If you're a student in need of a credit card, the Discover Student Cash Back Credit Card might be worth considering. Not only does it offer a range of perks, but it also provides cash back rewards on purchases, making it a valuable asset to your wallet. In this review, we'll take a closer look at the card's features, benefits, fees, and drawbacks.
Overview of Discover Student Cash Back Credit Card
The Discover Student Cash Back Credit Card is specifically designed for students who are looking for a simple and convenient way to build credit while earning rewards. It offers 5% cash back on rotating categories each quarter, up to $1,500 in combined purchases. Additionally, cardholders earn 1% cash back on all other purchases. One of the most significant perks of this card is the fact that Discover will match all the cash back earned at the end of your first year, making it a great incentive to use the card frequently.
Features and Benefits
The Discover Student Cash Back Credit Card offers a range of features and benefits that make it an attractive option for students. Here are some of the key advantages of using this card:
No Annual Fee: This card doesn't come with an annual fee, which is excellent news for students on a tight budget. You can use the card without worrying about extra charges.
Cash Back Rewards: You earn 5% cash back on rotating categories each quarter, up to $1,500 in combined purchases. Additionally, you earn 1% cash back on all other purchases. The cash back rewards are automatically credited to your account and can be redeemed for statement credit, direct deposit, or gift cards.
Bonus Cash Back: Discover matches all the cash back you earn at the end of your first year. This means that if you earn $100 in cash back during your first year, Discover will match it, giving you a total of $200.
Easy Approval: The Discover Student Cash Back Credit Card is relatively easy to obtain, as long as you have a decent credit score. Students with limited credit history are also eligible to apply.
Free FICO Score: Discover provides a free FICO score with every statement. This allows you to keep track of your credit score and monitor any changes.
Fraud Protection: Discover offers 24/7 fraud monitoring and alerts. If any suspicious activity is detected, Discover will notify you immediately and take steps to prevent fraud.
Fees and Drawbacks
While the Discover Student Cash Back Credit Card has many advantages, it's important to be aware of its fees and drawbacks. Here are some of the key considerations:
High APR: The APR for this card can be high, especially if you have a lower credit score. It's essential to pay your balance in full each month to avoid accruing interest charges.
Limited Acceptance: Discover isn't accepted as widely as other credit card companies, so you may encounter some merchants who don't accept the card.
Rotating Categories: The 5% cash back categories rotate each quarter, so you need to keep track of which categories are eligible. If you don't use the card for purchases in the current quarter's category, you won't earn the bonus cash back.
Foreign Transaction Fee: This card charges a foreign transaction fee of 0%, which is relatively high compared to other student credit cards.
Conclusion
The Discover Student Cash Back Credit Card is an excellent option for students who want to build credit and earn rewards. With no annual fee, 5% cash back on rotating categories each quarter, up to $1,500 in combined purchases, and a bonus cash back match at the end of your first year, this card has many benefits. However, it's essential to be aware of the card
