Once a spin-off of a Sears retail credit card project, Discover has grown into a consumer lending powerhouse with hooks into the student loan and mortgage industries. With the Discover it® Student Cash Back card, the lender wants to prove that qualifying for a student credit card doesn't mean putting up with stripped-down features. It's part of a long term customer loyalty strategy that should force Discover's rival to take notice.
Among the best student credit cards for cash-back rewards, this card is best if you're establishing credit for the first time, but you don't want to pass up the kind of rewards usually offered to consumers with stronger credit histories. This student cash back credit card carries the same feature set as the regular Discover it® card, including:
Reinventing the student credit card with personal service
Before 2009's Credit CARD Act, most student credit cards attracted new customers by setting up shop at campus events and trading small tchotchkes for applications. At the risk of stereotyping college students, applicants rarely looked at APRs or rewards programs. Instead, the card with the best t-shirt, Frisbee, or spring break getaway coupon often ended up in a student's wallet.
Federal regulations gutted the market for bad student credit cards by restricting marketing practices on campus and by requiring adult cosigners for applicants under age 21 unless that person can show adequate independent income to support paying off a card. Most college students who carry credit cards now pack an additional card from a parent's rewards credit card account – usually with far better perks than the typical student credit card.
Discover it® Student Cash Back doesn't water down the cardholder experience, like many other student credit cards. By hosting all of its customer support teams at facilities inside the United States, Discover prevents a lot of the cultural and language disconnects that can frustrate first-time cardholders when account problems arise. In fact, Discover's call center agents have even been empowered to remove some service fees and renegotiate payment schedules while helping students learn to handle cash effectively.
How Discover it® Student Cash Back compares to other student credit cards
Discover's entry into the student loan servicing business gives their student credit card a distinct competitive advantage. The data Discover collects from student loan recipients and their institutions helps it make better offers to new cardholders.