How Does the Discover it® Student Cash Back Credit Card Work

Here’s a step-by-step look at how the Discover it® Student Cash Back credit card operates:

1. Application Process: Applying for the Discover it® Student Cash Back card is simple and can be done online, over the phone, or through a Discover branch. Approval depends on factors such as your credit history, income, and overall creditworthiness. The card is generally accessible to students with limited credit history.
2. Activate Rotating Categories: Discover updates rotating categories each quarter. To earn 5% cash back, you need to activate these categories. Activation can be done through your online account or the Discover mobile app.
3. Earn 5% Cash Back: Once the rotating categories are activated, you earn 5% cash back on up to $1,500 in purchases within those categories each quarter. This allows you to maximize your cash-back earnings based on your spending patterns.
4. Earn 1% Cash Back: For all other purchases, you earn 1% cash back. This ensures you continue to earn rewards on every dollar spent, even if it doesn’t fall within the bonus categories.
5. Benefit from 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 a significant boost to your rewards and enhances the overall value of the card.
6. Redeem Your Cash Back: Cash back can be redeemed in various 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 as you see fit.
7. Enjoy Additional Benefits: Utilize Discover Deals for extra cash-back opportunities, monitor your credit score for free, and take advantage of fraud protection and alerts to keep your account secure.

Benefits of Using the Discover it® Student Cash Back Credit Card

The Discover it® Student Cash Back credit card offers several benefits that make it an attractive choice for students:

• High Cash Back Rates: The 5% cash back on rotating categories provides an opportunity to earn substantial rewards on specific types of purchases each quarter. This feature helps you maximize your earnings based on your spending habits.
• Dollar-for-Dollar Cash Back Match: The dollar-for-dollar match of all cash back earned in your first year is a major benefit. This effectively doubles your rewards during the first year, offering a significant incentive for new cardholders.
• No Annual Fee: With no annual fee, the card is a cost-effective option for earning cash back. You can enjoy the benefits of the card without worrying about ongoing expenses.
• 0% Introductory APR: The 0% introductory APR on purchases and balance transfers for 6 months provides a valuable opportunity to manage expenses or consolidate existing credit card debt without incurring interest.
• Flexible Redemption Options: The variety of redemption options, including statement credits, direct deposits, gift cards, and Amazon.com purchases, allows you to use your rewards in the way that best suits your needs.
• Access to Discover Deals: Discover Deals offers additional cash-back opportunities at participating retailers, helping you maximize your rewards on everyday purchases.
• Free Credit Score Monitoring: The access to your FICO® Credit Score for free helps you stay informed about your credit health and track your progress over time.

Potential Drawbacks of the Discover it® Student Cash Back Credit Card

While the Discover it® Student Cash Back card offers numerous advantages, there are a few potential drawbacks to consider:

• Rotating Categories Require Activation: To earn the 5% cash back, you must activate the rotating categories each quarter. If you forget to activate them, you won’t receive the higher cash-back rate for that period.
• Cap on 5% Cash Back: The 5% cash back is limited to the first $1,500 in purchases within the rotating categories each quarter. Any spending beyond this limit will earn 1% cash back.
• Foreign Transaction Fees: The 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® Student Cash Back Credit Card?

The Discover it® Student Cash Back credit card is ideal for:

• Students Building Credit: If you’re a student looking to establish a positive credit history, this card provides an opportunity to earn rewards while managing your spending responsibly.
• Those Who Enjoy Rotating Categories: If you’re willing to track and activate rotating categories each quarter, the 5% cash back on select categories can be highly rewarding.
• New Cardholders Seeking a Cash-Back Match: The dollar-for-dollar cash back match in the first year is a compelling incentive for new cardholders, effectively doubling your rewards during this period.
• Individuals Looking for a 0% Introductory APR: If you need to manage expenses or consolidate debt, the 0% introductory APR on purchases and balance transfers for 6 months is a valuable feature.
• People Who Prefer Flexible Redemption Options: The variety of redemption options for cash back allows you to use your rewards in a way that best fits your needs.
• Those Interested in Free Credit Score Monitoring: The access to your FICO® Credit Score for free helps you stay informed about your credit health.

Conclusion

The Discover it® Student Cash Back credit card is a valuable tool for students looking to earn rewards while building their credit history. With its rotating 5% cash-back categories, dollar-for-dollar match of cash back earned in the first year, and various benefits, it offers a compelling combination of features and rewards. While there are some potential drawbacks, such as the need to activate rotating categories and foreign transaction fees, the card’s advantages make it a strong contender for students seeking a rewarding and cost-effective credit card option.