The Discover More credit card boasts 0% interest on balance transfers for the first 18 months, longer than almost any other card, on top of a lower-than-normal balance transfer fee. What’s more, the card still earns rewards on purchases. Though its introductory APR period isn’t the longest one out there, the combination of an above-average introductory period and rewards makes the Discover More a standout.
A balance transfer offer with few shrouded fees
The Discover More offers no interest on balance transfers for 18 months, and no interest on purchases for 6. It’s a great deal if you already have credit card debt and are looking to pay it down interest-free for a time. In addition, its balance transfer fee is only 3%, while the industry standard is 5%. The balance transfer fee is one of the lesser-known “shrouded fees” that many credit cards slip in because you’re not likely to notice. It speaks well of the Discover More that it doesn’t gouge you with the transfer charge.
| Discover® More® Card - 18 Month Balance Transfer | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
  |
| ||||||||||||||||||||
| |||||||||||||||||||||
In terms of ongoing APRs, the Discover More is comparable to other hard-hitting balance transfer cards, with an ongoing APR of 8.75% to 17.74% + prime (as of this writing, that translates to 11.99% to 20.99%). That’s about the same APR charged by the Citi balance transfer cards, which tend to be heavyweights in the category.
Similarly, both the Citi Diamond Preferred and the Citi Platinum Select also offer 18 months free of interest on both transfers and purchases, along with a flat transfer fee of 3%. But unlike the Discover More, these cards don’t offer rewards.
Rewards program isn’t all it’s cracked up to be
That said, we have a gripe about the Discover More’s rewards program. Though it advertises a 1% base rewards rate, it only pays 0.25% on the first $3,000 a year. The full 1% kicks in only after the $3k threshold. Still, there are a number of features to recommend the rewards program. The Discover More also offers 5% cash back when you use the card to pay for items in special categories like groceries, gas, travel and restaurants, among others. The bonus categories tend to vary with the seasons. The categories for the remainder of the year are:
- Q3: Gas, hotels, movies, theme parks (up to $300 in spending)
- Q4: Restaurants and department and clothing stores (up to $300 in spending)
If you don’t need the balance transfer, the Chase Freedom offers a better rewards package. It offers a $100 bonus cash back when you make $500 in purchases in the first 3 months and a reward rate of 1% on all purchases. In addition, the Chase Freedom gives 5% cash back for purchases of up to $1500 in special categories. For the third quarter of 2011, cash back categories are airlines, gas and hotels.
Overall, the Discover More card provides a great way to give yourself time to pay off credit card debt, while earning rewards. And even after the introductory period, the card offers a competitive interest rate and a decent rewards program.
| Chase Freedom® Visa - $100 Bonus Cash Back | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 |
| ||||||||||||||||||||
| |||||||||||||||||||||