Finding the best cash back credit card can feel daunting. There are so many rewards credit cards out there to choose from, and with multiple issuers offering competitive rewards and benefits, it can be hard to figure out the right card for you.
Discover offers several cash back credit cards, including the popular Discover it® Cash Back. If you want a card you can keep for the long haul, there are many reasons to consider it over all the others. Here are three reasons we love this card — and why you might love it, too.
Rotating rewards you can maximize
One major benefit of this card is the way it doles out rewards. When you sign up for the Discover it Cash Back, you earn 5 percent back on up to $1,500 spent in rotating categories each quarter (activation required), after which you earn 1 percent back. Rotating bonus categories are listed in Discover’s Cash Back calendar each year, and they always include ones consumers can easily utilize.
For example, categories in 2021 include the following:
- January – March (Q1): Grocery stores, Walgreens and CVS
- April – June (Q2): Gas stations, wholesale clubs and select streaming services
- July – September (Q3): Restaurants and Paypal
- October – December (Q4): Amazon.com, Walmart.com and Target.com
Discover customers do have to activate their 5 percent back categories in order to maximize them, but they can easily boost rewards with bonus category spending after that. For the final quarter of the year, for example, you could easily maximize your 5 percent back in rewards by fulfilling your holiday shopping list with Amazon, Walmart and Target.
Another reason to sign up for the Discover it Cash Back is its Cashback Match program. This program essentially doubles all the rewards you earn after the first year regardless of how much you spend and how much cash back you earn.
Let’s say you are able to maximize each quarter’s bonus categories in order to earn $75 back every three months, but that you also spend another $1,000 on your card each month for an additional $120 back in rewards over 12 months. At the end of year one, you would have earned $420 in cash back rewards, which Discover would double to $840 with no extra work on your part.
Introductory APR offer
While the Discover it Cash Back is mostly known for its rewards program, cardholders can also benefit from an introductory interest rate for more than a year. In fact, new customers who sign up for this card get 0 percent APR on purchases and balance transfers for 14 months, followed by a variable APR of 11.99 percent to 22.99 percent.
This makes the Discover it Cash Back a great option if you want to pay down large purchases without interest over time, or if you want to consolidate and pay down other high interest debts.
Why you might consider another cash back credit card
The Discover it Cash Back is excellent by all standards, particularly as a card with no annual fee, but there are a few areas where it can fall short of other cards. For example, the length of its introductory APR offer isn’t as attractive as some other rewards cards. In fact, there are many cash back credit cards that give you 0 percent APR on purchases or balance transfers for 15 months or longer.
Also note that the Discover it Cash Back does not have a traditional sign-up bonus, which can be a bit of a drag. You do get your rewards doubled after the first year, but this is different from other cash back credit cards that offer $200 or more when you meet a minimum spending requirement in the first few months.
The bottom line
There are many excellent cash back credit cards on the market today, but that doesn’t mean there is one “best” card for everyone. In fact, some cards suit different kinds of needs better than others. This is the main reason you should shop around and compare all the best rewards credit cards available before you make your decision. The Discover it Cash Back could be your dream card, but you won’t know for sure unless you compare all your options.