Discover it Student Cash Back Card: A Comprehensive Review

The Discover it® Student Cash Back card stands out as a valuable tool for students aiming to build credit and earn rewards. It offers generous cash-back rewards, on par with some non-student options, and is accessible even to those with limited or no credit history. This review provides a detailed look at the card's features, benefits, drawbacks, and how it compares to other options, enabling students to make an informed decision.

Basics of the Discover it® Student Cash Back

Annual Fee: \$0
Bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers - only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn \$50 cash back into \$100. Or turn \$100 cash back into \$200.
Rewards: Earn 5% cash back in categories that change every three months, on up to \$1,500 in spending per quarter when you activate, and 1% back on everything else.
APR: 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months, and then the ongoing APR of 16.49%-25.49% Variable APR.
Foreign Transaction Fee: None
Other Perks:
- Reports payments to the three major credit bureaus (TransUnion, Equifax, and Experian) to help build credit.
- No late fee on your first late payment.
- Access to your Credit Scorecard to track progress.
- Free Social Security number alerts to notify you if your information is found on the dark web.

Standout Rewards for a Starter Card

The rewards program on the Discover it® Student Cash Back mirrors Discover's regular cash-back credit cards. For students without prior credit history, the rewards are exceptional compared to most other options. The card offers 5% cash back in categories that rotate quarterly, on up to \$1,500 in spending per quarter, and 1% back on all other purchases. These 5% categories usually include everyday expenses.

Discover Bonus Rewards Categories

Discover bonus rewards categories may include:

Q1 (Jan. 1-March 31): Grocery stores, wholesale clubs, and select streaming services.
Q2 (April 1-June 30): Grocery stores; wholesale clubs.
Q3 (July 1-Sept. 30): Gas stations/EV charging; public transit; and utilities.
Q4 (Oct. 1-Dec. 31): Amazon.com and drugstores.

Student-Friendly Ways to Earn Bonuses

The Discover it® Student Cash Back offers flexibility with its welcome bonus. Instead of requiring high spending, it doubles all the cash back earned in the first year, which is particularly beneficial for students who don't spend much.

Introductory APR Period

Introductory 0% APR offers are uncommon on student credit cards. The Discover it® Student Cash Back provides 0% intro APR on purchases for 6 months and 10.99% intro APR on balance transfers for 6 months, followed by an ongoing APR of 16.49%-25.49% Variable APR. This allows for an interest-free transition into credit use and can help with paying off expensive textbooks. However, it's crucial to monitor when the promotional period ends to avoid high ongoing APR charges.

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Drawbacks and Considerations

Rotating Bonus Categories

While the Discover it® Student Cash Back offers substantial ongoing rewards, the rotating bonus categories can be challenging to manage. Those seeking a card with fixed bonus categories might prefer the Capital One Savor Student Cash Rewards Credit Card, which offers 3% cash back on dining, groceries, entertainment, and popular streaming services, plus 5% back on hotels, vacation rentals, and rental cars booked through Capital One Travel.

Limited Acceptance Abroad

Discover's acceptance abroad is not as widespread as Mastercard or Visa. Although the Discover it® Student Cash Back doesn't charge foreign transaction fees, it's advisable not to rely solely on this card when studying abroad.

WalletHub Rating

The Discover it® Student Cash Back card is a good credit card for students with limited credit history or no credit score who want to earn bonus rewards without paying an annual fee. Offering 5% cash back on up to \$1,500 in combined category spending per quarter in rotating bonus categories that change and require activation (1% back otherwise), Discover it® Student Cash Back clearly is worthwhile. Discover also matches new cardholders’ first-year rewards earnings after the first account anniversary.

Key Terms

Credit Needed: Fair Credit, Limited History, No Credit
APR: 0% intro APR for 6 months, 16.49% - 25.49% Variable APR after that
Balance Transfer APR: 10.99% intro APR for 6 months, 16.49% - 25.49% Variable APR after that
Balance Transfer Fee: 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)

Pros & Cons

Pros:

First-year rewards matched
No foreign-transaction fee
Qualify with limited/bad credit
Reports to the three major credit bureaus

Cons:

Rotating bonus categories

Detailed Review

The Discover it® Student Cash Back card is ideal for students with limited or no credit history who want to earn bonus rewards without an annual fee. It offers 5% cash back on up to \$1,500 in combined category spending per quarter in rotating bonus categories that change and require activation (1% back otherwise), making it a worthwhile option. Additionally, Discover matches new cardholders’ first-year rewards earnings after the first account anniversary.

This Discover student credit card can help students save money and build credit, particularly for those who are organized. The 5% rewards categories require quarterly activation.

