Discover It Cash Back Review: Maximize Your Rewards

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Are you in the market for a cash back credit card that rewards your spending and offers valuable perks? The Discover it Cash Back card is a popular option worth considering. In this comprehensive review, we'll dive deep into the card's features, benefits, and drawbacks to help you determine if it aligns with your financial needs and spending habits.

What is the Discover it Cash Back Card?

The Discover it Cash Back card is a rewards credit card that stands out for its unique rotating bonus categories and generous cash back match for new cardholders. Unlike many traditional cash back cards that offer a flat rate on all purchases, Discover it provides elevated rewards in specific categories that change every quarter. This can be a great way to maximize your earnings on everyday spending, but it also requires some planning and awareness to take full advantage of the bonus categories.

Key Features of Discover it Cash Back

  • 5% Cash Back in Rotating Categories: This is the card's main draw. Each quarter, Discover announces new categories where you can earn 5% cash back on up to a certain spending limit (usually $1,500). These categories often include popular spending areas like grocery stores, gas stations, restaurants, Amazon.com, and more. Once you hit the quarterly limit, you'll still earn 1% cash back on those purchases and all other spending.
  • 1% Cash Back on All Other Purchases: For purchases that don't fall into the 5% bonus categories, you'll earn a standard 1% cash back. While this is a common rate for many cash back cards, it's still a valuable benefit.
  • Unlimited Cash Back Match: This is a fantastic perk for new cardholders. At the end of your first year, Discover will automatically match all the cash back you've earned, effectively doubling your rewards. This can be a significant boost to your earnings and makes the card even more attractive in the first year.
  • No Annual Fee: The Discover it Cash Back card comes with no annual fee, making it accessible to a wide range of users. You can earn rewards without having to worry about offsetting an annual cost.
  • Introductory APR Offer: The card often includes an introductory 0% APR on purchases and balance transfers for a limited time. This can be a valuable feature if you're looking to finance a large purchase or transfer a high-interest balance from another card.
  • Discover Deals: Cardholders can access exclusive discounts and offers through Discover Deals, potentially saving even more money on purchases from various retailers and brands.
  • Free FICO Credit Score: Discover provides your FICO credit score for free on your monthly statements and online, helping you track your credit health.
  • Discover Mobile App: The Discover mobile app allows you to easily manage your account, track your spending, redeem rewards, and more.

Pros and Cons of the Discover it Cash Back Card

To make an informed decision, it's essential to weigh the advantages and disadvantages of any credit card. Here's a breakdown of the pros and cons of the Discover it Cash Back card:

Pros

  • High Earning Potential: The 5% cash back in rotating categories can lead to significant rewards if you align your spending with the bonus categories.
  • Unlimited Cash Back Match for New Cardholders: This is a unique and valuable perk that doubles your rewards in the first year.
  • No Annual Fee: This makes the card accessible and cost-effective for long-term use.
  • Introductory APR Offer: The 0% intro APR can save you money on interest charges.
  • Free FICO Credit Score: Monitoring your credit score is crucial for financial health, and Discover provides this service for free.
  • Discover Deals: Access to exclusive discounts and offers can further enhance your savings.

Cons

  • Rotating Categories Require Planning: Maximizing the 5% cash back requires you to keep track of the bonus categories and plan your spending accordingly. This might not be ideal for those who prefer a more straightforward rewards system.
  • Spending Caps on Bonus Categories: The 5% cash back is limited to a certain spending amount each quarter (usually $1,500). Once you reach the limit, you'll only earn 1% cash back.
  • 1% Cash Back on Non-Bonus Spending: While this is a standard rate, it might not be as competitive as other cards that offer a flat 1.5% or 2% cash back on all purchases.
  • Foreign Transaction Fees: The Discover it Cash Back card charges foreign transaction fees, making it less suitable for international travel.
  • Activation Required for Bonus Categories: You need to activate the 5% bonus categories each quarter, which can be an extra step for some users.

Who is the Discover it Cash Back Card Best For?

