Introduction
The Discover it® Student Cash Back card is designed to cater specifically to students looking to build credit while earning rewards on their everyday purchases. This review provides a detailed analysis of its features, benefits, eligibility requirements, and how it compares to other similar student credit cards in the market.
Key Features of the Discover it® Student Cash Back Card
The Discover it® Student Cash Back card offers several key features that make it a standout choice among student credit cards:
Cash Back Rewards: Earn 5% cash back on rotating quarterly categories such as gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs, up to the quarterly maximum each time you activate. Plus, earn unlimited 1% cash back on all other purchases automatically.
Good Grade Reward: Earn a $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
Introductory APR: Enjoy an introductory 0% APR on purchases for 6 months. After the intro period, the variable APR will apply based on your creditworthiness.
No Annual Fee: Cardholders pay no annual fee, making it a cost-effective option for students.
Eligibility Requirements
To qualify for the Discover it® Student Cash Back card, applicants must meet certain eligibility criteria:
Student Status: Applicants must be enrolled in a college or university and provide proof of enrollment.
Credit History: Limited or no credit history is acceptable for student applicants, making this card accessible to those who are new to credit.
Income: While a steady income is beneficial, it is not a strict requirement as long as the applicant can demonstrate an ability to manage credit responsibly.
Benefits of the Discover it® Student Cash Back Card
Cash Back Rewards Structure
The card's cash back rewards program is a significant draw for students:
5% Rotating Categories: Earn 5% cash back on up to $1,500 in purchases each quarter in rotating categories when you activate. Categories include popular spending areas such as gas stations, grocery stores, and restaurants.
1% Unlimited Cash Back: Earn unlimited 1% cash back on all other purchases automatically, ensuring rewards on every purchase.
Good Grade Reward
Discover encourages academic achievement with its Good Grade Reward:
- $20 Statement Credit: Receive a $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
Introductory APR
The introductory APR offer is beneficial for students:
- 0% Intro APR: Enjoy 0% intro APR on purchases for 6 months from the date of account opening. After that, the variable APR will apply based on your creditworthiness.
No Annual Fee
The lack of an annual fee makes this card a financially responsible choice for students looking to avoid unnecessary costs.
Drawbacks of the Discover it® Student Cash Back Card
While the Discover it® Student Cash Back card offers numerous benefits, potential drawbacks include:
Rotating Categories: Some cardholders may find it challenging to track and maximize rewards in the rotating 5% cash back categories.
Credit Limit: Initial credit limits may be lower for students with limited credit history, potentially restricting purchasing power.
How Does It Compare?
Comparison with Competitors
When compared to other student credit cards such as the Chase Freedom Student® and the Citi Rewards+℠ Student Card, the Discover it® Student Cash Back card stands out due to its robust cash back rewards program and the Good Grade Reward. While competitors may offer different benefits such as longer intro APR periods or different reward structures, Discover’s focus on cash back and student incentives sets it apart in the market.
Conclusion
The Discover it® Student Cash Back card is an excellent choice for students seeking to build credit responsibly while earning rewards on everyday purchases. With its lucrative cash back categories, student-friendly benefits like the Good Grade Reward, and no annual fee, it provides a compelling option in the competitive landscape of student credit cards.
This review aims to provide a comprehensive overview of the Discover it® Student Cash Back card, helping prospective cardholders make an informed decision about their financial choices. For students looking to manage their expenses and build credit, this card offers substantial benefits that cater specifically to their needs.
