Discover Credit Line Increase (Tips & Data Points) [2021]

Requesting a credit line increase from Discover is a pretty easy task. The hard part is predicting what the outcome of your request will be, though. 

In this article, I’ll break down how to request a Discover credit line increase and also provide you with some data points I found showing you how much of an increase you can expect and what type of credit score you may want to have before applying for an increase.

How to request a Discover credit line increase

You can request a Discover credit line increase in four easy steps:

  • Step one: Log-in to your Discover account
  • Step two: Click on the “manage” tab on the top menu (on the right)
  • Step three: Click on “credit line increase”
  • Step four: Update your income and other details

You can also call 800-347-2683 and request a credit line increase although I would recommend doing it online.

Tip: Use the app WalletFlo to give you auto-reminders of when to request credit limit increases!

Log into your Discover account

Click on the manage tab

Once you are logged into your account, just click on the “Manage” tab that is found on the top menu bar. 

Click on “credit line increase”

Under “Credit Options,” you will see the “Credit Line Increase” button. Click that to proceed.

Discover credit line increase menu option
You can get to the Discover credit line increase request page in two clicks.

Update your income and other details

You will now be on the main credit line application page and you just need to fill in the details which I explained below.

Discover credit line increase application 

The credit line application form will ask you to fill out the following information:

  • Total Annual Gross Income
  • Employer Name
  • Monthly Housing/Rent Payment
Screenshot of credit line increase application
Here’s the information you need to supply for your credit line increase application.

Total Annual Gross Income

Your total annual gross income includes “current or reasonably expected salary, wages, bonus pay, tips, commissions, internships, living expenses, scholarships or grants, and income from investments.”

So add up all of your income streams and that will be your annual gross income.

Something to be aware of is that if you are 21 years or older, you can include income that you have “reasonable access” to. This is known as “accessible income” and you can read more about it here.

Your income is really important when it comes to establishing credit lines so be sure to update it if you ever have an increase because that will increase your odds of getting a credit line increase. 

Related: Does Income Affect Your Credit Score?

Employer Name

This field is straightforward. Simply enter in the name of your employer. If you do not have an employer or would prefer not to answer just enter “other.” 

Why does Discover ask for this?

Some people think it’s because it deters people from lying about their income since they are providing a way for Discover to potentially verify their income.

But when it comes to banks verifying your income for credit, that is an extremely rare event and I don’t think you need to worry about dealing with that. Plus, if you are telling the truth you have nothing to worry about.

Monthly Housing/Rent Payment

Your monthly mortgage or rent payment is extremely relevant to getting approved for a credit line increase. That’s because this payment cuts down on your discretionary income which is super relevant when it comes to determining your ability to pay off your bills. 

Hard pull or soft pull?

Discover is one of the issuers that sometimes performs a soft pull while other times it performs a hard pull on your credit.

The application form states:

After reviewing your application, we may need to pull a credit bureau report, which may affect your credit score. In these cases, we will proceed with the application only with your consent.

This means that your credit line increase could result in a hard pull which could bring down your credit score.

Often if you are approved for the credit line increase amount you initially request that will be a soft pull. But sometimes Discover will not accept your request and instead will offer you a counter offer for an increase. Sometimes when you process this request it can result in a hard pull. 

How bad would a hard pull affect your credit?

Typically, a hard pull will only bring down your score around 3 to 5 points but it could bring your score down much more if you have a less established credit profile or have recently applied for a lot of credit. 

Eventually, after a few months, your credit score should come back up and if you were approved for a credit line increase, it will probably jump higher than where it was before.

Related: Credit Pulls Database Guide: Experian, TransUnion, or Equifax?

Can you be instantly approved for a credit line increase?

Many people will be instantly approved for a credit line increase with Discover.

But on other occasions your request might go to a manual review process.

In that case, you might see a message like, “”We’re reviewing your request and will let you know in 2 days.” It’s not clear what that means for your approval odds but many people have been approved for credit line increases after receiving the message.

What cards can I get a credit line increase for?

You should not be limited with respect to the type of card you can get a credit line increase for. Here’s some of the popular Discover cards that you might increase a credit line for:

  • Discover it Secured 
  • Discover it Cash Back
  • Discover it Student Cash Back
  • Discover it Student Gas & Restaurants
  • Discover it Balance Transfer
  • Discover it Miles
  • Discover it Chrome 

How much of a credit line increase to request?

How much of a credit increase you should request depends a lot on your starting limit.

If your starting credit line is $10,000, then requesting a 100% increase could be too aggressive. However, if your credit limit is $500 then requesting a 100% increase could make a lot of sense.

Discover is tricky because the process is a true black box and outcomes are unpredictable. I’ve seen reports of people getting several thousand dollars in increases while many others are limited to only $500 increases.

My one bit of advice would be to start off small and be patient. I think requesting a 25% increase is generally a conservative approach.

Here are some self-reported examples for Discover credit line increases. Below, I’ve listed the amount of the increase and if enough information was given, the percentage that the credit line increased.

Automatic credit line increases

Like many other banks, Discover will sometimes grant you an automatic credit line increase.

For example, here’s someone who got an automatic increase from $1,800 to $2,200.

It’s very hard to predict when an automatic credit line increase will happen so your best bet is to use your card often and never miss a payment and just cross your fingers.

Tips for a Discover credit limit increase

If you want to increase your odds of being eligible for a Discover credit line increase, there are certain things that you can try.

Spend big on your card

A lot of banks don’t like to extend credit to people who don’t use their cards. That’s because they are unprofitable customers. It costs them money to keep your accounts alive and active and if you are never using your card, you are not generating revenue for them in the form of interest fees or interchange fees.

Discover seems to be one of those banks that puts extra value on using their cards. So try to use your card a few times a month at least in the months leading up to your credit line increase request.

You may also consider cycling your credit limit. Sometimes if you spend close to your credit limit and then pay off that amount multiple times a month, that can be an indicator to your bank that you need more access to credit.

Pay off a high balance

You want your utilization to be in check before you apply for a credit line increase.

If Discover sees that you have a maxed out credit card or multiple maxed out credit cards they will feel less good about extending you additional credit because you may just max out that line and become a credit risk.

So make sure that you your balance is paid down and in some cases this may require you to pay off your entire balance before your statement closes. That will prevent your outstanding balances from appearing very high and could improve your credit score tremendously.

Credit line increases with other issuers 

You might also be interested in reading about getting credit limit increases with other issuers. 

Discover credit line increase (FAQ)

How often can I request a credit line increase with Discover?

It’s often advisable to wait 3 to 6 months between credit line increases although some people have had success when waiting shorter amounts of time.

Does discover do a hard or soft pull for credit line increases?

If Discover accepts your initial request for a credit line increase it will likely be a soft pull. But if it is not approved, your later request could result in a hard pull.

What credit scores are needed for a Discover credit line increase?

Data points suggest that having a credit score in the mid to upper 600s can be good enough for a credit line increase.

Here are some self-reported data points.

696 Experian, 717 TransUnion, 717 Equifax (Denied)
695 (Approved)
708 Equifax FICO 8 and 689 Experian FICO 8 (Approved)
Equifax 671 Fico 8, TransUnion 684 Fico 8, Experian 696 Fico 8 (Approved)

Final word

Overall, discover is pretty unpredictable when it comes to credit line increases. There are a lot of conflicting data points out there and the amounts for increases can be sporadic. I would just focus on using your Discover card as much as possible and trying more than once if you were not successful. 

What Credit Scores Needed to Get Discover Pre-Approval Offers? [2020]

Discover pre-approval offers can give you some extra assurance when applying for Discover cards.

But how exactly do you get these offers and what do they mean for your approval odds?

This article will take a close look at what you need for Discover pre-approval offers and show you how to check for them. I’ll also provide you with some specific credit scores that pulled up pre-approval offers in the past. 

Interested in finding out the hottest travel credit cards for this month? Click here to check them out! 

What are Discover credit card pre-approval offers?

Discover pre-approval offers are special offers that can be pulled up for applicants who have a high chance of getting approved for various Discover credit cards. However, they do not guarantee approval.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

What Discover credit cards can I get pre-approved for?

Below is a list of Discover credit cards you might want to try to get pre-approval offers for.

  • Discover it Secured (example)
  • Discover it Cash Back
  • Discover it Student Cash Back
  • Discover it Student Gas & Restaurants
  • Discover it Balance Transfer (example)
  • Discover it Miles
  • Discover it Chrome 

The Discover it Cash Back is a terrific no-annual fee credit card that allows you to earn 5% back on quarterly categories. You’ll earn 1% back on all other purchases. 

