Credit cards are an ideal way for someone to build their credit, particularly when they have poor credit ratings. They only need to focus on paying their due on time and avoiding all sorts of late payments regardless of the amount.
In the financial industry, plenty of credit cards are available to maintain a good credit score. A good or excellent credit rating means a person should have a credit score of 670 or above to qualify for prestigious credit cards.
Some people opt for secured credit cards to improve their credit score. These cards require a person to make a deposit which becomes the initial credit limit for that card. The greater the deposit, the higher the credit limit the person can enjoy. The deposit is necessary because it acts as collateral if the person defaults on a payment. The deposit is refundable once the person pays back the amount they owe to the card providers.
Discover offers a variety of credit cards for all types of people interested in owning a credit card. These credit cards offer various perks and features, making them attractive to consumers.
Most Discover credit cards have no annual fee, reducing the consumers’ expenses. Moreover, Discover consumers enjoy some perks of online protection against fraud due to lost or stolen cards. On top of that, Discover allows consumers to replace the card overnight if it gets stolen.
Discover cards are not known to offer a welcome bonus, but the company will match all the rewards a consumer has earned through their Cashback Match program. The company does not limit the total rewards a consumer can earn through credit cards.
At Discover, consumers who are active shoppers, frequent travelers, students, and business owners tend to own a credit card. The company is known to provide excellent customer service where the queries of the person get resolved promptly.
This article will include the pros and cons of owning a Discover credit card. Moreover, we will look into the different categories of people applying for and owning a Discover credit card. The guide will also list the factors a person should observe before selecting a Discover credit card. We will also discuss the best Discover credit cards in the banking industry. A FAQs section will be added to answer some general questions related to Discover credit cards.
Let us look into the benefits and drawbacks of Discover credit cards.
Pros and Cons of Discover Credit Cards
In this section, we will include the pros and cons of Discover credit cards. The pros will consist of the features the consumers enjoy by owning the card.
Pros of Discover Credit Cards
The following are the pros of Discover credit cards:
CashBack Match
Each consumer will earn specific rewards using the Discover credit card. Through the Cashback match feature, the company will match the rewards earned by the consumer at the end of the first year of using the card, which will multiply the reward earnings. This is a useful way to get additional rewards by using the card and earning rewards.
FICO Credit Score Updates
Another positive thing about Discover is that it works toward improving the credit score of its consumers. Discover reports all the consumer account updates to the major credit bureaus. This includes when the credit balance was paid off in full and the amount paid. Although the company is not liable for doing that, it helps consumers improve their overall credit rating.
Moreover, the Discover credit card consumers can keep an update on their FICO score for free by logging into their Discover credit card account.
No Redemption Minimum
Discover has not imposed limits on when the cardholders can redeem their points or rewards. If a consumer had $1 as a reward, it could be redeemed. Redeeming reward points can be adjusted to the credit card bill, or the consumer can add the rewards to their account. There are other ways of redeeming the reward points, like using it to purchase a product or service like staying in a hotel for vacation.
High Customer Satisfaction
Discover is known for having an excellent customer satisfaction rate among its consumers. The J.D Power recorded an impressing 837 out of 1000 points score for the company. The consumers are satisfied with the services in the customer support department.
Cons of Discover Credit Cards
The following are the cons of Discover credit cards:
Limited Travel Rewards
Consumer reviews suggest that despite the Discover travel card that offers 1.5x miles on every purchase, there are other options available in the industry that are far better than this company. These constant reviews show that the company has invested little time in providing competitive travel credit cards to consumers.
Earning Caps
All consumers of Discover are subjected to the earning cap where they can only get a 5% cashback by spending $1500 each quarter. Once that amount is reached, the cardholders will earn a 1% cashback. Hence, the earning cap has reduced the cashback rewards a person can earn by using the Discover credit card beyond the limit imposed by the company.
