The credit card has become a staple in the American consumer’s wallet. According to a study conducted, as of 2021, there were 165 million credit cards in circulation in the United States, with each person holding an average of 2.6 cards. This number is only expected to grow as our economy continues to rebound from the recession. While there are many different types of credit cards available, the most popular by far is the Discover Card.
In this FintechZoom article, we will explore the benefits of using a Discover Card and why it has become so popular among consumers.
What is Discover Card?
Is Discover Visa or Mastercard? Discover Card is a type of credit card that offers cash back rewards on purchases. It is one of the few credit cards that does not charge an annual fee, making it a popular choice for many consumers. Discover Card reports your credit history to the three major credit bureaus and also offers a 0% APR for the first 15 months of card ownership, making it an attractive option for those looking to finance a large purchase.
Best Discover Credit Cards
| Credit card | FintechZoom rating | Annual fee | Rewards rate | Intro offer |
|---|---|---|---|---|
| Discover it® Cash Back | 4.9/5 Best for Cash back | $0 | 1%-5% Cashback | Cashback Match™ |
| Discover it® chrome | 3.8/5 Best for Cash back | $0 | 1%-2% Cashback | Cashback Match™ |
| Discover it® Miles | 3.8/5 Best for Travel | $0 | 1.5x Miles | Discover Match®Miles |
| Discover it® Balance Transfer | 4.9/5 Best for Balance transfers | $0 | 1%-5% Cashback | Cashback Match™ |
| Discover it® Student chrome | 5.0/5 Best for College students | $0 | 1%-2% Cashback | Cashback Match™ |
| Discover it® Student Cash Back | 4.6/5 Best for College students | $0 | 1%-5% Cashback | Cashback Match™ |
| Discover it® Secured Credit Card | 5.0/5 Best for Building or rebuilding credit | $0 | 1%-2% Cashback | Cashback Match™ |
Benefits of Using a Discover Card
There are many benefits to using a Discover Card, including the following:
1. Cash back rewards on purchases
One of the biggest attractions of using a Discover Card is the cash-back rewards that it offers on purchases. Depending on the secured credit card, you can earn anywhere from 1% to 5% cash back on your purchases, which can add up quickly. For example, if you spend $1,000 in combined purchases each quarter and earn 5% cash back, that’s an extra $50 in your pocket!
2. No annual fee
Another big benefit of using a Discover Card is that there is no annual fee. This is a big saving compared to many other credit cards on the market, which can charge upwards of $100 per year in fees.
While the Discover Card does have some fees for certain services, such as balance transfers and all the cash advances, these are typically much lower than what you would find with other credit cards.
3. 0% APR for 15 months
If you are looking to finance a large purchase, Discover Card offers 0% APR for the first 15 months of card ownership. This can be a great way to save on interest payments and get your purchase paid off quickly.
Since the Discover Card has no annual fee and offers a 0% APR for 15 months, it is a great option for those who are looking to finance a large purchase.
4. Generous credit limit
Another benefit of using a Discover Card is that you can typically qualify for a very generous credit limit for everyday purchases at gas stations and restaurants. This is due to the fact that Discover Card is a major credit card issuer and therefore has access to more lending capital than smaller issuers.
This can be a great benefit if you are looking to make a large purchase or need to carry a balance from month to month.
5. Excellent customer service
Discover Card is known for its excellent customer service. If you ever have any issues with your card, you can rest assured that Discover will work to quickly and efficiently resolve the issue.
This is in contrast to many other credit card issuers, which can be very difficult to get ahold of and often leave customers feeling frustrated.
6. Wide acceptance
Discover Card is widely accepted by merchants, both online and offline combined purchases. This is due to the fact that Discover is a major credit card issuer and is therefore included in most merchants’ credit card processing agreements.
This can be a great benefit if you are looking to make a purchase from a specific merchant who does not accept other types of credit cards.
7. Generous sign-up bonus
Many Discover Credit Cards offer include a generous sign-up bonus. This is typically a cash-back reward that is awarded after you spend a certain amount of money within the first few months of card ownership.
For example, you may earn $200 cash back after spending $1,000 within the first 3 months. This can be a great way to get started with your unlimited cashback match rewards and earn some extra money.
8. 0% intro APR on balance transfers
If you are looking to transfer a balance from another credit card, Discover Card offers a 0% intro APR on balance transfers for the first 18 months. This can be a great way to save on interest payments and get your balance paid off quickly.
9. No foreign transaction fees
If you travel internationally, Discover Card does not charge any foreign transaction fees. This can be a great benefit if you are looking to save on fees when making online purchases in another country.
10. Access to your FICO score
Another benefit of using a Discover Card is that you have free access to your FICO score. This can be a great way to keep track of your credit score and monitor your credit report for any changes.
Conclusion
Discover Card is a great option for those who are looking for a credit card with no annual fee, a generous credit limit, and excellent customer service. Additionally, the Discover Card offers a 0% APR for 15 months and a wide range of other benefits that make it a great choice for those looking to finance a large purchase or transfer a balance from another credit card. Finally, the Discover Card is widely accepted by merchants and offers a generous sign-up bonus.
FAQs
Yes, a Discover credit card can be worth it if you are looking for a cash-back credit card with no annual fee. Additionally, Discover offers a 0% intro APR on purchases and balance transfers for 14 months (then 13.49% – 24.49% Variable). So, if you are planning on making a large purchase or transferring a balance from another credit card, a Discover card could help you save on interest.
There can be a few reasons why a Discover card is not accepted. One reason might be that the merchant does not have a relationship with Discover. Another reason could be that the merchant only accepts credit cards from a certain network, such as Visa or Mastercard. And finally, the merchant might not accept credit cards at all – only cash or debit cards.
The Discover it® cash back Secured Card is the easiest Discover card to get because it does not require a credit history for approval. This card does require a deposit of at least $200, which will be held as collateral for your credit line. However, your deposit will be refunded to you if you close your account and pay your balance in full.
There is no set credit score required for a Discover card, as each application is evaluated on an individual basis. However, having a good or excellent credit score will likely increase your chances of getting approved for a Discover card.