How Does the Discover it® Cash Back Credit Card Work

The Discover it® Cash Back credit card is designed to offer a flexible cash-back experience with rotating categories and additional perks. Here’s how the card works:

1. Application Process: Applying for the Discover it® Cash Back card is straightforward and can be done online, over the phone, or through a Discover branch. Approval is based on factors such as your credit score, income, and overall creditworthiness. The card is generally available to individuals with good to excellent credit.
2. Activate Rotating Categories: Each quarter, Discover announces new rotating categories where you can earn 5% cash back. To take advantage of these categories, you need to activate them each quarter. Activation is simple and can be done through your online account or the Discover mobile app.
3. Earn 5% Cash Back in Rotating Categories: Once activated, you’ll earn 5% cash back on up to $1,500 in purchases within the rotating categories. This allows you to maximize your rewards in categories that align with your spending patterns.
4. Earn 1% Cash Back on Other Purchases: For all purchases outside of the rotating categories, you’ll earn 1% cash back. This ensures you continue to earn rewards on all your spending, even if it’s not in a bonus category.
5. Receive the Dollar-for-Dollar Match: During your first year as a cardholder, Discover will match all the cash back you earn, dollar-for-dollar. This provides an additional reward and enhances the overall value of the card.
6. Redeem Your Cash Back: Cash back earned with the Discover it® Cash Back card can be redeemed in several ways, including as a statement credit, direct deposit, gift cards, or for purchases at Amazon.com. The flexibility of redemption options allows you to use your rewards in a way that best suits your needs.
7. Take Advantage of Additional Benefits: Use your Discover it® Cash Back card to access Discover Deals for extra cash-back opportunities, monitor your credit score for free, and enjoy fraud protection and alerts to keep your account secure.

Benefits of Using the Discover it® Cash Back Credit Card

The Discover it® Cash Back credit card offers several benefits that make it an appealing option for cash-back enthusiasts:

• High Cash Back Rates on Rotating Categories: The 5% cash back on rotating categories allows you to earn high rewards on specific types of purchases each quarter. This feature helps you maximize your cash-back earnings in categories that match your spending habits.
• Dollar-for-Dollar Cash Back Match: The dollar-for-dollar match of all cash back earned in your first year provides a significant boost to your rewards. This unique benefit enhances the overall value of the card and rewards your loyalty.
• No Annual Fee: With no annual fee, the Discover it® Cash Back card is a cost-effective option for earning cash back. You can enjoy the benefits of the card without worrying about ongoing costs.
• 0% Introductory APR: The 0% introductory APR on purchases and balance transfers for 15 months is a valuable feature for those looking to finance large purchases or consolidate existing credit card debt without incurring interest.
• Flexible Redemption Options: The card offers various redemption options for your cash back, including statement credits, direct deposits, gift cards, and purchases at Amazon.com. This flexibility allows you to use your rewards in a way that best suits your needs.
• Access to Discover Deals: Discover Deals provides additional cash-back opportunities at participating retailers, helping you maximize your rewards on everyday purchases.
• Free Credit Score Monitoring: The card provides access to your FICO® Credit Score for free, allowing you to stay informed about your credit health and track your progress over time.

Potential Drawbacks of the Discover it® Cash Back Credit Card

While the Discover it® Cash Back card offers many benefits, there are some potential drawbacks to consider:

• Rotating Categories Require Activation: The need to activate rotating categories each quarter may be seen as a drawback for some users. If you forget to activate the categories, you won’t earn the 5% cash back rate for that quarter.
• Cap on 5% Cash Back: The 5% cash back is limited to the first $1,500 in purchases within the rotating categories each quarter. If you exceed this amount, you’ll earn 1% cash back on the remaining purchases in that category.
• Foreign Transaction Fees: The Discover it® Cash Back card charges a foreign transaction fee of 3% of each transaction. If you frequently travel abroad or make purchases in foreign currencies, this fee may be a consideration.

Who Should Consider the Discover it® Cash Back Credit Card?

The Discover it® Cash Back credit card is a good option for several types of individuals:

• Those Who Enjoy Rotating Categories: If you’re willing to track and activate rotating categories each quarter, the card’s 5% cash back on select categories can be highly rewarding. This feature allows you to earn significant cash back on categories that align with your spending habits.
• New Cardholders Seeking a Cash-Back Match: The dollar-for-dollar match of all cash back earned in your first year is an attractive incentive for new cardholders. This benefit provides a substantial boost to your cash-back earnings and enhances the overall value of the card.
• Individuals Looking for a 0% Introductory APR: If you need to finance a large purchase or consolidate existing credit card debt, the 0% introductory APR on purchases and balance transfers for 15 months is a valuable feature.
• People Who Prefer Flexible Redemption Options: The variety of redemption options for cash back, including statement credits, direct deposits, gift cards, and Amazon.com purchases, makes the Discover it® Cash Back card a flexible choice for using your rewards.
• Those Interested in Free Credit Score Monitoring: The access to free FICO® Credit