In today’s world where financial decisions carry significant weight, finding a credit card that not only simplifies spending but also rewards you for it can make a substantial difference in your financial strategy.
The Discover Credit Card is one such option that stands out for its straightforward approach to money management and attractive rewards system. It not only simplifies your spending but also rewards you with every purchase.
Whether you’re looking for travel perks or want to earn cashback on everyday expenses, this card could be your ideal financial companion.
Let’s explore what makes the Discover It Credit Card review stand out and how it could benefit you in managing your finances effectively.
Overview of Discover It Credit Card`
Discover Financial Services began in 1985 and has become a prominent player in credit cards. Their lineup includes cashback and travel rewards cards tailored to different consumer needs.
Discover stands out by typically not charging an annual fee, making their cards accessible to a broad audience—from students building credit to experienced professionals managing finances.
Discover is well-regarded for customer satisfaction. According to the JD Power 2023 Credit Card Satisfaction Study, Discover consistently receives high ratings for service and reliability.
They offer practical features such as the Freeze it® switch, which allows users to quickly stop new purchases on their card if it’s lost or stolen, enhancing security and peace of mind.
Discover it Secured Credit Card Reviews
The Discover It secured credit card is well-known for not charging an annual fee and offering attractive rewards. With many credit card options available, it’s important to understand if this card fits your needs.
We have given a thorough discover it credit card review which examines its benefits, drawbacks and who should get this card to help you make an informed decision.
Discover It Card Reward Program
The Discover It credit card provides a unique 5% cash back on rotating categories like groceries, dining, and gas stations, which change every quarter. You must activate this offer each quarter to earn the bonus. Additionally, you earn 1% cash back on all other purchases and can redeem your cash back at any time.
Key Features And Benefits
| Benefits | Description |
|---|---|
| No Annual Fee | Cardholders pay no annual fee, saving money on yearly costs. |
| 5% Cash Back Categories | Earn 5% cash back on rotating categories like groceries, dining, gas stations, and more (requires quarterly activation). |
| Double Cash Back in the First Year | New cardholders receive double the cash-back rewards earned in the first year, boosting initial rewards significantly. |
| Introductory 0% APR | Enjoy a 0% APR on purchases and balance transfers for an introductory period, helping save on interest charges initially. |
| Cashback Match | At the end of the first year, Discover matches all cash back earned, effectively doubling the rewards earned during that time. |
| Free FICO® Credit Score | Cardholders get free access to their FICO® Credit Score, aiding in monitoring and improving their credit health. |
No Annual Fee and Double Cash Back in the First Year
A standout feature of the Discover It credit card is its no annual fee policy. This allows cardholders to save on yearly costs. New cardholders also benefit from a special offer where their first-year cash-back rewards are doubled, providing a strong incentive to start earning rewards quickly.
5% Cash Back Categories
The card offers 5% cash back on rotating categories such as groceries, dining, gas stations, and more. This feature allows users to earn more rewards on everyday essentials.
Introductory APR on Purchases and Balance Transfers
Additionally, the Discover It card provides an introductory 0% APR on purchases and balance transfers. This can help cardholders save on interest charges during the initial period.
Cashback Match
At the end of your first year as a cardholder, Discover automatically matches all the cash back you’ve earned. This means if you earned $200 in cash back, you’d receive an additional $200 as a bonus.
Free FICO® Credit Score
Cardholders get access to their FICO® Credit Score for free, helping them monitor their credit health and understand factors affecting their score.
Disadvantages of Discover it Credit Card
| Disadvantages | Description |
|---|---|
| Security Deposit Requirement | Requires a security deposit, which may be challenging for those with limited funds. Initial credit limit is tied to this deposit. |
| Limited Base Cash Back | Outside of the bonus categories, the cash back rate is only 1%, which is lower compared to some other cards. |
| Lack of Travel Perks | Does not offer specific travel benefits such as airport lounge access, travel insurance, or points redemption on airlines or hotels. |
| No Signup Bonus | Unlike some competitors, there is no upfront signup bonus offered with the Discover It credit card. |
Security Deposit Requirement
One consideration is the requirement for a security deposit, which might be challenging for those with limited funds. Your initial credit limit is tied to this deposit, but responsible use of the card can lead to credit limit increases over time.
