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TABLE OF CONTENTS
Chase Freedom Unlimited®
- Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn unlimited 1.5% cash back on all purchases.
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.74-25.49%.
- 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
- No annual fee
- Free credit score, updated weekly with Credit Journey℠
- No minimum to redeem for cash back
- Cash Back rewards do not expire as long as your account is open
Blue Cash Preferred® Card from American Express
- Earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
- NEW 6% Cash Back on select U.S. streaming subscriptions.
- NEW 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 3% Cash Back at U.S. gas stations. 1% Cash Back on other purchases.
- Over 3 million more places in the U.S. started accepting American Express® Cards in 2017 and 2018.
- Low intro APR: 0% for 12 months on purchases and balance transfers, then a variable rate, currently 14.74% to 25.74%
- $95 annual fee.
- Terms Apply.
Best Credit Cards
What Discover says about this card
- INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
- Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
- Plus, earn unlimited 1% cash back on all other purchases - automatically.
- Redeem cash back any amount, any time. Rewards never expire.
- Use your rewards at Amazon.com checkout.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- No annual fee.
By Brooklyn Lowery Site Editor Updated Oct 20, 2019
DISCOVER IT® CASH BACK BONUS
When Discover it® Cash Back says it will match all the cash back accrued during your first year, it means it. Thanks to Discover's cash back offer, new cardholders could earn a staggering amount of cash back on purchases made within the rotating 5% cash-back categories in their first year (up to the quarterly maximum of $1,500 each time you activate). Think about it: $200 in cash back will automatically become $400.
Furthermore, Discover releases its full quarterly category list at the start of the year, making it easy for you to see whether the bonus categories will match your spending habits.
The Discover it® Cash Back match in bonus categories is in addition to the match Discover is offering for all the purchases you make in the first year in regular, non-bonus categories. With a bit of strategy and some regular credit card usage, you could reap some serious cash back, particularly during your first year.
In addition to the intro offer and with a fresh look and a focus on customer service, Discover it® Cash Back has redefined itself as a serious contender in the crowded cash-back credit card field (which the original Discover card invented in the 1980s). With no annual fee, no foreign transaction fees, and amnesty for many of the situations that cause most banks to hike their rates and fees, Discover it® Cash Back has the potential to set a new standard for American rewards credit cards.
CardRatings Editor's Analysis: Pros & Cons
- Earn up to 5% back in quarterly rotating categories (up to the quarterly maximum of $1,500 each time you activate) – restaurant and PayPal purchases from July-September 2019 – when combined with the first-year match makes for a substantial opportunity for cash back; it effectively amounts to up to 10% cash back in those bonus categories for your first year.
- Enjoy a long intro offer of 14 months 0% APR on balance transfers, then 13.74% - 24.74% Variable.
- There are no foreign transaction fees or over-the-limit fees, your first first late-payment fee is waived, there's no annual fee and Discover is known for its excellent customer service.
- The card features bonus 5% cash-back categories on a rotating basis (up to $1,500 spent and only when you activate), but if you know you spend a lot in a particular category, you might be better off with a card that features a constant higher cash-back percentage in that category. Or, if you know these are the best categories for you, but still want 5% back in rotating categories, see if Chase Freedom® would be a good fit for you.
DISCOVER IT® CASH BACK REWARDS
It's always nice to know that using your credit card is earning you rewards, and the Discover it® Cash Back earns you rewards every time you swipe – at least 1% on all your purchases.
When you sign up and spend in one of the rotating categories each quarter, however, you boost your earning to 5% back on those purchases up to $1,500 spent.
When the time comes, Discover it® Cash Back then offers easy redemption of your cash-back rewards. You can use your points as credit toward Amazon.com purchases or to request immediate credit card statement credit through Discover's website, among several other options.
Additionally, if you're the type who wants maximum rewards and is willing to think through the strategy a bit, Discover it® Cash Back pairs well in your wallet with a flat-rate, no annual fee credit card like Chase Freedom Unlimited®. How does it pair well? Here's the deal:
- Use your Discover it® Cash Back card to earn 5% cash back on all your purchases in the bonus categories each quarter (up to the quarterly maximum of $1,500 each time you active).
- Use your Chase Freedom Unlimited® card to earn 1.5% back on every purchase – it's automatic. That's at least a half-percent more than you'd earn using Discover it® Cash Back.
- Remember that Discover it® Cash Back matches all your cash back in the first year; that means you'll want to employ a strategy like that mentioned in the bullets above AFTER your first year of card membership. That's because the match effectively means you can earn at least 2% back on your purchases (and up to 10% back when you're talking about the bonus categories) with your Discover card for that first year.
DISCOVER IT® CASH BACK CALENDAR
To maximize your Discover it® Cash Back rewards you need to opt in to quarterly bonus categories. Once you've opted in, you'll receive an automatic 5% cashback bonus on up to $1,500 in purchases made for that category.
