Discover it Cash Back review: 5% rewards are worth a little work

 

Discover it Cash Back review: 5% rewards are worth a little work

Discover it credit card this credit card is suitable for you and perhaps whether you want to apply for this credit card or not so a lot of credit card companies what they'll do as far as spin bonuses go is 

So I'll have you spin at least something like $1000 within the first three months and if you achieve that goal they'll give you $200 after that three-month period however discover it does it a little bit differently 

Where they will make you wait one year to earn that spin bonus and what they actually do is they match whatever you receive and cash back and then they will match that 100% 

So at the end of the year if you do earn $500 in cash back they will match that $500 so you'll be earning a $500 spin bonus which is pretty dang good for a spin bonus however you'll just have to wait one year rather than waiting the usual three months that most credit card companies issue these spin bonuses 

So really you could say that is either a good thing or a bad thing you would be a great thing at the end of the first year if you did earn a lot of cashback with this credit card 

However, the bad thing about this is that you have to wait one year as opposed to just three months now one thing that I really like about the discover credit card is that it offers 5% back now this is just on a quarterly rotating category basis 

So for example from january through march you might earn that 5% back on gas april through june you might earn the 5% back on something like grocery stores 

So on and so forth now for the year 2020 from january through march, you'll earn the 5% back on grocery stores walgreens and cvs yes I just so you know walmart and target are not included in this 

So if you do your grocery shopping at walmart or target just know that you won't be earning the 5% back on those groceries from april through june you'll be earning 5% back at gas stations 

Uber lyft and wholesale clubs july through september you'll be earning the 5% back in restaurants and through paypal and october through december you'll be earning the 5% back on amazon.Com walmart.Com 

Target calm and once again this is going to be only on wall more calm and target calm if you do shop in-store you will not be earning the 5% back so that will just be online shopping the good thing is 

If you do do your online shopping for your groceries through walmart that would count so if that's what you do then it would probably be a pretty good credit card to use during there's october through to several months for your groceries 

So one thing that I must mention is that in those five percent categories that they give you each quarter you'll only be earning 5% back on the first 1,500 dollars in transactions 

So whenever you spend $1,500 in 32 cents those 32 cents will only be earning 1% back so please keep that in mind another thing that I really like about this credit card is that there is no annual fee so you don't have to worry about spinning 

So much and getting so much in cash back throughout the year to match or exceed whatever that annual fee happens to be 

So you can just have this credit card for free year after year and just spinning in those five percent only categories in addition to that for the first fourteen months of having this credit card you will have a zero percent apr so that is pretty good 

If you do have to make a larger purchase and pay it off slowly over time however that really does go against a lot of my beliefs 

As I feel like anything that you do spin with you should try to pay off right away and not end up building up a big balance you eventually have to pay off over time and create extra stress on yourself 

So I always recommend once you make a purchase just pay it off immediately don't even wait for your statement to come out that way you're on top of 

It you're never in debt you never have to worry about making any type of payments over time and you had the money right then and there and you're not stressing over when your next paycheck is going to come 

If you get laid off in your job and then you have these big balances on your credit cards and then that for the 14 months when you do have to pay it off you start earning interest on those credit cards that 

You don't end up in some kind of debt snow fault that a lot of people find themselves in another great thing about this credit card is that there are no foreign transaction fees so if you do travel abroad 

You don't have to worry about having any type of transaction fees over there that a lot of other credit cards will have and finally whenever you do have the cashback on your credit card you can cash that out whenever you like even 

If it's just one penny and you want to cash out that one penny for whatever reason you can definitely cash that out whenever the reason 

I say that's a good thing is because a lot of other credit card companies will make you reach like a $25 or $50 in your account balance before they will send you a check in the mail just because I guess they feel that 

It's not worth their money to send a check in the mail if it's only for like one dollar with the discover credit card you can like 

I said just have one penny in there if you want to check for one penny you can be their guest it's probably not gonna get you too far so you might as well let that go up a little bit further before cashing it out but 

If you do want that one penny after you earn it you're certainly welcome to ask for a check all right so now that I mentioned some of the things that I really like about this credit card 

I'm going to go ahead and jump into the other side of things of what I don't necessarily like about this credit card and the first thing that I really don't like about the credit card is that other than there's 

5% categories anything else that you make a purchase on will only be earning 1% back which is pretty pitiful when you compare it to other credit cards in the market which you can easily earn between one and a half to 2% in those categories there really 

I guess someone can make an argument that in the first year you'll actually be earning 2% back on all purchases since that to the end of the first year they will give you a spin bonus and match whatever you're spending a dollar per dollar 

So if you spend $100 in aenon 5% category you don't you're earning $1 in cash back however at the end of the first year discover will match that so you'll have I guess two dollars in cash back you'll just have to wait that one year 

So that is your strategy with this credit card is to use as much as possible that way your spindler's will be a little bit higher you can definitely think of it that way 

However I would probably most likely just focus on spinning in those fibers and categories for the most part all right 

So other than that you're probably pretty interested in the fees that the discover it credit card have just because a lot of card companies banks and stuff like that will end up having some sneaky fees 

So you always want to be on the lookout for that so as far as late payments go it's actually pretty good because the first time that you're late there will be no fee for the first time which you don't really see a lot with other credit cards after that you only be having a forty dollar at most late payment fee 

So that I guess could be a negative thing however we're just going to be focusing on paying this credit card off as soon as possible so don't even worry about paying late on this one 

If you do end up having a return check there could be up to a forty dollar fee as well and if you decide to take out a cash advance you'll be charged either $10 or 5% whichever is greater and another thing that 

I preach is to always avoid these as well unless absolutely necessary and if absolutely necessary definitely ckase financial advisor as the fees with these can get pretty hefty 

I don't even want to get into them so to sum things up the great things that are really like about this credit card is that you will be earning that big spin bonus at the end of the first year 

So if you do happen to max out your 5% categories there would be $300 in cash back and then discover we'll be matching those $300 and then whatever you happen to spend just using your credit card alone

In the 1% back that could add up a little bit more also another thing that I really like is the fiber sent back categories in general so not just the first year 

But yours beyond that you can use that in categories such as groceries or gas which will well exceed the other credit cards on the market at least the ones that have no annual fee 

Finally I also really like this is cred her does not have an annual fee at all and also there are no foreign transaction fees so if you do travel abroad with this credit card you don't have to worry about there being any type of extra fees 

So with all that said I would definitely say that the Discover it credit card offers quite a bit of value and it's a credit card that I believe that a lot of people would benefit from however like I said I am not a financial adviser.

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