The Discover it Cash Back card is an excellent option for individuals who:

  • Are organized and willing to track rotating bonus categories: If you're comfortable planning your spending around the quarterly categories and activating them on time, you can maximize your rewards.
  • Want to earn high cash back on everyday spending: The 5% bonus categories often include common spending areas like groceries, gas, and restaurants.
  • Are new to credit cards or building credit: Discover is known for being more lenient with approvals, making this card a good choice for those with limited credit history.
  • Want to avoid annual fees: The no annual fee makes this card a cost-effective option for long-term use.
  • Can benefit from an introductory APR offer: If you have a large purchase to finance or a balance to transfer, the 0% intro APR can save you money on interest charges.

This card might not be the best fit for you if:

  • You prefer a simple, flat-rate rewards system: If you don't want to track rotating categories, a card that offers a flat percentage back on all purchases might be a better option.
  • You spend heavily in categories not typically covered by Discover's bonus categories: If your spending is concentrated in areas like travel or specific retailers, a card that offers rewards in those categories might be more rewarding.
  • You travel internationally often: The foreign transaction fees make this card less suitable for international travel.

How to Maximize Your Rewards with the Discover it Cash Back Card

To get the most out of your Discover it Cash Back card, follow these tips:

  • Activate Bonus Categories Every Quarter: This is crucial for earning the 5% cash back. Set a reminder so you don't forget.
  • Plan Your Spending: Try to align your purchases with the bonus categories to maximize your rewards. For example, if the current category is grocery stores, try to do your grocery shopping during that quarter.
  • Meet the Spending Limit: Aim to spend up to the quarterly limit in the 5% categories to maximize your earnings. However, don't overspend just to reach the limit.
  • Redeem Your Rewards Strategically: Discover offers various redemption options, including cash back, statement credit, gift cards, and Amazon.com purchases. Choose the option that best suits your needs.
  • Take Advantage of Discover Deals: Explore the exclusive offers and discounts available to cardholders to save even more money.

Alternatives to the Discover it Cash Back Card

If the Discover it Cash Back card doesn't seem like the perfect fit for you, here are some alternatives to consider:

  • Chase Freedom Flex: This card also offers 5% cash back in rotating categories, similar to the Discover it Cash Back card. It also has additional benefits like 3% cash back on dining and drugstores.
  • Capital One Quicksilver Cash Rewards Credit Card: This card offers a simple, flat 1.5% cash back on all purchases, making it a good choice for those who prefer a straightforward rewards system.
  • Blue Cash Preferred® Card from American Express: This card offers 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and at transit, and 1% cash back on other purchases. It has an annual fee, but the high rewards rates can make it worthwhile for heavy spenders in those categories.
  • Citi Double Cash Card: This card offers 2% cash back on all purchases (1% when you buy and 1% when you pay your bill), making it a solid choice for those who want a simple, flat-rate rewards card.

Final Verdict: Is the Discover it Cash Back Card Right for You?

The Discover it Cash Back card is a compelling option for individuals who are comfortable tracking rotating bonus categories and want to maximize their cash back earnings. The unlimited cash back match for new cardholders is a significant perk, and the no annual fee makes it an accessible choice. However, if you prefer a simpler rewards system or travel internationally frequently, other cards might be a better fit.

Before making a decision, carefully consider your spending habits, financial goals, and preferences. Compare the Discover it Cash Back card with other options and choose the one that best aligns with your needs. Remember to always use credit responsibly and pay your bills on time to maintain a healthy credit score.

Discover it Cash Back: FAQs

To help you make a well-informed decision about the Discover it Cash Back credit card, let's address some frequently asked questions:

How Does the 5% Cash Back Work?

The 5% cash back is offered on purchases made in specific categories that change every quarter (every three months). Discover announces the categories in advance, and you need to activate the bonus categories each quarter to earn the elevated rewards. The 5% cash back is limited to a certain spending amount each quarter, usually $1,500. Once you reach the limit, you'll earn 1% cash back on those purchases and all other spending.

What are Common 5% Cash Back Categories?