And at the end of the year, cash back earnings are doubled the first year so it equals to 2% back on all purchases and up to 10% back on your quarterly categories (and you get a free FICO score). 

Here’s a historical look at what the Discover it quarterly categories have been over the past five years.

2017

  • Q1: Gas Stations, Ground Transportation, and Wholesale Clubs
  • Q2: Home Improvement Stores & Wholesale Clubs
  • Q3: Restaurants
  • Q4: Amazon.com & Target

2016

Q1: Gas & Ground Transportation (including car rental)
Q2: Restaurants & movies
Q3: Home Improvement Stores & Amazon.com
Q4: Department Stores, Amazon.com, Sam’s Club

2015

Q1: Gas & Ground Transportation (Car Rental, Taxi, Limo, Public Transport)
Q2: Restaurant & Movies
Q3: Home Improvement Stores, Department Stores, and Amazon.com
Q4: Amazon, Department Stores, Clothing Stores

2014

Q1: Restaurants and Movies
Q2: Home Improvement Stores, Furniture Stores, Bed Bath Beyond
Q3: Gas stations
Q4: Online Purchases, Department Stores

2013

Q1: Restaurants, Movies
Q2: Spring Style (shows a picture of a flower) Clothing and home improvement
Q3: Summer Fun (shows a picture of a gas pump handle) Gas stations
Q4: Holiday Shopping (shows a picture of a gift bow) Department stores, Amazon.com

H/T: My FICO

How to check for Discover credit card pre-approval offers

You can find Discover pre-approval offers here. 

Does checking for Discover pre-qualified offers affect my credit?

Rest assured, filling out the pre-approval form will not impact your credit score — the websites even states “This won’t impact your credit score.”

This is because Discover will not perform a “hard pull” when applying for pre-approval offers. Instead, it’s more of a “soft pull” that won’t bring down your credit score. You can read more about how credit inquiries affect your credit score. 

How to pull up the offers (Discover pre-approval tool)

The online Discover pre-approval page requires you to input more data than most pre-approval pages.

In fact, you might think that it’s a full-on credit card application since it requires your full social security number along with income and other information.

So to get your pre-approval complete the following:

  • Step 1: Go to the pre-approval page
  • Step 2: Enter in your personal information:
    • Name
    • Address
    • Student status
    • Total Annual Gross Income
    • Monthly Housing/Rent Payment
    • Housing Status
    • All nine digits of your social security number (SSN)
    • Checking or Debit Account
    • Savings, IRA, or Money Market Account
    • What card benefit is most important to you
  • Step 3: Check the boxes and click “Check Now”

Income

If you are 21 or older, you can include income that is reasonably accessible to you.

So for example, you would (typically) be able to include your spouse’s income when reporting your total annual gross income.

Discover pre-approval form.
Discover pre-approval online form.

What credit score is needed for Discover pre-approvals (approval odds)?

I did some research on approval odds and found pre-approved offers for the following credit scores:

The bolded are self-reported approvals.

Of course, the lower that your credit score is, the higher that your interest rate will likely be and the lower your credit limit will be as well. Also, if your credit score is low (lower 600s), you might only get approved for the secured credit cards.

My advice would be to try to get into at least the mid 600s to go for pre-approvals but obviously the closer you get to the 700s, the better.

Can you be denied for pre-approvals?

Just like with other major issuers, it’s possible to be denied for a Discover card even when you received a pre-approval offer.

Be aware there are some offers you might receive that probably don’t mean anything special for your approval odds, such as the offer found here on myFICO shown below:

Here’s The Card We Found For You

The Discover it card is changing the game.

Your Offer

  • No Annual Fee*
  • 0% Intro Purchase APR* for 14 months and then 10.99%– 22.99% Standard Variable Purchase APR.
  • 0% Intro Balance Transfer APR* for 14 months from date of first transfer, for transfers under this offer that post to your account by July 10, 2014 and then 10.99% – 22.99%Standard Variable Purchase APR.*
  • 3% of the amount of each transfer .

* See rates, rewards and other info

Notice there’s no specific language about being “pre-qualified.” Also, the interests rates can be telling.

Fixed APR or APR range

Like some other issuers, many remark that your approval odds are better when you’re shown a fixed APR versus a range of an APR.

So for example, if you were shown an APR of 15.4% your odds might be better than if you were shown an APR range of “18.2% to 20.3%.”

Pre-approvals and hard pulls

One cool thing about some pre-approvals is that when you get approved, you might not incur a hard pull on your credit report.

I’m not sure how to predict when this happens, though, and I would generally expect to receive a hard pull so you’re not caught by surprise.

What credit bureau does Discover pull?

Discover will likely pull your Experian credit report but it’s possible that they might pull your credit reports from TransUnion and Equifax. You can read more about which banks pull which credit bureaus here. 

Discover credit card application rules

You can only hold a maximum of two total Discover credit cards. But keep in mind that your first account needs to open for a year before your second card can be opened. 

You are also limited to one student card. To automate your credit card eligibility be sure to check out the free app WalletFlo.

Discover Reconsideration Line

If you’re denied for a credit card from Discover then you can always call their reconsideration line phone number at: 888-676-3695 or 1-800-DISCOVER.

Read my article on tips for the Chase Reconsideration line here to learn how to handle a recon call. While that article is for Chase, many of the same tips would apply for the Discover it.

Discover Deals

Update: No longer available. 

Don’t forget that if you get approved for a Discover credit card, you’ll get access to Discover Deals.

This allows you to earn great cash back rates at major stores like Walmart, Target, and many others. You can also find discounts at stores like BestBuy.

When using tools like Cash Back Monitor and EvReward to monitor the cash back rates, you’ll notice that Discover Deals is often at the top of the earnings, so it’s truly a valuable program.

Other pre-approval links

Other major issuers also offer pre-approval/pre-qualified offers.

Some of them have unique quirks and I write about them in the articles below so you can know what to expect.

Amex pre-qualified offers

Citi pre-qualified offers

Chase pre-qualified offers

Final word

If you’re interested in a good cash back credit card then you should think about trying to go for a Discover pre-approval. It’s pretty easy to check for your offers and if you get lucky, you might even get approved without a hard pull.

And lastly, you can get pre-approved offers with credit scores in the mid-to-low 600s, so many people could potentially qualify.

Discover Refer A Friend Guide: How to Get up to $500 [2020]

Some credit card issuers allow you to benefit whenever you can successfully refer other people to their credit cards. Discover is one of these banks and they actually have a pretty unique way of doing the referrals.

In this article, I will tell you everything you need to know about the discover referral friend program, including how it works with popular cards like the Discover it and how to get up to $500 in referrals. I’ll also talk about how this referral program is a little bit different compared to other programs out there and some things to watch out for when going for the referrals so that you don’t miss out on points. 

What is Discover refer a friend? 

Discover refer a friend is a special program that allows you to earn additional cash back or miles whenever you refer a friend that is approved for a Discover credit card. In addition, the individual that you refer can also earn some additional cash back or miles whenever they make a purchase after being approved. This means that each of you can capitalize on savings with your Discover accounts.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

How does Discover refer a friend work?

The process for Discover refer a friend is very simple. All you have to do is log into your account right here and then generate a referral link. Once you log in you should see the options to share your referral link. There are three different ways you might share your referral link.

Social media

You can share the referral link on social media with Facebook or Twitter. If you share the referral on Facebook this is what it will look like (note: you could add your own text to the post). 

I don’t know how effective these generally are when sharing, but I would generally go with one of the two approaches below over the social media approach.  

Email

Discover has a pre-drafted email that you can send out your referrals with. You can actually send out this email to multiple email addresses by simply leaving a space (or comma) between email addresses. Also, you can select to send your friends reminder emails (which they might not enjoy so be thinking about that). 

This is what the email will say when it is sent out:

Become a Discover Cardmember and get a $50 Statement Credit when you make your first purchase within three months. Then, earn rewards with every purchase after that.

Personalized link

You may also just want to copy and paste the personalized link. This would be a very easy way to share the referral via a text message. This is my preferred method when dealing with referral links since I have full control over all the content that will go out with it and don’t have to worry about cheesy pre-written messages. 

When you send out a personalized link the application page will look pretty standard. This is in contrast to some other banks that make it much more apparent that your friends are being sent a referral link. 

Sometimes the referral link may not be working. This could be due to maintenance for some kind of technical issue that is usually resolved. If the referral links are not working for you then I would recommend to call the number on the back of your credit card to inquire with Discover. 

How much will I get for the referrals? 

You will receive a $50 Statement Credit referral reward if your friend applies for the specific offer you send via the link provided and is approved.The person applying for the credit card must use your referral link in order for you to get credit. 