Lower Merchant Acceptance
Discover cards are not acceptable worldwide as only selective merchants accept them. Discover uses its networks of merchants, so not all the merchants are in business with the company. This reduces card usage by limiting the merchants that accept the payment from the Discover card.
No Consumer Flat-Rate Cards
One of the disadvantages of Discover cashback credit cards is that they do not offer a uniform rate for all the purchases made using the card. Hence, users who would like a rewards scheme to be constant cannot buy this specific cashback card as it does not come with a flat rate.
Let us look at those people that should get a Discover credit card.
Who Should Get a Discover Credit Card?
In this section, we will look at those people that must apply for a Discover credit card because of the various card offering. Since Discover has a wide variety of credit cards, each individual selects the card that fits their financial needs. Individuals should consider their earnings and spending before deciding on a credit card.
Such class of people would consist of the following:
College and University Students
Being a college or university student means they often have to travel for their classes or socialize with others. So it would be ideal if these students had a travel or cashback card to yield those rewards. With the student cashback and travel cards, students can travel and earn cashback on it. These cards do not have strict requirements, so most students can qualify for them.
Credit Builders
Every person who starts building their credit has to initiate that step from the bottom. This means that in the beginning, their credit rating will be poor. So using credit cards, they can better their credit score. And the ideal way to do that is to purchase one of the Discover credit cards and use it for its features but pay the bill on time. Paying dues timely will improve the credit rating of the person. So people needing improvement in credit scores should get a credit card and use it in a balanced way.
Cashback Strategists
Cashback strategists are those who are aware of the card’s features and perks, so they purchase it for the rewards it brings them. These rewards come in the form of earning cashback by maximizing their savings. So such people can use the Discover it credit card at gas stations, restaurants, supermarkets, and even at certain brands. The certain Discover credit card will yield positive results with the card delivering in terms of rewards maximization.
Before finalizing a Discover it credit card, let us consider the factors a person should consider.
How to Choose the Best Discover Credit Card?
In this section, we will cover the imperative factors a person should consider before purchasing a particular Discover credit card. Let’s get started!
Rewards
One of the most important features that anyone looks into before purchasing a credit card is the rewards that come with the card, allowing the users to earn cashback or loyalty points. Prospective consumers should know the company’s rewards scheme for a specific card and where and how those rewards can be claimed. For example, some Discover credit cards offer 1% cashback on every $1 purchase.
Perks and Benefits
Every card comes with a series of benefits that the person can cash into or take advantage of. These perks can include discounts on purchases from a certain store or brand or special warranties on the purchases made using the card. Moreover, these cards offer travel insurance to secure the goods and luggage the person carries from one place to another. Similarly, the cardholder will have access to financial management tools which is an additional benefit.
Annual Fee
The annual fee is an expense at the cardholder’s end, which is compulsory as it comprises the cost of using the credit card. Some cards have little or no annual fee, whereas others charge a high fee for the card. The high fee is directly related to the features and perks offered to the cardholder for the card. So the prospective cardholders need to evaluate the benefits they get from using a specific card against its cost and expense. However, Discover it credit cards are known to charge no annual fee.
Introductory Offers
The welcome offers consist of a signing bonus that the users can claim by spending a certain amount within a given time. For instance, some cards will offer a $2000 cashback by spending $20,000 in the first six months. These welcome offers tempt a person to apply for a particular credit card, but prospective consumers should consider all the cards before making a decision. However, the Discover it credit cards are not known to offer a welcome bonus.
Foreign Transaction Fee
As the name suggests, the foreign transaction fee is the amount the cardholder charges when the Discover consumer uses the card to make an international payment or transaction. While some cards do not charge any foreign transaction fee, others charge a specific fee that differs from one card to another. So the foreign transaction fee acts as interest for using the card to make the payment.
Best Discover Credit Cards
This section will discuss the company’s best Discover credit cards. All these cards are open to all consumers, including travelers, students, business people, etc. It is up to the prospective cardholders to select the card they want to purchase.
