August 14, 2022

Discover it Cash Back Review

How to Earn Rewards With the Discover it Cash Back

Discover it Cash Back cardholders will earn 5% cash back on everyday purchases at different places each quarter, like Amazon.com, grocery stores, restaurants and gas stations, up to the quarterly maximum when you activate. The card offers 1% cash back on everything else, and Discover matches all the cash back you earn during your first year.

This rewards structure is a bit complex but can be a good option if you can pair the card with another with a higher base rewards rate. Use Discover it Cash Back for its bonus categories and the second card for everything else.

How to Redeem Rewards With the Discover it Cash Back

Discover it Cash Back cardholders can redeem their rewards in four ways: cash back via direct deposit or a statement credit, charitable donation, shopping on Amazon.com, and gift cards.

Comparisons With Other Cards

Annual fee: Neither card has an annual fee.

Rewards: Discover it Cash Back earns 5% cash back on everyday purchases at different places each quarter, like Amazon.com, grocery stores, restaurants and gas stations, up to the quarterly maximum when you activate. Chase Freedom Flex earns 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter; 5% on travel purchased through Chase; 3% on dining, including takeout and delivery and drugstores; and 1% on all other purchases.

Sign-up bonus: While Discover it Cash Back doesn’t have a typical sign-up bonus, Discover will match all the cash back you earn during the first year. Chase Freedom Flex rewards you with a $200 bonus after you spend $500 on purchases in your first 3 months from account opening.

Benefits: Discover it Cash Back comes with zero-liability fraud protection, free access to your FICO credit score and alerts if your Social Security number shows up on a risky website. If someone steals your credit card or you lose it, you can easily freeze your account, plus get free overnight delivery for your replacement card. Chase Freedom Flex comes with purchase protection for theft or damage of up to $500. The card also adds an extra year on your warranty when you use your card to buy an item with a manufacturer’s warranty of three years or less.

Annual fee: Neither card has an annual fee.

Rewards: Discover it Cash Back earns 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. The Bank of America Customized Cash Rewards credit card earns 3% cash back in the category of your choice, 2% back at grocery stores and wholesale clubs (on up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.

Sign-up bonus: While Discover it Cash Back doesn’t have a typical sign-up bonus, Discover will match all the cash back you earn during the first year. The Bank of America Customized Cash Rewards credit card comes with a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

Benefits: Discover it Cash Back comes with zero-liability fraud protection, free access to your FICO credit score and alerts if your Social Security number shows up on a risky website. If someone steals your credit card or you lose it, you can easily freeze your account, plus get free overnight delivery for your replacement card. The Bank of America Customized Cash Rewards credit card offers contactless cards.

What Are the Fees Associated With the Discover it Cash Back?

  • Annual fee: The card has no annual fee.
  • Balance transfer fee: 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*.
  • Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater.
  • Penalty fees: None the first time you pay late. After that, up to $41.

Should You Get the Discover it Cash Back?

  • Prefer a card that allows you to maximize rewards on certain purchases.
  • Have another card with a better rewards rate you can use for nonbonus spending.
  • Do not want to pay an annual fee.

Questions About Discover it Cash Back

Q: How much cash back do you get from Discover it Cash Back?
A: Discover it Cash Back earns 5% cash back on everyday purchases at different places each quarter, like Amazon.com, grocery stores, restaurants and gas stations, up to the quarterly maximum when you activate. All other purchases earn 1% cash back. At the end of your first year as a cardholder, Discover will match the cash back you’ve earned.

Q: Is Discover it Cash Back a good card?
A: Discover it Cash Back is a popular cash back card with rotating bonus categories. The card is a smart choice for many consumers, but it’s not for everyone, especially if you want to maximize rewards.

Q: What is the Discover it Cash Back credit score requirement?
A: Discover it Cash Back requires good to excellent credit for approval. You should have at least a 670 FICO credit score to apply.

Q: Is Discover it Cash Back hard to get?
A: You need a good credit score to qualify for Discover it Cash Back, so those with scores below 670 may not be able to get this card.

Source link