If you’re a student on the lookout for a credit card that offers enticing rewards without requiring an extensive credit history, the Discover it Student Cash Back might just be your ideal choice. This credit card boasts an impressive rewards program, low fees, and a unique cashback matching offer that sets it apart in the world of student credit cards.
Rewards That Set You Apart
The Discover it Student Cash Back card shines when it comes to rewards. It offers a cashback rate of up to 5 percent on rotating categories that change every quarter, and this bonus applies to the first $1,500 in combined purchases. Beyond that, you’ll still earn a respectable 1 percent cashback on all other purchases.
Exceptional Welcome Offer
Discover sweetens the deal with a generous welcome offer – they’ll match all the cashback you’ve earned at the end of your first year. This means there’s no minimum spending requirement, and no cap on your potential rewards. It’s a unique perk among student credit cards that lets you focus on building your credit without feeling pressured to overspend for a bonus.
Introductory APR for Financial Flexibility
For students facing unexpected expenses or large purchases, the Discover it® Student Cash Back card offers a valuable 0% intro purchase APR for six months from the account opening date. This feature can be a lifeline in emergencies and helps you avoid accumulating high-interest charges. Additionally, if you have existing credit card debt, the card provides a 10.99 percent intro balance transfer APR for six months from the date of your first qualifying balance transfer.
Wallet-Friendly Rates and Fees
Managing your budget is crucial when you’re just starting your credit journey, and this card helps you do just that. It boasts a $0 annual fee, and even if you’re late with your payment, you won’t face any penalty fees the first time around (subsequent late payments may incur a fee of up to $41). Furthermore, there’s no foreign transaction fee, making it an excellent companion if you plan to study abroad.
Additional Perks for Your Peace of Mind
The Discover it® Student Cash Back card goes the extra mile with features like online privacy protection, a “Freeze it®” on/off switch on the mobile app to safeguard against unauthorized purchases if your card is lost or stolen, and access to your FICO® Credit Score free for up to 12 months without impacting your score.
Pros and Cons at a Glance
Pros:
- Diverse bonus categories that allow you to earn higher-than-average cashback rates.
- Low rates and fees, making it cost-effective for students building their credit.
- Cashback Match™ offer adds substantial value during your first year.
Cons:
- Rotating bonus categories may require effort and attention, which could be challenging for students new to credit cards.
- Limited extra perks compared to some other cards.
- Requires a Social Security number for eligibility, potentially excluding international students.
Is the Discover it Student Cash Back Card Right for You?
This card packs a punch for students, offering rare benefits such as a valuable sign-up bonus and ongoing rewards that continue to impress after the first year.
Rewards That Boost Your Budget
Finding a student card with such an elevated bonus rate is a rarity. While other cards may offer a flat cashback rate, the Discover it® Student Cash Back card provides a mix of categories each quarter that you’re likely to use. Even if you only spend in one category per quarter, such as dining or gas, the 5 percent cashback can significantly boost your earnings when activated.
Just remember that the 5 percent cashback rate has a $1,500 quarterly spending limit, after which it reverts to 1 percent. However, for students spending less than $500 per month in the bonus categories, staying within the spending cap should be a breeze.
Welcome Offer That Maximizes Your Earnings
Discover’s cashback matching offer is a standout feature. Unlike traditional sign-up bonuses that come with spending requirements, this offer allows you to focus on building your credit without feeling pressured to spend excessively. If you spend over $4,000 across your rotating categories in your first year, you could earn $200 in cashback, plus another $200 with the Cashback Match™ offer – that’s double the welcome bonus of most student cards.
Introductory APR for Financial Flexibility
The introductory 0% purchase APR provides peace of mind for unexpected expenses or significant purchases. It’s a lifeline for students facing sudden changes in circumstances or requiring a large, urgent purchase. If you already have credit card debt, the intro balance transfer APR can help you manage it more effectively.