Discover's 5% cash back categories often include popular spending areas like:

  • Grocery stores
  • Gas stations
  • Restaurants
  • Amazon.com
  • Wholesale clubs
  • Drugstores
  • Home improvement stores

The categories vary each quarter, so it's essential to check Discover's website or app to see the current and upcoming categories.

How Do I Activate the Bonus Categories?

You can activate the bonus categories online through your Discover account or using the Discover mobile app. Discover will also send you email reminders when it's time to activate the categories. It's a quick and easy process, but it's crucial to do it each quarter to earn the 5% cash back.

What Happens if I Don't Activate the Categories?

If you don't activate the bonus categories, you'll only earn the standard 1% cash back on all purchases, even those made in the bonus categories. That's why it's so important to activate them each quarter.

How is the Cash Back Match Calculated?

Discover's unlimited cash back match is applied at the end of your first cardmember year. Discover will add up all the cash back you've earned throughout the year and match that amount. For example, if you earn $300 in cash back during your first year, Discover will match that amount, giving you a total of $600 in cash back.

Are There any Spending Caps on the Cash Back Match?

No, there are no spending caps on the cash back match. Discover will match all the cash back you've earned, regardless of the amount.

How Can I Redeem My Cash Back Rewards?

Discover offers several redemption options for your cash back rewards:

  • Cash Back: You can redeem your rewards as a direct deposit into your bank account.
  • Statement Credit: You can apply your rewards as a credit to your Discover card statement.
  • Gift Cards: You can redeem your rewards for gift cards from various retailers and restaurants.
  • Amazon.com Purchases: You can use your rewards to pay for purchases on Amazon.com.

Choose the redemption option that best suits your needs and preferences.

Does the Discover it Cash Back Card Have Foreign Transaction Fees?

Yes, the Discover it Cash Back card charges foreign transaction fees, which are typically around 3% of the transaction amount. This makes the card less suitable for international travel. If you travel frequently, consider a credit card with no foreign transaction fees.

Is the Discover it Cash Back Card a Good Option for Building Credit?

Yes, the Discover it Cash Back card can be a good option for building credit. Discover is known for being more lenient with approvals, even for those with limited credit history. Responsible credit card use, such as making on-time payments and keeping your credit utilization low, can help you build a positive credit history.

What Credit Score Do I Need to Get Approved?

While there's no guaranteed minimum credit score for approval, most applicants with a good to excellent credit score (typically 670 or higher) have a good chance of being approved for the Discover it Cash Back card. However, Discover also considers other factors, such as your income and overall creditworthiness.

Can I Transfer a Balance to the Discover it Cash Back Card?

Yes, you can typically transfer a balance to the Discover it Cash Back card, especially if you're taking advantage of an introductory 0% APR offer on balance transfers. However, keep in mind that there may be a balance transfer fee, so factor that into your decision.

What are the Benefits of Using the Discover Mobile App?

The Discover mobile app allows you to easily manage your account on the go. You can:

  • Track your spending
  • Redeem rewards
  • Activate bonus categories
  • View your FICO credit score
  • Make payments
  • Contact customer service

The app provides a convenient way to stay on top of your account and maximize your rewards.

What is Discover's Customer Service Like?

Discover is generally known for providing good customer service. You can reach Discover's customer service team by phone, online chat, or mail. They are typically responsive and helpful in resolving issues.

What are the Alternatives to the Discover it Cash Back Card?

As mentioned earlier, some alternatives to the Discover it Cash Back card include:

  • Chase Freedom Flex
  • Capital One Quicksilver Cash Rewards Credit Card
  • Blue Cash Preferred® Card from American Express
  • Citi Double Cash Card

Compare these cards and choose the one that best fits your spending habits and financial goals.

How Do I Apply for the Discover it Cash Back Card?

You can apply for the Discover it Cash Back card online through Discover's website. The application process is typically straightforward and takes only a few minutes to complete. You'll need to provide information such as your name, address, Social Security number, income, and employment details.

By understanding the ins and outs of the Discover it Cash Back card and carefully considering your needs and preferences, you can make an informed decision about whether this card is the right choice for you.