Discover It Cash Back Credit Card Review
Key Takeaways
While you can earn up to $600 in rewards with relatively low spending on the Discover It Cash Back card, we don't recommend it for several reasons. First, the rewards are in the form of cash back. We rarely recommend cash back cards because our hobby focuses on earning free travel. Cards with airline and hotel transfer partners offer the best value in rewards redemptions, and Discover does not have transfer partners.
Second, earning up to $600 in rewards is complicated and requires a full year of commitment. This card doesn't offer a traditional sign-up bonus tied to spending a specific amount. Instead, you must maximize rotating quarterly spending categories to earn 5% back throughout the entire year. Only then will Discover match your earnings after your first year ends. This requires too much effort to earn the same bonus you could receive in just three months with similar spending on many other available cards.
Why This Card Could Be Right For You
The rewards in the first year of owning the Discover It Cash Back card could reach upwards of $600 while spending $6,000, which is attractive considering the card has no annual fee. This card offers 5% back each quarter on rotating spending categories chosen by Discover. They cap the 5% back at $1,500 each quarter, allowing you to earn an extra $75 quarterly on that specific spending category.
If you maximize the 5% back category each quarter, you'll spend $6,000 annually and earn $300 back. Rather than offering a traditional sign-up bonus, Discover matches your earned rewards at the end of your first card year. This means you could receive up to $600 back if you maximize the 5% category every quarter. The card also offers 1% back on all other spending, providing additional cash back rewards on any other purchases.
You can redeem your cash back in several ways: direct deposit into any account, statement credit on your credit card, donations to select charities, or gift cards. You can also redeem on Amazon by linking your Discover card to your Amazon account, shop through PayPal, or pay with rewards using Apple Pay. Unfortunately, travel redemptions are not available.
When The Usual Advice Doesn't Apply
The exceptions where this card might not be good for you:
- You want to transfer points and miles to airlines and/or hotels to find good deals that maximize your points, which isn't possible with Discover
- This Discover card only allows you to redeem rewards as cash back or through shopping on Amazon or PayPal
How The Discover It Cash Back Credit Card Fits In The Cash in Cents Ecosystem
Discover offers another no annual fee cash back card similar to the Discover It Cash Back card. The Discover It Chrome card provides 2% cash back at gas stations and restaurants, then 1% on everything else. You will also receive a matching bonus at the end of your first year, just like with the Cash Back card. The Chrome card also doesn't have an annual fee and is a cash back card as well, so you cannot redeem rewards for travel-related purchases.
The Discover It Miles card simplifies things by offering 1.5% back on all purchases every day with no limits. It features the same matching bonus as the other two cards and also has no annual fee. This card does allow you to redeem rewards by offering credit for travel purchases, but being a Discover card, there are no airline or hotel transfer partners.
Discover as a system ranks low on our list of recommended rewards programs. None of their cards offer a significant enough sign-up bonus to justify getting one, they don't have partners to transfer points to, and you can only open one card every 12 months. Because of these limitations, we suggest exploring other rewards systems for your points and miles journey.
Card Information
| Bonus Points | Minimum Spend | Point Value | Annual Value | Annual Fee |
1st Year Value
|
|---|---|---|---|---|---|
| 1 | $1 | 1.0 ¢ | $1 | $0 |
$1
|
| Best Value | Differentiating Perks | Rules |
|---|---|---|
| Cash Back, Gift Cards | Discover will match all cash back at the year end, making rotating categories 10% for the first year | No 5/24 , Discover 1/12 |
Spend Categories
2X points
2¢ Per Dollar Spent
5X points
5¢ Per Dollar Spent
5X points
5¢ Per Dollar Spent
5X points
5¢ Per Dollar Spent
Card Benefits
You will pay no foreign transaction fees when you use your card for purchases made outside the United States.
Point Transfer Options
Transfer To Spouse/Partner Yes
Transfer To Friends Yes
Travel Partner Transfers
Outside Point System Cash in Cents
Transfers In From
1:1 63% value retained
1:1 100% value retained
1:1 77% value retained
1:1 63% value retained
1:1 91% value retained
1:1 77% value retained
Discover It Cash Back Application Rules
Card approval not subject to 5-personal-cards-in-24-months rule
You can only get one Discover card every 12 months
