Review: Is the Discover it Cash Back the best card for you?
If you prefer earning cash-back credit card rewards without paying an annual fee, the
While there's no traditional welcome bonus, Discover will match all of the rewards you earn from the
For 2021, the Discover 5% quarterly bonus calendar categories are as follows:
- Q1 (January - March): Grocery stores, Walgreens, and CVS
- Q2 (April - June): Gas stations, wholesale clubs, and select streaming services
- Q3 (July - September): Restaurants and PayPal
- Q4 (October - December): Amazon.com, Walmart.com, and Target.com
The
Keep in mind that Discover cards are not quite as widely accepted as those from larger issuers, so you may want to carry this card and a backup if you can't use it. However, acceptance has grown in recent years, and with no annual fee, there's little harm in pairing your
Read more: The best Discover credit cards in 2021
For example, you could look at a no-annual-fee card that offers a flat cash-back rate on all purchases, like the
Comparison: Discover it Cash Back vs other Discover cards
Annual fee | |||
Rewards rate | 5% cash back in categories that rotate each quarter on up to $1,500 in combined spending when you activate (then 1%) 1% cash back on all other eligible purchases | 1.5x miles on all purchases | 2% cash back at gas stations and restaurants on up to $1,000 in combined spending each quarter (then 1%) 1% cash back on all other eligible purchases |
Welcome bonus | None, but Discover will match all the cash back you earned after the first 12 months | None, but Discover will match all the miles you earned after the first 12 months | None, but Discover will match all the cash back you earned after the first 12 months |
Card benefits | Free FICO score No late payment fee on your first late payment (then up to $40) | Free FICO score No late payment fee on your first late payment (then up to $40) | Free FICO score No late payment fee on your first late payment (then up to $40) |
Introductory 0% APR offer | 0% APR on purchases and balance transfers for the first 14 months, then a | 0% APR on purchases for the first 14 months, then a | 0% APR on purchases and balance transfers for the first 14 months, then a |
Foreign transaction fee | No | No | No |
Review | Discover it Miles credit card review |
Comparison: Discover it Cash Back vs other cash-back cards
Annual fee | |||
Rewards rate | 5% cash back in categories that rotate each quarter on up to $1,500 in combined spending when you activate (then 1%) 1% cash back on all other eligible purchases | 5% cash back (5x points) on travel purchased through Ultimate Rewards 5% cash back (5x points) on up to $1,500 in purchases each quarter in rotating bonus categories when you activate 3% cash back (3x points) on dining and drugstore purchases 1% cash back (1x points) on everything else | 1% cash back when you buy, plus 1% cash back when you pay your bill |
Welcome bonus | None, but Discover will match all the cash back you earned after the first 12 months | N/A | |
Card benefits | Free FICO score No late payment fee on your first late payment (then up to $40) | Car rental insurance (secondary in the US, primary otherwise) Trip cancellation/interruption insurance Purchase protection Extended warranty Travel and emergency assistance services Free credit score | Access to Citi Entertainment
|
Foreign transaction fee | No | Yes | |
Introductory 0% APR offer | 0% APR on purchases and balance transfers for the first 14 months, then a | 0% APR on purchases for the first 15 months, then a | 0% intro APR on balance transfers for the first 18 months, then |
Review |
How to use Discover it Cash Back rewards
The best way to redeem your
You can also use your rewards, starting at $5, for gift cards or eCertificates from partner retailers. As long as your account is open, your cash-back rewards will not expire.
Read more: The best cash-back credit cards in 2021
One somewhat unique redemption option is the ability to donate your rewards to select charities, with a minimum of 1 cent. While this could make it more complicated to get a charitable donation tax deduction compared to writing a check or making a donation directly with a card, it's nice to see the ability to use your cash to support causes close to your heart.
Discover it Cash Back benefits and features
The
- Unique designs: Choose between more than two dozen different designs, so you have a credit card that matches your personality.
- Security features: Freeze your account if you misplace your card or are worried about fraud using the Discover app or website. Discover can also search the web for security breaches where your Social Security number was disclosed.
- FICO credit score: Get a real, free FICO credit score that Discover uses to approve accounts, set interest rates, and choose account limits.
The card doesn't list any major purchase protections or travel insurance benefits, so keep that in mind when shopping. For big-ticket items or large purchases, you may want to consider one of the best credit cards with purchase protection instead. And for travel, a credit card with travel insurance can save you a ton of headache and money if things go awry on the road.
Discover it® Cash Back fees and costs
Discover typically offers low fees with its credit card and banking products, and there's no exception here. The
Read more: The best low-interest and 0% APR credit cards of 2021
When you sign up for a new account, you'll get 0% intro APR on purchases and balance transfers for 14 months, then a
There's no late payment fee for your first late payment, but after that, a penalty will apply. There are also fees for returned payments (up to $40) and cash advances ($10 or 5% of the amount of each cash advance, whichever is greater), similar to other credit cards.
Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker.
