Discover it Cash Back card review: Earn up to 5% back and get all your rewards matched after the first 12 months

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Discover it® Cash Back

Discover Discover it® Cash BackAverage 401k balance

  • 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 Discover it® Cash Back is great for those who don’t want to pay an annual fee, and it also comes with an introductory 0% APR on purchases and balance transfers for 14 months, then an APR of 11.99% – 22.99% Variable. That’s a nice feature if you have purchases coming up that you want to pay off over time without accruing interest.

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 Discover it® Cash Back with another cash-back card.

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 Citi® Double Cash Card, which earns a total of 2% cash back (1% when you make a purchase and 1% when you pay it off) on all spending. Or, consider the Chase Freedom Flex℠, which also offers quarterly rotating 5% bonus categories with the same spending cap when you activate. 

Bottom line: The Discover it® Cash Back is a solid cash-back rewards card that offers 5% back on popular rotating categories up to a spending limit. Your rewards are matched by Discover after the first 12 months, and the card has no annual fee. 

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Comparison: Discover it Cash Back vs other Discover cards

 

Discover it® Cash Back

Discover it® Miles

Discover it® chrome

Annual fee

$0

$0

$0

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 11.99% – 22.99% Variable APR

0% APR on purchases for the first 14 months, then a 11.99% – 22.99% Variable APR 

0% APR on purchases and balance transfers for the first 14 months, then a 11.99% – 22.99% Variable APR 

Foreign transaction fee

No

No

No

Review

 Discover it Miles credit card review 

Comparison: Discover it Cash Back vs other cash-back cards

 

Discover it® Cash Back

Chase Freedom Flex℠

Citi® Double Cash Card

Annual fee

$0

None

$0

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

$200 Bonus after you spend $500 on purchases in your first 3 months from account opening

N/A

Card benefits

Free FICO score

No late payment fee on your first late payment (then up to $40)

Cell phone protection

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 11.99% – 22.99% Variable APR

0% APR on purchases for the first 15 months, then a 14.99% – 23.74% variable APR

0% intro APR on balance transfers for the first 18 months, then 13.99% – 23.99% (Variable)

Review

 

Chase Freedom Flex credit card review

Citi Double Cash credit card review

How to use Discover it Cash Back rewards

The best way to redeem your Discover it® Cash Back rewards is usually as a statement credit, which lowers your balance, or simply take the cash as a direct deposit to your bank account. You can also redeem your rewards directly when you check out at Amazon or PayPal. In any of these cases, the minimum redemption amount is 1 cent.

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 charity partners:

  • American Cancer Society
  • ASPCA
  • American Red Cross
  • Carbonfund.org
  • Children’s Miracle Network
  • Junior Achievement
  • Juvenile Diabetes Research Foundation
  • Make-A-Wish
  • Operation Homefront
  • World Wildlife Fund

Discover it Cash Back benefits and features

The Discover it® Cash Back is a fairly straightforward. Outside of the cash back you’ll earn from everyday spending, here are some useful features to know about:

  • 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

Discover Discover it® Cash BackCiti Citi® Double Cash CardChase Chase Freedom Unlimited®Chase Chase Freedom Flex℠

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

For rates and fees of Discover it® Cash Back, please click here.

For rates and fees of Discover it® Miles, please click here.

For rates and fees of Discover it® chrome, please click here.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.

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