Discover it Student Cash Back Credit Card Review 2024
An ideal starter credit card offering generous cash-back rewards, zero annual fees, and useful student-friendly perks.
The Discover it Student Cash Back Credit Card simplifies this journey by offering robust rewards and practical features tailored to students.
What is the Discover it Student Cash Back Credit Card?
The Discover it Student Cash Back Credit Card is designed specifically for college students. It offers no annual fee, competitive cash-back rewards, and unique perks aimed at helping students build their credit responsibly. Here’s a detailed look at what this card offers:
Key Features
- Annual Fee: $0
- Rewards Rate: 1% – 5% cash back
- Intro Offer: Unlimited Cashback Match™ at the end of your first year
- Intro APR: 0% on purchases for 6 months and 10.99% on balance transfers for 6 months
- Regular APR: 18.24% – 27.24% Variable
- Foreign Transaction Fee: None
- Recommended Credit Score: 630-689 (Fair)
Rewards Program
The Discover it Student Cash Back Credit Card stands out with its rotating 5% cash-back categories, which change every three months and can be activated for up to $1,500 in spending per quarter. Additionally, you earn 1% cash back on all other purchases.
Current Bonus Categories for 2024:
| Quarter | Categories |
|---|---|
| Q1 | Restaurants, Drugstores |
| Q2 | Gas Stations, EV Charging Stations, Home Improvement Stores, Public Transit |
| Q3 | Grocery Stores, Walmart |
| Q4 | TBD (In 2023: Amazon, Target) |
Intro Offer: Cashback Match™
New cardholders benefit from Discover’s Cashback Match™ program, which matches all the cash back you earn in your first year. This means if you earn $100 in cash back, Discover will double it to $200.
Benefits and Perks
Student-Friendly Features
Credit Building Tools: Discover reports your payments to the three major credit bureaus (TransUnion, Equifax, and Experian), helping you build a solid credit history. Additionally, you get access to your FICO score for free, enabling you to track your credit progress.
No Annual Fee: With no annual fee, students can enjoy all the benefits without worrying about an extra cost.
First Late Payment Forgiveness: If you miss a payment, Discover will waive the fee for the first time, a rare and valuable feature for those new to managing credit.
Social Security Number Alerts: Free alerts if your Social Security number is found on the dark web.
Comparison with Other Student Cards
| Feature | Discover it Student Cash Back | Discover it Student Chrome | Discover it Secured Credit Card |
|---|---|---|---|
| Annual Fee | $0 | $0 | $0 |
| Intro APR | 0% for 6 months | 0% for 6 months | 10.99% for 6 months |
| Regular APR | 18.24%-27.24% Variable | 18.24%-27.24% Variable | 28.24% Variable |
| Rewards | 1%-5% cash back | 2% at gas stations & restaurants | 2% at gas stations & restaurants |
| Recommended Credit Score | 630-689 (Fair) | 630-689 (Fair) | 300-629 (Poor) |
Pros and Cons
Pros:
- No Annual Fee: Cost-effective for students.
- High Rewards Potential: 5% cash back in rotating categories.
- Intro APR Period: 0% APR on purchases for the first 6 months.
- Credit-Building Tools: Access to free FICO scores and reports to credit bureaus.
- Forgiveness for First Late Payment: Helpful for credit newbies.
Cons:
- Rotating Categories: Managing and activating categories every quarter can be cumbersome.
- Limited Acceptance Abroad: Discover is not as widely accepted internationally as Visa or Mastercard.
- Variable APR: Can be high after the introductory period ends.
Detailed Review
Rewards and Benefits Analysis
The Discover it Student Cash Back Credit Card offers an impressive rewards program for a student card. The rotating 5% cash-back categories encourage spending in essential areas such as groceries and gas, making it easy for students to maximize their rewards.
For those who might not spend heavily, the Cashback Match™ offer effectively doubles your earnings at the end of the first year, providing substantial value without a spending threshold.
Drawbacks and Considerations
One of the main challenges with this card is the need to manage rotating bonus categories, which might not be ideal for everyone. If you prefer a simpler rewards structure, you might consider other student credit cards with fixed reward rates.
Another consideration is Discover’s limited acceptance abroad. While there are no foreign transaction fees, it’s important to have a backup card when traveling internationally.
How To Decide If It’s Right For You
The ideal starter credit card should help you build credit at minimal cost. The Discover it Student Cash Back does that and more with its annual fee of $0 and rich rewards. For students who can benefit from its rotating bonus categories, it’s a good fit.
Frequently Asked Questions (FAQ)
What are the main features of the Discover it Student Cash Back Credit Card?
The card offers no annual fee, 5% cash back in rotating categories, 1% cash back on all other purchases, a Cashback Match™ intro offer, and a 0% intro APR on purchases for 6 months.
Can I qualify for this card with no credit history?
Yes, the Discover it Student Cash Back Credit Card does not require a prior credit history, making it accessible for students new to credit.
What happens to my card after I graduate?
Upon notifying Discover of your graduation, the “student” designation is removed from your card account. You retain the same card and rewards, but as a Discover it Cash Back cardholder.
Are there any fees associated with this card?
There is no annual fee, and the first late payment fee is waived. However, there is a variable APR of 18.24% – 27.24% after the introductory period.
Is this card widely accepted abroad?
Discover is less accepted internationally compared to Visa and Mastercard. It’s advisable to have an alternative card for foreign travel.
The Bottom Line
The Discover it Student Cash Back Credit Card is a robust choice for students looking to build their credit while earning significant rewards. Its combination of no annual fee, high cash-back potential, and student-friendly perks make it a standout option. While there are some limitations, such as the rotating bonus categories and limited international acceptance, the overall benefits outweigh these drawbacks for many students.
For more information and to apply, visit Discover’s website or call 800-347-0264.