Limited Base Cash Back
Another drawback is that the base cash back rate outside the bonus categories is 1%, which is lower compared to some other cards that offer higher flat-rate cash back on all purchases.
Lack of Travel Perks
Additionally, while the Discover It card is widely accepted globally, it doesn’t provide specific travel benefits such as airport lounge access or travel insurance.
No Signup Bonus
Unlike some competitors that offer upfront bonuses, the Discover It credit card does not provide a signup bonus, which may disappoint those looking for immediate perks.
Who Should Get This Card?
If you’re looking to improve your credit score and prefer earning cash back, the Discover It cash-back credit card could be a good choice. It’s versatile and offers substantial rewards, which can help build your credit history over time.
Additionally, if you value earning bonuses, especially the 5% cash back on rotating categories and 1% on other purchases, this card could align well with your spending habits.
Lastly, if you’re diligent about tracking your expenses and managing your credit, the Discover It card offers tools and rewards that can support your financial goals effectively.
Discover Credit Card Comparison
| Feature | Discover it Secured Credit Card |
|---|---|
| Security Deposit | Required |
| Cash Back Rewards | 2% at gas stations and restaurants (up to quarterly maximum), 1% on all other purchases |
| Free FICO Credit Score | Yes |
| Annual Fee | None |
| Introductory APR Period | 0% on purchases (for a limited time) |
Frequently Asked Questions
How good is the Discover It credit card?
The Discover It credit card is highly regarded for its generous cash back rewards, including 5% on rotating categories like groceries and dining, and 1% on all other purchases. It has no annual fee and offers an introductory 0% APR on purchases and balance transfers.
Is Discover a good bank for credit cards?
Discover is a good back for credit cards, known for competitive cash back rewards, no annual fees, and excellent customer service. They offer perks like free FICO® Credit Scores and introductory APR periods, making them a popular choice among consumers.
What are the disadvantages of Discover it credit card?
The Discover It credit card has disadvantages which include: quarterly activation for 5% cash back, no sign-up bonus, and limited global acceptance compared to major cards. The Discover It Secured Credit Card demands a security deposit, and its base cash back rate outside bonus categories is 1%, lower than competitors.
Is it hard to get approved for a Discover it card?
It’s recommended to have a fair to good credit score, typically 670 or higher, to improve your chances of approval for a Discover It card. However, each application is reviewed individually based on various factors beyond just credit score, such as income and existing debts.
What are the interest rates on the Discover it cash back card?
The Discover It cash-back card offers a 0% intro APR on purchases and balance transfers for 15 months. After that, the APR for purchases is 17.24% to 28.24%, and 29.99% for balance transfers. Make sure to pay off your balances before the intro period ends to avoid high-interest charges.
Can I get my security deposit back?
You can get your security deposit back from Discover if you pay your bills on time and use your card responsibly.
How do I activate the 5% cash-back bonus?
You can activate the 5% cash-back bonus on your Discover It cash back card easily. Just visit Discover’s official website, use the Discover Mobile App, or call 1-800-347-2683 from your phone.
Final Words
The Discover It Secured Credit Card is a good option for people wanting to improve their credit. It helps you manage your money securely, offers cash back rewards, and has clear payment terms. Just keep in mind, that you’ll need to put down a security deposit, so consider how that fits into your finances.
Overall, the Discover It Secured Credit Card is a useful tool for getting on solid financial ground. Using it responsibly not only boosts your credit score but also lets you earn cash back. Before you apply, make sure to understand the details so you can make the best choice for your financial goals.