Also, if they make a purchase within three months of being approved they will be able to receive a $50 credit. Not many other referral programs offer a credit to the person getting approved for the card so Discover is a bit unique in this regard.

How many referrals can I do each year?

You will be limited to a maximum 10 referral rewards ($500) per calendar year. This is actually pretty generous considering that many other programs limit you to only five referrals per year. I’ve also heard that Discover will double your referrals if it’s your first year with the Discover It. 

The terms do state that “Statement Credits you receive may be taxable to you.” In the past year, we have seen several other issuers start to issue tax forms for the referrals that went out.

In many cases where people receive tax forms the people who did the referrals are getting about $600 or more worth points are miles. So if you only have a few referrals with Discover you may not get a tax form sent to you but just be aware of what the terms state. 

Will I get notified when they are approved?

You will not receive a notification whenever your friend is approved or declined for a Discover credit card. This is because of privacy laws and other referral programs with other banks also do not allow you to see this information. 

Since you will not be notified if others are approved it is a good idea to follow up with the individual or individuals that you sent out your referral links to see if they were actually approved. And you might also want to re-emphasize to them that they should use your specific referral link so that both of you can benefit. 

How long does it take to get the cash back?

After you have successfully referred someone to a Discover credit card you might be wondering how long it will take for you to receive your cash. 

The terms and condition state:

Please allow up to 1-2 billing periods for the statement credit to post to your account after each referral is approved.

Sometimes you might receive your referral cash back much quicker than that but you should definitely follow up with Discover if a couple of months have gone by and you have not received your statement credit.

Are all Discover cards eligible?

Not all Discover credit cards or eligible for the refer a friend program. For example, the terms and conditions specifically state:

You are not eligible to refer a friend if you have a Discover it® Secured Credit Card, Discover it® Business Card, or Discover® Business Miles Card.

Is everybody eligible?

Something that you need to know about this program is that not everybody is eligible for the Discover referrals. For example the terms and conditions state: 

Existing Discover cardmembers and those who have opted out of receiving market communications from Discover are not eligible referrals.

This means that you want to clarify if the people you are trying to her are currently Discover card members and if they have opted out of receiving marketing communications. If they fall into those two categories you may not be able to get a referral bonus. It should be noted that other banks don’t put these restrictions on current customers. 

You should also note that your account must be in good standing to receive your referral reward. In other words, if you have late payments for an unpaid balance on your card and are overdue you will not likely be able to receive a bonus. 

Are there other referral programs?

Several other banks offer referral programs and if you would like to read more about some of those check out the referral program for Chase and for American Express. 

Final word

The Discover referral program is very similar to the other banks. The big differences are that you can make up to 10 referrals per year and also that the recipient of the referral link can also benefit whenever they make a purchase within the first three months after being approved. Allowing both parties to benefit from the referrals should make it easier to successfully refer other people to Discover credit cards. 

Discover Deals Ending This Month

Discover Deals has been one of the best reasons for picking up a Discover card for a while but that’s going to be changing soon.

For those who don’t know, Discover Deals is the shopping portal for Discover that allowed customers to receive extra cash back and cash in on promotions. They didn’t offer the largest selection of stores to choose from but they often had some of the best cash back deals compared to other portals. You can read more about the program here. 

As of October 31, 2018, Discover Deals will be no more, however. 

Discover just sent out an email stating the following:

We’ve decided to retire Discover Deals as we focus on simpler and more meaningful ways to earn rewards. Any pending rewards will be added to your account as usual.

Thank you for your loyalty. Keep an eye out for exiting things to come and don’t forget, you’re always earning rewards on every purchase with your Discover card.

This is yet another downgrade that has come from Discover over the past year as we saw them drop the extended warranty and purchase protection (two losses that made Discover Deals much less appealing). It’s not clear what Discover is planning for its “simpler and more meaningful” ways to earn but if I had to guess, it will likely be a scaled down version of Discover Deals.

Discover still isn’t a bad way to go when it comes to choosing credit cards, though. I still think that the Discover it, which allows you to earn 2% back on all purchases and 10% back on rotating categories, is one of the best bargains for a cash back card. But it is unfortunate to see such a stead decline in benefits offered from Discover over the past few months.

Also, yes you read their language right.. “exiting” (how appropriate).

Discover Deals Guide: Get 5% Cash Back or More (Merchant List) [2018]

Discover Deals is a fantastic way to save extra money on lots on online purchases because it often offers some of the most competitive cash back rates out of any program.

But who gets access to Discover Deals and how does it work?

This article will show you how to use Discover Deals to save money and earn cash back (5% and more) at some of the most popular merchants like Best Buy, Apple, and Walmart. 

I’ll show you how to make sure that you’re going after the most valuable cash back deals.

What is Discover Deals?

Discover Deals is the exclusive cash back shopping portal for Discover cardmembers.

But in addition to supplying you with cash back for various merchants, Discover Deals also offers promotions that can save you money at merchants online and in-store.

Wait, what’s a shopping portal?

A shopping portal is a website that allows you to earn extra cash back or miles/points when doing shopping online.

You are able to shop around for the same products you’d normally be able to buy at the same prices but the difference is that you’ll be earning cash back or points for every dollar that you spend.

There are lot of different shopping portals for other banks and loyalty programs.

For example, there’s a shopping portal for Chase, American Airlines, Southwest, among many others.

Who gets access to Discover Deals?

You will need to hold a Discover card to get access to the shopping portal.

(All Discover cards are eligible for the portal so this is a great way for students with cards like the Discover It Student to save on much-needed cash).

How does Discover Deals work?

If you’re a Discover cardmember, simply log-in to the portal here.

Once you log-in, you’ll see the main page where you can find the current deals and also use the search bar to search for your merchants.

The deals that show “Instant Savings” are offers that will provide you with a specific amount off your purchase (versus the cash back bonus which gives you a % of cash back on your purchase).

You can also save deals for easy retrieval in the future.

If you’d like to, you can filter the results based on categories like location, store type, and promotional offer.

Once you click on a merchant you’ll be taken to a screen where you can see the terms of the offers. Be sure to place close attention to the terms to make sure you don’t disqualify yourself.

For example, Discover states that you need to use your Discover card for each transaction within 3 hours of clicking the offer link.

Also many stores have very specific exceptions. For example, Walmart has the following exceptions:

EXCEPTIONS: Apple Watch, iPhones, Grocery to Go, cell phones, prepaid phone cards, Straight Talk, Pharmacy, travel, financial services, tires, Walmart Connect Internet service, gift cards, shipping, taxes or service fees

Once you’ve read up on all of the relevant terms click on “Shop Now” and you’ll be taken to t

Does Discover Deals offers the best rates?

Discover Deals often offers some of the best cash back rates compared to other shopping portals. 

But keep in mind you won’t always be getting the best deal since the cash back rates often fluctuate.

Many portals offer special temporary bonus earning rates for different retailers so you always want to be on the lookout for those.

So how can you know which portals are offering the best rates?

The answer is easy: check one of the sites that monitor the earning rates.

My top recommendation is to check Cash Back Monitor. Simply input the store that you’re wanting to shop at and then take a look at the results. You’ll be able to see which portals are offering the best rates for cash back and points on one easy-to-understand screen.

But you can also search for historical data so you can see if a bigger bonus rate might be coming your way. Read more about how to get the most out of Cash Back Monitor here.

Another site you can try is Evreward. It’s not as thorough as Cash Back Monitor in my experience but it does offer a good breakdown on ongoing promotions, rebates, and coupons for stores which can be very handy.

You can read more about how to use Evreward here.

List of Discover Deal merchants

Discover Deals has some great offers but there’s not a super-long list of merchants like some of the other shopping portals have, so your shopping options are a bit on the limited side.

For example, one of the most popular stores to use a portal on is Best Buy, but you won’t currently find Best Buy in the Discover Deals portal for cash back earnings. However, there have been special instant savings (like 20% off) for using your Discover card at Best Buy on special items in the past.

Below are all of the stores where you might earn cash back or simply receive instant savings — keep in mind these merchants are always subject to change at any time.

