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As far as student cards go, the Discover it® Student Cash Back card gets high marks. With healthy–but capped–earnings in some areas of spending and an introductory APR on purchases, the Discover it® Student Cash Back card can help those without storied credit histories build credit while still getting access to benefits like rotating cash-back rewards and an introductory APR offer. Most importantly, a card like this one can help students establish healthy spending habits. Discover it® Student Cash Back Welcome Bonus Cashback Match™ Regular APR 15.99% - 24.99% Variable APR Credit Score Fair/New to Credit Pros
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IntroductionThe Discover it® Student Cash Back card has a number of great perks. While it won’t necessarily churn out the rewards and benefits in the same way as cards for more established credit profiles, the Discover it® Student Cash Back card is a great way to build a financial reputation that will allow an eventual graduation to more rewarding cards. With elevated earnings in quarterly rotating categories, the Discover it® Student Cash Back card does offer some nice looking rewards. What’s not so nice is the $1,500 quarterly cap. These bonus categories must be activated and have some additional limitations—like that “online shopping” may actually mean only Amazon.com, Walmart.com or Target.com. After the rewards category caps out, any additional spending earns the same as all other purchases: unlimited 1% cash back. With Discover’s Cash Back Match, all cash back earned will be matched at the end of the first year, so with a doubled first-year reward return, the cash-back rewards might not be so shabby if leveraged well. One important thing to keep in mind when shopping for credit cards as a student who plans to study abroad is that while the Discover it® Student Cash Back card has no foreign transaction fees, Discover may not be as widely accepted outside the U.S. as other major card issuers. For this reason, finding another could be advisable. Quick Facts
RewardsEarning RewardsThe unlimited 1% cash-back reward offered by the Discover it® Student Cash Back card is automatically earned on all purchases. To earn 5% cash back in quarterly rotating categories capped at $1,500 per quarter, cardholders must activate the category. The Discover Cashback Match doubles all rewards earned at the end of the first year automatically, so maxing out each quarter’s rewards would be advisable if possible during the first year of card ownership. Redeeming RewardsRewards earned with the Discover it® Student Cash Back card may be redeemed in any amount at any time as statement credit or deposit and do not expire. When the account is closed or after 18 months of no use, any remaining reward balances are credited to the account. Rewards PotentialIn order to determine the rewards potential of the Discover it® Student Cash Back card, Forbes Advisor used a number of reputable sources to determine what the typical college student spends in a year. If we assume typical annual expenses of $13,640, and that the student spends $1,000 in each of the rotating categories, we can expect the student to earn a total of $296.40 in cash back each year. This amount will be doubled at the end of the first year as part of Discover’s Cash Back Match. 0% Introductory RatesThe Discover it® Student Cash Back card offers a 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 15.99% - 24.99% applies, depending on creditworthiness. Discover it Student Cash Back Benefits
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How The Discover it Student Cash Back Stacks UpDiscover it® Student Cash Back vs. Discover it® Student chromeOne possible alternative to the Discover it® Student Cash Back card is the Discover it® Student chrome card, which replaces the must-be-activated 5% rotating quarterly categories with 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases. Though if maximized the rewards from the Discover it® Student Cash Back card will easily out earn those with the Discover it® Student chrome, the likelihood of casual spending earning maximums in fairly specific and limited quarterly categories is low, so carefully weighing the reward options (and the convenience involved) is important when choosing between these cards. The Discover it® Student Cash Back card capped rotating cash back categories would yield a maximum of $300 in cash back in one year for spending $6,000 in specific categories where the Discover it® Student chrome’s 2% cash back category will yield a maximum of $80 cash back in one year. Other than the cash-back schemes being different, these cards are otherwise very similar. Discover it® Student Cash Back vs. Chase Freedom® Student credit cardFor those who don’t want or don’t see value in the 5% rotating categories of the Discover it® Student Cash Back card, the Chase Freedom® Student credit card offers many of the same benefits. With the Chase Freedom Student card’s welcome bonus, $50 bonus after the first purchase is made within the first 3 months from account opening, one thing to consider is whether or not Discover it® Student Cash Back’s first-year unlimited cash-back match will be greater than the welcome bonus offered on the Chase Freedom Student card. For those planning to do more than $5,000 in spending in the first year, the Discover it® Student Cash Back card will yield better results with the 1% unlimited cash back alone—even better after factoring in the 5% capped quarterly category rewards. The Chase Freedom Student card does have foreign transaction fees. The Discover it® Student Cash Back card is more likely to yield better results all-around, but as college students learn when they start reading tuition agreements, it’s always a good idea to read the fine print before agreeing to anything. Discover it® Student Cash Back vs. Bank of America® Travel Rewards credit card for Students*The Bank of America® Travel Rewards credit card for Students* is an amazing card for students who plan to study abroad or hit the road, but also a great option in general. With this card, you’ll earn 1.5 points per dollar on all purchases everywhere, every time with no expiration on points. With a cash equivalent of one cent per point, the Bank of America Travel Rewards Card for Students unlimited points potential would require over $20,000 in spending per year to outpace the maximum earnable rewards from the Discover it for Student’s 5% rotating bonus categories. For most students, this sort of volume is unlikely. The real benefit to the Bank of America Travel Rewards for Students card beyond its simplicity is its wide international acceptance as a Visa card and a lack of foreign transaction fees. The card also offers a welcome bonus: 25,000 online bonus points after making at least $1,000 in purchases in the first 90 days of account opening. This will likely be more than the cash-back reward values earned by a typical student on the Discover it® Student Cash Back card in the first year. Compare Discover it Student Cash Back Credit Card With Other CardsIs The Discover it Cash Back For You?With competitive cash-back rates, the few drawbacks of the Discover it® Student Cash Back card don’t drag it down too much. The card, however, may not be a fit for students who study abroad or those who don’t want to put the effort into its somewhat complex cash-back rewards system. Otherwise, the Discover it® Student Cash Back card offers a great way for students to build stronger credit and get a taste for cash-back rewards and an introductory APR on purchases and other card features while learning about credit cards, spending and personal financial health. Frequently Asked Questions (FAQs)What is a student credit card?Student credit cards are cards meant for younger consumers who might not have much of an established credit history. With lower limits and more lenient credit requirements, student credit cards may be easier to get than their standard counterparts. What's the best student credit card?The answer to this question will vary based on your needs. That said, the Discover it® Student Cash Back rates highly because of its generous rewards.
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Something went wrong. Please try again later. Does Discover card charge foreign transaction fee?Fortunately, any travel credit card worth its salt — including airline cards — will not charge foreign transaction fees, so you have plenty of options. Some major issuers — most notably Capital One and Discover — don't charge these fees on any of their cards.
Is the Discover card accepted internationally?Discover card is accepted at over 60 million locations globally, allowing you to use your card when traveling internationally.
Is Discover a good card to use in Europe?Unfortunately, using your Discover card can be hit or miss in Europe. While acceptance is high in a few countries, such as Austria and Switzerland, it's more limited in many popular destinations. France, in particular, has a low acceptance rate.
Do I need to tell Discover Im traveling?Discover credit cards make for excellent cards to use while you're traveling, because none of them charge foreign transaction fees. If you have a Discover card, it's recommended that you set up a travel alert to ensure that Discover doesn't automatically decline any transactions as a fraud prevention measure.
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