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Discover it Card Review

The Credit Card That Changes Everything

About.com Rating 5 Star Rating

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Discover's latest credit card is different from virtually every credit card on the market. This revolutionary card has great rewards, very few fees, and flexible payment terms.

About the Discover it Card

The Discover it is For: People who want a simple, friendly rewards credit card, with few fees.

Credit Rating Required: Good to Excellent

Pros

Cons

  • Current cardmembers may not qualify for the promotional rate

Rewards and Pricing

Rewards

  • 5% cash back at Home Improvement Stores, Furniture Stores and Bed Bath & Beyond® on up to $1,500 in purchases from April through June 2014.
  • 1% cash back on all other purchases
  • Plus, free FICO® Credit Score on your monthly statement to help you stay on top of your credit.

Pricing Details

  • Promotional APR: 0% Intro APR on balance transfers for 18 months, 0% Intro APR on purchases for 6 months
  • Purchases and Balance Transfer APR: 10.99% to 22.99% variable based on the Prime Rate
  • Cash Advance APR: 24.99%
  • Penalty APR: None
  • Annual Fee: None
  • Balance Transfer Fee: 3%
  • Cash Advance Fee: either $10 or 5%, whichever is greater.
  • Foreign Transaction Fee: none
  • Grace Period: 25 days (23 days for billing periods that begin in February)

Discover it Review

The new Discover 'it' is one of the friendliest credit cards in the history of credit cards. The card is virtually fee-free: there's no annual fee, no fee for exceeding your credit limit, no fee on foreign transactions, and no fee for the first late payment. (Balance transfers and cash advances still incur a fee.)

The card's design is pretty impressive too. The card is metallic blue. The front bears only the words "Discover" and "it." All the card information, your name and card number, are printed (not embossed) appear on the back of the card. If you're approved, the card arrives via expedited delivery in a sleek, metallic blue box that matches the credit card design. Take a look at a user picture on myFICO forums.

The card comes with a competitive 0% introductory interest rate on balance transfers for 18 months and purchases for 6 months. The post-promotional APR is 10.99 to 19.99% based on your credit history, i.e. people with better credit scores will receive a lower interest rate.

Earn up to 5% cash back on certain purchases in categories that change quarterly. You must sign up in advance and the purchases are subject to a cap, e.g. $1,500. All other purchases, including those that exceed the 5% category maximum, earn 1% cash. It's an improvement over the Discover's previously-most impressive card, the Discover More, which paid .25% on annual purchases up to $3,000 (outside the 5% categories) then paid 1% on purchases after that amount.

Another neat feature is the ability to connect your Discover "it" card to your Amazon account and use your rewards to make purchases at Amazon.com. This feature is available for other Discover cash reward cards, too.

The Discover it Card lets you pay at your convenience. You have up until midnight on your due date to pay your bill online or by phone. And you don't have to be stuck with a due date that doesn't fit your pay schedule. You can choose your own payment due date by phone or online.

While there's no late payment fee on the first late payment, you will pay up to $35 for a subsequent late fee. According to the credit card terms, your late payments won't be punished with a penalty APR either. Returned payments, i.e. checks returned for nonsufficient funds, will incur a $35 fee.

Discover it cardholders now receive a free FICO score on their monthly statements!

A few other perks: payment or interest rate help after job loss, purchase protection, extended warranty, price protection, and return protection.

Recommendation

There isn't much to be said against the Discover it Card. The benefits, simplicity, and payment flexibility are great.

A word of caution: don't get too lax with making your payment. Even thought the Discover it lets you avoid some late payment penalties, late payments can still affect your credit score.

Apply for the Discover it® - 18 Month Balance Transfer.

Last updated January 8, 2014. Credit card terms and sign-up bonuses are subject to change from the time of this review. Refer to the application for current terms and conditions. Discover is a paid advertiser of About.com Credit/Debt Management.

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