#

1800Baskets.com

1800Flowers.com

A

AAMCO

Abercrombie & Kent

Abt

Advance Auto Parts

AlamoAnn Taylor

Apple

Athleta

Atlantis Resorts

Auntie Anne’s

Avalon Waterways

Avis

Azamara Club Cruises

B

Banana Republic

Bed Bath & Beyond

BestBuy.com®

Big 5 Sporting Goods

Bloomingdale’s

Blue Apron

Budget

C

Calvin Klein

Carnival Cruise Line

Carter’s

CB2

Celebrity Cruises

Cheryl’s

Claire’s

Coach

Cost Plus World Market

Crate & Barrel

Cunard Line

D

Dell Home

Dell Small Business

Discover Bike San Diego Stations

Disney Cruise Line®

Dollar Rent A Car

dressbarn

Dunham’s Sports

E

Enterprise

F

Fairmont Hotels & Resorts

Finish Line

Foot Locker

FragranceNet.com

Fruitbouquets.com

FTD

G

Gap

Globus

Groupon

H

Hard Rock Resorts Caribbean

Hard Rock Resorts Mexico

Harry & David

HelloFresh

Hertz

Holland America Line

Hotwire

J

J. Crew

J. Crew Factory

JCPenney

Jenny Craig

K

Kiehl’s online

L

L.L.Bean

Lancome online

LasikPlus

LEGO

LOFT

Lyft

M

Macy’s

Men’s Wearhouse

Microsoft Store

MSC Cruises

N

National Car Rental

Neiman Marcus

Neiman Marcus Last Call

Nike

Norwegian Cruise Line

O

Oceania Cruises

OLD NAVY

OshKosh B’gosh

Overstock

P

Palace Resorts

Peapod

PODS

Popcorn Factory

Premium Seats USA

Princess Cruises

ProFlowers

Q

QVC

R

Reebok

Regent Seven Seas Cruises

Royal Caribbean International

S

Sam’s Club

Samsung

Sephora

Shoe Carnival

Shop.NHL.com

T

The North Face

The UPS Store

Things Remembered

Thrifty Rental Car

Tommy Hilfiger

TOMS Shoes

Tory Burch

Trafalgar Tours

TurboTax

U

Uber

Uber Eats

Ulta Beauty

Under Armour

Universal Studios Resort

Uniworld River Cruises

V

Van Heusen

Viking Cruises

Vitamin World

W

Walgreens

Walmart online

Wolferman’s

Note: Home Depot, Amazon, and AirBnB are currently not listed/available. 

Discover Deals promotion examples

As mentioned, in addition to earning cash back at the merchants above, Discover Deals will also often run promotions so you can save extra money at these retailers.

Below are a few examples that will give you an idea on the kind of savings you might be able to expect.

Discover Deals car rental deals

Discover Deals almost always has a tone of car rental deals.

You can often get 20% to 25% off various car rentals from companies like Avis, National, Budget, Hertz, and others.

In the past, Discover also allowed you to redeem $40 car rentals gift cards for only $20, which could be used for the likes of Alamo, Enterprise, and National.

Discover Deals Apple store

In the past, Discover offered a special promotional cash back rate of 10% at the Apple Store (up to $10,000). The current cash back rate is 5%.

Discover Deals Kohls

Discover offered a special promotion of $10 Off $30.

Discover Deals Under Armour

Discover offered a special promotion of 15% cash back.

Discover Deals travel deals

You can often find several travel deals. Beyond rental car and Uber deals, look for deals on hotels with Hotwire.com and deals on Atlantis Resorts.

Universal Studios Resort vacations are also popular.

There are always plenty of deals for cruises too with various cruise lines, such as Disney, Princess Cruises, Carnival, Royal Caribbean International, and may others. 

I haven’t been able to find good Discover Deals for flights, however. Let me know in the comments if you come across any!  

Preparing to use the portal

Before you ever even access the Discover Deals portal, there are a few things you should consider doing to decrease the odds of your purchase not tracking properly.

Clear your shopping cart

If you’ve already been browsing online with the merchant and dropping items into your shopping cart here and there, you might want to remove those items first. (After you click through the portal and get back on the merchant’s website later on, you can add those items back.) This is not necessary all the time but many people choose to do it out of precaution.

Turn ad blockers off

Make sure your ad blocker is off before you access the Chase shopping portal. This could prevent necessary pop-ups from showing or interfere with your tracking.

Enable cookies and javascript

Make sure you have enabled cookies and javascript. Some people also like to clear their cookies before they access the portal but you could also just use an incognito browser to do the trick.

Also, you might want to disable your browser toolbars so that they don’t interfere with your tracking.

Discover Deals FAQ

How long does it take to receive my cash back?

You should receive your cash back within 10 weeks.

Can Discover Deals be used with other coupons?

Generally, no, you cannot combine coupons and promo codes found outside of Discover Deals.

Sometimes these things can stack but there’s also a risk that you’ll lose your Discover Deals cash back.

Can I combine the 5% Discover it cash back with Discover Deals?

Yes, you’ll earn your 5% Discover it cash back in addition to your Discover Deals earnings.

Do I have to sign up for Discover Deals offers?

You don’t have to sign-up for Discover Deals — you simply need to log-in to take advantage of the savings.

Do I need to pay with my Discover card to earn rewards?

Yes, your Discover card must be used for payment to receive your reward. (You’ll need to use your Discover card associated with the account you’re logged in to.)

Are Discover Deals rewards added to the regular rewards I already earn?

Yes, you will earn Discover Deals rewards in addition to your other Discover rewards, such as the cash back you earn with the Discover it.

What types of Discover cards are eligible for Discover Deals?

All types of Discover card are eligible for Discover Deals.

What if I have an issue with my offer?

If you have an issue or just a question about an offer, send a secure email to Discover or call them at 1-800-DISCOVER (1-800-347-2683).

Final word

Discover Deals is a great way for Discover cardmembers to save extra cash.

Be sure to take a close look at the terms and exception for your merchants and double check the top earning rates with other portals, and you’ll be maximizing your earnings in no time.

Discover it vs Discover it Chrome (up to $600 back) [2020]

The Discover it credit cards come in many different forms but they don’t all offer the same level of value. In this article, I’m going to focus on the Discover it vs Discover it Chrome and take a look at how it’s possible to earn up to $600 cash back the first year that you have the card. I’ll also offer comparisons to some of the other very popular cash back credit cards.

Update: Some offers are no longer available — click here for the latest deals!

Sign-up bonus

One of the drawbacks to the Discover it Cash Back and Discover it Chrome is that they don’t come with a “true” sign-up bonus. For example, some cards mat offer you something like $150 back after you spend $1,000 in the first three months after account opening.

This means that with these Discover it cards, you don’t get the enticing up-front value that many other credit cards offer.

But that’s only because Discover it cards work a little bit differently — they reward you a little bit later on down the road as I discuss below.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

Bonus earnings

The bonus earnings is where both of these cards really shine, but the bonus earning structure is very different for each of these two cards.

The Discover it earns 5% back on quarterly categories (up to $1,500 in spend) while the Discover it Chrome earns 2% back on dining and gas purchases (up $1,000 per quarter).

I’ll compare each of them in detail.

Discover it bonus earnings

The Discover it earns 5% back on special quarterly categories which change each year. This means that every three months, you’ll need to keep tabs on which categories will offer you the 5% back.

Here’s a historical look at what the Discover it quarterly categories have been over the past five years.

2017

  • Q1: Gas Stations, Ground Transportation, and Wholesale Clubs
  • Q2: Home Improvement Stores & Wholesale Clubs
  • Q3: Restaurants
  • Q4: Amazon.com & Target

2016

Q1: Gas & Ground Transportation (including car rental)
Q2: Restaurants & movies
Q3: Home Improvement Stores & Amazon.com
Q4: Department Stores, Amazon.com, Sam’s Club

2015

Q1: Gas & Ground Transportation (Car Rental, Taxi, Limo, Public Transport)
Q2: Restaurant & Movies
Q3: Home Improvement Stores, Department Stores, and Amazon.com
Q4: Amazon, Department Stores, Clothing Stores

2014

Q1: Restaurants and Movies
Q2: Home Improvement Stores, Furniture Stores, Bed Bath Beyond
Q3: Gas stations
Q4: Online Purchases, Department Stores

2013

Q1: Restaurants, Movies
Q2: Spring Style (shows a picture of a flower) Clothing and home improvement
Q3: Summer Fun (shows a picture of a gas pump handle) Gas stations
Q4: Holiday Shopping (shows a picture of a gift bow) Department stores, Amazon.com

H/T: My FICO

As you can see, it’s pretty common to see Amazon, restaurants, gas, and department stores.

Another great feature about the Discover it cash back calendar is that Discover is really good about revealing their schedule in advance which allows you to plan out your spending better to capitalize on rewards.

Discover it Chrome bonus earnings

The Discover it Chrome does not earn bonus points on quarterly categories.

Instead, you earn a simple 2% back on dining and gas purchases up to $1,000 per quarter (on combined purchases).

This offer two distinct advantages.

