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- Discover it® Student Cash Back Review
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One of the two Discover credit cards intended directly for college-age customers, the Discover it® Student Cash Back even beats many “adult” cards with its bonus cash back categories. That, combined with Discover’s double rewards in the first year, makes this potentially a high cash-back-earning card. Learn more about what this card has to offer in our detailed Discover it® Student Cash Back review below.
Apply Now
On Discover's Secure Website.
Discover it® Student Cash Back
Apply Now
On Discover's Secure Website.
Great for: Bonus cash back for students
Rating image, 5.0 out of 5 stars.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
Earn up to 5% cash back in rotating quarterly categories, up to the quarterly maximum when you activate. Somehow this card also packs in a 0% intro APR offer for no annual fee. This student card somehow rivals many of the best cash back cards on the market.
Rewards
Cash back on everyday purchases at 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. Unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Ongoing APR
12.99% - 21.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at 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, earn unlimited 1% cash back on all other purchases – automatically.
- Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
- Earn rewards while building your credit history that can help you after graduation. And, get your free Credit Scorecard that includes your FICO® Credit Score and important details that help make up your score.
- No annual fee. No late fee on first late payment. No APR change for paying late.
- Refer-a-Friend: Once you become a Discover it® Student cardmember, you can earn a $50 statement credit each time you refer a friend and they’re approved. Over half a million students got Discover Cards from their friends' recommendations.
- Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- Discover is accepted nationwide by 99% of the places that take credit cards.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% - 21.99% applies.
Full Discover it® Student Cash Back review
This credit card is a good fit for: Students who want to earn cash back and get rewarded for good grades as they build credit for the first time.
Pros
- Rotating bonus categories
- Double cash back bonus offer
- No annual fee
- Good grades credit
- Free credit score monitoring
Cons
- No fixed bonus categories
Top perks
Up to 5% cash back: The card earns 5% cash-back in quarterly rotating categories you activate each quarter. The first $1,500 of spending each quarter qualifies for the bonus rate, all other purchases earn 1% back.
Double rewards in the first year: This popular Discover perk has the issuer matching a cardholder’s cash-back earnings 1-for-1. The bonus is paid once to new cardholders, at the end of their first year of ownership.
$20 good grades statement credit: Discover likes quality students. The issuer will grant $20 in statement credit every school year to cardholders enrolled in college who post a GPA of 3.0 or higher in any term during the preceding school year. Student cardholders can earn the $20 good grades Reward up to five years after the account is opened.
No annual fee: Many students count every penny and are on very tight budgets. Fortunately for them, Discover imposes no annual fee on this card.
0% intro APR for purchases: Want to fund something -- perhaps a semester’s worth of books -- without having to worry about paying interest? You’ll have a six months to fund such expenses with this card’s 0% intro APR on purchases; buy a costly item or several, and pay it (them) off over the intro period without incurring any interest at all. The go-to variable rate does apply after the promo expires.
FICO® Score for free: Any person that holds a credit card needs to be aware of their credit score. Discover makes this easy by including a FICO® Score for free, which can be found in the Discover mobile app, through a customer’s account management page, or on each account statement.
Identity alerts: The issuer’s online service monitors your Experian credit report daily, and alerts you when a new account is posted there. It also screens websites that traffic in personal data, similarly letting you know if any of your details pop up. Users must opt in to this service.
No foreign transaction fee: Going abroad? If you use this card you won’t be dinged a foreign transaction fee.
TIP
The Ascent's student card essentials
When looking for the best student credit card, it's important to focus on offers that yield the most return for a student's limited budget. It's important to find credit cards that have no annual fee, provide free credit score tracking, and include an array of other features, such as a sign-up bonus and cash back rewards of at least 1%.
What could be improved
Bonus categories consistency: The one minor annoyance with rotating bonus category cards is that there aren't any categories where you can always expect to earn more cash back. One quarter you may luck out with bonus categories where you have high spending, earning you lots of rewards. The next quarter, you might end up with bonus categories in which you barely spend anything, and most of your purchases will earn you 1% back.
Suggested credit score
Discover it® Student Cash Back is designed for cardholders with no or limited credit histories. While Discover doesn’t provide formal guidance as to what kind of credit score a prospective cardholder should have, some respondents on web forums about the card report obtaining one with credit scores in the low 600s; other analyses have it that one can be granted with very limited credit -- which fits with the card’s focus on being your first credit card.
Alternatives to consider
- If you want extra cash back for paying on time: The Journey® Student Rewards from Capital One® offers 1% cash back on every purchase, but if you pay on time, that goes up to 1.25%. It also includes several helpful features that make life easier for students. It lets you choose your payment due date and increases your credit limit if you make your first five monthly payments on time.
- If you spend heavily on gas: The Discover it® Student chrome packs in many of the same features of Discover it® Student Cash Back, but offers a higher, always on, cash-back rate for gas with 2% back for $1,000 of gas spending each quarter.
As of Jan. 05, 2021
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Journey® Student Rewards from Capital One® |
Discover it® Student chrome |
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Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
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Apply Now
On Discover's Secure Website. |
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| Read Full Review | |
| Rates & Fees | Rates & Fees |
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Credit Rating Requirement: |
Credit Rating Requirement: |
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Welcome Bonus: N/A |
Welcome Bonus: Dollar-for-dollar match of all cash back earned the first year |
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Rewards Program: 1% cash back on all purchases. Pay on time for a total of 1.25% cash back for that month. |
Rewards Program: 2% cash back for gas and restaurants ($1,000 combined spending cap each quarter) |
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Intro APR: Purchases: N/A Balance Transfers: N/A |
Intro APR: Purchases: 0%, 6 months Balance Transfers: 10.99%, 6 months |
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Regular APR: 26.99%, variable |
Regular APR: 12.99% - 21.99% Variable APR |
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Annual Fee: $0 |
Annual Fee: $0 |
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Highlights:
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Highlights:
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Apply Now
On Discover's Secure Website. |
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Journey® Student Rewards from Capital One® is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
This card is right for you if:
Discover it® Student Cash Back is, in many ways, a fine standalone cash back card. Even though its elevated cash-back places are very limited, they still represent popular forms of commerce and they earn at up to a 5% clip. It’s rare to see a card focused on young/limited option consumers with such a high rate.
All in all, this card has quite a full feature set and some very attractive bonuses. The double rewards bonus, for example, is a dynamite one-time perk. Yes, it’s probably aimed at getting you to use the card as frequently as possible but so what? Savvy cardholders who spend regularly and within their means can rack up quite a big sum after that one-year period.
Several of the Discover it® Student Cash Back benefits rival those of cards targeted at wealthier individuals. It’s the Little Card That Could, and as such would be a smart choice for those just starting out with credit cards, people with a limited credit history, or those with a score lower than they’d like.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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