The Discover it Cash Back card is impressive as it allows cardholders to earn cash back on categories every three months, up to 5% on $1,500 purchases after activating the offer. You can also enjoy a 1% cash on all other purchases, providing plenty of chances to accumulate rewards. Discover offers a cashback match program for cardholders that doubles all cash back earned during the year, making the deal even more enticing. This detailed guide explores strategies to maximize your earnings with the Discover it® Cash Back card, from making the most of bonus categories to leveraging perks.
Earning Cash Back Rewards
5% Rotating Categories
Discover it Cash Back Credit card holders can maximize their rewards using the quarterly rotating 5% cash back categories. Discover it® Cash Back offers 5% cash back on up to $1,500 combined purchases from selected merchants each quarter after activating the bonus categories online. Recent 5% categories have included popular retailers like Amazon.com, Target, Walmart.com, payment platforms such as PayPal, and gas stations, which are frequent bonus categories.
The true strength of Discover it Cash Back lies in the rotating nature of these 5% categories, allowing cardholders to adapt their spending habits accordingly. For instance, when dining out or takeout is featured, users can temporarily increase their restaurant purchases to earn accelerated rewards during that quarter. Keeping track of the upcoming 5% categories and planning spending is a simple yet effective strategy to get the most value from this benefit.
1% Cash Back on Other Purchases
Discover it Cash Back offers an appealing combination of bonus rewards and an unlimited 1% cash back on all other purchases. While the 5% rotating categories grab attention, the 1% absolute cashback rate should be noticed. This ongoing benefit provides a steady cash back return on everyday expenses like groceries, gas, bills, and more with no limits on total earnings. For cardholders who make the Discover it Cash Back their primary spending card, the 1% unlimited cash back can translate into significant rewards over time, complementing the lucrative quarterly bonus categories.
Maximizing the 5% Cash Back Bonus
Strategies to Track Bonus Spend
Since the 5% cash back categories with the Discover it Cash Back card apply only up to $1,500 in combined quarterly purchases, it pays to track spending to avoid exceeding the limit. One easy way is to note the new 5% categories on a calendar when they are announced at the start of each quarter. Setting a reminder for when the next quarter starts can also help prompt cardholders to activate the new bonus categories online.
Throughout the quarter, periodically check spending in the 5% categories to calculate how much remains before hitting the $1,500 cap. Most issuers provide an online dashboard and mobile app to monitor reward earnings. Setting up alerts can also help cardholders avoid maxing out a quarter too soon. Being strategic with large purchases may be wise, like spacing out buying multiple gift cards or spreading big retail purchases over two quarters.
Tips to Maximize Common Categories
Specific categories tend to come around frequently as 5% bonuses with the Discover it Cash Back card, so some simple strategies can help maximize rewards:
- Gas Stations – Fill it up before the quarter ends if gas is a current category, or fill it up early next quarter if it’s an upcoming category. Pay with the Discover card inside rather than at the pump for more control.
- Amazon – Wait to make large Amazon purchases until Amazon is in the 5% category for that quarter. Spread out more significant purchases to earn rewards multiple times.
- Dining – Use the Discover card for takeout and restaurants during dining quarters. Prepaying gift cards can lock in 5% rewards for future use.
- Target – Shop Target stores and Target.com, especially during quarters when they are 5% categories. Buy more than usual if it can stock up or save larger purchases for then.
Getting creative with spending when bonus categories are active is critical to maximizing the 5% cashback rewards each quarter.
Introductory Cash Back Match
Understanding Discover’s Exclusive Perk
In addition to great category bonuses, the Discover it Cash Back card offers new cardholders a lucrative introductory perk. Discover will automatically match all net cash back earned in the first year after subtracting any redeemed rewards. This essentially doubles the rewards. If a new cardholder makes $500 cashback in the first 12 months, Discover will add another $500 for a total of $1,000.
This exclusive introductory offer significantly increases the earnings potential of the Discover it® Cash Back card. Strategic cardholders who take advantage of the 5% categories and maximize rewards in the first year will see their bonus cash back double. There are no hoops or forms to fill out to receive the match. Discover conveniently doubles the cash back automatically after the first 12 months.
Qualification Details
It is essential for new Discover cardmembers to understand the details around qualifying for the cashback match:
- Applies only to new cardholder accounts, not existing or upgraded accounts.
- All cash back earned in the first 12 months will be matched.
- Cashback rewards are redeemed annually after the first annual statement.
- Matched cashback will be redeemable after the first yearly redemption.
- There is no minimum redemption amount to receive matched rewards.
- Match does not affect earning rate or reward caps.