Wallet-Friendly Rates and Fees
The Discover it® Student Cash Back card is designed to be a cost-effective credit-building option for students. With no annual fee, no foreign transaction fees, and features like no penalty APRs, it’s a reliable choice for those starting their credit journey.
Even after the introductory periods for balance transfers and purchases expire, the ongoing variable APR could be lower than the average interest rate, depending on your creditworthiness. This is a significant advantage, considering that starter cards often come with high-interest rates.
When to Consider Other Student Cards
While the Discover it® Student Cash Back card offers attractive rewards and a generous welcome offer, it may not be the best fit for everyone.
Managing Rotating Bonus Categories
This card’s rotating bonus categories can be high-maintenance, especially for students with busy schedules. You’ll need to stay updated on Discover’s cashback calendar and remember to activate the categories each quarter. If this sounds like a hassle, the Discover it® Student Chrome card might be a more manageable option with its year-round bonus categories, albeit at a slightly lower reward rate.
Limited Extra Perks
While Discover excels in credit-building and card-protection features, it doesn’t offer many additional perks. If you’re looking for extended warranty coverage, statement credits, complimentary memberships, travel insurance, or roadside assistance, you might want to explore other cards with annual fees once you’ve graduated from student status.
READ ALSO: Best Rewards Credit Cards for 2023: Maximizing Benefits and Savings
The Discover it® Student Cash Back card is a compelling choice for students seeking substantial rewards, a valuable welcome offer, and wallet-friendly rates and fees. However, if you prefer a more straightforward rewards program or desire additional perks, you may want to consider other student card options that better align with your preferences and lifestyle.
Comparing the Discover it Student Cash Back to Other Student Cards
While the Discover it® Student Cash Back is undoubtedly a standout option for students looking to build their credit while earning rewards, it’s essential to explore how it stacks up against other student-centric credit cards. These alternatives are tailored to the needs of students and offer a range of benefits.
Discover it® Student Cash Back
Finance Devil Score: 5 stars out of 5
Annual Fee: $0
Intro Offer: Cashback Match™ Rewards
Rate: 1% – 5%
Recommended Credit Score: No Credit History
Discover it® Student Chrome
Finance Devil Score: 4 stars out of 5
Annual Fee: $0
Intro Offer: Cashback Match™ Rewards
Rate: 1% – 2%
Recommended Credit Score: No Credit History
Capital One SavorOne Student Cash Rewards Credit Card
Finance Devil Score: 4.6 stars out of 5
Annual Fee: $0
Intro Offer: $50 Rewards
Rate: 1% – 10%
Recommended Credit Score: Fair to Good (580 – 740)
Discover it® Student Cash Back vs. Discover it® Student Chrome
Both of these Discover student credit cards offer solid rewards, benefits, and competitive rates. However, they differ in their cashback programs.
The Discover it® Student Cash Back card features rotating bonus categories that earn you up to 5 percent cash back, but these categories change each quarter. On the other hand, the Discover it® Student Chrome card offers a fixed 2 percent cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1 percent), along with 1 percent cash back on all other purchases.
Choosing between these two Discover cards depends on your budget and how much effort you want to invest in maximizing your rewards. The Discover it® Student Chrome might be a better choice if you prefer a straightforward approach without the need to track activation periods and quarterly bonus categories. However, if your budget allows you to make the most of the rotating bonus categories, the Discover it® Student Cash Back card can offer higher rewards and a more substantial quarterly bonus spending cap.
Discover it® Student Cash Back vs. Capital One SavorOne Student Cash Rewards Credit Card
The Capital One SavorOne Student Cash Rewards Credit Card has the potential to be more rewarding than the Discover it® Student Cash Back and is known for its simplicity.
With no annual fee, the Capital One SavorOne Student card offers an impressive unlimited 3 percent cash back on everyday categories such as dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart and Target). Additionally, you’ll enjoy an 8 percent cash back on Capital One Entertainment purchases.
