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The Discover it student cash back credit card is a good credit card for students who are thinking about accumulating rewards as they start building their credit history, but is it worth it for you?
Today we will do a detailed analysis of the Discover it student cash back credit card, understanding its benefits, such as cashback, as well as the disadvantages, and the fees.
Thus, you will be able to decide in the end if the Discover it student cash back credit card is a great alternative. In addition, you will learn about other options to find the best card for you. Let’s go.
Positive Points of Discover it student cash back credit card
First of all, one of the great attractions of the card is the cashback program that offers 5% return on specific categories that change every quarter, such as supermarkets, gas stations or online shopping.
In addition, the cashback match makes you double the amount you receive in the reward. For example, assuming you’ve earned $150 in rewards, Discover will turn that into $300 without requiring registration or request.
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In addition, for 06 months it has 0% APR on purchases. Because of this, this is a great option for those who are just starting out. After this period, the rate will be variable, ranging from 17.24% and 26.24%, depending on the student’s credit profile.
In this way, this card is good when thinking about building credit in the long term. However, not everything is advantages, read on to understand the disadvantages of the card.
Negative points of the Discover it Student Cash Back Credit Card
Discover it Student Cash Back has some limitations that you need to be aware of.
The main one is that, outside the categories with quarterly bonuses, the card offers only 1% cashback on other purchases, being a low return when compared to other options on the market.
Another point is the limit of eligible spending for the 5% cashback of the three months. As they are only valid up to US$ 1,500.00 in purchases. After reaching this limit, the return returns to 1%, which reduces the impact of the benefit for those with higher expenses.
In addition, you must manually activate the bonus categories each new quarter to guarantee the 5%.
These details do not fail to make the Discover card an excellent option. However, it is important that you know these details so as not to be negatively surprised when purchasing the card.
Rates and fees
Despite having 0% APR in the first half of the year, it is important to know all the fees. See below for a summary of Discover credit card costs.
- Annual Fee: $0
- Regular APR: from 17.24% to 26.24% (variable rate)
- Introductory APR for purchases: 0% for the first 6 months
- Balance Transfer Rate:
- 3% on initial transfers
- Up to 5% on future transfers
- Cash advance fee: $10 or 5% of the withdrawal amount, whichever is greater
- Overseas transaction fee: $0
It should be noted that the annual fee is zero, a great benefit thinking about students who are starting out in adulthood. However, the transfer fee requires attention, as it can reach 5%.
Is the card worth it?
Yes, the Discover it® Student Cash Back card is worth it if you are a student and want to have cashback on all everyday purchases.
It is also a great option for those looking to avoid paying an annual fee. As the card does not charge this fee, which makes its use more affordable.
In addition, it is suitable for those who are starting to build their credit history.
Other card options geared toward students
1. Discover it Chrome
At first, with it, you earn 2% cashback at gas stations and restaurants, on up to US$ 1,000.00 in purchases in the first 3 months. It is worth noting that the other purchases yield 1% cashback with no value limit.
One of the attractions continues to be the Cashback Match program. In which Discover matches the entire amount of cashback accumulated in the first year.
With zero annual fee and a variable interest rate between 18.24% and 27.24%, the card also offers a balance when thinking about rates.
If you value automatic rewards, Discover it® Chrome may be the right choice.
2. Capital One Saver Student Cash Rewards Credit Card
The Capital One Savor Student Cash Rewards Credit Card is an attractive option for students looking for a card with no annual fee. But with an interesting rewards program.
It stands out for offering 8% cashback on purchases made on the Capital One Entertainment platform. Ideal for those who enjoy concerts and outdoor events.
In addition, you will still have 5% cashback on hotels and car rentals when booked through Capital One Travel, an interesting advantage for those who travel frequently.
It still has 3% in supermarkets, restaurants, entertainment and popular streaming services. The other purchases that do not fit into these categories accumulate 1% cashback.
The welcome offer is also a great attraction, since by spending only US$ 100.00 in the first three months. The student earns US$ 50 cashback, an accessible and advantageous bonus right at the beginning.
Now, thinking about interest rates, since they vary between 19.24% and 29.24% per year (variable APR), the ideal is to keep payments up to date to avoid high charges.
Overall, the card is an excellent choice for students who want real benefits on their day-to-day purchases, without paying an annual fee, and with a rewards structure aligned with the university lifestyle.
Conclusion about the Discover it Student Cash Back Credit Card
Based on Discover it Student Cash Back Credit Card review, this card is suitable for students. Its cashback program, with up to 5% in specific categories.
However, it is important to be aware of quarterly cashback limits, reduced returns on purchases outside of bonus categories, and the need to manually activate categories.
Despite some cons, such as the balance transfer fee and the reduced return after reaching the 5% limit, the card remains a good option for those who do not want to pay an annual fee and are starting their financial journey.
As you can see, cash back is the biggest highlight of this card. Allied to this, it is worth combining the cashback of this card with the benefits of Bank of America, with that in mind, understand what Bank of America customized cash Rewards looks like.