Discover it® Cash Back review: Maximum value for strategic spenders
If you don’t mind rotating categories, this is one of the best no-annual-fee cards for low fees, cash back, first-year value and customer service.
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
Snapshot
4.4
Bottom line
Cardholders who don’t mind strategizing to maximize their rewards will find the Discover it® Cash Back one of the best no-annual-fee credit cards for low rates and fees, cash back, first-year offers and excellent customer service.
Intro offer
Cashback Match
Rewards rate
1% - 5%
Annual fee
$0
Regular APR
18.49% - 27.49% Variable APR *Rates as of December 12, 2024.
4.2
Cardholder rating
Extra perks
Meets needs
Online tools
Customer service
4.4
Bankrate score
Rewards value
APR
Rewards flexibility
Features
Remove a card to add another to compare
Remove a card to add another to compare
Discover it® Cash Back overview
The Discover it® Cash Back offers one of the highest quarterly rewards rates for various everyday expenses. But to maximize your earnings, you must activate your categories and track your spending to adapt to Discover’s quarterly bonus categories. This extra effort could make Discover’s Cashback Match® the most valuable first-year offer available for a personal cash back card.
Although the Discover it® Cash Back is an excellent tool for earning cash back, you’re subject to Discover’s rotating category calendar and spending limits for the elevated rewards rate. If a quarter’s category isn’t useful for you, you may have trouble maximizing your rewards for that quarter. And if there’s a category that aligns particularly well with your spending habits, you can only push that value so far before you’re capped. You should consider another no-annual-fee credit card if you don’t like the extra legwork it takes to maximize rotating categories.
The combination of a strong cash back rate, a potentially high Cashback Match, limited fees and a solid intro APR period solidifies the Discover it® Cash Back as an excellent all-around credit card.
-
Rewards
- 5 percent cash back after activation on rotating categories each quarter (up to $1,500 in purchases, then 1 percent)
- 1 percent for all other purchases
Expert Appraisal: Good
See our expert analysis -
Welcome offer
- Automatic Cashback Match: All cash back earned at the end of the first year is matched.
Expert Appraisal: Exceptional
See our expert analysis -
0% APR offer
- 0 percent intro APR on purchases for 15 months
- 0 percent intro APR on balance transfers for 15 months
- 18.49% - 27.49% Variable APR *Rates as of December 12, 2024.
Expert Appraisal: Good
See our expert analysis -
Rates and fees
- No annual fee
- No foreign transaction fee
- No fee for the first late payment (then up to $41)
- No penalty APR
- 3 percent intro balance transfer fee, 5 percent fee on future balance transfers (see terms)*
- Cash advance fee of either $10 or 5 percent of each cash advance, whichever is greater
Expert Appraisal: Good
See our expert analysis -
Other cardholder perks
- Acclaimed, U.S.-based 24/7 customer service
- Free FICO score access
- Free credit monitoring service and alerts
- Freeze it® card locking in the mobile app
- $0 fraud liability
Expert Appraisal: Typical
See our expert analysis
Discover it® Cash Back pros and cons
Pros
-
The rotating categories offer some of the highest rewards on a no-annual-fee card.
-
This card has some of the lowest rates and fees available for a credit card.
-
The Cashback Match program may be the strongest welcome offer among no-annual-fee cash back cards since it matches an unlimited amount of cash back earned at the end of your first year.
Cons
-
The card’s bonus categories may not be useful if your spending doesn’t align with the categories for that quarter, which Discover typically announces approximately one month in advance.
-
Bonus category spending for the maximum reward rate is capped at $1,500 per quarter, which may not be enough if you have a bigger budget.
-
The rotating category rewards program requires quarterly activation and may be too complicated if you’re a first-time rewards cardholder.
Why you might want the Discover it® Cash Back
The Discover it® Cash Back isn’t the only rotating rewards card with a high cash back rate, but it stands out thanks to its unique first-year offer and low fees.
