Because they are not as widely accepted as Visa or MasterCard, you may feel inclined to avoid Discover credit cards altogether. But before you rebuff them entirely, take a look at some of the Discover card rewards being offered right now. You might not want to rely solely on Discover for all your daily purchases, but they make nice supplemental cards for maximizing rewards.
Best Overall Discover Rewards Card
For general purchases, check out the Discover More card. The Discover More is one of the few 5% cash back cards on the market. If 5% cash back seems too good to be true, it kind of is. It applies only to categories that rotate throughout the year, so purchase eligibility changes quarterly. For example, you might earn 5% on travel the first quarter and 5% on home/fashion the second. While 5% initially sounds impressive, understand there are limitations. The bonus caps are especially restricting, stopping your 5% rate at around $400 spent ($20 earned) in any given category. The base rewards rate is a measly .25% for the first $3,000 spent annually and 1% after. If you’re really enamored with the idea of a 5% cash back card, take a look at the Chase Freedom. It has similar rotating categories but comes with much higher caps at $1,500 per category.
As far as rewards go, the Discover More is just okay. However, it does not charge an annual fee and you’ll receive 15 months of 0% purchase and transfer APR. If you have a little debt to pay off, the Discover More is a great card for doing so without sacrificing rewards.
Best Discover Card for Travel Rewards
Allow us to preface this category by admitting Discover is not ideal for international travel. Why? Because while it is accepted outside the States, it’s accepted in offbeat places. Traveling to the Czech Republic, Slovakia, South Korea or Brazil? You’re in the clear. But if you’re going to France, the UK, Argentina, or India, you better have a backup.
That said, if your destinations are generally Discover-friendly, the Discover Escape is an invaluable cost-cutter. You earn miles at a flat 2% rate that can be used on any airline, at any hotel, for any car rental without restrictions or blackout dates. Rewards redemption is flexible and easy, and you automatically receive travel insurance benefits, including primary car rental, lost or damaged luggage, travel delay and trip cancellation (for the record, these perks are standard on most Visa/MasterCard credit cards, but Discover offers them only on the Escape and a few others).
The Discover Escape does come with a $60 annual fee, but the rewards quickly make up for the cost—especially with the 25,000-mile signing bonus. The 6-month 0% purchase and transfer APR is another nice perk, particularly if you need a little breather from interest. All in all, the Escape is a pretty good travel rewards card, though it can’t quite compete with others of its class. The Capital One Venture, for example, also offers a flat 2% rewards rate but has much wider merchant acceptance and no foreign transaction fee.
Best Discover Student Card
The Discover Student More follows the pattern of the other Discover cards: it’s good, but not the top of its category. It has no annual fee, and earns 5% cash back on bonus rewards categories that change quarterly. Like the regular Discover More, you’re limited to earning 5% back on $300-$800 in purchases a quarter, which yields some pretty unimpressive rewards. Plus, your base rewards rate is 1% only after you’ve spent $3,000 a year. It’s fine, don’t get us wrong, but you can do better.
The Citi Forward student card is among the better ones: you earn 5% cash back on entertainment, which is officially dining out, bookstores, music and movies, but spans Amazon.com, campus bookstores (read: textbooks), fast food and even many bars. You get 1% back on everything else, with no reservations. And it gives 1,000 bonus points if you sign up for paperless statements, while the More has a knockout bonus of nothing. The Forward has no annual fee, but its rewards are capped at 75,000 ThankYou Points a year. This works out to 15 grand spent on bonus categories, which is probably far, far more than you’re spending a year. In our opinion, it’s got the More beat by a mile.