Discover It Card Review: Cash Back Credit Card with Less Fees
- Credit Card:
Discover It Card is a rewards credit card that has no annual fee, no over limit fee and no foreign transaction fee. You will earn 5% cash back in categories that change throughout the year and 1% cash back outside those categories without limit. New customers can get 0% APR balance transfer for 18 months with 3% fee.
Discover recently launched a new credit card called Discover It Card, a card that the bank says will change the way people think about credit card.
Speaking of the way we think about credit cards, I think I am qualified to contribute to the conversation because I am a die-hard credit card user. For me, using credit card to pay for my purchases has multiple benefits that include
- Convenience: I don’t have to carry a large amount of cash in my wallet;
- Easy to manage: I can tell where and exactly how much I spent by looking at the credit card bills;
- Delayed payment: I usually have as many as 30 days to actually pay for my purchases, at the time when I pay the credit card bills;
- Rewards: It’s nice to get something back for the money I have to spend anyway.
And when I shop for a new credit card, I always select among those that charge no annual fee, have good rewards programs, and offer a nice incentive for new customers. I usually don’t care too much about interest rates and fees charged by the issuers since I always pay my bills in full, on time.
So using my standard of evaluating a credit card, I want to see how exactly the new Discover It Card is different from others as it promises. First, on the fee front, the Discover It Card does look pretty good because it charges
- No annual fee
- No overlimit fee
- No foreign transaction fee
- No pay-by-phone fee
- No late fee on your first late payment
And Discover It Card won’t increase your APR even if you are late in making payment.
Now to the benefits. Nowadays, almost every credit card offers some kind of rewards to its customers to encourage them to use the card more, but it’s also quite normal that you get no more than 1% cash back for every dollar you spent using the card. Sure, there are plenty of credit cards that let you earn more than 1% rebate, but they usually implement rotating categories for higher rewards for a certain period of time (usually three months) and you have to enroll each time the categories change in order to get the extra benefits. And it looks like the new Discover It Card is doing just that. With the card, you will get 5% cash back in categories that change throughout the year like gas, restaurants, and department stores up to the quarterly maximum. From now through March, you are able to earn 5% cash back at restaurants and movies right now through March on up to $1,500 in purchases once you sign up and 1% cash back on all other purchases without limit. For the month after March, the detailed schedules are not available yet, but I assume that there will be different categories that allow you continue to earn 5% bonus, but again you will need to sign up again at that time.
Other benefits the card offers 0% Intro APR on balance transfers for 18 months and 0% Intro APR on purchases for 6 months. Of course, for the balance transfer, you will need to pay 3% fee for the amount being transferred, which is also pretty standard. After the promotional period, variable purchase APR applies, currently 10.99% – 20.99%. And as a customer, you will get a Cashback Concerige who guides a free, personalized online tour to help you get the most rewards for how you use your card. Not sure how useful that is.
Overall, I think the Discover It Card does well in eliminating some of the fees other cards usually charge, but it doesn’t differentiate from others in rewards and it doesn’t offer any incentive to new customers except the 18-month 0% APR balance transfer that also comes with a 3% fee. So it doesn’t really change the way I think of credit cards.
- No fee
- editor rating3
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