Rewards rate: Stellar cash back for savvy spenders
Earning cash back with the Discover it® Cash Back card requires some effort, as you need to keep track of the rotating bonus categories and enroll each quarter. However, the bonus cash can be quite rewarding. Although Discover no longer releases the calendar for the entire year, the categories often align with seasonal expenses and include at least one everyday category. You can take advantage of higher rates when these categories surface in Discover’s calendar.
You can redeem your Discover rewards for cash back as a direct deposit to your selected account or as a statement credit to your card balance. You can also redeem your rewards for gift cards or charitable donations to select charities. All reward redemption options carry a 1:1 rate, which is rare for non-cash redemption. Discover’s partner gift cards also sweeten the deal by occasionally adding 5 to 20 percent value to the gift card balance, depending on the merchant.
Welcome offer: Potentially best in class
The Discover it® Cash Back welcome offer stands out from the typical sign-up bonuses offered by other cards: Discover’s Cashback Match program takes the total amount of cash back you accumulate at the end of your first year and matches it with a lump-sum payment to your account. This means the more you use your card, the bigger your bonus. Maximizing your bonus categories’ $1,500 spending cap each quarter after activation will result in $600 in cash back total by the end of your first year — $300 from spending and another $300 from Cashback Match. That’s a reward potentially well above the usual welcome offer on other no-annual-fee cash back cards.
Rates and fees: Some of the lowest on the market
Only a few credit cards can match Discover’s rates and fees. There’s no annual fee, no penalty APR for late payments and no penalty fee for your first late payment (up to $41 after). Even the ongoing variable APR could be well below the average current interest rate, making this a potentially great low-interest card.
0% intro APR offer: Solid intro APRs make it a well-rounded card
The Discover it® Cash Back offers new account holders a 0 percent intro APR on purchases and qualifying balance transfers for the first 15 months (then 18.49% - 27.49% Variable APR *Rates as of December 12, 2024.) This offer is one of the longest intro APRs on both purchases and balance transfers with a rewards card. The typical intro balance transfer fee is 3 percent and 5 percent on future balance transfers (see terms).
Intro APR offers are always a valuable feature of reward cards, as they provide flexibility in saving interest on new purchases or helping you consolidate and pay down existing credit card debt. Unlike some cards offering an intro APR, the Discover it® Cash Back continues to deliver value well after the intro period ends.
Why you might want a different cash back card
Although the Discover it® Cash Back is a rewarding credit card, its rotating category program may not fit everyone’s spending habits. Other cards may be more suitable for your everyday spending or offer different features that add more value.
Rotating categories: Not suitable for everyone
The 5 percent cash back rotating categories require activation and have a $1,500 combined purchase limit each quarter before your cash back rate drops to 1 percent back on all purchases. You may need to adjust your shopping habits to maximize your cash back. These factors could make this card too high maintenance, especially if you’re a first-time cardholder who wants to start with a simpler rewards experience.
There’s also no guarantee which categories Discover will prioritize in any given quarter or whether they’ll align with your spending. If you’re stuck with incompatible categories for three months, the card loses value, regardless of the high earning rates.
Bankrate Insight
The Discover it® Cash Back used to have a leg up over its rival, the Chase Freedom Flex, since Discover previously announced the entire next year’s quarterly categories in advance. This was incredibly helpful for planning your rewards strategy. However, Discover now announces its categories only a month or so ahead of time.
Perks: Few benefits beyond rewards and limited fees
The Discover it® Cash Back's benefits are light beyond its cash back and minimal fees. You’ll have basic perks like $0 fraud liability for unauthorized purchases, free FICO score access, Social Security number protection after activation and the ability to freeze your card at any time, which can be helpful if your card is lost or stolen.
The only remarkable benefit is Discover’s acclaimed customer service, which consistently ranks at or near the top in J.D. Power’s credit card customer satisfaction surveys. But if you’re not concerned with customer service or won’t run into the fees that Discover waives, you may find the perks on competing cards more appealing.
