Discover what? Why, over a year with no interest, that’s what. Here’s our review of the Discover it rewards credit card.
Apply Now: Discover it®
The Discover it® credit card is brand new for 2014 and better than ever. If you are either a) trying to get out runaway credit card debt or b) looking to make a big purchase, then listen up because you’re going to love this. The Discover it card offers a 0% introductory APR on purchases and balance transfers for 14 months. That’s over a year of not having to worry about interest! Sure, the balance transfers still charge a 3% fee, but that is most likely way better than the high interest you would be paying on that otherwise. (If not, give us a call — we want to hop on that train!)
Also note that this card comes in an alternate version wherein you can get the introductory 0% APR on balance transfers for a whopping 18 months in exchange for dropping the time it’s applied to purchases down to 6 months.
The Skinny
After the lengthy 14 months is up, a variable APR kicks in that’s dependent on your credit score. This can dip as low 10.99%, quite a competitive rate. Not everybody likes the sound of a variable APR, but at least Discover won’t increase your rate when you pay late. The first late payment doesn’t even bring a fee. The Discover it card is very light on fees in general — you can expect no over-limit fee, no phone payment fee, no annual fee, and no foreign transaction fee.
Perks
Discover the warm embrace of security. This credit card automatically covers you for up to $500,000 in flight accident insurance. It also sports car rental insurance and many fraud protection services, including a guarantee that you won’t pay a single cent for unauthorized charges. On the retail side, you get a $500 protection for 90 days on qualifying purchases that covers theft, damage, price drops, or refused refunds. They will also top off the manufacturer’s warranty with an extra year. All this for free.
Plus, enjoy flexibility. You can pay either by phone or online right up until midnight on your due date, which you select. Confused? There is US-based customer service available 24/7. Desperate? They will even work with you if you experience job loss or other financial difficulty, lowering your rate or payments. Not to mention that this card prints the info on the back, leaving a pretty and sleek face.
While it is true that Discover isn’t as widely accepted as MasterCard or Visa, it’s been catching up. The brand is now accepted at over 8 million merchants nationwide, as well as 94% of the top 1,000 online retailers.
Rewards
What, you thought that with such a generous introductory APR, there surely wasn’t a rewards program to boot? Think again. That’s right, with the Discover it credit card you can recover from debt or pay off your big purchases and earn cash for it at the same time! Get 5% cash back on categories that revolve every quarter. There is a maximum on the 5% rate for each category (typically up to $1,500) and you do have to log in and sign up for each one, each quarter. Up for the rest of 2013 is gas stations and then “holiday shopping.” All other purchases, including the category purchases in excess of the max, earn a flat 1% cash back.
Get even more rewards — to the tune of 5% to 20% cash back — at Discover’s online shopping site, ShopDiscover. This portal covers basically all the major online retailers, but if you want to see for yourself, check out the exhaustive list here. You can redeem your rewards for merchandise, Amazon credit, or cash in the form of direct deposit or credits to your account in $50 increments. Another tantalizing option is gift cards, with many merchants offering double cash back value! Sweet.
Unfortunately, there is no sign up bonus — boo. If at any point you feel confused by all this, the card also comes with free access to Cashback Concierge, who will give you a 1-on-1 online tour to show you how to maximize your rewards for your spending.
Final Verdict
That 14 month introductory 0% APR is pretty tough to beat. This may just be the credit card you’ve been looking for. Enjoy a year without interest stress and get cash for it too. Discover shopping guilt-free again.
