This card has a lot to offer students, but it’s rare to find a student card that comes with a sign-up bonus, especially one this valuable. Plus, students will continue to benefit from its ongoing value after the first year.
Rewards: Boosted cash back can put more in your pocket
A student card that offers this kind of elevated bonus rate is hard to find. Similar cards may offer a flat rate at lower value, but each quarter offers a mix of categories that you are sure to use. Even if you earn on just one of the categories each quarter, like restaurants for one quarter and gas on the next, the 5 percent cash back can add up to significant earnings when you activate.
Just remember that the 5 percent cash back rate has a $1,500 quarterly spending cap before it drops to 1 percent. Students who spend less than $500 a month on the bonus categories should have no problem staying within the spending cap to reap the great cash back rewards.
Here’s a look at the Discover earning categories for 2023. You can check out past earning categories to get an idea of what kind of revolving categories have been available with this card over time.
Q1: January to March |
- Grocery stores
- Drug stores
- Select streaming services
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Q2: April to June |
- Restaurants
- Wholesale clubs
|
Q3: July to September |
- Gas stations
- Digital wallets
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Q4: October to December |
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Welcome offer: Cash back match increases earnings value for the first year
Discover matches all the cash back you earn at the end of your first year with the card; there's no minimum spending or maximum rewards. This welcome offer differs from the typical sign-up bonus that has a spending requirement within a set time frame. Instead, this type of welcome offer allows students to focus on building credit instead of overspending for a bonus since there isn’t a limited-time spending requirement.
Cash back matching is a great incentive because many starter cards simply don’t carry welcome offers. In fact, if you spend more than $4,000 by the end of your first year across your rotating categories, you’ll earn $200 in cash back, plus another $200 with the Cashback Match™ offer. This is double the welcome offer of cards with the highest sign-up bonuses available for students.
Intro APR offer: A go-to for emergency spending
You get a fantastic chance to water down any interest you might accumulate in the case of an emergency, thanks to the card’s intro purchase APR offer. While it is best to pay off your balance in full each month to avoid credit card debt and maintain a positive credit history, the intro APR for new purchases might be what you need if your circumstances have suddenly changed or for an urgent large purchase. And if this isn't your first credit card, then the Discover it® Student Cash Back card offers an intro balance transfer APR that can help you manage any previous debt too.
Rates and fees: Lower fees can help build credit and manage your budget
The Discover it® Student Cash Back card has the potential to be a low-cost alternative to other credit-building options for students, such as credit-builder loans and secured credit cards. And the card gives you a safety net while you’re learning the credit card ropes — features like no penalty APRs or a late payment fee waiver the first time you pay late (then up to $41) puts this card ahead of the pack.
No annual fee means you don't have to stress about offsetting the cost every year, and if you study abroad, the card's no foreign transaction fees can come in handy.
Even after each intro period for balance transfers and purchases ends, your ongoing variable APR could be below the current average interest rate based on your creditworthiness. But its high-end APR is also lower than most cards of this type. This is a big plus, considering starter cards are notorious for their high interest rates.