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In the credit card industry, change tends to happen slowly. Occasionally, a new product is introduced with great fanfare, while old products are quietly removed from a bank’s lineup. Yet the Discover card took industry observers by surprise just after the new year. When the Discover It card was launched, the company announced they would not be accepting new applications for any of their existing cards. The “It” card is most similar to their More card, but with some key enhancements.
- Earn cash back. Cardholders earn 1 cent per dollar spent on all purchases with this card, or 5 cents per dollar at categories of merchants that change each quarter. There is a $1,500 limit per quarter on purchases that are eligible for the 5 percent rate.
- Low fees. There are no annual fees, foreign transaction fees, or over-the-limit fees with the “It” card. In addition, Discover will automatically waive the late fee on your first late payment.
- U.S.-based customer service. The Discover card enjoys a good reputation for customer service and it promises 100 percent of “It” card customers will receive service from a domestic call center.
- Promotional financing. This is the rare reward card that also offers 0 percent APR financing on new purchases and balance transfers. The financing terms are valid for 14 months, and there is a 3 percent balance transfer fee.
- No sign-up bonus. Many competing reward cards offer $100 cash back or more as a sign-up bonus. There is no sign-up bonus for this card at this time.
- Limited acceptance. As a Discover card, it is not as widely accepted as Visa, MasterCard, or even American Express. This is especially true outside of the United States.
- Limits on bonus cash back. Even if you reach the maximum of $1,500 in eligible spending each quarter, that only equals $300 in cash back per year. Other cards feature fixed bonus categories of spending with much higher limits or no limits at all.
Get it if: You are a Discover card loyalist and want maximum rewards with minimal fees.
Forget it if: You are looking for a nice sign-up bonus.
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