The Discover it® Cash Back card is a good credit card to consider if you have a credit score of 700 or higher and you want a $0 annual fee plus a high reward rate on purchases. Discover will even match the rewards that you earn your first year as a new cardmember, as an anniversary bonus. This isn’t really a set-it-and-forget-it rewards card, though. You need to activate new bonus categories quarterly. 

What I Like About Discover it® Cash Back

Up to 5% cash back

Cardholders get 5% cash back on the first $1,500 that they spend in designated purchase categories (like grocery stores, restaurants, gas stations, and more) each quarter. That means you can earn as much as $300 from this 5% rate each year. According to our research, the average card would give you just a bit more than $60 with that same spending. 

It's easier said than done, though. You have to sign up for the new bonus categories each quarter. If you’re good about signing up for the new bonus categories every few months, this type of rewards program can really pay off.
 

First-year-rewards match is a great feature

The Discover it® Cash Back will match your first-year earnings as a new cardmember. That’s a great deal, worth an extra $525 to the average person, according to our calculations. It’s unlimited, too, so the more you spend, the bigger your introductory bonus will be. 

Still, this feature is not unique. All Discover rewards cards currently have this promotion. 
 

0% intro APR for 15 months

This intro rate applies to both purchases and balance transfers, and it’s longer than average for both. For context, the average 0% intro rate lasts about 11.59 months for new purchases and 13.05 months for balance transfers, according to WalletHub’s latest Credit Card Landscape Report. The Discover it Cash Back card’s regular APR is 17.49% - 26.49% Variable.
 

Few fees to worry about

With no annual fee, Discover it® Cash Back is roughly $28.25 per year cheaper than the average credit card offer. That’s crucial if you don’t plan to use your card every day. But if you do, paying a fee for better rewards can make sense.

The 0% foreign fee on Discover it® Cash Back will also save you about 1.58% on international purchases, compared to the average credit card offer. Discover is not as widely accepted internationally as some other card networks, though.

Similarly, there is no fee for your first late payment. However, that does not mean you should make paying late a habit. It’s bad for your credit score, and you’ll have to pay a fee after your first infraction. 
 

No Redemption Minimum or Rewards Expiration

Most rewards credit cards require you to have a certain amount of points, miles or cash back in order to redeem. This makes it difficult to benefit from your earnings on a regular basis and, in many cases, increases your odds of falling victim to rewards devaluation or seeing your bounty expire.

There are no such issues with Discover it® Cash Back, as you can redeem the cash back that you earn at any time, regardless of the amount, and earnings will not expire as long as your account is open. If nothing else, this should help reduce stress.

What I Don’t Like About Discover it® Cash Back

5% rate has limitations

The earning rate is great. The catch is that it only applies to $1,500 in purchases made in designated bonus categories each quarter. The categories also change quarterly, and you have to activate the new ones each time. 

So, this feature requires active involvement from you, and you need a bit of luck for the categories to match your spending plans. Even if they do, you can only benefit up to a point.  
 

1% rate is average

You will earn just 1% cash back on purchases that fall outside the card’s rotating bonus rewards categories. That’s unfortunate because 1% is slightly below the market average for a rewards card, and you could end up earning that on most purchases. 
 

High regular APR can cost you

If you carry a balance from month to month with this card when its regular APR is in effect, you will pay interest at an annual rate of 17.49% to 26.49% Variable, depending on your overall creditworthiness when you apply. You could wind up with a rate that’s much higher than average, and you won’t get a low regular rate no matter how good your credit might be. 

Fortunately, you aren’t resigned to paying interest, thanks to the card’s grace period on purchases which runs from the end of your account’s billing period to the due date. Cardholders who always pay in full by the due date do not incur any interest charges during this period.
 

Not fee-free

Although Discover it® Cash Back lacks some major fees, it’s not completely fee-free. It charges a balance transfer fee, for example, along with a maximum late fee of $41 and a cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. These are fairly standard charges, but it’s still important to know about them in advance. 
 

You need good credit or better

Not just anyone can get this card. We estimate that you likely need a credit score of 700 or higher.

You can check your latest credit score for free here on WalletHub to gauge your approval odds. This will also help you narrow down your other options, but note that approval is never guaranteed for any credit card.

Bottom Line: Is It Worth It?

Discover it® Cash Back is definitely worth considering because cardholders can save more than $1,000 during the first two years of use, according to our calculations, and there’s no annual fee. Whether it’s the most worthwhile card for you depends on your spending habits and how you feel about activating quarterly bonus categories. 
 

What You Need to Do to Make It Worthwhile

Since there’s no annual fee, all you have to do to make Discover it® Cash Back worthwhile is pay the bill in full every month the regular APR is in effect. That way, you won’t owe any interest that could potentially offset your savings from rewards.

The exception to this pay-in-full rule is during the introductory period. As long as you make at least your minimum payment every month, you can carry a balance during the intro period without owing interest. But after it expires, the regular APR will apply to any remaining balance. I recommend using a credit card calculator to help you avoid interest charges.

Finally, it’s worth pointing out that Discover it® Cash Back is one of several Discover it credit cards available right now. It’s not even the only offer with cash back rewards. So, you have some choices.