Discover IT Credit Card – Why It May Be Worth It

The Discover ITis a newly revamped cash back credit card issued by Discover Bank. It offers 5% cash back in rotating categories and 1% cash back on all other purchases.

Benefits:

  • No Annual fee
  • No foreign transaction fees.

If you travel overseas every so often and don’t want to pay the 3% forex fee other credit cards charge – The Discover IT is for you. It can lay around until you are ready to travel without charging any fees.

  • 0% Intro APR for 14 months on purchases and balance transfers

If you are looking to make a balance transfer the Discover IT comes with a 0% APR for the first 14 months

  • 1% Cash back on all purchases

The cash back can be redeemed in the form of a statement credit, direct deposit to your bank account, gift cards or you can shop at Aamzon and pay with your points.

Though, unlike credit cards like the Starwood American Express, Chase Sapphire or the *Chase Freedom etc; the Discover IT points cannot be transferred to Airlines or Hotels so the points are only (generally) worth a fixed 1% cash back. I Write “generally” because Discover does have some promotions where when you redeem the points for certain gift cards they’ll double the value. *The points from the Chase Freedom on it’s own also cannot be transferred to Airlines or Hotels unless you have the Chase Sapphire or Chase INK credit cards.

  • 5% cash back in rotating categories – up to $1,500 spend
  • 5-20% extra thru ShopDiscover shopping portal

This is where the real benefit of Discover IT card lies. 5% cash back is nothing to sneeze at, although it’s not on all the spend, you can use the card specifically on those categories and use your other credit card such as the Chase Sapphire etc; for all the other spend. Also you can get some nice cash back value from the ShopDiscover Portal.

  • No penalty APR

This is a nice extra benefit, If you accidentally miss a payment, discover won’t jack up your APR to something exorbitant like other credit company’s do.

Cons:

  • No sign-up bonus

Unlike other credit cards the Discover IT does not offer a sign-up bonus.

Bottom line – This card is good for

1. If you travel overseas every so often

2. Are looking to pay off your debt with a 0% APR.

3. For the 5% cash back and ShopDiscover

If you are planning on only having 1 or 2 credit cards it may be more worth it to go for the Chase Freedom or Starwood Amex etc; If you can handle more than 1-2 credit cards, this card will make a nice addition to your wallet.

Leave a Comment