Discover it^® Student Cash Back

Who is the Discover it^® Student Cash Back for?

Just by looking at the name of this card, it is obvious that this card is designed specifically for students. The Discover it Student Cash Back is similar to Discover it Cash Back but has a Good Grade reward each year so that each college student who has a GPA higher or equal to 3.0 (out of 4.0) can get a $20 reward. You do not need a credit score to apply for this card which is also suitable for students who have not had credit cards before.

The special bonus for the card is that you can get 5% cashback on everyday purchases from different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, 1% cash back on all other purchases - automatically. The cash can be redeemed in any amount at any time and can be used as gift cards, donations, instant eCertificates, a statement credit, etc. Discover will match all the cashback without any limit for the first 12 months and give the same amount of money to your account at the end of that year.

Although the card is friendly to beginners, it is relatively more complicated since the categories in each quarter are different and you have to activate them manually before each quarter or you can not get the 5% cashback. There is also a limit of $75 cashback that you can get in each quarter which means after your purchases of $1,500 your cash back decreases to 1%. Thus, if you don’t want to take time studying the rules, this card is not good for you. But if this is not a big deal and you are a college student, the Discover it Student Cash Back is a perfect choice.

Signup bonus

You will not want to miss this bonus. In the first year after you open your account, Discover will double your cashback without any limit. For instance, if you get a $300 cashback bonus according to the rules of rewards, you will receive another $300 on your first account anniversary. Moreover, the lack of account activation or annual fee reduces the burdens on students and lowers the threshold of applying for a credit card.

Rewards 

Now down to the most intriguing topic. Rewards for Discover it Student Cash Back can be divided into two parts: 5% cash back bonus on chosen categories in each quarter and 1% cashback bonus on all other expense, which means that you will earn rewards for each purchase using the card.

The rules for the 5% cashback bonus are slightly complicated. There are four quarters in a year and each quarter has different categories. For example, in the first quarter, rewards will be given on purchases from grocery stores, Walgreens, and CVS. But there are many details that the purchases made in only specific situations such as the official websites or apps can be counted in the categories, so you may have a look at the category calendar from Discover’s website.

But most importantly, do not forget to activate the categories before each quarter to get the 5% cashback bonus or you will only be given 1% cashback. Although it may take you some time, the rewards will not let you down. 

Benefits 

There is no introductory APR for the first six months after you open your account. Thus you can use this period to buy expensive items like cars without paying high interest. After that, the APR will be 12.99% to 21.99%. In the first six months, there is a 10.99% intro APR for balance transfers and then the APR will be 2.99% to 21.99%. Discover it Student Cash Back is also tolerant towards paying late. For the first time, you have a late payment, Discover will not charge a late fee. Even if you pay the late fee several times, the APR will not rise. Thus, you don’t need to be too anxious about exorbitant penalty APRs.

You can redeem the cash freely in any amount at any time to any account you choose. The cash can also be used as gift cards, donations, instant eCertificates, a statement credit, or Amazon.com purchases which means you do not need to transfer the money between different platforms.

There is also one benefit called Good Grades that is specifically designed for college students. Any applicants who are enrolled in college and whose account remains open during the request period can have a chance to get a $20 good grade reward. Students with a Discover it or Discover it Chrome card can be awarded when they have a GPA greater or equal to 3.0 (out of 4.0) during a school year (from September to August). One can earn rewards for up to 5 years from the date when the account is open.

No Annual Fee or foreign transaction fee

Discover it Student Cash Back does not have an annual fee or a signup fee. This means you can earn rewards as soon as your account is open without paying anything to Discover. Also, this card does not require a credit score which is suitable for students. No foreign transaction fee means you can also use the card in countries other than the United States without worrying about high fees. Thus, this card is a good choice for international students studying in the United States as long as they have their Social Security Number. They can enjoy the bonus in their daily college life and also use the card in their own country.

Cautions 

In order to earn the 5% cashback bonus, be sure you activate the categories before each quarter. Also, there are many rules limiting the categories and you need to check the details in section Rewards or official category calendar from Discover so that you will not miss any bonus.

Even if the policy for late payment is tolerant, you still need to pay your bill on time. After the first time of paying late, you will be charged up to $40 and your credit score will be affected. You will need a higher credit score if you want to apply for other credit cards in the future. Thus it is important to make the payments on time.

As mentioned before this card does not require a foreign transaction fee, but you have to check if the stores in countries other than the United States accept Discover. Unlike Mastercard or Visa, Discover is a more domestic card which means it may not be popular in other countries. Make sure you have alternative cards with you in case the card does not work.

Conclusion

Discover it Student Cash Back is a perfect card for college students. The 5% cash back bonus on specific categories each quarter and a 1% bonus on any other purchase put this card above other student cards. These rewards consisting of restaurants, gas stations, and grocery stores can be found on campus everywhere and make life easy for cardholders. No annual or signup fee is another attraction since you do not need to pay anything to Discover while you enjoy the rewards. Also, this card does not require a credit score and can be a perfect first credit card for college students before they apply for other cards.