When paying with PayPal, up to the quarterly limit when the Credit Card is activated. Get cash back bonus of 1% on all other types of transactions. Being organized enough to take advantage of Discover's range of rotating categories is the first step in getting the most out of this card. In addition, there is no annual fee, and the introductory period on purchases and balance transfers is a reasonable 0%.
Pros
Outstanding Cash Back Rewards
When paying with PayPal, up to the quarterly limit when the card is activated. There aren't many cards that provide such a substantial cash back rewards rate, even if it is just on certain categories that change periodically. Nevertheless, the categories are often rather wide, making it simple to benefit from them. On all other transactions, you get a cashback percentage that is quite normal, which is 1%.
Cash Back for Your First Year
You do not need to register to be eligible for the bonus, and there is no upper limit to the amount of money you may earn via using it. This benefit might result in a significant increase in your yearly benefits during your first year of membership, particularly if you can spend the most possible in the various categories that change every three months. Decent 0% APR Introductory Offer on Purchases and Balance for the First Three Months.
Cons
High-Rate Categories Must Be Activated:
To qualify for the 5% rewards offered by this card, you will need to activate the rotating categories every quarter. Even though the issuer makes it reasonably easy to do so via its website, mobile app, or phone, it is still a job that you may forget or be too busy to complete. If you fail to activate the bonus, you will only receive 1% on purchases, which also applies to purchases made in bonus categories.
Relatively Few Benefits:
The Discover it Cash Back card offers a limited number of bonuses in addition to its rewards. It's possible that other cards, even those that don't charge an annual fee, might come with various valuable perks, such as extended warranty coverage, travel expenses insurance, and rental car coverage. You might also consider carrying a second card if you make certain transactions that need these or other additional items.
This Card is Best For
The Discover It Cashback card may be highly rewarding if you are ready to put in some work to obtain top rewards. For example, you will need to watch your purchases and register for those that provide 5% cash back. The first year you hold the card, you are eligible for a hefty cash-back match that makes the card an even better investment.
It's also a smart move to do if you have some significant costs coming up shortly. Because the introductory APR on purchases is 0% for the first 15 months, you may carry substantial costs without incurring any interest for more than a year. In addition, you can receive up to 10% cash back on these expenses thanks to the first-year rewards match.
Rewards Earning Details
When you activate this card, you will get a 5% cash back bonus on qualifying daily purchases made at various locations throughout the quarter, up to the maximum quarterly amount. You will get 1% cash back on purchases you make outside the bonus categories that are not included in that category. With Cashback Match, you will get an unrestricted dollar-for-dollar match after your first year on all of the cash back you have earned. This will take place automatically.
How to Maximize Your Rewards
Being organized enough to take advantage of Discover's range of rotating categories is the first step in getting the most out of this card. Put reminders in your calendar to activate the rotating category a few days before the start of each new quarter, and then utilize the card appropriately.
Average Case
This scenario makes use of one of Discover's four quarterly bonus areas for 2022, which are, in turn, grocery, gas stations + Target, restaurants, and Amazon.com. It also assumes that your spending is comparable to that of a typical family in these categories. Even though the issuer makes it reasonably easy to do so via its website, mobile app, or phone, it is still a job that you may forget or be too busy to complete. The Bureau of Labor Statistics estimates that you would spend around $1,235.50 on groceries every three months, $392 on petrol, $593.75 at restaurants, and $358.50 on clothing.