Let’s look into some of the best credit cards people use. They include the following:
Discover it Cash Back
Discover it Cash Back credit card is considered the best Overall Cash Back for its amazing cashback offers. The card offers a Cash Back Match Program that enables users to get double the amount of all their cash earned within the first year. It does not charge users any annual fee, late payment penalty, or foreign transaction fee.
For qualifying for the Discover it cashback credit card, users need to have a good credit score of 630 with a low variable APR of 12.74% to 23.74%. According to the J.D. Power credit card satisfaction survey track, Discover it cashback is among the best credit card issuers for customer service.
This Credit card offers a 5% cash back on each quarter of daily purchases from different places, including restaurants, grocery stores, gas stations, Amazon.com, and payments via a PayPal account. Also, it automatically offers a 1% cash back on all other purchases. Users can also maximize their cash back and plan future purchases by availing of Discover’s cash back calendar.
The features of Discover it Cash Back Credit Card are:
- Regular APR: 12.74% to 23.74% Variable
- Rewards rate: 1% to 5%
- Recommended Credit Score: 630 to 850
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction fee: None
- Late payment penalty: None
- Best for: Best Overall Cash Back Card
Pros include the following:
- It charges no annual fee, late payment penalty, or foreign transaction fees.
- The Cash Match program offers a welcome bonus, offering users double their cash for the first intro year.
- It is one of the best credit card issuers for customer service.
- It requires a good credit score of 630 to 850.
Cons include the following:
- The chance of hitting and missing the rewards is high as your spending can differ with its cycling categories.
- It does not offer any chance of transferring the rewards to other loyalty programs to get more reward value.
- Users must have a quarterly activation to get the rotating category rewards program.
Discover it Balance Transfer
Discover it Balance Transfer credit card is considered the best for a balance transfer. It charges no annual fee, late payment penalty, or foreign transaction fee. The card offers a welcome bonus with the Cash Back Match program, enabling users to earn double the cash earned in the first twelve months of the intro period.
For qualifying for the Discover it Balance Transfer credit card, users need to have a credit score of 630 to 850 with a regular variable APR of 12.74% to 23.74%. This credit card offers 5% cash back on daily purchases from places such as Restaurants, gas stations, grocery stores, Amazon.com, and payments via a PayPal account. Also, it automatically offers a 1 % cash back on all the other purchases.
The features of Discover it Balance Transfer Credit Card are:
- Regular APR: 12.74% to 23.74% Variable
- Rewards rate: 1% to 5%
- Recommended Credit Score: 630 to 850
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction fee: None
- Late Payment Penalty: None
- Best for: Balance Transfer
Pros include the following:
- It does not charge annual, foreign transaction fees or late payment penalties.
- It offers a welcome bonus with the Cash Back Match program that doubles the cash earned within the first twelve months.
- It requires a good credit score of 630.
Cons include the following:
- It offers Barebones features other than reward programs.
- Its required intro Purchase APR is short-term compared to other balance transfer cards.
Discover it Student Cash Back
Discover it Student Cash Back credit card is considered the best overall, Student Card offers students multiple amazing perks. It charges no annual, foreign transaction, or late payment fee. Its Welcome Bonus offer enables users to earn a double amount with the CashBack Match program on all the amount they earn within the first year.
For qualifying for the Discover it Student Cash Back credit card, users need to have a low credit score ranging from 630 to 689. This required credit score is the best choice for students to have Discover credit cards with many benefits and rewards.
This credit card offers a 5% cash back with each quarter spent on purchases from places such as grocery stores, restaurants, Amazon.com, gas stations, and payments via a PayPal account. Also, it automatically offers a 1% cash back on all other purchases.
The features of Discover it Student Cash Back Credit Card are:
- Regular APR: 13.74% to 22.74% Variable
- Rewards rate: 1% to 5%
- Recommended Credit Score: 630 to 689
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction fee: None
- Late Payment penalty: None
- Best for: Best Overall Student Card
Pros include the following:
- It offers no annual fee, late payment penalty, or foreign transaction fee.