Keeping these qualification rules in mind, new Discover cardholders should take full advantage of every cashback earning opportunity in the first year. With the potential to reach 10% back on rotating categories and 2% on other purchases, that first-year introductory period is quite valuable.
Benefits Beyond Cash Back
Generous Welcome Offer
New Discover it Cash Back cardholders can also take advantage of an excellent welcome bonus offer. New accounts receive a $200 cash reward after spending just $1,000 on purchases within the first three months. This provides an immediate 20% cash back on the first $1,000 spent. There is no annual fee for this card either.
Discover also offers a unique benefit for card members at the 10-month point. Anytime cashback has been redeemed on an account anniversary date, Discover gives a 10% Customer Service Bonus. This bonus reflects their dedication to customer satisfaction.
Rental Car Insurance
A valuable cardholder benefit that many other cashback cards lack is Discover’s auto rental insurance perk. Primary auto rental insurance is included at no extra cost when paying for an entire rental car booking with the Discover it Cash Back card. This can be reimbursed for theft and damage to a rental car domestically or internationally.
Access to primary rental coverage is a money-saver compared to paying daily fees at the counter. This also provides peace of mind for renters who want to decline the collision damage waiver. Note that authorized users on an account are not eligible for the rental insurance perk.
Summary About Discover it Cash Back
With its quarterly solid category bonuses and unlimited 1% base rate, the Discover it Cash Back credit card simplifies earning cash rewards. New cardholders can maximize value even further with Discover’s one-year cash-back match. Plus, rental car insurance is a functional benefit not found on many other cash-back cards.
The Discover it Cash Back card should be a top contender for consumers interested in rotating category rewards. There is no need to keep track of registrations or opt-in quarterly for the 5% categories. And Discover frequently repeats popular bonus categories year after year, allowing cardholders to adapt spending for long-term rewards optimization. Anyone looking for easy flat-rate cash back will find value in the unlimited 1% as an everyday spender. With solid earning potential, valuable perks, and no annual fee, this Discover card is brilliant.
Disclaimers: The information provided in this article is intended for general informational purposes only and should not be construed as financial advice. While efforts have been made to ensure the accuracy of the information presented, there may be errors or outdated details. Before making any financial decisions, conducting your own research and consulting with a qualified financial advisor to determine what’s best for your circumstances is crucial. Remember, the Discover it® Cash Back card may not be suitable for everyone, and its benefits and drawbacks should be carefully weighed against your spending habits and financial goals.
What are the rotating 5% cash back categories?
The Discover it Cash Back card offers 5% cash back on up to $1,500 purchases in different categories each quarter. These categories change every three months, including popular retailers like Amazon, Target, Walmart, gas stations, and restaurants. You can find the upcoming categories announced at the beginning of each quarter on Discover’s website.
How do I maximize the 5% cash-back bonus?
There are several strategies to maximize your 5% cash back:
• Track your spending: Keep an eye on how much you’ve spent in the bonus categories to avoid exceeding the $1,500 limit.
• Plan large purchases: Spread out big purchases over two quarters if they fall near the end of a bonus category period.
• Utilize Discover’s tools: Set up alerts to be notified when you’re nearing the spending cap and use the online dashboard to track your progress.
• Get creative: Think outside the box to maximize purchases in bonus categories, like prepaying for gift cards or services.
What is the introductory cash-back match?
New Discover it Cash Back cardholders receive a cashback match that doubles all the rewards they earn in their first year. You can make up to 10% back on rotating categories and 2% on other purchases during your first year.
Is Discover It Cash Back a sound credit card?
The Discover it Cash Back can be a great card, but it depends on your spending habits.
If you’re flexible and can adapt your purchases to the quarterly bonus categories (like groceries, gas, or restaurants), you can earn 5% cash back on up to $1,500 each quarter. Plus, you get 1% on everything else, and your first year of rewards is doubled! There’s no annual fee, making it budget-friendly.
However, it might not be ideal if you spend less than $1,500 per quarter or prefer simplicity better. Additionally, it has a smaller network than Visa/Mastercard, and travel rewards aren’t its focus.
So, if you’re flexible with spending and value cash back, the Discover it® Cash Back could be a good fit. But if travel rewards or simplicity are your priorities, explore other options!
What are some other benefits of the card?
Beyond cash back, the Discover it Cash Back card offers valuable perks like:
Welcome bonus: Earn $200 cash back after spending $1,000 in the first three months.
Rental car insurance: Primary coverage is included for damage or theft when you pay for the entire rental with the card.
Customer Service Bonus: Receive 10% on the amount redeemed on your anniversary date.
