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The Discover it Cash Back is one of the best credit cards that offer 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 (from July 1 to September 30, 2023, you can earn 5% cash back at Gas Stations and Digital Wallets on up to $1,500 in purchases after enrollment, then 1%).
Discover it Cash Back Review: Is it the Best Credit Card for You?
If you prefer earning cash back without paying an annual fee, the Discover it® Cash Back is one of the best cash-back credit cards out there. The card offers a solid 5% cash back in popular rotating quarterly bonus categories when you activate, on up to $1,500 in combined spending (then 1%). You'll also earn 1% back everywhere else (from July 1 to September 30, 2023, you can earn 5% cash back at Gas Stations and Digital Wallets on up to $1,500 in purchases after enrollment, then 1%).
While the card doesn't offer a traditional welcome bonus, Discover will match all of the rewards you earn from the Discover it Cash Back after the first 12 months through its Cashback Match program, so your 5% rewards are effectively worth 10% cash back in the first year. That's an amazing deal for a no-annual-fee credit card.
The Discover it Cash Back is great for those who don't want to pay an annual fee, and it also comes with a 0% intro APR for 15 months on purchases and balance transfers, then an APR of 17.24% - 28.24% 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 credit 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.
For example, you could look at a no-annual-fee card that offers a flat cash rewards rate on purchases without category limits, like the Wells Fargo Active Cash® Card, which earns 2% cash rewards on spending. Or, consider the Chase Freedom Flex℠ , which also offers quarterly rotating 5% bonus categories with the same spending cap when you activate.
There's also the Citi Custom Cash℠ Card, which earns 5% cash back on up to $500 spent in your top eligible spending category (from a list) each billing cycle (then 1%), and 1% back on everything else. This card doesn't require you to activate the bonus, so it may be a better choice if you prefer a hands-off approach.
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.
Discover It Cash Back Rewards
How to Earn Rewards With the Discover it Cash Back Card
To earn the most cash back, you'll have to activate the rotating bonus categories each quarter through your online Discover account.
Once you've activated the bonus, you'll earn 5% cash back on up to $1,500 in combined spending (then 1%) in that quarter's categories (from July 1 to September 30, 2023, you can earn 5% cash back at Gas Stations and Digital Wallets on up to $1,500 in purchases after enrollment, then 1%). All other purchases earn a flat rate of 1% cash back.
Discover will automatically match, dollar for dollar, all the cash back you've earned at the end of your first year (even on bonus categories). You don't need to do anything to activate this match.
How to Use Discover it Cash Back Rewards
The best way to redeem your 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. 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.
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 rewards to support causes close to your heart.
Discover's charity partners are the American Cancer Society, the ASPCA, the American Red Cross, Carbonfund.org, Children's Miracle Network, Junior Achievement, Juvenile Diabetes Research Foundation, Make-A-Wish, Operation Homefront, and World Wildlife Fund.
Discover it Cash Back Benefits and Features
The Discover it Cash Back is a fairly straightforward card. Outside of the cash back you'll earn from everyday spending, here are some useful features to know about:
Unique Designs
Choose from 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 with free Discover Identity Alerts, and remove your info from information-collecting websites through the Discover Online Privacy Protection program.
FICO Credit Score
Get a real, free FICO credit score that Discover uses to approve accounts, set interest rates, and choose account limits.
No Late Payment Fee on Your First Late Payment
You won't be charged a fee the first time you pay late, but after that, a fee of up to $41 applies.
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 headaches and money if things go awry on the road.
Discover it Cash Back Fees and Other Costs
Discover typically offers low fees with its credit card and banking products, and there's no exception here. The Discover it Cash Back doesn't have an annual fee or foreign transaction fees, and most other charges are easy to avoid. As with all credit cards, if you pay off your balance in full by the due date, you won't owe any interest.
