Review: Discover It Card

If you were looking for a starter card, here it is. The Discover It Card is a cash back card with no annual fee and almost anyone with little or no credit history (especially students) may be accepted. They also give you the opportunity to double up all your points in the first year. Of course, it’s a Discover Card so there are some limitations on who will accept it for payment (especially internationally). But let’s take a look under the hood.

Discover It Card

Discover It Card. Image Credit: courtesy of Discover.

Benefits:

  • Earn 5% cash back up to $1,500 in bonus categories each quarter
  • Earn 1% cash back on all other purchases
  • Double cash back across all categories, awarded at the end of your first year (5% bonus categories, any sign-up bonus, Discover Deals, refer bonuses)
  • $50 Statement Credit after first purchase within 3 months (if you use the link above, courtesy of uscreditcardguide)
  • No annual fee
  • Introductory 0% APR for 14 months
  • Referral bonus of $50 for every approved account, up to a maximum of 10 approved referrals ($500 per calendar yeari
  • No foreign transaction fee (if you can find a willing vendor that accepts the card)
  • If you enroll for this card as a student: $20 Good Grades Reward, each year you achieve at least a 3.0 GPA, up to 5 years (additional information may be requested to verify claim)

Damage:

  • 11.49% to 23.49% APR variable, based upon your creditworthiness
  • Discover limits cardholders to 2 primary accounts and you must wait 12 months between applications
  • If you are a student or have little or no credit history, the credit limit extended may be very small

Analysis:

This card has great flexibility for a starter card (just don’t get in too deep, depending on that 0% 14 month introductory interest). The chart above only accounts for 10% of your spending in the “Special” rotating category, but if you purposefully direct your spending, your earning potential can be much greater. And don’t forget the double earning in your first year.

Screen Shot, 5% Cash Back Bonus Chart, Discover It Card. Image Credit: courtesy of Discover.

Travel hackers were getting really creative with this double bonus, earning huge savings when coupling the double earnings with the Discover Deals Shopping Portal. I haven’t kept with those techniques, however, because I don’t have this card. Perhaps I can add some worthwhile tips, tricks and tactics in a future post. So, there you have it: it’s not fancy, and it’s not travel, but lots of cash back can take you places, too (For newbies: this includes establishing or improving your credit score, so you can move on to bigger travel cards).

I’ve been tempted by this card a few times because of the double bonus, but have yet to exhaust all the more lucrative card options out there. Anyone out there have any experience with Discover branded cards?

Questions, Comments or Criticisms?