Has Discover Discovered It?

Discover it 14 Month BT (RED)One of my first credit cards was a Discover Card.  I didn't realize it at the time, but I was likely approved for the card because Discover was in the infancy of trying to grow their acceptance with merchants and users.

Twenty years later things are much different. Discover is now accepted (at over 8 million merchants says Nielsen) just as much as Visa/MasterCard, and their cards (now card) is on par with the major bank cards.  For the last several years I've viewed the Discover More card as the not-quite-equal twin of the Chase Freedom card (the one I use for daily spending).

Again, things have changed. Discover is scraping their Discover More card, and other cards, replacing them with just one card, the Discover it card. Which is looking like a card on-par or surpassing the best offer from Chase.

You've no doubt seen the advertising for the new Discover it® Card. I happen to think customer service is the last of my concerns when it comes to credit cards, but apparently some people are on the phone with their card issuer a lot.  I can certainly attest to, in-general, liking a U.S. based customer service call vs international. However, what I'd rather focus on is how Discover has improved their cash back rewards offering with this new card.

First, the card will have the familiar 5% cash back on quarterly rotating categories. These 5% rewards are capped at different levels each quarter. The categories are as follows:

  • January through March (Up to $1,500 in gas and ground transportation)
  • April through June (Up to $1,500 in food and fun)
  • July through September (Up to $1,500 in summer spruce up and more)
  • October through December (Up to $1,500 in holiday shopping and more)

The card also comes with 1% unlimited cash back on all other spending. This is the major difference between the Discover More card and the new program under the Discover it card. If you remember, the Discover More card, you had to spend a minimum amount of money ($3,000) before the 1% would kick in. Now there is no waiting. The first dollar you spend on the Discover it card earns a minimum of 1% cash back.

Beyond those basics (that make it one of the best reward cards today), the Discover it® Card is coming with some extra features:

  • 0% intro APR on purchases & balance transfers for 14 months—then a variable purchase APR applies, currently 10.99% – 22.99%. A 3% fee applies to each transferred balance.
  • Over 6,000 cardmembers rated 4.8 out of 5 stars* and J.D. Power awarded Discover “Highest in Customer Satisfaction with Credit Card Companies. Tied in 2014.”+
  • 5% Cashback Bonus for gas and ground transportation on up to $1500 in purchases from Jan. through Mar. 2015 after you sign up for 5% Cashback Bonus. 1% cash back on all other purchases.
  • Free FICO® Credit Score on monthly statements, online and in our mobile app.*
  • No annual fee, no late fee for your first late payment, APR won't go up for paying late, no overlimit fee and no foreign transaction fee.*
  • Each Discover purchase is monitored. If it's unusual, you're alerted by e-mail, phone or text-and never responsible for unauthorized Discover card purchases.
  • 100% U.S.- based customer service— day or night.
  • *See rates, rewards, free FICO® Credit Score terms and other info by clicking “Apply.”

I like the late fee forgiveness feature as we all slip up occasionally. I also really like that they are eliminating the foreign transaction fee. That's huge for those who need a card to carry while traveling.

In addition to these features, the card comes with a promotional 0% offer for 14 months on balance transfer and purchases (w/ a 3% balance transfer fee), then the variable purchase APR applies, currently 10.99% – 22.99%. The only thing that would have made this card better is an upfront cash bonus. But hey, you can't have everything.

Kudos to the team at Discover for rolling out the Discover it® Card. It's a much better offering than their previous line up, and should be viewed as a strong option (if not the best) for an everyday-spending-no-annual-fee-having-cash-back credit card.

Want My Free 31-Step Money Guide*?

Subscribe for free. Get my guide *31 Days to Improve Your Financial Life, welcome series, and regular Five Things digest. Join 30,000+ other followers.

Powered by ConvertKit


  1. I like that the 5% cash back bonus quarterly categories are on a different rotation from the Chase Freedom categories.  I carry both Discover and Chase in my wallet, along with a little cheat sheet of which card to use for which purchase.  🙂