Is the Discover it Cash Back worth it?

Earning rewards with the Discover it® Cash Back never gets old, because the card’s bonus categories differ from one quarter to the next. This cash back credit card offers 5 percent cash back on activated rotating categories each quarter (up to $1,500 in quarterly purchases, then 1 percent). Chances are you’ll find some upcoming categories that will mesh well with your spending habits.

That said, you’ll want to learn all you can about the rewards structure and other benefits before you decide if this cash back credit card is right for you.

When is the Discover it Cash Back worth it?

As the name suggests, the Discover it Cash Back’s highest-value perks center on cash rewards. However, this rewards credit card also offers some additional benefits.

Here’s a rundown of when the Discover it Cash Back is worth your consideration.

You want to earn 5 percent back in popular spending categories

The rotating cash back categories are where the Discover it Cash Back shines, and if you take full advantage of them, shopping with this card can be lucrative. Spending the total $1,500 each quarter in the activated bonus categories will net you $300 in cash back annually from the rotating categories alone.

That said, Discover no longer announces the reward categories ahead of time, so there’s no guarantee that the categories for the quarter will align with your spending at the time. Plus, you won’t earn heightened rewards in bonus categories with the Discover it Cash Back unless you activate this bonus feature on your card each quarter. Fortunately, you can easily activate your bonus categories on your credit card’s online account page.

Few cash back cards offer more than 5 percent back in so many broad categories, so the Discover it Cash Back’s bonus rewards are hard to beat.

You want flexibility when it comes to redemptions

Discover offers a variety of ways to redeem your cash back, which ensures you’ll never be “stuck” with rewards that are hard to use. You can get a statement credit, deposit the cash in a checking or savings account, spend it with a participating merchant or donate it to charity, and these rewards never expire.

You can also choose from electronic or physical gift cards, although you’ll need to meet a higher minimum redemption amount. The gift cards come in denominations of $5 or more but often cost less than their face value. Thus, your rewards will go even further if you redeem them for gift cards with Discover’s partner merchants.

You value a strong welcome offer

If you need more reasons to love this card, Discover will match the cash back rewards you earn at the end of your first year of using the card at a 1:1 rate, which is also known as Cashback Match. This applies to rewards processed during the first 12 billing periods or 365 days from account opening (whichever is longer), so be aware that purchases you make right before that first year is up may not qualify for the match if they aren’t processed in time.

This offer is more flexible than a typical credit card welcome offer and potentially more valuable. While several other cards, such as the Chase Sapphire Preferred® Card and the Bank of America® Customized Cash Rewards credit card, offer a set bonus when you meet a spending threshold within the first few months after account opening, the Discover’s card bonus varies in size depending on how much you use the card. And if you collect a lot of cash back during the first year, your bonus cash could be a sizable sum.

For example, if you meet the $1,500 maximum spend in each quarter’s rotating bonus category, plus charge $5,000 in other spending over the course of the year, you would earn $350 in cash back. Then, the Cashback Match welcome offer would earn you another $350 at the end of the year. Given that other no-annual-fee credit cards typically don’t offer more than $200 in sign-up bonuses, this works out to be a generous reward.

Keeping costs down is your priority

Another reason to consider the Discover it Cash Back is its lack of fees. This card charges no annual fee for starters, and it doesn’t charge foreign transaction fees if you use it for purchases in foreign currency, whether traveling abroad or shopping online with foreign merchants from your home.

As an added bonus, you’ll get a 0 percent intro APR on purchases and balance transfers for 15 months from account opening (followed by a 18.49% - 27.49% Variable APR *Rates as of December 12, 2024.). This benefit can be valuable and money-saving if you have a large purchase coming up that you want to pay down over time.

You like the card’s additional features

Discover offers a solid assortment of additional card features that can enhance the card’s value and boost overall security. If you opt-in, Discover will monitor your credit report and send you alerts if your Social Security number appears on a website that isn’t visible to search engines.

Discover also allows you to freeze your card so that new purchases, cash advances or balance transfers can’t post — although some charges (such as recurring payments and account fees) will still go through. If your card is lost or stolen, you aren’t on the hook for fraudulent charges thanks to Discover’s $0 fraud liability guarantee. And if you need a new card, Discover will send one overnight for you for free.

Finally, cardmembers also have access to 24/7 customer service by sending an online message or calling the 800 number. Additionally, Discover lets you customize your card’s appearance with one of 25 available designs. Read over the Discover it Cash Back card benefits guide to learn more about this card’s additional perks and features.

When is the Discover it Cash Back not worth it?

While the benefits listed above are valid reasons to sign up, there are still scenarios where the Discover it Cash Back may not be the best card for your needs.

You want to earn more than 1 percent back on regular spending

One of the biggest downsides of the Discover it Cash Back is that it only offers 1 percent back on regular, non-bonus spending. This can hold you back if you’re trying to maximize rewards on all your spending and bills, not just in categories that qualify for bonus rewards in any given quarter.

That said, many people pair this rewards credit card with another one that earns a higher rate on regular spending. For example, you could always pair it with the Wells Fargo Active Cash® Card in order to earn 2 percent back on purchases with no annual fee.

You want a card with travel perks

The Discover it Cash Back won’t meet your needs if you want robust travel protections. For perks like trip cancellation insurance and rental car collision coverage, you may want to pair it with a card like the Chase Freedom Flex®*, which also awards cash back in rotating categories but provides some travel benefits.

On the other hand, if you want luxury travel benefits like airport lounge access or annual travel credits, you may have to consider premium travel credit cards that charge annual fees.

Consolidating high-interest debt is your main objective

If you’re planning to transfer a balance, other cards will give you a longer introductory APR period. For example, the Wells Fargo Reflect® Card gives you a 0 percent intro APR on purchases and qualifying balance transfers for 21 months (followed by 17.49%, 23.99%, or 29.24% Variable APR). There’s no annual fee for this card, although only balance transfers made within 120 days of account opening qualify for the introductory rate. A 5 percent (minimum $5) balance transfer fee also applies.

Should you get the Discover it Cash Back?

The Discover it Cash Back will likely be worth it for people who can change their spending each quarter to maximize their bonus category earnings. Further, this card has no annual fee, so you don’t need to worry about the cost of membership outweighing the rewards.

That said, the Discover it Cash Back may not be the right fit for those who want a more simple reward experience. It requires activating the rotating categories each quarter, and if you forget to do this, you’ll miss out on the card’s most valuable rewards. By not announcing its categories in advance, it also makes it harder to maximize your earnings. While it’s relatively easy to activate the bonus categories online, on the mobile app or over the phone, it still takes some effort.

The bottom line

The Discover it Cash Back is best known for its rotating bonus categories and Cashback Match welcome offer. But if you’d prefer rewards that don’t change from season to season, you might be better served by a Discover card with stable bonus categories — such as the Discover it® Chrome. This card allows you to earn 2 percent back at gas stations and restaurants (on up to $1,000 in combined purchases per quarter, then 1 percent), as well as 1 percent back on all other spending. It also comes with the Cashback Match welcome offer.

*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.