Don’t have to keep track of categories

This means that you don’t have to worry about keeping track of quarterly categories. For some people, having to constantly look up which bonus categories are active is just a pain and so they prefer cards that earn bonus points on consistent categories.

Don’t have to let rewards go to waste

Also, a lot of people don’t spend money on things like Amazon, home improvement stores, and department stores. For these people, it really does them no good to have a 5% bonus on those categories because they would not normally shop there.

That’s not only a waste of rewards space but it could provide unnecessary temptation to spend money at those places because of the rewards. After all, credit cards do make us spend more.

If you spend a lot on dining and gas year round, that 2% will add up to $80 worth of savings just based on the bonus categories alone.

But as I mentioned earlier, things get a lot sweeter with both of these cards.

Doubled cash back

What makes both the Discover it Cash Back and Discover it Chrome stick out is that Discover will double the rewards earned with each card at the end of the year.

This is an exceptional earning opportunity.

Discover it 10% on bonus categories

For the Discover it you’ll be getting 10% back on quarterly categories for the first year which is insanely high. If you spent $1,500 each quarter on the bonus categories, that’s $6,000 worth of total spend.

At 10% back, that means that you could earn a total of $600 cash back via the bonus categories alone. 

This is why the lack of a sign-up bonus on the Discover it is not a big deal. You can still net more in rewards than those other cards with sign-up bonuses (more on that below).

Discover it Chrome 4% on dining and gas

The Discover it Chrome will earn 4% back on dining and gas for the first year which is very impressive. However, the $1,000 quarterly caps do severely limit these earnings.

If you spent $1,000 per quarter on gas and dining, that’s $4,000 total and 4% of that is $160.

That’s good but that’s not on par with the Discover it which as shown could net you up to $600 back.

Of course as already mentioned, it might be difficult for you to max out the 5% categories on the Discover it so it’s not always a straightforward comparison.

2% back on all purchases

Remember with these cards that’s it’s not just the bonus categories that are doubled. You also get the 2X end of year bonus on all of the non-bonus spending.

This means that you’ll be earning 2% back on all purchases for a year, which is a great return on par with the Citi DoubleCash.

So with the Discover it you’ll earn 10% back on rotating categories and 2% on all purchases. And with the Discover it Chrome, you’ll earn 4% back on dining and gas along with 2% back on all purchases.

Both of these earning rates have the potential to be super lucrative.

Earnings compared to other cards

The Discover it cards really do compete well with some of the other no annual fee cash back credit cards.

Below, I’ll show how much you could net by spending $6,000 on each card. I’ll assume the spend is in the highest earning categories on each card and if there is a cap to them, I’ll just use the non-bonused rate to complete the estimate. I’ll also include the value of the sign-up bonus as well. 

Here’s what it looks like:

  • Discover it Chrome = $160 + $40 = $200
  • Citi Double Cash = $120 + $100 = $220
  • Chase Freedom Unlimited = $90 + $150 = $235
  • Wells Fargo Cash Wise = $90 + $200 = $290
  • Amex Blue Cash EveryDay = .$180 + $150 = 330
  • Chase Freedom = $300 + $150 = $450
  • Discover it = $600 

As you can see, the first year value for the Discover it is well beyond what all of these other no annual fee cash back credit cards have to offer. It’s not even close.

Now again, this makes the assumption that all of that $6,000 of spend is on quarterly bonus categories for cards like the Discover it and Freedom. In reality, spending is much more complex and varied than that, but it just shows you the potential for value that the Discover it offers.

It’s also worth noting that in year two, the Discover cards lose the double rewards and so the competition between the Discover cards and these other cards in the long-run is much more competitive. And if you’re a high spender, you might want to look into other cards for more valuable rewards.

In addition to the above, there are several other features to be aware of.

0% Intro APR

Discover it Cash Back

  • 0% Intro APR for 14 months on purchases and balance transfers

Discover it Chrome

  • 0% Intro APR for 14 months on purchases and balance transfers

Both cards offer extremely competitive rates for 0% intro APR periods and balance transfers.

Discover Deals

Both of these cards will give you access to Discover Deals which is a shopping portal that will allow you to maximize your cash back rewards with every day online shopping.

Read more about that amazing shopping portal here.

Example of savings with Discover Deals.

Foreign transaction fees

Both cards do not have foreign transaction fees.

I wouldn’t necessarily want a Discover card to be my primary card to be used when traveling abroad. In some parts of the world Discover’s acceptance is growing but this is something to consider when thinking about using these cards abroad.

If you’re worried about this you can check this map for international Discover acceptance.

Annual fee

Both cards do not have an annual fee.

FICO Score

Both cards allow you to view your FICO score for free which is based on the TransUnion score.

Freeze it

Account Freeze Freeze it which allows you to instantly prevent new purchases, cash advances and balance transfers on your account if you misplace your card.

Discover Identity Alerts

Discover Identity Alerts are offered by Discover Bank at no cost and provide:

  • (a) daily monitoring of your Experian credit report and an alert when a new account is listed on your report;
  • (b) daily monitoring of thousands of risky websites known for revealing personal information and an alert if your Social Security number is found on such a website.

It’s always nice to know that you have some sort of system looking out for you since you never know who or what might try to access your data so these are nice perks both cards offer.

Discover it vs Discover it Chrome

These two cards are nearly identical but there’s a major difference in the amount of total value that you can obtain via bonus spending.

Discover it

  • Potential for ridiculous value with bonus spending
  • More well-rounded categories
  • Strong competitor compared to other cards

Discover it Student

  • Simpler rewards
  • Better for those focused on dining and gas purchases
  • Not a very strong competitor compared to other cards

Final word

I like the Discover it because I like the ability to earn maximum cash back on the 5% categories but I don’t think that it’s the best card for everyone. When deciding between these two cards it’s really important to breakdown your expenses to see which card would earn you more rewards back. And it’s really important to consider what other cash back credit cards might be a better for fit for maximizing value.

Discover it vs Discover it Student: Cash Back Showdown [2020]

The Discover it and Discover it Student are two very popular cash back credit cards. They are very similar credit cards but there are some key differences between the two cards which are worth pointing out. Here’s a close look at the Discover it vs Discover it Student.

Update: Some offers are no longer available — click here for the latest deals!

Sign-up bonus

One of the drawbacks to the Discover it Cash Back and Discover it Student Cash Back is that they don’t come with sign-up bonuses. For example, some cards mat offer you something like $150 back after you spend $1,000 in the first three months after account opening. 

This means that with both Discover it cards, you’re going to be missing out on up-front value compared to other options.

But that’s not a major blow considering how lucrative the rewards can be with these cards and I’ll show what you what I mean.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

Bonus earnings

The bonus earning structure is the same for both of these cards.

They each earn 5% back on special quarterly categories which change each year. This means that every three months there will be a new special bonus category like dining or gas that you can spend on in order to earn 5% cash back.

Here’s a look at what the categories have been in the past.

2017

  • Q1: Gas Stations, Ground Transportation, and Wholesale Clubs
  • Q2: Home Improvement Stores & Wholesale Clubs
  • Q3: Restaurants
  • Q4: Amazon.com & Target

2016

Q1: Gas & Ground Transportation (including car rental)
Q2: Restaurants & movies
Q3: Home Improvement Stores & Amazon.com
Q4: Department Stores, Amazon.com, Sam’s Club

2015

Q1: Gas & Ground Transportation (Car Rental, Taxi, Limo, Public Transport)
Q2: Restaurant & Movies
Q3: Home Improvement Stores, Department Stores, and Amazon.com
Q4: Amazon, Department Stores, Clothing Stores

2014

Q1: Restaurants and Movies
Q2: Home Improvement Stores, Furniture Stores, Bed Bath Beyond
Q3: Gas stations
Q4: Online Purchases, Department Stores

2013

Q1: Restaurants, Movies
Q2: Spring Style (shows a picture of a flower) Clothing and home improvement
Q3: Summer Fun (shows a picture of a gas pump handle) Gas stations
Q4: Holiday Shopping (shows a picture of a gift bow) Department stores, Amazon.com

H/T: My FICO

As you can see, it’s pretty common to see Amazon, restaurants, gas, and department stores. These are categories that fit the profile of the average spender and fit well with the spending of college students, too. This is important since it means you won’t have to go out of your way to earn rewards with your credit card spend.

Another great feature about the Discover it cash back calendar is that Discover is really good about revealing their schedule in advance which allows you to plan out your spending better to capitalize on rewards.

Doubled cash back

What makes both the Discover it Cash Back and Discover it Student Cash Back stick out is that Discover will double the rewards earned with each card at the end of the year.

