Discover it Cash Back Credit Card Review | Bankrate (2024)

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The Discover it® Cash Back offers one of the highest quarterly rewards rates for various everyday expenses. But to maximize your earnings, you’ll need to activate your categories and track your spending to adjust to Discover’s quarterly bonus categories. This extra effort could make Discover’s Cashback Match® the most valuable first-year offer available for a personal cash back card.

Although the Discover it® Cash Back is an excellent tool for earning cash back, you’re at the mercy of Discover’s rotating category calendar and spending limits for the elevated rewards rate. If a quarter’s category isn’t useful for you, you may have trouble maximizing your rewards for that quarter. And if there’s a category that works especially well for you, you can only push that value so far before you’re capped. You should consider another no-annual-fee credit card if you don’t like the extra legwork it takes to maximize rotating categories.

The combination of a strong cash back rate, a potentially high Cashback Match, limited fees and a solid intro APR period solidify the Discover it® Cash Back as an excellent all-around credit card.

• Rewards

  • 5 percent cash back after activation on rotating categories each quarter (up to $1,500 in purchases, then 1 percent)
  • 1 percent for all other purchases

  Expert Appraisal: Good
  See our expert analysis

• Welcome offer

  • Automatic Cashback Match: All cash back earned at the end of the first year is matched.

  Expert Appraisal: Exceptional
  See our expert analysis

• 0% APR offer

  • 0 percent intro APR on purchases for 15 months
  • 0 percent intro APR on balance transfers for 15 months
  • 18.24 percent to 28.24 percent variable ongoing APR

  Expert Appraisal: Good
  See our expert analysis

• Rates and fees

  • No annual fee
  • No foreign transaction fee
  • No fee for the first late payment (then up to $41)
  • No penalty APR
  • 3 percent intro balance transfer fee (until September 10, 2024), 5 percent fee on future balance transfers (see terms)*
  • Cash advance fee of either $10 or 5 percent of each cash advance, whichever is greater

  Expert Appraisal: Good
  See our expert analysis

• Other cardholder perks

  • Acclaimed, U.S.-based 24/7 customer service
  • Free FICO score access
  • Free credit monitoring service and alerts
  • Freeze it® card locking in the mobile app
  • $0 fraud liability

  Expert Appraisal: Typical
  See our expert analysis

The Discover it® Cash Back isn’t the only rotating rewards card with a high cash back rate, but it stands out thanks to its unique first-year offer and low fees.

Rewards rate: Stellar cash back for savvy spenders

Earning cash back with the Discover it® Cash Back takes a little effort because you’ll need to keep track of therotating bonus categories and enroll each quarter, but the bonus cash can be well worth it. Although Discover no longer releases the calendar for the entire year, the categories could align with seasonal expenses and include at least one everyday category. You can take advantage of higher rates when those categories surface in Discover’s calendar.

You can redeem your Discover rewardsfor cash back as a direct deposit to your chosen account or as astatement credit to your card balance. You can also redeem your rewards for gift cards or charitable donations to select charities. All reward options carry a 1:1 redemption rate, which is rare for non-cash redemption choices. Discover’s partner gift cards also sweeten the deal by occasionally adding 5 percent to 20 percent value to the gift card balance, depending on the merchant.

Welcome offer: Potentially best in class

The Discover it® Cash Back welcome offer differs from the typical sign-up bonus on other cards: Discover’s Cashback Match program takes the total amount of cash back you accumulate at the end of your first year and matches it with a lump-sum payment to your account. That means the more you use your card, the bigger your bonus. Maximizingyour 5 percent categories’ $1,500 spending cap each quarter after activation will result in $600 total at the end of your first year — $300 from spending and another $300 from Cashback Match. That’s a reward potentially well above the usual welcome offer on other no-annual-fee cash back cards.

Rates and fees: Some of the lowest on the market

Only a few credit cards can match Discover’s rates and fees. There’s no annual fee, no penalty APR for late payments and no penalty fee for the first time you make a late payment (up to $41 after that). Even the ongoing variable APR could be well below the average current interest rate, making this a potentially great low-interest card.