For students working with limited budgets, the SavorOne Student card may prove to be more rewarding than the Discover it® Student Cash Back. However, it’s a close call, as the Discover card excels with its rotating categories that can lead to substantial cash back.
The choice between the two may come down to your spending habits and whether you want a card with fixed bonus categories (SavorOne Student) or one with changing quarterly categories (Discover it® Student Cash Back). Additionally, if you anticipate carrying a balance, the Discover it® Student Cash Back’s lower ongoing APR could make it a more cost-effective option for managing potential expenses.
Who Should Consider the Discover it® Student Cash Back?
The Discover it® Student Cash Back card is an ideal choice for:
- Students who are just starting their credit journey and want to build credit responsibly.
- Individuals who are enrolled in a two-year or four-year college or university.
- Nontraditional students returning to college, as there is no age limit for eligibility.
This card is designed with students in mind and offers a range of benefits tailored to their needs. It provides an opportunity to establish credit history and manage finances effectively. To apply, you’ll need to provide your Social Security number, college enrollment details, source of income, and other personal information. Part-time students are also eligible.
Using Your Discover it® Student Cash Back After Graduation
The good news is that you can continue to use your Discover it® Student Cash Back card after graduating from college. Discover may even consider your account for a credit line increase if you update your personal information and income with them.
However, as you progress in your financial journey and build a positive credit history, you may want to explore more rewarding credit cards with better rates and additional perks. Graduation often marks the beginning of a new chapter in your financial life, and you may find credit cards with enhanced rewards and benefits to better suit your evolving needs.
Is the Discover it® Student Cash Back Worth It?
The Discover it® Student Cash Back card stands out among student credit cards for its robust rewards program, competitive rates, and low fees. Its rotating category cash back is hard to beat, and the first-year cash back match provides exceptional value alongside the card’s ongoing benefits and features.
When evaluating credit cards, several factors come into play, including rewards value, rates and fees, redemption flexibility, and valuable perks. The Discover it® Student Cash Back card excels in these areas, making it a top choice for students looking to build credit responsibly while earning rewards.
How We Rated This Card:
- We assessed the card’s rewards value, including its average rewards rate, estimated annual rewards earnings, sign-up bonus value, and reward redemption value.
- We considered the card’s rates and fees, evaluating its annual fee, introductory APR offers, and how its ongoing APR compares to other rewards cards.
- We examined the card’s redemption flexibility, including any restrictions on earning and redeeming rewards.
- We rated the card based on its set of features and perks, considering whether it offers benefits in Tier 3 or higher.
In conclusion, the Discover it® Student Cash Back card is a top-tier choice for students seeking to establish and build credit while enjoying competitive rewards and benefits. Its combination of cash back opportunities and low fees sets it apart as a valuable financial tool for students on their credit journey.
FAQs
How does the Discover it® Student Cash Back card’s cashback matching offer work?
Discover will match all the cashback you’ve earned at the end of your first year with the card, with no minimum spending or maximum rewards. This effectively doubles your cashback earnings during your first year as a cardholder.
What are the rotating bonus categories, and how do they work?
The Discover it® Student Cash Back card offers 5 percent cashback on categories that change every quarter, such as dining, gas, or online shopping. This bonus applies to the first $1,500 in combined purchases in the activated categories, after which it reverts to 1 percent cashback. You’ll need to activate these categories each quarter to earn the higher cashback rate.
Can international students apply for the Discover it® Student Cash Back card?
Unfortunately, international students may not be eligible for this card, as it requires a Social Security number for application.
What sets the Discover it® Student Cash Back card apart from other student credit cards?
This card distinguishes itself with its cashback matching offer, elevated cashback rates on rotating categories, low fees, and a generous introductory APR offer, making it an appealing choice for students looking to build their credit and earn rewards.
Is there a penalty fee for late payments with the Discover it® Student Cash Back card?
The first time you pay late, there is no penalty fee. However, subsequent late payments may incur a fee of up to $41. It’s important to manage your payments responsibly to avoid any fees.
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