- It requires a low credit score of 630.
- It offers a Welcome Bonus with a chance to double all cash amounts earned in the first twelve months.
Cons include the following:
- Students who are new cardholders can face difficulty with rotating categories.
- It does not offer any protection benefits for purchases and travel.
Discover it Miles
Discover it Miles is considered the best Discover Travel Card for its unlimited and flat rate miles, enabling travelers to make amazing flexible travel purchases. It offers a Welcome Bonus with the Discover Match program, providing users with double the amount of cash earned in the first twelve months. Users can redeem the spending for cash back with a mile rate of 1:1.
Users need a credit score ranging from 690 to 850 and a regular APR of 12.74% to 23.74% to qualify for the Discover it Miles Credit card. The card does not charge any fee, including origination, annual, foreign transaction, and late payment penalty.
This credit card offers 1.5x Miles on each dollar spent on purchases. Its redemption offers to include the reimbursement of self by using miles for travel purchases through statement credits. The J.D. Power Credit Card Satisfaction Survey rank Discover it Miles as one of the best travel cards for customer service.
The features of the Discover it Miles Credit card are:
- Regular APR: 12.74% to 23.74% Variable
- Rewards rate: 1.5x
- Recommended Credit Score: 690 to 850
- Welcome Bonus: Match program
- Annual fee: $0
- Foreign Transaction Fee: None
- Late Payment penalty: None
- Best for: Best Discover Travel Card
Pros include the following:
- It does not charge annual, foreign transaction fees or late payment penalties.
- Users can redeem their miles at the rate of 1:1 for cash back.
- It offers flexible redemption on travel purchases with unlimited and flat rate miles.
Cons include the following:
- It does not offer standard perks and benefits for travel.
- Users cannot use or transfer their reward miles for travel booking.
- Discover it Miles does not have many international partners than Mastercard and Visa cards.
Discover it chrome
Discover it chrome is considered the best credit card for gas station purchases. Its Welcome Bonus offer allows users to earn double the amount for all their cash back earned in the first twelve months. It offers no annual, foreign transaction, or late penalty fees.
To qualify for the Discover it chrome credit card, users need to have a credit score of 630 and a regular APR of 12.74% to 23.74% Variable. This credit card offers a 2% cash back on a combined purchase of more than $1,000 from restaurants and gas stations. Also, it automatically offers a 1% cash back on all other purchases.
The card offers several redeeming options, such as earning cash back as a direct deposit or statement credit, gift cards worth $5 to $200, payments at checkouts such as PayPal and Amazon.com, and donations to charities. Users have the opportunity not to lose their cash back even if they had not used them for a long time; their cashback will be added to their balance and never expire.
The features of Discover it chrome Credit Card are:
- Regular APR: 12.74% to 23.74%
- Rewards rate: 1% to 2%
- Recommended Credit Score: 630 to 850
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction Fee: None
- Late Payment Penalty: None
- Best for: Gas Purchases
Pros include the following:
- It does not charge annual, foreign transaction fees or late payment penalties.
- It offers a Welcome Bonus with a chance to double all cash amounts earned in the first twelve months.
- It requires a good credit score of 630.
Cons include the following:
- It does not offer more advantages to users than other credit card issuers.
- The 2% cash back reward offer is only eligible to combine purchases of gas stations and restaurant spending.
- Only with high credit can users have multiple credit benefits.
Discover it Student Chrome
Discover it Student chrome credit card is considered the best for student building credit. It offers decent reward offers for students to build good credit. It charges no annual fee, foreign transaction fee, and late payment penalty and also waives the first charges if you made a late payment. Its Welcome Bonus allows users to earn double their cashback for the first introductory year.
For qualifying for the Discover it Student chrome, users, especially students, must have a low credit score of 630 to 689 with a regular Variable APR of 13.74% to 22.74%. This credit card offers a 2% cash back on combined purchases of more than $1,000 from restaurants and gas stations. Also, it automatically offers a 1% cash back on all other purchases.
