Discover it® Chrome review: Lower rates over greater perks

The Discover it® Chrome gives cardholders the opportunity to earn cash back on two of the biggest everyday expenses — gas stations and restaurants. Its introductory APR offers and low rates and fees across the board make it an easy-to-use cash back option if you’re dipping your toes into the rewards pool for the first time, but we hesitate to call it a starter card since you already need at least a “good” credit score to qualify.

Unless you plan to pair it with another cash back card or its limited rewards suit you just fine, other cards for good credit easily outperform the Discover it® Chrome due to its low category rates and quarterly spending cap.

Quick highlights

• Rewards rate: 2 percent cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter, then 1 percent), plus 1 percent on all other purchases
• Welcome offer: Discover matches all cash back you earn at the end of your first year
• Annual fee: $0
• Purchase intro APR: 0 percent for the first 15 months
• Balance transfer intro APR: 0 percent for the first 15 months
• Regular APR: 17.24 percent to 28.24 percent variable 

Current welcome offer

Like other Discover credit cards, the Discover it® Chrome doesn’t offer a traditional sign-up bonus. Instead of cardholders receiving bonus rewards in the first three months, Discover will match all cash back you’ve earned at the end of your first year. For example, if you earn $200 in cash back during your first 12 months, Discover will match you with another $200, for $400 cash back total at the end of your first year.

This offer can be especially beneficial if you earn more cash back than a typical intro bonus provides, but the Discover it® Chrome's bonus category rewards aren’t very conducive for a big payday.

For example, this news release of the Bureau of Labor Statistics' latest spending data shows that the average person spends $3,030 on dining and $2,148 on gas each year. If spread out evenly across all four quarters, that means you’ll only earn around $91 in cash back. The matched cash back would be worth less than the $200 welcome offer other no-annual-fee cash back cards typically provide, and requires a much higher spend too.

Rewards rate

While the 1 percent cash back rate on all purchases is unlimited, the quarterly spending cap of the card’s elevated earning categories limits this card’s cash back potential. Considering other no-annual-fee cash back cards offer higher cash back rates for the same categories without posing spending caps, the Discover it® Chrome's rewards rates rely on its customer service and few fees to shore up its value.

How you earn

You’ll earn 2 percent cash back on gas station and restaurant purchases (on up to $1,000 in combined purchases each quarter, then 1 percent), plus 1 percent cash back on all other purchases. Besides gas stations, your categories will earn rewards from dining in, takeout and delivery from full-service restaurants, cafes, cafeterias, fast food restaurants and restaurant delivery services.

How to redeem

Redeem your Cashback – any amount, any time. You can redeem your cash back for:

• Cash back, as a statement credit or direct deposit (starting at 1 cent)
• Gift cards (gift cards range from $5 to $200, in increments of $5)
• “Pay with Cashback bonus” at eligible merchant checkouts, including Amazon.com and PayPal (starting at 1 cent)
• Charitable donations (starting at 1 cent)

Your cash back never expires, but if you close your account or you don’t use your account for 18 months, Discover will automatically apply your rewards to your balance (whereas most issuers forfeit your rewards).

Cash back works by earning 1 cent for each percentage point of your cash back rate. For example, your 2 percent cash back categories net you 2 cents per dollar spent on each purchase. If you spend $500 at gas stations and restaurants within a quarter, you earn $10 in cash back for your purchases.

Just make sure you spend within the gas station and restaurant category limits if you want to keep your cash back rate at 2 percent. Otherwise, you earn 1 percent on your purchases after meeting the spending cap. 

If you only have a small cash back balance to redeem, it’s interesting to note that Discover is one of the few issuers to make redeeming for a gift card a potentially valuable option. It may add an extra 5 percent to 20 percent value to the balance, depending on the merchant.

Discover credit cards don’t come with a boatload of benefits like other rewards cards might. Instead, Discover focuses on providing minimal-fee cards with top-rated customer service and account security.

In fact, Discover was ranked second for credit card customer satisfaction by J.D. Power in 2022 for the third year in a row, right behind American Express. You may enjoy Discover’s approach if you prefer low-cost cards over typical perks that you may not use.

Credit card account security

On top of the industry-standard $0 liability for unauthorized purchases, account alerts and free FICO Credit Scorecard access, you’ll receive free account monitoring with Discover Identity Alerts. Discover’s credit monitoring service is one of the few services that also crawls the dark web for your sensitive personal data, including your Social Security number.

If an issue triggers an account alert, you can freeze your account with the mobile app or contact Discover’s renowned U.S.-based 24/7 customer service.

