The Discover it® Cash Back card is a standout in the cash-back category, known for its rotating 5% cash-back categories that offer exceptional rewards in popular spending areas throughout the year. This card also features a unique Cashback Match™ program that doubles your cash back at the end of your first year. In this post, we’ll explore how to maximize the Discover it Cash Back card’s benefits, compare it with other top cash-back credit cards, and provide insights on whether it’s the right choice for your wallet.
Key Features of the Discover it® Cash Back Card:
This card is ideal for those who want to earn substantial rewards in specific categories each quarter. Below is a detailed overview of its primary features:
| Feature | Details | How to Utilize |
|---|---|---|
| 5% Cash Back on Rotating Categories | Earn 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter (activation required). | Activate each quarter and plan your spending around the current categories to maximize rewards. |
| 1% Cash Back on All Other Purchases | Earn 1% cash back on all other purchases with no limits on earnings. | Use the card for everyday purchases to accumulate cash back consistently. |
| Cashback Match™ | Discover will automatically match all the cash back you’ve earned at the end of your first year. | Use the card frequently during your first year to take full advantage of this offer. |
| Introductory 0% APR Offer | 0% introductory APR for 15 months on purchases and balance transfers. | Use the 0% APR period for large purchases or to transfer a balance and save on interest. |
| No Annual Fee | Enjoy all the card’s benefits without paying an annual fee. | Maximize value by not having to worry about an annual fee eating into your rewards. |
| No Foreign Transaction Fees | No fees on purchases made abroad, making it a great option for international travel. | Use the card for overseas trips to save on foreign transaction fees. |
Maximizing the Discover it® Cash Back Card:
Here are some strategies to ensure you get the most out of this card:
- Activate Rotating Categories Quarterly: Each quarter, Discover offers 5% cash back in different categories like gas stations, grocery stores, restaurants, and online shopping. Be sure to activate the category and plan your spending to take full advantage of the 5% cash back.
- Make the Most of the Cashback Match™: During your first year, every dollar of cash back you earn is doubled by Discover. This means that strategic use of the 5% categories and consistent use of the card for other purchases can yield substantial rewards.
- Take Advantage of the 0% APR Period: The 15-month 0% APR on purchases and balance transfers is perfect for financing large purchases or paying off existing credit card debt without interest.
- Leverage No Foreign Transaction Fees: If you’re planning to travel abroad, the lack of foreign transaction fees can save you money on international purchases, making this card a great travel companion.
Comparing the Discover it® Cash Back Card to Other Cash-Back Cards:
To give you a clearer picture of how the Discover it® Cash Back card compares to other popular cash-back credit cards, here’s a comprehensive comparison:
| Card | Annual Fee | Cash-Back Rewards | Bonus Categories | Additional Perks |
|---|---|---|---|---|
| Discover it® Cash Back | $0 | 5% cash back on up to $1,500 in purchases each quarter in rotating categories, 1% on all other purchases | Rotating quarterly categories like gas stations, grocery stores, and Amazon.com | Cashback Match for the first year, no annual fee, no foreign transaction fees |
| Bank of America® Customized Cash Rewards Credit Card | $0 | 3% cash back in a category of your choice, 2% on groceries and wholesale clubs, 1% on all other purchases | Select one of six categories: gas, online shopping, dining, travel, drug stores, or home improvement | 0% intro APR for 18 billing cycles, Preferred Rewards bonus, no annual fee |
| Citi® Double Cash Card | $0 | 2% cash back on all purchases (1% when you buy, 1% when you pay) | No specific categories | No annual fee, no category restrictions |
| Chase Freedom Flex℠ | $0 | 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% on travel through Chase Ultimate Rewards, 3% on dining and drugstores, 1% on all other purchases | Rotating quarterly categories like gas stations, grocery stores, and more | No annual fee, intro APR, Chase Ultimate Rewards portal access |
| Blue Cash Everyday® Card from American Express | $0 intro annual fee for the first year, then $95 | 3% cash back on U.S. supermarkets (up to $6,000 per year), 2% on U.S. gas stations, 1% on other purchases | Supermarkets, gas stations | Intro APR on purchases, Amex Offers, no annual fee in the first year |
| Capital One Quicksilver Cash Rewards Credit Card | $0 | 1.5% cash back on every purchase, every day | No specific categories | No annual fee, no foreign transaction fees, intro APR on purchases and balance transfers |
| Wells Fargo Active Cash® Card | $0 | 2% cash back on all purchases | No specific categories | No annual fee, intro APR on purchases and balance transfers, cell phone protection |
| U.S. Bank Cash+® Visa Signature® Card | $0 | 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories of your choice, 2% on one everyday category, 1% on everything else | Choose two 5% categories, one 2% category | No annual fee, customizable rewards categories, intro APR on balance transfers and purchases |
| American Express® Cash Magnet® Card | $0 | 1.5% cash back on all purchases | No specific categories | No annual fee, intro APR on purchases and balance transfers |
| Citi Custom Cash℠ Card | $0 | 5% cash back on purchases in your top eligible spend category each billing cycle (up to $500), 1% on all other purchases | Automatically adjusts to your top spending category each month | No annual fee, intro APR on balance transfers and purchases |
Why the Discover it® Cash Back Card Stands Out:
The Discover it® Cash Back card offers several unique benefits:
- High Rewards Potential: The 5% rotating categories offer significant earning potential for those who can plan their spending around the current categories.
- First-Year Cashback Match: Discover’s Cashback Match effectively doubles your rewards for the first year, making it one of the most lucrative cash-back offers available for new cardholders.
- No Annual Fee and No Foreign Transaction Fees: The lack of fees makes this card an excellent choice for both everyday use and international travel.
Potential Drawbacks:
- Activation Requirement: You must remember to activate your 5% categories each quarter, or you’ll miss out on the higher rewards rate.
- Spending Cap: The 5% cash back is limited to $1,500 in purchases each quarter, which could be a limitation for high spenders.
Conclusion
The Discover it® Cash Back card is a great option for those who want to maximize rewards in specific spending categories. The combination of rotating 5% categories, the Cashback Match program, and no annual fee makes it an appealing choice for many consumers. However, it does require a bit of effort to keep track of the rotating categories and ensure you activate them each quarter. If you’re looking for a card that rewards strategic spending and offers a strong first-year bonus, the Discover it Cash Back card is worth considering.