When you sign up for a new account, you'll get a 0% intro APR for 15 months on purchases and balance transfers, then a 17.24% - 28.24% Variable APR. Other fees include:
- Balance transfer fee
- Cash advance fee
- Late payment fee
- Returned payment fee
How the Discover it Cash Back Compares
Discover it Cash Back vs the Discover it Chrome Card
Another popular option from the same issuer is the Discover it® Chrome. Like the Discover it® Cash Back, it has no annual fee and Disover will match your cash back earned after your first account year. The biggest difference is how the card earns rewards: The Discover it® Chrome earns 2% cash back on gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on everything else.
Like the Discover it® Cash Back, the bonus categories on the Discover it® Chrome are capped, and the quarterly cap is slightly lower ($1,000 vs $1,500). But if you consistently spend money on gas and restaurants, the Discover it® Chrome could be a better option, because the bonus category changes each quarter on the Discover it® Cash Back, and it may not always line up with your spending habits.
Discover it Cash Back vs the Chase Freedom Flex
The Chase Freedom Flex℠ is similar to the Discover it® Cash Back in a few key ways: It has 5% bonus categories that change each quarter (with the same $1,500 cap) and has no annual fee. However, Chase doesn't offer a cash back match after your first account year like Discover does, and the cards have different bonus categories and welcome bonuses. Read our Chase Freedom Flex review for more details.
Discover it Cash Back vs the Citi Custom Cash
Like the Discover it® Cash Back, the Citi Custom Cash℠ Card has no annual fee and earns up to 5% cash back, but the structure for earning maximum rewards is a bit different. The bonus categories don't change each quarter; instead, you'll earn 5% back on your top eligible spending category each billing cycle from the following categories: restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. You'll earn 5% cash back on your top eligible spending category on up to $500 spent each billing cycle, which translates to up to $1,500 spent each quarter. Read our Citi Custom Cash Review for more info.
Discover it Cash Back Frequently Asked Questions (FAQ)
The Discover it® Cash Back card is a good choice for those with a credit score in the good to excellent range, which means a FICO score of at least 670, or a VantageScore of at least 700.
If you're not quite there yet, there are other Discover cards you may qualify for. The Discover it® Secured Credit Card, for example, is geared to folks who are new to credit or rebuilding credit. And the Discover it® Student Cash Back is an excellent option for college students who don't have a long credit history.
When you open an eligible new Discover card, you'll be able to take advantage of Discover Cashback Match (called Unlimited Bonus with the Discover it® Miles). Discover will match all the rewards you earned after the first 12 months with no caps, including your bonus category earning.
For instance, if you earned $400 in rewards in the first year of having the Discover it® Cash Back, Discover would match that for a total of $800 back in the first 12 months.
With the Discover it® Cash Back, there is a limit on cash back, but only on the 5% quarterly bonus categories. Each quarter, you'll earn 5% cash back on purchases in the designated bonus categories, but only on up to $1,500 in spending. After that, you'll earn 1% cash back on purchases in the bonus category. For all other purchases, you'll earn an unlimited 1% cash back.
The Discover it® Cash Back is a good card if you prefer earning cash back rewards instead of travel points, and if you don't want to pay an annual fee. It could also be a good pick if the quarterly bonus categories match up with your spending. Those who want extra benefits like annual travel credits will want to look at other, more premium rewards credit cards.
To earn 5% cash back on the Discover it® Cash Back, you'll need to make purchases within the card's current quarterly bonus categories using your card. You'll also need to activate the bonus categories online each quarter to be eligible to earn 5% cash back. This allows you to earn 5% back on up to $1,500 spent in the bonus categories each quarter (after hitting the $1,500 mark, you'll earn 1% back on those purchases).
Discover says you should receive cash-back rewards in your account within two billing periods of making the relevant purchases.
Why Trust Us: How We Reviewed the Discover it Cash Back Card
Personal Finance Insider considered the following factors when evaluating the Discover it® Cash Back: annual fee, welcome bonus (in this case, none), rewards, benefits, and how it stacks up to similar credit cards. For more details, read our full methodology for rating credit cards.
When considering whether or not Discover is right for you, consider its additional product lines:
- Discover Personal Loan Review
- Discover Student Loan Review
- Discover Bank Review
- Discover Savings Account Review
- Discover CD Rates
- Discover Home Loan Review
For rates and fees of Discover it® Cash Back, please click here.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
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