The redemption offers by Discover it Student chrome credit card includes gift cards, cash back payments, donations for charities, electronic deposits, and statement credit for the account. Moreover, the card offers users a “Freeze it” feature to protect purchases, balance transfers, and cash advances.
The features of Discover it Student Chrome Credit Card are:
- Regular APR: 13.74% to 22.74%
- Rewards rate: 1% to 2%
- Recommended Credit Score: 630 to 689
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction Fee:
- Late Payment Penalty:
- Best for: Students building credit
Pros include the following:
- It does not charge annual, foreign transaction fees or late payment penalties.
- It offers a Welcome Bonus with a chance to double all cash amounts earned in the first twelve months.
- Best for students to build good credit.
- It requires students to have a credit score of 630.
Cons include the following:
- The issuer is not recognizable by a vast number of international card partners.
- Compared to other student cards, it does not offer high rewards to students.
Discover it Secured Credit Card
Discover it Secured Credit card is considered the best credit card for building credit. It is the best choice for users with a limited or low credit score or history. Users can access many perks and rewards programs by qualifying for this card. It offers no annual fees, foreign transaction fees, and late payment penalties. Its Welcome Bonus offers users to earn double the amount on their cashback for the first introductory year.
The Discover it Secured card is the only secured card that offers rewards to its users. To qualify for the Discover, it Secured card, users must have a low credit score of 300 to 629 with a regular Variable APR of 23.74%. This credit card offers a 2% cash back on all combined purchases of more than $1,000 from restaurants and gas stations. Also, it automatically offers a 1% cash back on all other purchases.
The features of Discover it Secured Credit Card are:
- Regular APR: 23.74% Variable
- Rewards rate: 1% to 2%
- Recommended Credit Score: 300 to 629
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction Fee: None
- Late Payment Penalty: None
- Best for: Building Credit
Pros include the following:
- It does not charge annual, foreign transaction fees or late payment penalties.
- It offers a Welcome Bonus with a chance to double all cash amounts earned in the first twelve months.
- It requires a poor credit score of 300.
Cons include the following:
- It requires users to have a traditional bank account to qualify.
- Compared to other credit cards, it does not have high international recognition. Also, it is not accepted by some U.S Merchants and overseas.
- As it is a secured card, it requires a high APR. Users with high balances need to pay a high-interest rate.
NHL Discover it
NHL Discover it credit card is considered the best Card for Hockey Fans as they can represent the team logos of their favorite NHL team through NHL Discover it. It does not charge annual, foreign transaction fees or late payment penalties. It does not offer a Welcome Bonus offer, but users will have their cash amounts double within the first year.
For qualifying for the NHL Discover credit card, users need to have a credit score of 670 to 850 with a regular variable APR of 12.74% to 23.74%. The card offers a 5% cash back on all rotating categories with quarterly payments. Also, it automatically provides a 1% cash back on all other purchases.
The features of the NHL Discover it Credit Card are:
- Regular APR: 12.74% to 23.74% Variable
- Rewards rate: 1% to 5%
- Recommended Credit Score: 670 to 850
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction fee: None
- Late payment penalty: None
- Best for: Hockey Fans
Pros include the following:
- It offers amazing cashback offers with quarterly rotating categories.
- It offers no annual fee, late payment penalty, or foreign transaction fee.
- It requires a low credit score of 630.
- It offers double for all cash amounts earned in the first twelve months.
Cons include the following:
- It is similar to other Discover it credits cards; it only has an option of multiple designs.
- It has limited offers of high-rate rewards.
Discover it business
Discover it Business credit card is considered the Best Business card for its best flat cashback offers. It is the best choice for business owners and minimalists. It charges no annual fees and fees for late payment. But users have to pay a 3% charge for the late payment penalty. Its Welcome Bonus offer enables users to earn a double amount with the Cash Back Match program on all the amount they earn within the first year.
