Best way to use the card
While this card is geared for rewards mainly, it also has an attractive balance transfer offer. You get 0% APR on balance transfers along with a balance transfer fee equal to 3% of the amount of each transfer for a 14-month period. All together is accompanied with standard Discover terms such as no late fee for the first late payment and no penalty APR increase ever.
Actually, the Discover it® Card has two promotional 14-month offers with 0% APR on both purchases and balance transfers. However, the introductory period for purchases starts from account opening and the introductory period for balance transfers starts from the first balance transfer. This difference may bring you into trouble because of the Discover payment allocation policy.
For example, there is a gap when the intro period for purchases has already ended and the intro period for balance transfers still lasts. Within this gap your payments will first go to a balance with zero APR, and only the amount exceeding your monthly minimum payment will go to your purchase balance with a regular APR. This may result in insufficient repaying of a more expensive balance, and therefore, in accruing more interest. Also carrying a balance after balance transfers will lead to no grace period for new purchases.
So if you want to save on interest, avoid using the card for both balance transfers and purchases, especially, when their APRs differ.
As any other rewards credit card, the Discover it® Card is accessible to those with an excellent credit score only. Your credit limit and rates depend on your creditworthiness, information provided in your application and consumer report.
Costs and rewards
The card has no annual fee, no foreign transaction fee, no overlimit fee and rather tolerant attitude to late payments.
As it follows from the card name, it is made for earning cashback. Making purchases with the Discover it® Card, you earn 5% cash back in quarterly rotating categories and 1% on any other purchases. However, you have to sign up for each quarterly rewards program individually.
The best part is that you can redeem your rewards in cash back in any amount and at any time. Once earned, your rewards never expire.
One more promotional offer from Discover is available to new cardmembers. After 12 billing cycles, Discover may match your cash back and post it to your account. However, the offer is unavailable if your account is closed or no longer participates in the rewards program.
The bottom lineThe card has no annual fee, a little tolerance to late payments and an attractive 14-month long balance transfer offer with zero APR. An equal promotional period of zero APR on purchases makes it possible to you to earn rewards while paying down your debt without pitfalls (just mind the gap when APRs differ).
If you are looking for an opportunity to save on interest while paying down your debt and earn rewards at the same time, then the Discover it® Card is your option.