Discover's balance-transfer credit card, which has been unavailable recently, is again taking applications. And for now, NerdWallet is the only place it's available online.
The Discover it® Balance Transfer – NerdWallet Exclusive! has a long introductory interest-free period for balance transfers. A transfer can save you money if you move high-interest debt to a card with a lower rate or an 0% APR period. The money saved on interest can go toward paying down the debt more quickly.
The current APR offer on the Discover it® Balance Transfer – NerdWallet Exclusive! is as follows: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 11.99% - 22.99% Variable APR.
Note that the card does charge a fee of 3% on introductory balance transfers and up to 5% on future balance transfers (see terms).
The Discover it® Balance Transfer – NerdWallet Exclusive! also offers something rare for a balance transfer card: elevated cash-back rewards on everyday spending. That gives you a reason to keep the card long after the 0% period runs out.
Many credit card issuers have sought to reduce their business risk during the pandemic by cutting back on balance-transfer offerings, although those offers have slowly started to return. In the case of the Discover it® Balance Transfer – NerdWallet Exclusive!, its return will be limited initially to one online marketplace, NerdWallet.
Nerd tip: Discover offers a similar card with the same rewards structure but an introductory APR period that's longer for purchases and shorter for balance transfers. That card is the Discover it® Cash Back.
Details: Discover it® Balance Transfer – NerdWallet Exclusive!
Annual fee: $0.
Intro APR: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 11.99% - 22.99% Variable APR.
Balance transfer fee: 3% introductory balance transfer fee; up to 5% on future balance transfers (see terms).
5% cash back on rotating quarterly categories on up to $1,500 in purchases each quarter (requires activation); 1% after that. Bonus categories in the past have included gas stations, wholesale clubs, restaurants and more. (See below for current bonus categories.)
1% cash back on all other purchases.
Note: Rewards are earned on purchases only, not on balance transfers.
Bonus offer: Discover offers a unique and potentially lucrative bonus for new cardmembers, which the issuer phrases this way: "INTRO OFFER: Unlimited Cashback Match – 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 $150 cash back into $300."
Foreign transaction fees: None.
Discover bonus rewards categories for 2021
Q1 (Jan. 1 – March 31)
• Grocery stores*. • CVS. • Walgreens.
*The grocery stores category includes Walmart Grocery Pickup & Delivery, but not grocery purchases inside Walmart or at other superstores such as Target or wholesale clubs.
Q2 (April 1 – June 30)
• Gas stations. • Wholesale clubs. • Select streaming services.
Q3 (July 1 – Sept. 30)
• Restaurants. • PayPal.
Q4 (Oct. 1 – Dec. 31)
• Amazon.com. • Target.com. • Walmart.com.