This review comes from Logan Abbott, editor of the credit cards section of MyRatePlan.com.
At the beginning of 2013, Discover discontinued all of its credit cards, and introduced the new Discover it line.
- Earn cash back on every purchase. Cardholders earn 5 percent cash back on rotating categories throughout the year. Now through the end of March, the 5 percent cash back categories are restaurants and movie theaters. Cardholders earn 1 percent cash back on all other purchases throughout the year.
- No fees. With the Discover it for Students Card, cardholders don’t pay annual fees, over-limit fees, foreign transaction fees, or pay-by-phone fees. Discover also will not increase your APR for the first late payment.
- Cashback Concierge. The Discover it for Students Card offers a feature called the Cashback Concierge, which provides free, customized online tours to help cardholders get the most rewards from their cards.
- 0 percent intro APR period on purchases. Cardholders receive a 0 percent introductory APR on purchases for a period of six months after receiving their card. Not a lot of student credit cards offer a 0 percent introductory APR. After six months, the APR is 12.99-18.99 percent, based on credit quality.
- 24/7 domestic customer service. Discover offers 24/7 U.S.-based customer service to all Discover it for Students cardholders.
- Flexible. The Discover it for Students credit card offers cardholders the ability to choose their own payment due date for their card, and allows them until midnight on the day of their due date to make the payment.
- Safe. Cardholders can rest easy knowing they have a $0 Fraud Liability Guarantee through Discover that ensures they will never have to pay for unauthorized purchases.
- Limits on cash back bonuses. While the Discover it for Students Card offers 5 percent cash back on certain rotating categories, the 5 percent cash back is limited to $1,500 in purchases per quarter. That means the most you can get from earning 5 percent cash back is $75 per quarter, $300 per year.
- Discover isn’t accepted everywhere. Discover cards are not accepted at nearly as many places as Visa or MasterCard. If you’re looking for your first credit card, the Discover it for Students Card may not be the best fit.
- Balance transfer terms aren’t favorable. If you’re looking for a credit card to use for transferring a balance, you should probably look elsewhere. While there’ s a 0 percent rate for six months on purchases, the intro rate for balance transfers is 10.99 percent – also for six months. Plus, you’ll pay a balance transfer fee of 3 percent.
Get it if: You’re a student interested in great cash back rewards, low fees, flexible terms, and if you don’t mind the limited acceptance of Discover cards.
Forget it if: You want to be able to use your card everywhere or transfer a balance.
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