Discover

Good Things About Discover:

  • 5% rotating categories- The Discover IT card offers 5% rotating categories, which is really the only reason to keep that card since it is pretty much only a 1% cashback card after your first year.
  • Double Your Cashback- If you sign up for the Discover IT or IT Miles, your cashback will be doubled at the end of your first year. This turns the IT card into a 2% cashback card, which is fairly decent. However, the real deal is having the cashback you earned from their shopping portal or the 5% categories doubled. The shopping portal offers cash back at a large number of online merchants for 5-10% cashback, which turns into 10-20% cashback off an online purchase.
  • Churnable Bonuses- Discover's bonuses are small, but you can cancel and re-sign up as much as you want. 

Bad Things About Discover:

  • 1% Cashback- After your first year, you only earn 1% on non-category spend using the Discover IT card or 1.5% with IT Miles card. This is a really bad rate considered several no annual fee cards offer at least 2% cashback and USAA has a card with 2.5% cashback on all purchases.
  • No or Small Sign Up Bonuses- Most of the time, there is $0 sign up bonus on Discover cards except the doubling of the cash back at the end of the first year. This is why I would highly recommend prioritizing other more lucrative credit cards over Discover cards. So wait until you are way past the 5/24 Rule and signed up for the good cards at the inquiry sensitive banks such as Barclays and Bank of America. 

 

Information:

  • Cards Limit- You can only have a maximum of two Discover credit cards, which is not really an issue since they only have two good cards.
  • Application Limit- You will only be approved for one card every 24 months.
  • You can check if you are pre-approved here without a hard pull. (If you complete the application, there will be a hard pull)
  • Online Status Checker; Reconsideration number is 888-676-3695.
  • After you have your card, you can check for "Special Offers" to see if have any spending bonuses.

 

Discover IT

Application Link (Current: $0; Occasionally $100-150). 

Annual Fee: $0

Earning: 5% cash back in rotating categories and 1% everywhere else. (Discover doubles your cashback your first year)

  • Discover will double you cashback at the end of year 1. Therefore, your first year you can generate 10% cashback on the rotating categories.
  • 2019 Rotating 5% schedule:
    • January 1 – March 31: Grocery stores (excludes Walmart and Target)
    • April 1 – June 30: Gas stations, Uber & Lyft
    • July 1 – September 30: Restaurants
    • October 1 – December 31: Amazon

Benefits: No Foreign transaction fees, 0% intro APR for 14 months, and FICO score for free.

 

Discover IT Miles

Application Link (no bonus has ever been offered besides doubling of miles)

Annual Fee: $0

Earning: 1.5 miles per $1 (Doubled at the end of the first year) (no rotating categories)

Redeeming: Each point equals 1 cent, so this is pretty much a 1.5% (3% the first year) cashback card without rotating categories.

 

 

Discover It Business

Application Link (no bonus has ever been offered besides doubling of miles)

Annual Fee: $0

Earning: 1.5 miles per $1 (Doubled at the end of the first year) (no rotating categories)

Redeeming: Each point equals 1 cent, so this is pretty much a 1.5% (3% the first year) cashback card without rotating categories.