For qualifying for the Discover it Business credit card, users need to have a credit score ranging from 670 to 850. This credit score enables users to spend good value on their small businesses. This credit card offers a flat 1.5% cash back on each purchase. Also, it automatically offers a 1% cash back on all other purchases.
The features of Discover it Business Credit Card are:
- Regular APR: 12.99% to 20.99% Variable
- Rewards rate: 1% to 5%
- Recommended Credit Score: 670 to 850
- Welcome Bonus: Cash Back Match program
- Annual fee: $0
- Foreign Transaction fee: 3%
- Late payment penalty: None
- Best for: Best Business Card
Pros include the following:
- It offers flat cash back rewards
- It offers a welcome bonus offer.
- With its Cash Back Match program, users can have a double amount for their cash earned within the year.
Cons include the following:
- It offers a high balance transfer fee.
- It does not have high reward offers.
FAQs
Now that we have gone through the company’s different Discover credit cards let’s look at some of the questions people usually have about Discover it cards.
Which Is the Best Discover it Credit Card?
Best Discover Credit card choice varies with needs and credit card history. As Discover offers credit cards to people having all types of credit levels. The top Discover credit cards include Discover it Cash Back as an overall best cash back card, Discover it Balance as the best for a balance transfer, Discover it Student Cash Back as the best student card, and Discover it Miles as the best card for travelers.
Do I Need a Credit History to Apply for a Discover it Credit Card?
Discover provides flexible credit cards for students who do not have a credit history from traditional credit cards. Discover does not require users to have a limited credit card or credit history. But users have to give proof of a refundable security deposit that will be equivalent to the credit level.
What Credit Score Do You Need for a Discover It Credit Card?
Although Discover does not offer any required credit score for most of the cards, some Discover credit cards require a credit score of 640 or above. Only the Discover it Secured credit card qualifies users with a credit score of lower than 640.
What Is the Average Credit Limit on a Discover It Credit Card?
The starting credit limit of Discover it credit cards is $500. But the average cardholder of Discover’s credit card earns a credit limit of almost $3,000. Cardholders with higher limits can have more credibility with their high incomes.
Does Discover It Raise Credit Limits?
Discover offers an automatic upheaval of credit limits based on the account history and credit score. Users who miss their payments are more likely to have limited credit limits. On the other hand, users with on-time payments will automatically increase their credit limits.
What Is the Minimum Payment on a Discover It Credit Card?
The minimum payment amount on a Discover it credit card varies from Card to Card. For instance, the Discover it Secured Credit Card offers a minimum payment of $20 and $15 for previous due amounts or a 3% statement balance for previous due amounts. But on the contrary, if the payment amount is lower than $20, the Discover it Secured card will equal the payment to the balance.
Is Discover a Good Credit Card Company?
Yes, Discover is a good credit card company for many people as it offers credit cards of all levels. Moreover, according to the J.D, its customer service is among the best credit card issuers. Morgan Satisfaction Survey. All Discover credit cards do not have an annual fee.
Conclusion
In the first section, we discussed the benefits and drawbacks for anyone who is planning to own a Discover credit card. The section lists all the pros which cover the features the company offers, and the cons discuss the cost and expenses a person would need to endure to enjoy such luxuries. Through this article, anyone can get all the necessary information about Discover credit cards. This would be beneficial for beginners who do not have much information related to Discover credit cards.
In the next section, we covered the different classes of people that would make a perfect match with a Discover card. These people include college and university students, credit-builders, and cashback strategists. The section covers why these people would benefit the most from purchasing a Discover credit card.
Moreover, we discussed the steps a person should follow before purchasing a Discover credit card. These steps will serve as a reminder for people not familiar with how they should choose a card for themselves. Lastly, we discussed the best Discover credit cards that the company offers to all kinds of consumers. These cards are unique in their category and are labeled the best credit cards through reviews from existing and previous customers.