This is an exceptional earning opportunity for two reasons.

10% back on quarterly categories

You’ll be earning 10% back on all of the quarterly categories for the first year. That’s a fantastic return which means that you can earn a total of $600 cash back just via the bonus categories alone.

This is why the lack of a sign-up bonus for either of these cards is not a big deal. You can still net more in rewards over time than those other cards with sign-up bonuses.

For example, assume you only spent $6,000 and you maxed out the 5% categories on the both the Chase Freedom and the Discover it.

For the first year you’d earn $450 with the Chase Freedom when factoring in the $150 sign-up bonus plus the $300 in cash back. But with the Discover it, you’d earn $600 back since your $300 cash back would be doubled at the end of the year.

But that’s not all.

2% back on all purchases

Even your non-bonused spend will be doubled the first year. This means that you’ll be earning 2% back on all purchases for a year, which is a great return on par with the Citi DoubleCash.

So in total you’ll earn 10% back on rotating categories and 2% on all purchases. That’s potential for some extremely valuable rewards that many other other cards can’t compete with.

It’s true that your rewards are only doubled for the first year but that’s still a great offer to be able to maximize rewards like that in your first year, especially for students.

Good grade bonus

The Discover it Student Cash Back will provide you with a $20 statement credit each school year your GPA is 3.0 or higher for up to five years. So that’s another $20 you can add into the rewards bucket each year assuming you can a least average a B.

If your school does something funky with GPAs, you’ll just need to earn the equivalent of the 3.0 and this $20 will be provided in the form of a statement credit. You’ll be allowed this once per year (not per semester). (This perk is also available for the Discover it Chrome card.)

This is a great incentive to keep up your grades even though the pay out isn’t huge — who doesn’t like free money?

0% Intro APR

Discover it Student Cash Back

  • 0% Intro APR for 6 months on purchases

Discover it Cash Back

  • 0% Intro APR for 14 months on purchases and balance transfers

The Discover it Cash Back offers the better 0% APR and balance transfer opportunities since the intro APR period is over twice the length offered by the student version and there’s no 0% APR available for balance transfers on the Discover it Student.

So if you’re trying to get serious about balance transfers or want a long period of time to pay down a balance, the Discover it Student Cash Back is not the way that you want to go.

Discover Deals

Both of these cards will give you access to Discover Deals which is a shopping portal that will allow you to maximize your cash back rewards with every day online shopping.

Read more about that amazing shopping portal here.

Example of savings with Discover Deals.

Foreign transaction fees

Both cards do not have foreign transaction fees.

This is great for a no annual fee credit card but I wouldn’t want a Discover card to be my primary card to be used when traveling abroad. Instead, I’d want to also have a Visa or even a MasterCard or Amex.

In some parts of the world Discover’s acceptance is growing but this is something to consider when thinking about using these cards abroad. If you’re worried about this you can check this map for international Discover acceptance.

Annual fee

Both cards do not have an annual fee.

FICO Score

Both cards allow you to view your FICO score for free which is based on the TransUnion score.

Freeze it

Account Freeze Freeze it which allows you to instantly prevent new purchases, cash advances and balance transfers on your account if you misplace your card.

Discover Identity Alerts

Discover Identity Alerts are offered by Discover Bank at no cost and provide:

  • (a) daily monitoring of your Experian credit report and an alert when a new account is listed on your report;
  • (b) daily monitoring of thousands of risky websites known for revealing personal information and an alert if your Social Security number is found on such a website.

It’s always nice to know that you have some sort of system looking out for you since you never know who or what might try to access your data so these are nice perks both cards offer.

Credit scores needed

Both cards are known for being some of the easier cards to get approved for. I’ve read that the minimum credit score for the Discover it is 650 and assuming that’s true, that still leaves you some breathing room for getting approved if your credit score is under 700.

The Discover it Student is going to be easier to get approved for especially if you have limited credit history. I would expect the credit limits on the Discover it Student to be more modest compared to the Discover it but if you’re just trying to build credit as a student, credit limits shouldn’t be a major concern.

Plus, you can always try for a credit limit increase at a later date but that will likely be subject to a hard pull.

If your score is really low you can look into the Discover it Secured cards which will allow just about everyone to get approved (though you’ll need to put down a deposit).

Discover it vs Discover it Student

These two cards are nearly identical but there are some key differences.

Discover it

  • Much better 0% APR intro period and balance transfer options
  • Higher credit limits

Discover it Student

  • $20 annual statement credit for good grades
  • Easier to get approved for

Final word

Both cards are lucrative rewards cards for the first year. I think that the Discover it Student card is probably one of the best credit cards for students and the option that I would recommend to most students looking to get into credit card rewards. But both of these cards can be some of the most valuable cash back rewards cards, especially when you’re focused on first-year earnings.

Cover photo by barnyz.

Are Discover Credit Cards Good Cards?

Discover is like American Express in that it acts as the credit card issuer and also its own payment network. Over the years, Discover has emerged as one of the best options for people seeking cash back credit cards that come with great earning rates and some solid perks. Here are some reasons why I think Discover credit cards are worth your consideration.

Accepted in many places

Discover cards are being accepted at more and more establishments each year. In fact, Discover cards are accepted at more places in the US than American Express cards. According to the Nilson Report, Discover was accepted by 9.3 million merchants nationwide in 2014, which is not very far behind the 9.5 million merchants that accepted Visa and MasterCard. So Discover is very close to being on par with both Visa and MasterCard domestically.

Internationally, Discover is accepted at fewer destinations, however. You can use their own map to see where they might be accepted. Just because a country is highlighted, that doesn’t mean all or even most merchants will accept your card. While some places like China and Japan accept Discover widespread, it’s always a good idea to keep a back-up Visa or MasterCard on deck when traveling abroad.

Keep in mind that you can use Discover cards where some of their partners are accepted, such as Diner’s Club. If you see any of the logos below while abroad you should be able to use your Discover card at that merchant.

One fantastic thing about Discover cards is that they don’t require you to pay foreign transaction fees, even for cards with no annual fees.

Easier to get approved for

Many Discover cards are easier to get approved for than many other credit cards issued by other large banks. Discover offers secured credit cards and students credit cards for people who might have low credit scores or thin credit profiles, so Discover is often a fantastic way to begin to build up your credit profile.

Great cash back cards

Discover cards were originally an invention by Sears in the 1980s back when Sears was on top of the world. In fact, Discover actually pioneered cash back rewards when it started offering them in 1986 and so it’s no surprise that Discover is still offering some of the best cash back credit cards.

My favorite Discover credit card is the Discover it, which comes in several different varieties. The two I value the most are the Discover it® Cashback Match™ and the Discover it® Miles – Unlimited 1.5x Rewards Card.

The Discover it® Cashback Match™ offers rotating categories just like the Chase Freedom where you can earn 5% back each quarter on up to $1,500 in spend. And the Discover it® Miles – Unlimited 1.5x Rewards Card functions just like the Chase Freedom Unlimited except that it allows you to earn 1.5% back on all purchases to go towards travel.

What makes both of these cards special is that Discover doubles all of your earnings for the first year you have the card. So it’s like earning 10% back on quarterly purchases or 3% back on all purchases. Both of those offers are hard to beat and are terrific options for people just getting started with credit card rewards.

Additional perks

Discover also offers additional perks for the Discover it cards like free FICO scores (TransUnion) and also allows you to freeze your credit card instantly with the app. They also offer 100% U.S.-based customer service which can make resolving issues a lot easier over the phone. If you shop online, the Discover Deals shopping portal is a great way to earn additional cash back on many of your purchases.

Read more about that amazing shopping portal here.

0% APR

And finally, a lot of their cards offer 0% intro APR for various periods. For example, the Discover it will give you 14 months of 0% APR. Once again, these type of perks are ideal for people just starting out with credit cards since they allow you to get used to paying monthly bills and while not penalizing you with interest in the first 14 months just in case you overspend.

Final word

I think Discover cards care great options for many people, especially if they are looking for cash back. The first year doubling on all cash back earned is hard to beat and makes the Discover it cards extremely competitive. Since Discover credit cards are accepted at so many places in the US, I think they are definitely worth considering.

The Citi Double Cash vs The Discover it

The Citi Double Cash and the Discover it are two of my top-rated cash back cards  for 2016. They both offer different perks and different ways to earn cash back and rank among the best earners for putting money back into your wallet. Here’s a comparison of the Citi Double Cash vs the Discover it with a winner crowned at the end.  

