As an influential financial tool allowing convenient spreading of payments over weeks or months, credit cards require responsible management to maximize benefits and minimize risks like accumulating interest charges. The Discover it Balance Transfer card aims to make getting started with positive credit behaviors more accessible through perks like 0% intro APR on transferred debts and rotating category bonuses redeemable for cash rewards or statement credits. This guide will break down key features to consider if pursuing balance consolidation alongside everyday spending incentives.
0% APR Balance Transfers with Discover it Balance Transfer
Move Existing Balances to Save on Interest
A popular tactic to reduce credit card expenses is transferring higher-interest balances from other issuers to a new account offering a temporary 0% promotional period. This enables paying down the principal on debts instead of forking over recurring interest payments.
The Discover it Balance Transfer card provides 0% intro APR for the first 18 months on all balance transfers completed within the initial 90 days of account opening. This grace period gives over a year to pay off transferred sums without accruing new interest fees, saving substantially compared to high retrospective rates.
Consolidate Various Debts in One Place
In addition to shifting around existing balances, Discover’s introductory offer permits consolidating other owed money – like personal loans or retail financing plans – under a single account with deferred interest. This simplifies tracking multiple debts by combining them into one monthly payment.
Make sure to budget accordingly, ensuring transferred balances get fully paid before the 18-month 0% rate expires. New transactions will still incur interest charges as normal. Utilize the temporary rate protection to eliminate concentrated principals aggressively.
Rotating 5% Cash Back Rewards with Discover it Balance Transfer
Earn 5% Back on Featured Spend Categories Each Quarter
Beyond consolidating debts at 0% interest, the Discover it card also incentivizes routine spending by offering 5% cash back each quarter on rotated categories, including:
- Gas Stations
- Restaurants & Fast Food
- Select Retailers Like Amazon, Walmart
- Rideshares, Paypal, and More
Spending up to $1,500 per quarter (then 1% after hitting the cap) boosts tailoring bonuses to frequent purchases. Remembering 5% categories nets bigger rewards.
Unlimited 1% Cash Back on All Other Purchases
When not spending in temporarily heightened categories, the Discover it card still provides an unlimited 1% return on every other purchase made year-round. There is no need to track categories or retailer codes to earn base rate rewards, as you meet daily expenses automatically.
With no restrictions on total rewards accrued, all eligible transactions steadily contribute to cashback redemptions applied as statement credits or direct deposits into bank accounts at $20+ intervals. This combination of 5% seasonal category bonuses and 1% everyday flat-rate purchases makes earnings easy.
Security Features and Protections with Discover it Balance Transfer
Freeze Account to Prevent Unauthorized Use
Unexpected card breaches through skimming or data hacks can risk financial loss and identity threats when card numbers get stolen. Discover provides peace of mind through security freezes blocking all new charges to immediately secure your account if your card gets lost, misplaced while traveling, or falls into the wrong hands.
Contacting Discover to freeze a compromised credit card until receiving a replacement instantly adds protection against fraudulent transactions being approved in the meantime. There is no need to cancel the card and reopen a new line. Once safely resecured, lift the freeze.
Get alerts to Monitor Activity
Further security accompaniments include real-time Get alerts notifications, letting users control settings for push notifications on new charges over designated dollar amounts. Receiving instant texts or email warnings of suspicious activity not initiated by the primary account holder flags potential unauthorized transactions faster before significant damages occur by freezing accounts until the source of risk is identified.
Adding accountability through updates after major or inconsistent purchases selected by personal preferences provides customizable oversight, giving cardholders spending clarity.
Costs and Alternatives with Discover it Balance Transfer
Balance Transfer Fees
While the intro 0% deal lasts 18 months on transferred credit card balances, customers should note a one-time balance transfer fee applied upfront during the initial 90-day window for shifting debts over. This equals 3% of the total consolidated debts moved to the new Discover card (minimum of $10).
So, while no interest gets charged monthly during the intro period, the single transfer expense based on existing balance amounts does factor in. Compare upfront costs against total long-term savings to determine the best options for large sums.
Rewards Cards With No Annual Fee
Consumers primarily attracted to cashback earnings rates may want to compare the Discover it Balance Transfer card against other $0 annual fee credit cards like the Chase Freedom Unlimited. While Discover offers higher category bonus opportunities in quarterly revolving activations, Unlimited provides a flat 1.5% return on all purchases with no rotations to track.
Weigh category rewards ceilings, one-time balance transfer fees, and inherently responsible usage promotion against fixed-yet-higher rates competitors offer to identify the optimal year-round saver depending on individual transaction habits.
Our Summary Conclusion about Discover it Balance Transfer
With tempting incentives like 0% intro APR for 18 months on consolidated credit card or loan balances and 5% cash back rewards in rotating quarterly categories on up to $1,500 in spending, the Discover it Balance Transfer card allows savvy consumers to eliminate interest payments while maximizing bonus category transactions.
Compare upfront balance transfer fees against total interest savings and earning potential through strategic quarterly optimization. Freeze features and transaction notifications provide account security if cards become compromised while building credit history through on-time payments. Use Discover’s perks responsibly by paying timely balances and monitoring short-term 0% promotions against long-term rate assumptions.
Disclaimers: The information contained in this article is for educational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any credit card decisions. Specific credit card terms and conditions, including eligibility requirements, rewards programs, fees, and interest rates, are subject to change and may vary individually. Always refer to the official card issuer’s website for current information. Responsible credit card usage is crucial to avoid accumulating debt and maximize the benefits offered by the Discover it Balance Transfer card.
What credit score is recommended for the Discover it Balance Transfer card?
While minimum scores vary, applicants with credit scores around 670+ FICO tend to have the best approval odds for the Discover it Balance Transfer card. They demonstrate a responsible history while benefiting greatly from 0% intro APR debt consolidation and 5% rotating category bonuses. Those new to credit can also qualify in some cases.
Can the Discover it Balance Transfer offer be used on credit card balances?
The 0% APR intro period for 18 months applies to balance transfers from most major credit card issuers, including competing banks and rewards cards. Personal loans or retail cards are typically not eligible. Review full details to confirm that your specific balances can be transferred within the first 90 days.
When do the 5% cash back rotating categories change?
The Discover it card’s 5% cash back categories change four times yearly, once each calendar quarter. Common categories include gas, dining, Amazon, Target, and more. Receive emails ahead of each quarter with that period’s activated bonus categories.
Is there a balance transfer fee with a Discover it Balance Transfer Credit Card?
While interest is deferred during the intro 0% APR period, Discover charges a one-time balance transfer fee of 3% when moving debts over (minimum $10). Compare this cost against total interest savings potential to determine if consolidating debts with Discover still offers enough savings.
Are there foreign transaction fees with Discover it Balance Transfer Credit Card?
The Discover it card does not charge foreign transaction fees for international purchases. Compared to some competitors, this saves 3% on dining, hotels, transportation, and other expenses when traveling outside the United States.
