Best balance transfer card with rewards
Discover it® Balance Transfer
Recommended Credit Score
One of the best options for anyone looking to pay off credit card debt.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
With its 18-month introductory APR on balance transfers, the Discover it Balance Transfer card is a smart choice for people whose main focus is tackling their debt. Combined with Discover’s quarterly category rewards and first-year cash back match, this is a card that can also be good to keep in your wallet long-term – unlike many other balance transfer cards.
Recommended Credit Score
The Discover it Balance Transfer card is one of the best balance transfer credit cards since it offers the same 18-month 0 percent intro balance transfer APR period (16.24 percent to 27.24 percent variable APR thereafter) as several top transfer cards, but it still carries the same benefits you’ll find on any other Discover credit card: a solid rewards program, first-year cash back match bonus offer, stellar customer service and some of the lowest rates and fees on the market.
Very few balance transfer cards provide a welcome offer — let alone ongoing rewards. The Discover it Balance Transfer not only delivers both, but it also offers some of the best promotions in its class. Though Discover cards only pack in minimal features and the card’s six-month 0 percent intro purchase APR (16.24 percent to 27.24 percent variable APR thereafter) is much weaker than that of many other zero-interest credit cards, but the issuer’s focus on value overcomes these two drawbacks to make transferring your balance to Discover a great option.
One of the few cards designed specifically for balance transfers to offer rewards — 5 percent back on quarterly activated rotating categories (on up to $1,500 per quarter, then 1 percent) and 1 percent on all other purchases.
All cash back earned within your first 12 months will be matched, essentially doubling your first-year rewards.
18-month 0 percent intro balance transfer APR with an impressively low 16.24 percent to 27.24 percent variable APR afterward.
There is no annual fee, foreign transaction fees, penalty APR or fee on your first late payment (then up to $41).
The intro purchase APR is short for a balance transfer card, which works against this card’s rewards spending advantage.
It has barebone features outside rewards (which isn’t uncommon for balance transfer cards).
The rotating category rewards program requires tracking quarterly activation periods and spending limits, which could be a hassle for people who prefer a more simplistic rewards structure.
All cash back you earn within your first 12 months will be matched by Discover, which means all your first-year rewards will essentially be doubled.
Although Discover’s unique Cashback Match™ offer isn’t the traditional, upfront sign-up bonus you’d find with other no annual fee cards, it’s hard to find a balance transfer card with a first-year cash bonus.
The Discover it Balance Transfer card’s welcome offer will likely be much more rewarding since you’d only need to spend about $167 per month across your 5 percent rotating categories (after activation, then 1 percent) to get that same $100 matched. Maximizing your $1,500 quarterly categories will earn you three times that ($300) — which will then be matched at the end of your first year for a total of $600 via cash back match.
Out of Discover’s two cash back structures, the Discover it Balance Transfer shares the same rotating category structure as the issuer’s flagship card, the Discover it® Cash Back. Its rewards rate is certainly impressive for a balance transfer card, but keep in mind that it’ll take a little work to maximize your rotating categories — which could be hard if you’re only focused on paying off your balance.
You’ll earn 5 percent cash back on each dollar you spend on purchases that fall within the 5 percent rotating categories and all other purchases will earn 1 percent cash back. However, you’ll have to remember to activate your bonus categories each quarter and stay within your bonus categories’ $1,500 quarterly spending limit in order to earn 5 percent. After hitting the spending cap, you’ll only earn 1 percent back for the rest of the quarter, when the categories reset.
Fortunately, Discover has one of the more predictable issuer calendars since each quarter’s categories typically remain the same year-to-year and are announced the previous year. Currently, you’ll earn the rotating cash back rate on purchases with eligible gas station and Target in-store purchases. Here are all of the currently announced rotating categories in Discover’s 2023 Cash Back calendar:
Discover provides a good variety of redemption options for your rewards. You can receive cash back in the form of:
There’s no minimum rewards balance you need to redeem, and you can redeem at any time, unless you want your rewards as a gift card. Gift cards start at $5 and go up to $200 in value (redeemed in increments of $5), depending on the partner merchant. Your cash back also won’t expire for the life of your account.
Like with other cash back programs, your Discover rewards are worth 1 cent per percentage point of the cash back rate. That means you’ll pocket 5 cents per dollar spent on bonus category purchases and 1 cent per dollar on all other purchases. Earn 5 percent cash back after activation on rotating categories each quarter (up to $1,500 in quarterly purchases, then 1 percent)
However, Discover is one of the rare issuers that makes redeeming gift cards a more valuable option than cash back in some cases. Depending on the partner, each gift card you redeem may have 5 percent to 20 percent more value added to the balance. So, if you know you’re going to spend all your cash back at one partner merchant (like a restaurant or retailer on Discover’s gift card catalog), a gift card may stretch your cash rewards a little further.
No-annual-fee cards usually dial back on extra benefits — except for Chase credit cards — but Discover cards are barebones even by those standards. Instead, Discover trims the fat in order to focus on value through low costs, account protection and top-notch customer service.
On top of standard security features, like $0 fraud liability for unauthorized purchases and account alerts, Discover’s free Identity Alerts program is a credit monitoring service that scours the dark web for your personal information and Social Security number, and immediately notifies you if your data has been compromised or if there are any fishy changes to your Experian credit report.