Basic card features

Citi Double Cash

citi-double-cash-credit-card

  • No Annual Fee
  • 13.24% to 23.24% APR, based on your creditworthiness.
  • 0% introductory APR for 18 months from date of first balance transfer when transfers are completed within 4 months from date of account opening. After that, your APR will be 13.24% to 23.24%, based on your creditworthiness. 
  • Balance transfer fee is either $5 or 3% of the amount of each transfer, whichever is greater.
  • Foreign transaction fee is 3%
  • No late fee for 1st missed payment

Discover it®

Discover It

  • No Annual Fee
  • 0% Intro APR for 12 months on purchases. After the intro period, then 11.24% to 23.24% Standard Variable Purchase APR applies.
  • 0% Intro APR for 12 months on balance transfers. After the intro period, then 11.24% to 23.24% Standard Variable Purchase APR applies.
  • Balance transfer fee is 3% of the amount transferred.
  • No late fee for 1st missed payment

The Discover it also has a few additional benefits that you won’t find with the Citi Double Cash, such as:

  • Free FICO score
  • No foreign transaction fees
  • 100% U.S.-based customer service available day or night

The 0% Intro APR that the Discover it makes the Discover it a much more appealing option for many consumers who think they may have some large purchases to put on their card or who think they might want to carry a balance within the first year. The APR on balance transfers with the Citi Double Cash is a little more generous at 18 months, but overall I think the Discover it offers better features with its 0% intro APR, no foreign transaction fees, and free FICO score.

Earning Rates 

These two cards have very different earning rates.

Citi Double Cash

  • Earns 1X on all purchases and another 1X on those payments when your monthly bill is paid on time. This amounts to a 2% return.
  • No sign-up bonus

Discover it®

  • Earns 5X on rotating bonus categories up to $1,500 per quarter.
  • Cashback MatchTM: After the first 12 consecutive billing periods that your new account is open, Discover will match all of the cash back rewards you’ve earned.

2016_04_26 DISCOVER IT QUARTERLY BONUS
2015 Discover It Bonus Categories

Since these earning rates are so different, it’s a good idea to run calculations to see which card will eventually earn you more cash back based on your spending. If you take a look at the Discover it bonus categories and realize that you don’t spend much at all on the 5X categories, the Citi Double Cash will likely net you better earnings. However, if you utilize some of the bonus categories to a certain degree, then the answer to which card is better for you will likely depend on your spending level.

See the comparison done below to find out which card is the better earner based on spending habits over time.

Pure cash back cards

Neither of these card earn points that can be transferred out to travel partners. This makes the comparison between these cards much easier because you don’t have to factor in increased value from travel redemptions. 

Ways to redeem cash back

Citi Double Cash 

As soon as the cash rewards balance totals $25 or more, you may redeem your cash rewards. You can choose to redeem your cash rewards as follows:

  • Request a check for at least $25 up to the total cash rewards balance at the time you redeem;
  • Redeem for a statement credit to your Card Account for at least $25 up to the total cash rewards balance at the time you redeem;
  • Redeem for a gift card in set denominations from the available inventory.
  • Redeem for a credit to your linked Citi savings or checking account or to a checking account from which you have paid a Citi Credit Card bill at least two times.

Discover it®

You may redeem your Cashback Bonus for:

  • Gift cards or instant eCertificates —starting at $20
  • Charitable donation to select charities—starting at a penny
  • Credit to your Account—starting at a penny
  • Electronic deposit into any account you designate—starting at a penny
  • Pay with Cashback Bonus at select online retailers—starting at a penny

Discover has one of the most flexible cash redemption policies allowing you redeem starting at just a penny so it’s not a huge knock against Citi that they aren’t as generous. It’s just important to note the $25 requirement for Citi and note that you’ll have to make at least two bill pays from an outside bank account to a Citi credit card before you can redeem cash back into one of those accounts.  

Comparing the earning potential 

Because the Discover it earns 5X up to a certain limit on rotating bonus categories, you need to think about how much you would spend on any of these given bonus categories throughout the year in order to gauge which card would maximize your earnings.

Ask yourself the following question:

Can I spend $6,000 annually in the following ways:

  • $1,500: Gas and ground transportation
  • $1,500: Movies and restaurants
  • $1,500: Amazon.com/home impreovement stores/department stores
  • $1,500: Amazon.com

Maxing out $1,500 in quarterly spend on purchases like movies and restaurants may not be realistic for many people and so the average consumer may struggle max-out all of the bonus categories for the Discover it. 

Thus, I’m going to compare the two cards based on spending habits that would either 1) max out the bonus categories or 2) halfway max out the bonus categories. To provide more meaningful insight, I’m going to compare the cards over different time periods: 1) 1 year; 2) 2 years; and 3) 5 years. 

I. FIRST YEAR COMPARISON

(The first year comparison will factor in Cashback Match (“CM”) for the Discover it)

1. Maxing out Discover it bonus categories

If you spend $10,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $200
  • Discover it: $340 + (CM $340) = $680

If you spend $25,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $500
  • Discover it: $490 + (CM $490) = $980

2. Halfway maxing out Discover it bonus categories

If you spend $10,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $200
  • Discover it: $220 + (CM $220) = $440

If you spend $25,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $500
  • Discover it:  $370 + (CM $370) =$740

Findings after first year of spending:

Due to the first year Cashback Match by Discover, it’s basically impossible for the Citi Double Cash to compete with the Discover it for first year earning when the 5X categories are maxed out. As you can see, the race is not even close. Thus, if you’re focused on short-term gains, the Discover it will net you more earnings and will be your best bet. (Just remember that you’ll have to wait 12 months to receive your double cash back from Discover.)

II. SECOND YEAR COMPARISON

A. Maxing out Discover it bonus categories

If you spend $10,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $200 + $200 = $400
  • Discover it: $680 + $340  = $1020

If you spend $25,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $500 +$500 = $1,000
  • Discover it: $980 + 490 = $1,470

2. Halfway maxing out Discover it bonus categories

If you spend $10,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $200 + $200 = $400
  • Discover it: $440 + $220  = $660

If you spend $25,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $500 +$500 = $1,000
  • Discover it: $740 + $370 = $1,110

Findings after second year of spending:

Again, the Cashback Match from year 1 is simply too good for the Citi Double Cash to catch up to the Discover it in earnings. So even after two years, the Discover it is the better earner.

III. FIFTH YEAR COMPARISON

A. Maxing out Discover it bonus categories

If you spend $10,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $200 X 5 = $1,000
  • Discover it: $1020 + ($340 X 3) = $2,040

If you spend $25,000 perfectly maxing out rotating bonus categories.

  • Citi Double Cash: $500 X 5 = $2,500
  • Discover it: $1,470 + (490 X 3) = $2,940

2. Halfway maxing out Discover it bonus categories

If you spend $10,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $400 + ($200 X 3) = $1,000
  • Discover it: $660 + ($220 X 3) = $1,320

If you spend $25,000 perfectly halfway maxing out rotating bonus categories.

  • Citi Double Cash: $1,000 + ($500 X 3) = $2,500
  • Discover it: $1,110 + ($370 X 3) = $2,220

Findings after fifth year of spending:

It takes about five years, but in the long-run the Citi Double Cash will actually net you more cash back if you spend around $25,000 a year and only halfway max out the rotating bonus categories. However, if you max out your quarterly spending with the Discover it (or even come close) you will likely still be better off with the Discover card.   

Don’t forget about Discover Deals

The Discover it also has access to Discover Deals, which is a shopping portal where you can earn even more cash back savings when purchasing items from online retailers. The beauty of getting the Discover it is that Discover will also double the cash back earned in the first year from the shopping portal! And those points are in addition to what you’ll earn on the card. So if you hit a 5X category and found a great deal on Discover Deals like 5X at a place like Home Depot, you could earn 20X on those purchases!

Read more about that amazing shopping portal here.

Final Word

Overall, I like that the Discover it has better benefits like 0% intro APR, no foreign transaction fees, and a free FICO score available. But what I really like is that the earning potential is better almost all the way across the board versus the Citi Double Cash. If you’re likely to put spend on the 5% bonus categories of the Discover it, I think it’s definitely the better card for you.

The Discover it vs The Chase Freedom Card

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There are two Discover it® cards and two Chase Freedom cards available. For this comparison, I’m going to compare the Discover it® cash back card with the 5% rotating categories to the standard Chase Freedom card, also with 5% rotating categories. While these cards appear almost identical, there are certain features of each card that can make one much more valuable than the other depending on how the cardholder plans on redeeming their points.

Cash back vs potential miles

Cash
Not all “cash back” is created equally

Photo by 401(K) 2012 via Flickr. 

