Discover it Cash Back Credit Card Review

Discover APRs are accurate as of December 12, 2024.

If you want to maximize your rewards, a 5% cash-back card can be a smart addition to your wallet as they often have standard interest rates and no annual fee.

The Discover it® Cash Back is one of three Discover cards that can be activated to earn 5% cash back on the first $1,500 in purchases in rotating categories each quarter, then 1%. Discover’s 5% cash-back calendar has previously included everything from grocery stores and drug stores to select streaming services (excludes Walmart and Target purchases). The eligible merchants rotate quarterly, and cardholders must enroll each quarter to receive the benefit at select merchants.

Below, CNBC Select breaks down Discover it Cash Back’s rewards and benefits to help you decide if it’s right for you.

The Discover it® Cash Back card has a unique welcome bonus for new card members in their first year only where Discover automatically matches all the cash back they’ve earned at the end of their first year. So, if you earn $100 cash back at the end of the first year, Discover will give you an additional $100. There is no limit to how much Discover will match.

The Discover it Cash Back is light on benefits, but that’s often the case with no annual fee cards. It offers the following perks:

• Free access to your FICO score: You can view a credit scorecard with your FICO credit score and what’s impacting it.
• $0 Fraud Liability Guarantee: You’re not responsible for unauthorized purchases on your card.
• Online Privacy Protection: Every 90 days, Discover will scan at least 10 people-search sites for your personal information and help you submit opt-out requests.
• Discover® Identity Alerts: Discover will notify you if your social security number is found on the dark web or if there are new inquiries or accounts on your Experian credit report.

Consider pairing your card with a Discover bank account

If you want to do all your banking in one place, the Discover® Cashback Debit Checking account offers a debit card that earns 1.00% cash back on up to $3,000 in debit card purchases each month. You can also earn a generous return on your cash with a Discover® Online Savings Account.

The Discover it Cash Back offers 5% cash back in rotating categories on up to $1,500 in combined purchases after you activate the bonus every quarter; after you reach the limit, it’s 1% on all purchases. If you maximize your spending in these categories, you could earn $75 cash back each quarter on top of the unlimited 1% cash back you earn in all the other categories.

Discover releases its 5% cash-back categories at the start of each quarter. Previous categories have included restaurants, drug stores, gas stations, grocery stores, Amazon and more.

The cashback doesn’t expire and you can redeem your rewards at any time for statement credits, gift cards, merchandise and more. If there has been no account activity for 18 months, or it is closed, Discover will credit your account or send you a check for the balance.

There is no annual fee for the Discover it® Cash Back card and it charges no foreign transaction fees. There is a 3% intro balance transfer fee for transfers posted by March 10, 2025, and up to 5% fee on future balance transfers, see terms. There’s no fee the first time you pay late; after that, up to $41. Any returned payments will carry a fee of up to $30.

If you plan on carrying a balance, the Discover it® Cash Back offers a 0% intro APR for 15 months from the date of account opening for purchases and balance transfers, then the standard variable purchase APR of 18.49% to 27.49% applies.

The Wells Fargo Active Cash® Card also has no annual fee, but a very different rewards structure from the Discover it Cash Back.

It offers a flat 2% cash back on all your purchases. While that’s lower than the up to 5% the Discover it Cash Back can earn, the 2% cash back from the Active Cash card applies to all purchases and is uncapped. It has a welcome bonus of $200 cash rewards bonus after spending $500 in purchases in the first 3 months of account opening, which is a shorter timeframe than the Discover it’s bonus, but can potentially be more valuable. 

The Wells Fargo Active Cash also comes with some extra protection like up to $600 of cell phone protection and 24/7 roadside dispatch.

Learn more: Wells Fargo Active Cash® Card

Discover it Cash Back Card vs. Chase Freedom Unlimited®

The Chase Freedom Unlimited® could be worth considering if you prefer to enter the Chase Ultimate Rewards ecosystem, which is more valuable for travel rewards.

This card has no annual fee and offers exceptional returns on everyday spending. Normally, it earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases. However, as a welcome bonus, you can earn an additional 1.5% cash back on up to $20,000 spent in the first year. So, you will earn 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year).

If you pair this card with a Chase credit card that offers transfers (such as the Chase Sapphire Preferred® Card), you can combine your points and convert the points you earn with the Freedom Unlimited into airline miles and hotel points. This allows you to drastically increase the value of your rewards.

Learn more: Chase Freedom Unlimited®

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Information about the NHL® Discover it® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the cards prior to publication.

For rates and fees of the Discover it® Cash Back, click here.

For rates and fees of the Discover it® Student Cash Back, click here.