Discover it® Cash Back review: Make the most of everyday spending categories
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BLUEPRINT
Updated 9:20 p.m. UTC July 16, 2023
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Earn 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases. Plus, Discover will automatically match all the cash back earned at the end of the first cardmember year.
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Discover it® Cash Back
The Discover it® Cash Back is one of just a few credit cards that offer bonus rewards on spending rotating bonus categories that change every few months. You’ll earn cash back in various areas of your budget, including groceries, gas, streaming subscriptions, digital wallet spending, online shopping and more. The catch is that you have to activate each quarter’s bonus categories to earn the higher cash-back rate. Bonus rewards are also capped at $1,500 spent each quarter.
With that said, the card’s base rewards rate is low, so you may want to pair it with another card that offers a high flat rewards rate for non-bonus spending.
For big spenders, the card can be an excellent opportunity to earn a lot of cash in the first year. Rather than giving you a traditional welcome bonus you can earn after meeting a minimum spending requirement, Discover will automatically match all the cash back earned at the end of the first cardmember year.
As a new cardholder, you’ll also get a 0% intro APR for 15 months on purchases and eligible balance transfers. Then, a variable rate of 18.24% to 28.24% applies. There's a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms). Discover advertises that it doesn’t charge foreign transaction fees. But if you’re traveling abroad, it’s a good idea to have a Visa or Mastercard as a backup because Discover isn’t as widely accepted in other countries.
Discover it® Cash Back basics
- Annual fee: $0.
- Welcome bonus: Discover will automatically match all the cash back earned at the end of the first cardmember year.
- Rewards: Earn 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases.
- Regular APR: 0% intro APR for 15 months on purchases and eligible balance transfers. Then, a variable rate of 18.24% to 28.24% applies. There's a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).
- Pre-approval tool: Yes.
- Recommended credit score: Good, Excellent.
Discover it® Cash Back rewards
The Discover it® Cash Back offers a rare approach to credit card rewards. Rather than giving you bonus cash back on a fixed set of spending categories, Discover rotates bonus categories every quarter. When you activate the bonus for a given quarter, you’ll earn 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases. Be sure to keep up on the quarterly categories so you don’t miss out on the higher rewards rate.
Discover will automatically match all the cash back earned at the end of the first cardmember year. So it may make sense to use the Discover it® Cash Back almost exclusively during that time to maximize your rewards.
You can redeem your cash back as a deposit into your bank account, a statement credit, online shopping with PayPal and Amazon, gift cards or charitable donations. If you opt for gift cards, you’ll get a bonus added to your gift card balance, which can range from 5% to 20%, depending on the merchant.
Discover it® Cash Back rewards potential
Using government data and other publicly available information, We estimate that a household in the U.S. that would be in the market for this card has an annual income of $84,352 and $25,087 in expenses they are likely to be able to charge to a credit card.
Assuming you max out the bonus rewards each quarter, you can earn up to $490.87 annually with this card. Factoring in the first-year Cashback Match offer, that translates to $981.74 in rewards.
Discover it® Cash Back APR details
As a new cardholder, you’ll get a 0% intro APR for 15 months on purchases and eligible balance transfers. Then, a variable rate of 18.24% to 28.24% applies. There's a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).
Note that any balance transfers will need to post to your account by a certain date specified in your card agreement to qualify for the intro APR promotion. The introductory balance transfer fee is also subject to this deadline.
Discover it® Cash Back pros
Discover doesn’t offer a lot of notable benefits on its credit cards, but there are some perks that aren’t necessarily standard for all credit cards:
- FICO score access: You’ll get access to your FICO score, as well as details about which factors are influencing your score.
- Social Security number alerts: Discover scans thousands of dark web sites known for revealing personal information for your Social Security number and alerts you if it finds your details.
- Free overnight card replacement: If you lose your credit card, you can request free overnight shipping to minimize the disruption.
Discover it® Cash Back cons
- Low base rewards rate: While the card’s rotating bonus rewards rate is impressive, most of your expenses will earn just the base cash back. As such, the Discover it® Cash Back is best used in tandem with another card that offers 1.5% or 2% rewards on all purchases.
- Bonus spending cap: You’ll only earn 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases. In contrast, some other cards offer high rewards on certain purchases without limiting how much you can earn.
- Limited international acceptance: The card isn’t a great choice for international travel, as Discover’s acceptance rate abroad pales compared to Visa and Mastercard.
