Best Discover credit cards for September 2023

College students with busy class, social and even travel schedules may benefit from the cash back earnings you’d get with the Discover it^® Student Cash Back and Discover it^® Student Chrome cards. These are student credit cards that don’t require as much credit history as regular cash back cards for approval, so they are more attainable for young adults building their credit before they graduate. An important caveat is that Discover isn’t as widely accepted internationally as other cards, which is something for international or study abroad students to consider.

People starting out on their credit journeys and repairing past mistakes will benefit from the Discover it® Secured credit card. It has a relatively low minimum security deposit of $200, plus free access to your FICO scores so you can track your credit-building progress as you use the card.

Certain Discover cards earn cash back at lucrative rates on rotating categories when you activate. If you want a chance to earn cash back and maximize savings on your regular spending at grocery stores, gas stations or Amazon.com at different points in the year, then the Discover it^® Cash Back Card will deliver.

Since many cardholders are eager to earn rewards, a key criteria for a card’s inclusion in our list is whether it offers impressive rewards value. This includes a card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we calculate its average rewards rate based on how much it earns in different bonus categories, as well as how closely those categories match the average person’s spending habits. In other words: Does the card earn rewards at a high rate in the most popular spending categories?

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2021 was $66,928 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $22,500.  

This includes the following spending by category:

• Groceries: $5,200
• Dining out: $3,000
• Entertainment: $2,500
• Gas: $2,100
• Apparel and services: $1,700

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 23 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other cards in its primary category.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking.

We also rate all cards based on how their ongoing average APR compares to the average APR you’ll find other cards in their primary category. However, the impact of an especially high or low APR on a card’s overall score depends on its primary category.

For rewards-earning cards, this factor has only a minor influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance. That said, rewards-earning cards may get a solid boost in score and be more worthy of inclusion in our list if they also offer an intro APR on balance transfers or new purchases, since such offers aren’t always present on these cards.

Interest rates and intro APR offers play a much larger role in a card’s score and whether it’s included in our list when the card is designed specifically for users looking to save on interest charges, such as dedicated balance transfer or low-interest cards. 

Other fees considered include cash advance and late payment fees, along with penalty APRs. 

Along with rewards value and cost, we consider other factors that could give cards great long-term value, like flexible rewards redemption and especially unique and valuable perks.

We rate rewards-earning cards based on the restrictions they impose on earning and redeeming rewards and consider this when deciding on a card’s inclusion in our list. 

These restrictions could include only allowing users to earn a high rewards rate on a small amount of spending or requiring users to meet a certain earning threshold before they can redeem rewards. We also examine whether points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners. 

We also evaluate each card’s perks based on their value, usefulness and uniqueness. Cards that offer top-tier benefits like airport lounge access or travel credits are likely to stand out, but we also aim to highlight cards that offer valuable under-the-radar perks, like cellphone protection or one-off credits for everyday expenses like dining and streaming services.

The credit limit you can get with a Discover card depends on your credit score and history. Discover credit card starting limits may be around $500, unless you apply for the Discover it® Secured Credit Card, which sets your credit limit equal to your security deposit (at least $200).

Yes, all Discover cards report activity to credit bureaus, which allows you to build credit history. Even if you have a poor credit score or limited credit history, Discover has options that can help you build credit. For example, the Discover it® Secured Credit Card is one of the best secured credit cards, and you may qualify for it even if you have no credit or bad credit. If you’re a student, the Discover it® Student Cash Back or Discover it® Student Chrome cards are also accessible and can help you build credit during college.