even more rewards. Discover will match any cash back you earn throughout the first year you have the card. This will automatically credit at the end of your first year with Discover. So not only do you enjoy a 0% APR and up to 5% cash back, Discover will double it. So, if you earn $300 in cash back, Discover will give you $300 completely free. You can redeem this bonus several ways for added flexibility as well.

5. The Discover it Card Offers Flexible Redemption

A lot of credit card lenders have a minimum amount you have to hit before you redeem it. Discover does not have this, and you can redeem your rewards at any time. They also never expire so you can stack them as long as you’d like. Redeem them as a statement credit, gift cards, donations, direct deposits, or as payment to select retailers.

6. Instant Account Freeze

If you’re out and about and misplace your card, there’s a built-in security feature. You can instantly freeze your Discover It card with the easy Discover app. Just log in and click ‘freeze the account’ and your account is safe. Unfreezing it is just as easy with the click of a button. You can also do this on the Discover website if it’s more convenient for you.

7. Identity Theft Monitoring

Discover will automatically monitor your Discover It card for suspicious activity. It’ll also monitor thousands of risky websites for your social security number. If it finds it, you’ll get a free alert. This can help to reduce the risk of identity theft and minimize the damage to your credit. You get this feature just for having the Discover credit card, and you don’t have to sign up for anything.

8. $0 Fraud Liability

If someone makes unauthorized purchases on your credit card, Discover will take care of it. They’ll get rid of the charges, and you won’t have to pay anything with their $0 fraud liability program. Considering all of the data breaches like the Equifax Data Breach and identity theft around, this is an excellent perk. You do want to report any suspicious charges early on so they can fix it faster.

9. Credit Score Monitoring with Credit Scorecard

Discover will give you access to free credit score monitoring. You’ll be able to check your score to see if there are any problems. You’ll also be able to monitor your spending and spot any potential problems. If you’re trying to rebuild your credit, this is a huge advantage. Credit Scorecard is another perk Discover offers for free to its cardholders.

10. APR Protection

Many credit card lenders raise your APR if you miss a payment. Discover won’t because they know things happen. You’ll get a pass on your first late payment. Discover won’t add on any additional fees or raise your APR as a penalty. However, if you habitually miss or make late payments, they will raise your APR. This is also a sign that you’re getting over your head with debt.

11. Flexible Bill Pay

You can pay your bill online or by phone. You also have until midnight on the day it’s due to make the payment. This is great if you forget to pay it until the last minute. The payment will post instantaneously. This is a great built-in fail-safe, and it can save you late fees or other penalties.

12. No Foreign Transaction Fee

For those who like the travel, the Discover It card has no foreign transaction fee. You can take it with you and use it outside of US-based banks. This is also great if you regularly purchase things internationally. You won’t pay anything extra for using your Discover It card.

13. Easy Application Process

The Discover credit card application process is very quick and easy. You simply input your details into their online application and apply. It’ll process the application within minutes. You’ll know almost right away if Discover approves your application or if they deny it.

Discover it Card Cash Back Categories for 2017 and 2018 Compare

Discover It Card Drawbacks

1. Rewards Cap
While you can earn up to 5% in rotating categories, it caps each quarter. You can earn 5% cash back on the first $1,500 you spend in the select category. Once you hit this cap, the rewards rate falls to 1%. It does go back to 5% when the categories switch. However, it equals out to only around $75 in rewards per quarter.

2. Credit Approval Requirements

To be eligible for the Discover It credit card, you have to have good to excellent credit. This means that it ideally needs to be in the low 700s or very high 600s to qualify. These credit score requirements shut out a lot of potential applicants. It’s not a good card for helping rebuild your credit. Discover does offer a credit card application for bad credit or no credit.

3. The Discover it Card is Not Accepted Everywhere

Discover isn’t as widely accepted as Visa or MasterCard. You’ll have to pay attention to your retailers or vendors to be sure that they accept Discover. This means that you may have to carry a second card for backup in case your vendor doesn’t accept Discover. While not a huge issue, it can be annoying especially if you’re trying to earn rewards.

4. Rotating Categories

The categories rotate each quarter. This means that you do have to pay attention to ensure you’re getting the best rewards. For a lot of people, this can be too much work and hassle. It does pay off, but you have to remember to update your categories as Discover updates them. The Capital One® Quicksilver® Card offers a 1.5% fixed cash back rate.

Discover it® Card Bottom Line

The Discover credit card is a solid rewards card for people with excellent credit. You have the potential to earn a decent amount of cash back just for applying for a Discover Credit Card. In this case, the rewards far outweigh the benefits. With responsible use, you can be well on your way to great cash back rewards.

 

Now that you know more about the Discover it® Card it is time to compare this cash back credit card together with other cash back cards like the Citi® Double Cash Credit Card & Capital One® Quicksilver®.


Monica Kowollik

Director at CreditFast.com
Monica has covered credit card and personal finance news for over 15 years. From an early age, she developed an interest in financial literacy and saving money. Monica hopes to help others to improve their personal finances one article at a time.