Discover Card has been advertising a lot with TV commercials in the U.S. lately. With all this marketing push, you may be wondering: is a Discover card really worth getting? The commercial I have seen advertises the fact that cardholders can get up to 5% cash back on purchases at grocery stores.
So should you get one? New Discover credit card account holders receive 0% intro APR for the first 6 months, 0% intro APR on balance transfers for 12 months, and that famous 5% cash back bonus in rotating categories. For April and June, for example, cardholders will earn a 5% cash back bonus on up to $400 of their Discover purchases made at home improvement stores, department stores and clothing stores.
If you are really strategic about their cash back bonus calendar and rotating categories, and if you pay off your balance in FULL each month before the due date to avoid interest charges (as we always recommend here at Credit Card Outlaw), this could be a solid card to get. It's like money for nothing, right?
My one major issue with Discover, as I have mentioned in a review posted late last year, is that their cards aren't accepted as widely as Visa, MasterCard, or even American Express cards.
Discover vs. Visa: Visa is accepted at more locations.
Discover vs. MasterCard or AmEx: same deal.
But if your favorite stores accept Discover, and you're savvy enough to follow the rotating categories for maximum cash back, get one of these cards. It's hard to turn down free money. Just make sure you are always, no matter what, paying off your entire balance each month... paying interest on past purchases is stupid. It's giving a bank your hard-earned money for nothing.
Opinions only; not professional financial advice. Credit card rates and terms DO change from time to time -- check Discover's site for most recent promotional terms and details. This content presented for entertainment purposes only with no guarantees or warranties whatsoever.
Comments