First-year value vs. ongoing value
The Discover it® Cash Back is a frontrunner for first-year value with no annual fee, thanks to Discover’s Cashback Match offer. During your first year, this feature could make the Discover it® Cash Back card a significantly more valuable option than competing cards, depending on how much you spend.
You can earn 5 percent cash back on up to $6,000 in spending per year (up to $1,500 in rotating category purchases each quarter when you activate the bonus category, then 1 percent). Here's a look at the value you can expect if you're able to max out your cash back in the card's rotating categories, taking into consideration the card's first-year offer.
| Benefits and costs | First-year value | Ongoing value (no welcome offers) |
|---|---|---|
| Yearly rewards* | +$465 | +$465 (may change depending on announced quarterly categories and your personal spending) |
| Welcome offers | +$465 (matches first-year rewards) | — |
| Perks (of monetary value) | N/A | N/A |
| Annual fee | $0 | $0 |
| Total value | $930 | $465 |
*Based on our formula used to calculate each card’s average rewards rates and average ongoing rewards value, using Bureau of Labor Statistics spending data and an assumed $22,500 yearly spend over three years ($1,875 per month).
*Discover it® Cash Back offers 5 percent cash back on everyday purchases at different places each quarter, enrollment required (on up to $1,500 maximum, 1 percent thereafter). Earn unlimited 1 percent cash back on all other purchases. Discover will automatically match all the cash back you've earned at the end of your first year with no maximum.
We tried it: Here’s what our experts say
Bankrate credit cards writer Ryan Flanigan takes full advantage of the bonus categories on his Discover it® Cash Back.
I max out the bonus categories every quarter on this card. They’re always in categories that I can spend in for reasonable amounts that don’t feel forced. I like that I can redeem cash back for merchant gift cards to add extra value to my earnings.
And the first-year value is unrivaled. I could maximize all the quarterly bonus categories for at least $300 back, plus another $300 from Discover matching my cash back at the end of my first year with the card. Then, every year after, I can get another $300 if I max out all the rotating categories.
— Ryan Flanigan, Writer, Credit Cards
How the Discover it® Cash Back compares to other cash back cards
The Discover it® Cash Back is one of the best rotating category cards thanks to its low-cost terms, but you may earn more rewards and enjoy richer card features by selecting another card.
Annual fee
Intro offer
Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Rewards rate
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Chase Freedom Flex®
Annual fee
Intro offer
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
Rewards rate
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!. 5% cash back on travel purchased through Chase Travel℠. 3% cash back on dining and drugstores. 1% cash back on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Best cards to pair with the Discover it® Cash Back
Stacking different cards is a great way to ensure you earn the most rewards. While the Discover it® Cash Back earns a fantastic rate on its quarterly categories, there are better options for purchases outside its seasonal categories.
Who is the Discover it® Cash Back right for?
If you fall into any of these cardholder profiles, Discover’s flagship credit card can be a great addition to your wallet.
Bankrate’s Take — Is the Discover it® Cash Back worth it?
The Discover it® Cash Back is a great match if you don’t mind adjusting your spending habits to take full advantage of Discover’s cash back calendar each quarter. Its high-earning rewards scheme maximizes Discover’s unique welcome offer, making it one of the best sign-up bonuses for a no-annual-fee card. The Discover it® Cash Back also carries perhaps the lowest rates and fees available from a major issuer, and it’s accessible with a good or higher credit score (670+ FICO score).
Although light on features, the Discover it® Cash Back’s focus on accessibility, affordability and excellent customer service makes it a great rewards card for those willing to invest a little effort to make it shine.
**The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
How we rated this card
We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.
Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).
We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review:
Frequently asked questions
What cardholders think
Discover it® Cash Back
In May 2024, Bankrate collaborated with third-party SliceMR to survey 6160 cardholders nationwide. Bankrate and Slice MR collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are based on individual cardholder’s product details, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. User ratings are unedited and have not been reviewed or approved by credit card issuers, nor do these ratings reflect Bankrate’s own reviews of these cards.
Community Reviews
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