Like other Discover cards, the Discover it® Chrome poses lower rates and fewer fees than competing cards — which is one of the card’s few strengths. It doesn’t charge an annual fee, foreign transaction fees or a penalty APR. You also have a one-time safety net since the issuer will not charge you a late payment fee the first time you make a late payment (up to $41 after that).

In case you already have a balance you’re trying to shave down, the Discover it® Chrome offers a sizable 15-month 0 percent introductory APR on purchases and balance transfers (3 percent intro balance transfer fee, up to 5 percent fee on future balance transfers, see terms*). Even afterward, the low end of its 17.24 percent to 28.24 percent variable APR is well below the current average credit card interest rate.

Bankrate editor Ashley Parks has carried a Discover it® Chrome since she was a sophomore in college. Originally, she had the Discover it® Student Chrome card, but has since upgraded to the full-fledged Discover it® Chrome after graduating, and still finds a lot of value. The top earning spending categories, gas and dining, are two of the highest spending categories in her budget, so she strategizes to make the most of the card’s highest earning tiers.

“The Discover it® Student Chrome was my first credit card, and I learned later that it would be better for my credit to keep the card open — even after I graduated from college — to build up my credit history. Since Discover keeps track of things like your graduation date, enrollment status and current income, it was fairly easy to transition out of the student version of the card and into the full-blown version.

Though I now have another card that rewards me at a higher rate for gas, I still use the Discover it® Chrome exclusively for when I’m dining out. This way, I max out the 2 percent earning category each quarter to get the higher rewards rate for that spending. Definitely a cash back win.”

— Ashley ParksBankrate editor

Two of the Discover it® Chrome's closest competitors are the Chase Freedom Unlimited® and Capital One Quicksilver Cash Rewards Credit Card. These two cards share some similar features, such as earning at least 1.5 percent cash back on all purchases without category or quarterly spending restrictions. This detail is one of a few that may interest you more than what the Discover it® Chrome has to offer.

Discover it® Chrome vs. Capital One Quicksilver Cash Rewards Credit Card

Much like the Discover it® Chrome, the Capital One Quicksilver Cash Rewards card has no annual fee or foreign transaction fees and shares the same intro APR period on purchases and balance transfers. However, the Discover it® Chrome has it beat when it comes to ongoing variable APR. The Capital One Quicksilver Cash Rewards card’s APR is considerably higher compared to the Discover it® Chrome's. The Quicksilver Cash offers 0% intro APR on purchases and balance transfers for 15 months; 19.99%-29.99% variable APR after that; 3% fee on the amounts transferred within the first 15 months or at a promotional APR that Capital One may offer you at any other time. No fee for amounts transferred at the Transfer APR.

Since the Capital One Quicksilver Cash Rewards card is a flat-rate cash back card with no spending cap on reward, it may be preferable to people who see themselves routinely going over the Discover it® Chrome's spending cap on the highest earning categories. Perks-wise, the Capital One Quicksilver Cash Rewards card has slightly more going for it with complimentary concierge services, extended warranty protection and up to six months of complimentary Uber One membership (through Nov. 14, 2024).

Ultimately, the card you choose depends on your spending habits and what features you value.

Discover it® Chrome vs. Chase Freedom Unlimited

The Freedom Unlimited carries extra unlimited dining and drugstore rewards categories on top of its 1.5 percent flat rate. It also may carry the best suite of perks with features like its trip cancellation and trip interruption insurance.

While the Discover it® Chrome is weaker in terms of perks, its value comes from its lower rates and customer service. Once again, the card's regular APR beats out its competitor's. It offers rates slightly lower than the current industry average and the Chase Freedom Unlimited, while still offering an intro APR on purchases and balance transfers. If you value great perks and rewards over lower rates, the Chase Freedom Unlimited is an alternative to consider.

A bonus category card typically couples well with a flat-rate card like the Capital One Quicksilver or the Chase Freedom Unlimited, since it can earn rewards on all purchases your categories don’t cover.

But before you get a second card to pair with the Discover it® Chrome, keep in mind that another card could make its limited rewards and benefits obsolete. It might be worth considering a flat-rate or stronger bonus category card off the bat if you may apply for a second card.

If you’re doing a lot of driving and dining and you want an easy cash back card to introduce you to the world of rewards, then the Discover it® Chrome might be a worthwhile first card. The Discover it® Chrome is an inexpensive card on account of its low rates and fees, but its long-term value could be limited due to its similarly low cash back rates.

You need a good credit score or higher to qualify for the Discover it® Chrome in the first place, so it isn’t feasible as a traditional starter card for limited credit. Plenty of other more rewarding cards, and even Discover cards, are available for people with good credit, so the Discover it® Chrome might not be the best choice unless it’s perfect for your situation or you prefer top-notch customer service.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.