One of the biggest differences between these two cards is that the Chase Freedom card earns Ultimate Rewards. If you also have the Chase Sapphire Preferred® or the Chase Ink Plus®, you can transfer these Ultimate Rewards to a variety of airline and hotel partners. With the Discover it, you care limited to strictly redeeming for cash back and/or gift cards or online purchases.

This is a huge difference in terms of potential value because although Chase Ultimate Rewards can be redeemed for cash back at a rate of one cent per point, when they are utilized effeciently, they can be worth much more. For example, I recently wrote about redeeming about 60,000 Ultimate Rewards on Singapore Airlines at a redemption rate of 8.9 cents per point! (more on that below.)

Since the Discover it doesn’t earn any reward currency that can transfer to travel partners, you can’t ever multiply the value of your “cash back earned.” Thus, for the serious traveller who is keen on maximizing redemptions with airlines and hotels, the points earned from the Chase Freedom will often prove to be more valuable than the straight cash back redeemed from the Discover it.

Basic card features

Freedom

Chase Freedom

  • No Annual Fee
  • 0% Intro APR for 15 months on purchases. After the intro period, a variable APR of 14.24%, 19.24%, or 23.24%.
  • 0% Intro APR for 15 months on balance transfers. After the intro period, a variable APR of 14.24%, 19.24%, or 23.24%.
  • Balance transfer fee is 5% of the amount transferred with a minimum of $5.

Discover it®

Discover It

  • No Annual Fee
  • 0% Intro APR for 12 months on purchases. After the intro period, then 11.24% to 23.24% Standard Variable Purchase APR applies.
  • 0% Intro APR for 12 months on balance transfers. After the intro period, then 11.24% to 23.24% Standard Variable Purchase APR applies.
  • Balance transfer fee is 3% of the amount transferred.

The Discover it also has a few additional benefits that you won’t find with the Freedom, such as:

  • Free FICO score
  • No foreign transaction fees
  • No late fee for 1st missed payment
  • 100% U.S.-based customer service available day or night

These card features are roughly similar with the Freedom offering a longer interest free intro period of 15 months and the Discover it offering more benefits like no foreign transaction fees and free FICO scores.

The lower balance transfer fee of 3% for the Discover it is great, too, especially for those trying to pay off a large balance. It should be noted that the Discover it is generally easier to get approved for than the Chase Freedom, so if you’re trying to build up your credit you might want to consider your approval odds. 

Redeeming cash back

Discover it®

You may redeem your Cashback Bonus for:

  • Gift cards or instant eCertificates —starting at $20
  • Charitable donation to select charities—starting at a penny
  • Credit to your Account—starting at a penny
  • Electronic deposit into any account you designate—starting at a penny
  • Pay with Cashback Bonus at select online retailers—starting at a penny

Chase Freedom

  • Gift cards or travel at 1 cent per point
  • Cash back through an account statement credit or an electronic deposit into an eligible checking or savings account held by a financial institution located in the United States.  —  you need at least 2,000 points to use them for cash.

The Discover it allows for more flexible redemptions for cash back, as you can redeem starting at one cent for cash back, while the Freedom requires $20 increments for cash back. However, as already mentioned, the Chase Freedom can transfer out points to travel partners so long as you have one of the requisite premium Chase cards.

Therefore, if you know you just are interested in cash back rewards, the Discover it is more flexible but if you think you might be transferring points to travel partners, the redemptions for the Chase Freedom are going to be better.

Earning Potential

Chase Freedom

  • Earns 5X on rotating bonus categories up to $1,500 per quarter.
  • Earn a $150 bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn a $25 bonus when you add your first authorized user and make your first purchase within this same 3-month period.

Discover it®

  • Earns 5X on rotating bonus categories up to $1,500 per quarter.
  • Cashback MatchTM: After the first 12 consecutive billing periods that your new account is open, Discover will match all of the cash back rewards you’ve earned.

The sign-up bonus sets the Freedom apart from the Discover it but the doubling of all points earned in the first year is a tremendous perk and can more than make up for the lost earnings of the sign-up bonus as will be shown below.

Comparing the 5X categories

The quarterly categories for both cards are roughly the same. Although they change each year, you can expect to generally see the same major categories like Amazon.com, gas, restaurants, etc.

If I had to give an edge, I might give to the Discover it for having Amazon.com in two quarters and for allowing for a heck of a stacking deal the first where you can basically earn 20X on certain categories by utilizing Discover Deals (more on that below). Chase might be stepping up its game in this department, however, as they offered a bonus 10X on Amazon.com last year in 2015.

Chase-Freedom Bonus Categories
2015 Chase Freedom Bonus Categories

 

2016_04_26 DISCOVER IT QUARTERLY BONUS
2015 Discover It Bonus Categories

Comparing the earning potential

So let’s run some simple math to see what card nets the most amount of cash back when you factor in the Freedom’s sign-up bonus vs the Discover it’s “Cashback Match.”

Since both of these cards offer 5X on rotating categories up to $1,500 per quarter and then 1X on all other purchases, the base earning rate will be the same for these comparisons. The question will be whether or not the doubling of the cash back from the Discover it out-earns the $175 sign-up bonus offered by the Freedom.

(Obviously, as just shown, there are some differences in the 5X categories between these two cards but to make the calculations simple, I’m going to assume the same amount of spend for the different 5X categories.)

1. Maxing out 5X bonus categories

If you spend $10,000 perfectly maxing out rotating bonus categories.

  • Discover it: $340 x 2 = $680 (6.8%)
  • Chase Freedom: $340 + (SUB $175) = $515 (5.2%)

If you spend $25,000 perfectly maxing out rotating bonus categories.

  • Discover it: $490 x 2 = $980 (3.9%)
  • Chase Freedom: $490 + (SUB $175) = $665 (2.7%)

2. Halfway maxing out 5X bonus categories

If you spend $10,000 perfectly halfway maxing out rotating bonus categories.

  • Discover it: $220 x 2 = $440 (4.4%)
  • Chase Freedom: $220 + (SUB $175) = $395 (3.95%)

If you spend $25,000 perfectly halfway maxing out rotating bonus categories.

  • Discover it: $370 x 2 = $740 (2.9%)
  • Chase Freedom:  $370+ (SUB $175) =$545 (2.2%)

As you can see, the Discover it earns significantly more cash back than the Chase Freedom does in the first year. The cash back rate even hits as high as 6.8% when you max out the bonus categories and spend $10,000. 

But remember what I said about redeeming my 60,000 Ultimate Rewards for 8.9 cents per point on Singapore Airlines? If I were to factor in that value into these calculations, it comes out to far more than the Discover it.

Let’s use the las $25,000 spend as an example.

At 2.2%, the Freedom would earn me 54,500 Ultimate Rewards (or $545 cash back). However, if I were to redeem these awards at 8.9 cents per point, I’d come out with $4,850.50 worth of value. That amounts to a return of 19.4%, which is far higher than anything the Discover it could offer. 

It’s true that Ultimate Reward redemptions won’t always be as sweet as that extreme example and there’s a difference between earning cash back that you can do whatever you want to do with versus earning points that are going towards pricey redemptions you wouldn’t otherwise book. However, it just goes to show that for a traveler, the value in travel currency can far outweigh the value of straight cash back from a card like the Discover it.

Also, don’t forget that the high cash back values for the Discover it will only last for 12 months. After that, you’ll be more limited compared to Ultimate Rewards, which will always have the potential to be redeemed at higher rates. 

Additional earning potential

The Discover it also has access to Discover Deals, which is a shopping portal where you can earn even more cash back savings when purchasing items from online retailers. The beauty of getting the Discover it is that Discover will also double the cash back earned in the first year from the shopping portal! And those points are in addition to what you’ll earn on the card. So if you hit a 5X category and found a great deal on Discover Deals like 5X at a place like Home Depot, you could earn 20X on those purchases!

Chase has the Ultimate Rewards  shopping portal but in order to get access to it you’ll have to have a premium card like the Sapphire Preferred® or the Ink Plus®. While the Ultimate Rewards shopping portal often has some of the best bonus rates, I don’t think it can compare with the potential first-year earnings of the Discover it with Discover Deals.

Final word

If you are just looking to earn cash back on a credit card, the Discover it will earn you more cash back. You’ll have to wait out the 12-month waiting period, but the additional cash back will be worth it, as you can sometimes net a few extra hundred dollars than the Freedom depending on your spending habits.

If you have a premium Chase card like the Sapphire Preferred or the Chase Ink Plus, and are focused on transferring Ultimate Rewards to a travel partner, then I would go with the Freedom, since you have the potential to redeem those points for more cents per point than the Discover it.

 

 

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