The cashback calendar is subject to change next year, but for 2019, Discover is offering Discover it® Cash Back cardholders a 5% cashback bonus in the following categories:
- January-March: Grocery stores (excluding Walmart and Target)
- April-June: Gas stations, Uber and Lyft
- July-September: Restaurants and PayPal
- October-December: Amazon.com, Target and Walmart.com
To opt into the bonus categories, you simply need to log into your Discover account, visit the cashback calendar page and click "activate" on each category.
Top Features
| Cash Back on Gas | Cash Back on Groceries | Cash Back on Other |
| 1-5% | 1-5% | 1-5% |
POTENTIAL DOWNSIDES OF THE DISCOVER IT® CASH BACK CARD
As is the case with any rotating categories cash-back card, you have to be willing to use a bit of strategy if you want to realize the full potential rewards of this card. If you're not someone who wants to keep up with using your card in the quarterly bonus categories, you'd likely earn more rewards with a flat-rate credit card like the Capital One® Quicksilver® Cash Rewards Credit Card that offers a flat 1.5% back on all your purchases. Or, if you're wanting a little strategy, but not one that changes quarterly, you might consider a tiered cash-back rewards card like the Blue Cash Preferred® Card from American Express which offers 6% back on up to $6,000 in purchases at U.S. supermarkets (then 1%) and on select U.S. streaming subscriptions; 3% back at U.S. gas stations and on transit; and 1% on everything else. (American Express is a CardRatings advertiser.)
HOW DISCOVER IT® CASH BACK COMPARES TO OTHER CREDIT CARDS
Chase Freedom® vs. Chase Freedom®
Discover it® Cash Back offers a nearly identical rewards structure to that of its closest competitor, the Chase Freedom® card. Neither has an annual fee, so it could be a good strategy to carry both cards and cash in on the two sets of rotating bonus categories when you sign up each quarter. Bargain hunters could maximize their 5% rewards on both cards with just a little extra strategic planning. Chase, though, has not historically announced its full year of rotating categories up front, so you'll have to rely on historical categories to make a decision about this one.
Chase Freedom® offers its rewards in the form of Chase Ultimate Rewards® points, which are transferable among different Chase products. If you already have a Chase Ultimate Rewards®-earning card in your wallet, like Chase Sapphire Preferred® Card or Chase Freedom Unlimited®, for instance, it could pay to stick within the Chase family.
Chase Freedom® vs. Citi® Double Cash Card - 18 month BT offer
If you are interested in a card that has a stellar intro balance transfer offer, both the Discover it® Cash Back and Citi® Double Cash Card - 18 month BT offer deserve your consideration. The Citi® Double Cash Card - 18 month BT offer gets the edge in this category with an introductory 0% balance transfer APR for the first 18 months (then 15.74%– 25.74% (Variable)), but the Discover it® Cash Back card still offers a stellar intro 0% balance transfer APR for 14 months (then 13.74% - 24.74% Variable).
The Discover it® Cash Back card is offering an introductory bonus where all cash back earned during the first year will be matched, dollar-for-dollar, by Discover. Combined with the quarterly bonus categories of 5% on up to $1,500 in purchases in rotating quarterly bonus categories, it effectively amounts to up to 10% cash back in bonus categories for your first year. Compared to the Citi card that earns 1% cash back when you make purchases and 1% when you pay at least the minimum balance due on time, the Discover it® Cash Back has a substantial edge in cash back earning potential, especially during your first year as a cardholder.
Discover it® Cash Back vs. Discover it® Student Cash Back
With no annual fee, no foreign transaction fees, and cash back earned on every purchase both the Discover it® Cash Back and Discover it® Student Cash Back cards are great options for rewards credit cards. Both cards earn cash back on rotating quarterly categories offering up to 5% back on purchases (up to the quarterly maximum each time you activate) and 1% earned on all other purchases. The similarities don’t stop there with both cards offering an introductory bonus where all cash back earned during the first year will be matched, dollar-for-dollar, by Discover. That means $200 in cash back is actually $400 in cash back after your first year.
The Discover it® Student Cash Back is geared toward students looking to build their credit and student specific perks including a $20 statement credit each school year your GPA is 3.0 or higher for up to five years. The Discover it® Cash Back card is for individuals with more established credit and includes unique perks like a long intro offer of 14 months 0% APR on balance transfers, then 13.74% - 24.74% Variable.
IS DISCOVER IT® CASH BACK A GOOD CREDIT CARD?
Discover it® Cash Back is a solid choice for anyone who is willing to take a few minutes each quarter to sign up for the bonus categories and then spend strategically within those categories to maximize their rewards. With no annual fee, no foreign transaction fee and that awesome first-year cash back match offer, it's a fantastic card for even the occasional credit card user.
Lastly, to add some fun to the decision-making surrounding a new credit card, Discover it® Cash Back gives cardholders the option to select their favorite card design from an array of eye-catching colors. Royal purple? Chocolate brown? Striking silver? In other words, this card can fit both your financial and personal style.
To see the rates and fees for the Blue Cash Preferred® Card from American Express, please visit the following link: See Rates and Fees