How the Discover it® Cash Back card compares to other cash-back credit cards
Discover it® Cash Back vs. Chase Freedom Flex® * The information for the Chase Freedom Flex® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Like the Discover it® Cash Back, the Chase Freedom Flex offers 5% cash back on up to $1,500 in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases.
As a new cardholder, you’ll get a $200 bonus after spending $500 on purchases in the first three months of account opening. You’ll also get a 0% intro APR for the first 15 months on purchases and balance transfers, then a variable APR of 20.49% to 29.24%. There is an intro balance transfer fee of either $5 or 3% of each transfer, whichever is greater, in the first 60 days. Then the fee is the greater of $5 or 5% of each transfer. The card has no annual fee.
Discover it® Cash Back vs. Blue Cash Preferred® Card from American Express
If you spend a lot on groceries at U.S. supermarkets and U.S. gas stations, consider the Blue Cash Preferred® Card from American Express (terms apply, rates & fees). It 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, 3% cash back on transit and 1% cash back on other purchases. Cash back is received in the form of Rewards Dollars that can be redeemed as a statement credit or for eligible items at Amazon.com checkout. New cardholders will earn a $250 statement credit after spending $3,000 in eligible purchases in the first six months of card membership and also get a 0% intro APR for 12 months on purchases and balance transfers requested in the first 60 days, then a variable APR of 19.24% to 29.99%. A balance transfer fee of $5 or 3%, whichever is greater, applies. Keep in mind, though, that the card has a $0 intro annual fee for the first year, then $95 annual fee.
Discover it® Cash Back vs. Wells Fargo Active Cash® Card
If you prefer simplicity, consider the Wells Fargo Active Cash® Card, which offers a flat 2% cash rewards on purchases. You’ll also get a $200 cash rewards bonus after spending $500 in purchases in the first three months of account opening, plus a 0% intro APR for the first 15 months on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR applies thereafter. Balance transfers made within 120 days qualify for the intro rate and fee of 3%. After that a fee of up to 5%, with a minimum of $5 applies. The card has no annual fee.
Should you get the Discover it® Cash Back?
The Discover it® Cash Back offers an excellent opportunity to maximize rewards on various daily spending categories throughout the year. If you use the card for its rotating bonus categories and another card with a high rewards rate for non-bonus spending, you can enjoy accelerated rewards on all of your purchases.
However, the card’s somewhat complicated rewards structure may not be the best fit for anyone who prefers simplicity. If you want the certainty of a tiered rewards card with fixed categories, you may want to consider other options.
Before you apply for the Discover it® Cash Back, take some time to research and compare several alternatives to ensure you get the best card for you.
Discover it® Cash Back summary
| DISCOVER IT® CASH BACK DETAILS | |
|---|---|
Annual fee
| $0
|
Rewards
| 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases
|
Welcome bonus
| Discover will automatically match all the cash back earned at the end of the first cardmember year
|
APR
| 0% intro APR for 15 months on purchases and eligible balance transfers. Then, a variable rate of 18.24% to 28.24% applies. There's a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)
|
Foreign transaction fee
| None
|
Methodology
Our credit card team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings.
Some of the factors evaluated in selecting the best rewards credit cards included:
- Rewards potential and redemption options.
- Welcome bonuses.
- Travel and shopping benefits.
- Intro APRs.
- Annual fees.
Frequently asked questions (FAQs)
The card offers 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases. For the card’s higher rewards rate, there is a limit of $1,500 in combined spending across all bonus categories each quarter (bonus categories rotate quarterly and require activation each quarter). For the card’s base rewards rate, however, there is no limit on how much you can earn.
The Discover Cashback Match offer is only valid for your first year with the card, so plan your spending to make the most of the bonus feature.
The card is designed for consumers with good or excellent credit. According to FICO, that typically means a score of 670 or higher. However, Discover will consider your full credit history, income, debts and other factors to determine your eligibility.
If you’re new to credit or trying to rebuild poor or fair credit, you may not be able to qualify for the Discover it® Cash Back. However, if you meet the card’s eligibility criteria, you can use it to continue to build and maintain good credit. You can do this by using the card regularly, keeping your balance low and paying your bill on time every month.
The card requires good or excellent credit to get approved. If you meet that requirement, you may have a good chance of getting approved. If you’re not certain of your eligibility, you can use Discover’s pre-approval tool to gauge your approval odds.
For rates and fees for the Blue Cash Preferred® Card from American Express please visit this page.
*The information for the Chase Freedom Flex® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
