If you have a Discover credit card that earns cash back, the Nerds are excited to announce some great news: Redeeming your rewards just got way more flexible. You’ll now have multiple options for cashing in on your cash back, including the ability to donate it to a worthy cause.
Ready to learn more? Check out the details below.
Discover announces new options for redeeming cash back
Discover customers with cards that earn cash back can redeem their rewards in the following ways, according to a Nov. 19, 2014, press release:
- As a statement credit
- As a direct deposit into their bank accounts
- To buy items with select retailers online
- To donate to charity
What’s more, you can also redeem your rewards in any amount. This is much more flexible than most other credit cards, which require you to have at least $20-$25 in accumulated rewards before you can cash in.
In addition, Discover said that when a credit card is closed due to inactivity or at the customer’s request, there’s no need to worry about losing rewards. Any unclaimed cash back will be credited to the customer’s account. Again, this is fairly unusual for a credit card issuer, and definitely a consumer-friendly move on the part of Discover.
Our favorite credit card from Discover
If you like Discover’s new cash-back redemption options and are interested in one of their cards, our favorite is the Discover it® Cash Back. With it, you’ll earn 5% cash back in rotating quarterly bonus categories (up to $1,500 spent per quarter, activation required) and 1% cash back on all other purchases. The Discover it® Cash Back particularly shines during the holiday season, when online and department store shopping have historically been featured as 5% bonus categories. Bonus categories must be activated quarterly to qualify for the higher rate.
Another great aspect of the Discover it® Cash Back is that you’ll get free access to your FICO credit score on every monthly billing statement you receive. This will help you track how you’re doing with your credit month over month, a feature that’s especially handy if you’re trying to rebuild your score.
In terms of fees, the Discover it® Cash Back charges no foreign transaction fee and an annual fee of $0. All in all, it’s a great card to consider.
Is the Discover it® Cash Back right for you?
The Discover it® Cash Back is a great card if you like rotating bonus categories, flexible cash-back redemption options and access to great shopping deals. But if you want a slightly higher ongoing rewards rate, there are a couple of other cash-back cards to consider:
All this comes at an annual fee of $0, so this is a card to keep on your radar.
Citi® Double Cash Card – 18 month BT offer
The beauty of the Citi® Double Cash Card – 18 month BT offer is in its simplicity, and since it charges an annual fee of $0, there’s not a lot of room for complaints.
Shopping with credit card image via Shutterstock