That’s pretty comprehensive coverage for a free issuer-based service, which pairs nicely with Discover’s Freeze it® in-app feature. Freeze it allows you to freeze and reactivate your credit card account whenever and for however long you’d like. This lets you act quickly to prevent any new purchases, cash advances and balance transfers without having to call the issuer.
Discover’s customer service provides helpful free overnight shipping to replace lost cards, free FICO score access, a year-end spending summary and a recurring charges dashboard, but it’s notable for having 100 percent U.S.-based, 24/7 customer service that consistently ranks above other national issuers. In fact, Discover just ranked second in the recent 2022 J.D. Power U.S. Credit Card Satisfaction Study — behind American Express by seven points on a 1,000-point scale (848 versus 841). Discover has obtained the J.D. Power customer satisfaction survey’s top rank for six of the past eight years.
If you’re on the hunt for a balance transfer card with enough ongoing value to hold onto after paying your debt, it’s hard to do better than the Discover it Balance Transfer. You’ll never have to worry about paying an annual fee, penalty APR or a late fee on your first late payment (up to $41 after that). Plus, it’s also an excellent choice if you plan to earn rewards while traveling abroad as it charges no foreign transaction fees.
The card’s 18-month 0 percent intro balance transfer APR is longer than any other Discover card’s, and it’s one of the longest zero-interest periods you’ll find among many reward cards with zero-interest periods (16.24 percent to 27.24 percent variable APR thereafter). You’ll face a 3 percent intro balance transfer fee (up to 5 percent on future transfers, see terms), which is a standard rate.
The big drawback is that the Discover it Balance Transfer card’s six-month intro APR period for purchases is much shorter than the one it offers for balance transfers. While many balance transfer cards have matching purchase and balance transfer intro APR offers, a shorter purchase intro APR isn’t a shock since it’s the same length the card has consistently offered in the past and the ongoing APR makes up for it, as you have the potential to have an APR lower than the average credit card interest rate.
Although the Discover it Balance Transfer has a leg up over many rewards cards with intro APR periods — and has more ongoing value than other balance transfer-oriented cards — its intro APR lengths may not give you as much breathing room as other cards’ offers may.
Foregoing a card with rewards, a lower interest rate, and an upfront first-year cash back offer in favor of a card purely focused on zero-interest may be better if you want to use your balance transfer card as a stepping stone to eliminate your card debt. However, if you want more long-term utility from your balance transfer card, the Discover it Balance Transfer or one of these alternative cards may be better all-around picks.
Recommended Credit Score
Recommended Credit Score
The Citi Double Cash Card is one of the few credit cards with an 18-month 0 percent intro APR on balance transfers (variable 18.49 percent to 28.49 percent thereafter) to earn substantial rewards other than the Discover it Balance Transfer. The Double Cash card rakes in up to 2 percent unlimited cash back on all purchases; you’ll get 1 percent when you purchase and another 1 percent once you pay the purchase off. This rewards scheme could make it a wiser option than the Discover it Balance Transfer if rotating categories are a bit too hands-on for you, or if you plan to pair it with other Citi credit cards.
However, the Discover it Balance Transfer card does have a few advantages over the Double Cash. First and foremost, the Citi Double Cash doesn’t offer an intro APR for purchases and its 18.49 percent to 28.49 percent variable APR is a bit higher than the Discover card’s ongoing APR. It’s worth noting that the Citi Double Cash charges a 3 percent foreign transaction fee if you spend abroad, which will eat into any rewards you’d earn. It will also be easier to earn more cash back with the Discover it Balance Transfer card if you plan to maximize your rewards spending after paying off your balance.
The biggest reason to consider the non-rewards-earning BankAmericard over the Discover it Balance Transfer is its lengthier intro APR offer. The BankAmericard’s 0 percent introductory APR period is for 21 billing cycles for purchases and balance transfers made in the first 60 days (3 percent fee [min $10] applies to all balance transfers). After the intro APR offer ends, a 16.24 percent to 26.24 percent variable APR will apply.
However, because the BankAmericard does not offer any rewards, you would have to trade rotating cash back rewards for a longer intro APR period. If your primary aim is to pay off your credit card debt, the BankAmericard is the preferable option. But, if you want to have a card that can earn rewards after you've met your debt payback goal, the Discover it Balance Transfer Card would be the best choice.
Your primary focus should be paying off your credit card debt after transferring your balance, but there are a few cash back cards worth considering once that’s handled. Discover cards don’t necessarily pair very well with each other, so a card from another issuer with rewards that will cover your biggest expenses outside Discover’s rotating bonus categories would be a smart choice.
A flat-rate cash rewards card like the Wells Fargo Active Cash® Card would be an effortless way to earn boosted rewards on purchases outside Discover’s cash back calendar or your categories’ $1,500 quarterly spending limit. The Wells Fargo Active Cash® Card would be excellent for this job since it squeezes unlimited 2 percent cash rewards on purchases. This doubles all your cash rewards earned outside of Discover’s rotating categories and it’s a value you don’t have to wait till the end of the year to enjoy fully.
Since balance transfer cards typically don’t offer much value beyond their lengthy introductory zero-interest periods, they often have a hard time earning their keep after the intro APR ends — but the Discover it Balance Transfer card doesn’t have this problem. It translates beloved rewards from the Discover it Cash Back Card card into the balance transfer world with great ongoing value and low costs. Its short six-month intro purchase APR period might not be the strongest, but the Discover it Balance Transfer’s well-rounded features make it one of the best options you’ll find for a balance transfer.
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.