Discover it Student Cash Back Review Highlights

Rewarding, but not so simple: Earn 5% cash back (up to \$1,500 in purchases) on expenses made in specified bonus categories each quarter. This could amount to \$300 per year from bonus rates alone. However, the bonus rates rotate each quarter, requiring sign-up each time, and there's no guarantee that common expenses will align with the bonus categories. All other purchases earn just 1% cash back.
\$0 annual fee: This makes Discover it Student Cask Back about \$27.85 per year cheaper than the average credit card market-wide, according to WalletHub’s latest Credit Card Landscape Report.
The best feature is temporary: Discover will match all rewards earned during the first year, which could be worth hundreds of dollars. This promotion is available on all of Discover’s rewards cards, making it the card's standout feature.
Interest rates are best left alone: The Discover it Student Cash Back card offers 0% introductory interest on new purchases for the first 6 months, but it also has a regular APR (16.49% - 25.49% Variable) that can be higher than the student-card average. Students should avoid unnecessary debt and aim to pay their bill in full every month.
Not the only Discover student card: The Discover it® Student Chrome offers a more straightforward rewards structure, though with less rewards potential.

Eligibility

Approval for the Discover it® Student Cash Back is not guaranteed, but you don't even need a FICO history.

Discover it® Student Cash Back: Key Information

Age Limit: The minimum age limit for Discover it® Student Cash Back is 18 years old.
Minimum Credit Score: Discover it® Student Cash Back does not have an official minimum credit score.
Interest Rate: The Discover it® Student Cash Back interest rate is 16.49% - 25.49% Variable, depending on the applicant’s creditworthiness.

Additional Information

Approval Rate: The Discover it student card approval rate isn't public knowledge, but students with limited or no credit are considered.
Requirements: To qualify for a Discover it® Student Cash Back card, you must be currently enrolled in a 2 or 4 year college or university and have enough income to cover the monthly payments.
Denial: If denied for a Discover card, the first step is to find out why Discover rejected the application. The reasons will be listed in the denial letter Discover sends out shortly after its decision.
Income Requirement: The Discover it Student Cash Back's income requirement isn't disclosed.
Minimum Credit Score Requirements: Limited credit history or a credit score higher than 640 should be fine to get the Discover it® Student Cash Back.
Credit Limit: The credit limit for a Discover student credit card is \$500 at a minimum.
Post-Graduation Use: You can still use your Discover student credit cards after graduation.
APR: The Discover it® Student Cash Back APR is 0% for 6 months intro on purchases and 10.99% for 6 months intro on balance transfers.
Foreign Transaction Fee: The Discover it Student Cash Back foreign transaction fee is 0%.
Benefits: Discover student card benefits include an introductory APR of 0% for 6 months on purchases (16.49% - 25.49% Variable APR after that), a \$0 annual fee, and a 0% foreign transaction fee.

User Reviews

Many users have reported positive experiences with the Discover it® Student Cash Back card. Some highlights include:

Easy approval process and quick card delivery.
High credit limits offered even with a short credit history.
Appreciation for cashback rewards, especially the bonus for maintaining a high GPA.
Helpful text alerts for statements and payments.

Expert Opinions

Experts recommend considering whether a flat rewards rate or rotating bonus categories are better for students. Factors such as the importance of attracting student customers for credit card companies are also discussed.

Maximizing Rewards

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.
INTRO OFFER: Unlimited Cashback Match for all new cardmembers - only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Student credit cards are sometimes light on perks, but this Discover one might surprise you. You can earn 5% cash back on up to the quarterly maximum in rotating bonus categories -- just opt in every quarter.

Reward Card Ratings

Reward card ratings focus on the real value earned and kept with everyday spending, considering rewards rates, intro offers, and fees. The highest-rated rewards cards offer:

Competitive rewards on everyday spending or common categories like groceries or gas
Welcome offers that add meaningful value in the first year
Low or no annual fee
Broadly useful perks like purchase protection or introductory 0% APR offers

Earning and Redeeming Cash Back

Earn 5% cash back in rotating categories by activating them each quarter, up to the quarterly maximum. All other purchases earn 1%.
Discover will match all the cash back you’ve earned at the end of your first year automatically.
Once you're no longer a student, you may be able to upgrade your card to the standard Discover it® Cash Back, offering similar rewards but without the student label.

Potential Drawbacks

5% categories require activation: To earn 5% in the rotating bonus categories up to the quarterly maximum, you'll need to manually activate them each quarter.
Low quarterly spending cap: The 5% bonus rate only applies to the first \$1,500 spent in the chosen categories each quarter when you activate.

Alternatives to the Discover it Student Cash Back

Several competing cards offer cash-back rewards for students:

Capital One Quicksilver Student Cash Rewards Credit Card: Good for simple cash-back earnings, earning 1.5% cash back on every purchase with no limits.
Capital One Savor Student Cash Rewards Credit Card: Earns 3% cash back at grocery stores and on dining, entertainment, and popular streaming services.
Chase Freedom Flex: Offers quarterly rotating bonus categories (activation required) and earns 5% back on travel booked through Chase Travel℠, 3% back on dining at restaurants, including takeout and eligible delivery services, 3% at drugstores, and 1% on everything else.

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