0% APR offer: Solid intro APRs make it a well-rounded card

The Discover it® Cash Back offers new account holders a 0 percent intro APR on purchases and qualifying balance transfers for the first 15 months (then 18.24 percent to 28.24 percent variable APR). This offer is among the longest intro APRs on both purchases and balance transfers you’ll find with a rewards card. The typical intro balance transfer fee is 3 percent (until September 10, 2024) and 5 percent on future balance transfers (see terms).

Intro APR offers are always a welcome feature on reward cards as they can provide flexibility in saving on interest on new purchases or helping you consolidate and pay down existing card debt interest-free. And unlike some cards featuring a 0 percent intro APR, the Discover it® Cash Back can continue to deliver value well after the intro period ends.

Although the Discover it® Cash Back is a rewarding credit card, its rotating category program may not fit everyone’s spending habits. Other cards may be more suitable for your everyday spending or offer different features that add more value.

Rotating categories: Not suitable for everyone

The 5 percent cash back rotating categories require activation and have a $1,500 combined purchase limit each quarter before your cash back rate drops to 1 percent back on all purchases. You’ll need to track your spending and potentially change how or where you shop every few months to maximize your cash back. These factors could make this card too high maintenance for some people, especially first-time cardholders who want to start with a simpler rewards experience.

There’s also no guarantee which categories Discover will boost in any given quarter or whether they’ll align with your expenses. If you’re stuck with incompatible categories for three months, the card loses value, regardless of the high earning rates.

Perks: Few benefits beyond rewards and limited fees

The Discover it® Cash Back's benefits are light beyond its cash back and minimal fees. You’ll have basic perks like $0 fraud liability for unauthorized purchases, free FICO score access, Social Security number protection after activation and the ability to freeze your card whenever you like, which can be helpful if your card if it’s lost or stolen.

The only remarkable benefit is Discover’s acclaimed customer service which consistently ranks at or near the top of J.D. Power’s credit card customer satisfaction surveys.But if you’re not concerned with customer service or won’t run into the fees that Discover waives, you may find the perks on competing cards more attractive.

The Discover it® Cash Back is a frontrunner for first-year value with no annual fee, thanks to Discover’s Cashback Match offer. During your first year, this feature could make the Discover it® Cash Back card a significantly more valuable option than competing cards, depending on how much you spend.

You can earn 5 percent cash back on up to $6,000 in spending per year (up to $1,500 in rotating category purchases each quarter when you activate the bonus category, then 1 percent). Here's a look at the sort of value you can expect if you're able to max out your cash back in the card's rotating categories, taking into consideration the card's first-year offer.

*Based on our formula used to calculate each card’s average rewards rates and average ongoing rewards value, using Bureau of Labor Statistics spending data and an assumed $22,500 yearly spend over three years ($1,875 per month).

*Discover it® Cash Back offers 5 percent cash back on everyday purchases at different places each quarter, enrollment required (on up to $1,500 maximum, 1 percent thereafter). Earn unlimited 1 percent cash back on all other purchases. Discover will automatically match all of the cash back you've earned at the end of your first year with no maximum.

Bankrate credit cards writer Ryan Flanigan takes full advantage of the bonus categories on his Discover it® Cash Back.

I max out the bonus categories every quarter on this card. They’re always in categories that I can spend in, for reasonable amounts that don’t feel forced. I like that I can redeem cash back for merchant gift cards to add extra value to my earnings.

And the first-year value is unrivaled. I could maximize all the quarterly bonus categories for at least $300 back, plus another $300 from Discover matching my cash back at the end of my first year with the card. Then, every year after I can get another $300 if I max out all the rotating categories.

— Ryan Flanigan, Writer, Credit Cards

The Discover it® Cash Back is a great match if you don’t mind adjusting your spending habits to take advantage of Discover’s cash back calendar each quarter. Its high-earning rewards scheme maximizes Discover’s unique welcome offer, making it one of the best sign-up bonuses for a no-annual-fee card. The Discover it® Cash Back also carries perhaps the lowest rates and fees available from a major issuer, and it’s accessible with just a good or higher credit score(670+ FICO score).

Although light on features, the Discover it® Cash Back’s focus on accessibility, affordability and excellent customer service makes it a great rewards card for those willing to put in a little effort to make it shine.

**The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

Dig deeper:Is the Discover it® Cash Back worth it?

We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.

Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).

We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review:

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