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Discover it Two Card Review: 5% Rewards Card and Balance Transfer Card
Posted on Aug 7, 2012
Updated on Oct 1, 2024
Discover offers two great cash back credit cards to consumers with good to excellent credit history: the Discover it® Cash Back and Discover it® Chrome. While both Discover cards offer cash back rewards, they pursue different objectives. Still, cards do have similar features: they come with cash back rewards, welcome bonus offer, promotional introductory rates and no annual fees. Let's dig into the cards' features and benefits below.
Discover Cards at a Glance
Here are some highlights of the two Discover it credit cards. The Discover it® Cash Back card can be a perfect cash back card for everyday expenses if you do not mind keeping track of 5% bonus categories that change every quarter and require activation (quarter spending cap of $1,500 applies). This card may become your primary card or play the main part in your multicard rewards strategy.
The Discover it® Chrome card is a great choice for those who want to pay off their debt and keep the card after that. The card's reward structure will be great for those who want to earn back on purchases at gas stations and restaurants and do not want to track changing categories. The card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Other purchases will always earn 1% cash back.
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Intro APR on Purchases
0% Intro APR (15 months)
Intro APR on Balance Transfer
0% Intro APR (15 months)
Regular APR
18.49% - 27.49% Variable APR
Balance Transfer Fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Annual Fee
$0
- 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.
- 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.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get a 0% intro APR for 15 months on purchases. Then 18.49% to 27.49% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
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Intro APR on Purchases
0% Intro APR (6 months)
Intro APR on Balance Transfer
0% Intro APR (18 months)
Regular APR
18.49% - 27.49% Variable APR
Balance Transfer Fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Annual Fee
$0
- 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.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Get a 0% intro APR for 18 months on balance transfers. Then 18.49% to 27.49% Standard Variable APR applies, based on credit worthiness.
- Redeem your rewards for cash at any time.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee.
- Terms and conditions apply.
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New Cardmembers Bonus
Discover offers a unique welcome offer to new cardmembers - Unlimited Cashback Match™ (only from Discover). It doesn't matter which of the two cards you get, all the cash back you've earned the first year of your card membership will be matched at the end of your first year. There is no limit to how much you can earn and no purchase minimums.
You simply use your the Discover it® Cash Back card or the Discover it® Chrome card to pay whenever you shop and earn cash back. Then, in 12 months, you get all your cash back matched. For example, if you earn $150 cash back, it will turn into $300. That's it, no minimum spending requirements or redemption restrictions!
5% Cashback Bonus® VS 2% Cashback Bonus®
The Discover it® Cash Back allows earning unlimited 1% cash back rewards on all purchases. However, you can earn increased 5% cash back on everyday purchases made in quarterly categories like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.
The categories change four times a year (every quarter) and you will need to activate those categories each time a new quarter starts. Discover usually allows activation far in advance and it is open until the end of the current quarter, so you don't have to wait for a specific date. If you miss the beginning of the quarter, you can simply log in to your Discover account and activate the current category to start earning 5% cash back.
The quarter cap is up to $1,500 in purchases, that means you can earn up to $75 cash back in bonus categories each quarter. When you reach the cap, you will continue earning 1% cash back in those categories. All other purchases will bring you unlimited 1% cash back without expirations.
The Discover it® Chrome's rewards structure is much simpler and does not require any activation. You simply earn 2% cash back at gas stations and restaurants (including restaurant delivery services). However, there is a quarter limit to how much you can earn: you can earn on up to $1,000 spent in combined purchases each quarter. When you reach the quarterly limit, you will continue earning 1% cash back at restaurants and gas stations until a new quarter starts. Plus, all other purchases will always earn 1% cash back.
Redeem Cash Back & Enjoy Rewards
The cash back you've earned with your Discover card can be redeemed for any amount, at any time in various ways. Here are your redemption options below:
- Gift cards and eCertificates: Discover offers gift cards from more than 150 top brands starting at $5.
- Statement credits: earned cash back can be used as a statement credit to cover your Discover card balance.
- Cash deposit: If you prefer pure cash, you can deposit cash back directly into your bank account.
- Pay with rewards: Discover allows using cash back instantly at Amazon checkout or pay with PayPal.
With most redemption options above, you won't lose in value. Even if you redeem as cash, the redemption will be at 1:1 ratio. The best thing about Discover credit cards is that there's no minimum threshold for cash back redemptions. You can redeem as little as 1 cent.
0% Promotional APRs
The Discover it® Cash Back and the Discover it® Chrome credit cards come with 0% intro APRs on purchases and balance transfers. However, the length of the zero introductory periods is different on both cards. Thus, if you want to transfer some balance to your new Discover credit card, the Discover it® Chrome card may be a better fit as it comes with 18 months of 0% intro APR on balance transfers (18.49% - 27.49% Variable APR applies after that, plus there is a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*).
However, if you need a credit card to pay for a big purchase, the Discover it® Cash Back with 15 months of 0% intro APR on purchases will be a better option. Just keep in mind that when the promotional rate is over, 18.49% - 27.49% Variable APR will apply.
Cards' Value
Discover loaded their Discover it cards with features that a rare credit card issuer will dare to combine. Since Discover cards are for people with excellent credit history or close to excellent credit, Discover challenged to mix everything they could. Discover took $0 annual fee, added $0 late fee on the first late payment, $0 foreign transaction fee, sweetened it with no APR increase for late payments, and topped it with a $0 overlimit fee.
Discover Benefits
Discover gathered main and most important benefits consumers would want to get with their credit card. See what benefits you can have with your Discover card below.
PROTECTION BENEFITS
Cardmembers are protected from identity fraud as Discover monitors credit cards and accounts for any fraudulent activity. Plus, you're never responsible for unauthorized purchases made on your Discover card. If you activate free Social Security number alerts, you will get alerted if your SSN is found on any of Dark Web sites. When your card is lost or stolen, you can Freeze it® to quickly prevent new purchases, cash advances or other transactions.
SHOPPING BENEFITS
If you go on a shopping spree and accidentally exceed the card limit, you won't be charged a penny as there's no overlimit fee. Those who like shopping abroad, will pay no foreign transaction fees on purchases outside the U.S. For those who often withdraw cash, Discover allows getting cash at checkout at participating retailers at a standard purchase APR. You can also enjoy the convenience of contactless payments by using your contactless Discover card or adding your card to a digital wallet.
FREE FICO CREDIT SCORE
Discover makes it easy to track your financing and monitor your credit rating. You will receive your FICO credit score on your monthly statements based on data from TransUnion®. You can also set up account alerts to receive notifications when a purchase is made or when a payment is due. If there's something out of the ordinary, you will be able to act fast or alter your credit behavior if you see your score going downward. If your credit score is stable or goes upwards, stick to your current credit management.
Considerations
The two Discover cards are rather similar, but they are aimed for different purposes. One is perfect for balance transfers and another is good for big purchases. The annual fee is removed from both cards. The first late payment won't drive sky-high your introductory APR and you won't be charged a penalty fee. Always generous cash back rewards from Discover will help you save more on your purchases. And if you need some assistance, a real person will kindly explain to you everything any time you want.
