As 5% cash-back cards, the Discover it® - Cashback Match™ and the Discover it® - 18 Month Balance Transfer Offer are up against a tough slate of competitors. With Discover’s double cash-back bonus for new cardholders, however, it’s easy to see why these cards are worth considering for everyday spending.
Let’s examine the two options and compare them with other top-tier cash-back cards to see whether they’re right for you.
Discover it® - Cashback Match™ and Discover it® - 18 Month Balance Transfer Offer: Benefits and basics
There are actually two versions of this card, but there’s only one difference between them: the introductory APR offer.
|With the more popular Discover it® - Cashback Match™, you’ll get 0% on Purchases and Balance Transfers for 14 months, and then the ongoing APR of 11.99% - 23.99% Variable APR.|
|With the Discover it® - 18 Month Balance Transfer Offer, you’ll receive 0% on Purchases for 6 months and 0% on Balance Transfers for 18 months, and then the ongoing APR of 11.99% - 23.99% Variable APR.|
Other than that, the cards share the same rewards structure, including 5% cash back on up to $1,500 spent quarterly in rotating categories, 1% cash back on everything else, and a rewards bonus you won’t find anywhere else. As Discover puts it: You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
Those who want to transfer high-interest credit card debt should choose the Discover it® - 18 Month Balance Transfer Offer, while those who are planning on a large purchase and want more time to pay it off interest-free would do better with the Discover it® - Cashback Match™.
For simplicity, we’ll refer to just one card — the Discover it® - Cashback Match™ — moving forward in discussing the benefits of both cards.
5% cash back on everyday spending
Both cards offer 5% cash back on rotating bonus categories, up to $1,500 spent per quarter. The current bonus categories are:
|DISCOVER BONUS CATEGORIES FOR 2017|
|Q1 (Jan. 1 – March 31)||Gas stations, ground transportation and wholesale clubs|
|Q2 (April 1 – June 30)||Home improvement stores and wholesale clubs|
|Q3 (July 1 – Sept. 30)||Restaurants|
|Q4 (Oct. 1 – Dec. 31)||Amazon.com and Target|
If your spending aligns with that of American households on average, you’ll probably be able to take advantage of most, if not all, of the card’s bonus categories.
Access to Discover Deals
One of the Nerds’ favorite online bonus malls, Discover Deals offers cardholders an extra 5% to 20% cash back at more than 200 online retailers. You can also access in-store coupons and bonus cash-back offers. Because Discover’s double cash-back bonus also counts on Discover Deals purchases, it should be easy to start racking up the cash rewards.
If the rewards aren’t enough to hook you, the other benefits may do the trick. These cards offer free access to your FICO score, no foreign transaction fees and the Freeze It℠ feature, which prevents someone else from using your card if it’s lost or stolen. Plus, Discover won’t charge you a fee for your first late payment or raise your APR for paying late. You’ll get all of that with a $0 annual fee.
Discover it® - Cashback Match™: Pitfalls and other possibilities
While the Discover it® - Cashback Match™ is a solid cash-back option, it isn’t perfect. Here are some drawbacks to consider:
Great bonus — but you have to wait for it
The Chase Freedom® also offers 5% cash back in quarterly rotating categories, on up to $1,500 spent per quarter, and 1% back on all other spending. The categories are usually similar to those of the Discover it® - Cashback Match™. It has a $0 annual fee, and you’ll get access to the Chase Ultimate Rewards site, where you can get up to 10% cash back on your online purchases. What’s more, you’ll receive 0% on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 15.99% - 24.74% Variable APR.
For more information on the Chase Freedom®, check out our full review.
Categories may not fit your spending
In September 2017, U.S. Bank added a limited-time offer for new cardholders: In the first year you have the card, the 5%, 2% and 1% rewards rates are increased to 5.5%, 2.5% and 1.5%. After the first year, the rates drop back to 5%, 2% and 1%.
The U.S. Bank Cash+™ Visa Signature® Card’s annual fee is $0, but its introductory 0% APR doesn’t stack up well against the Discover it® - Cashback Match™ or the Chase Freedom®. It has an APR of 0% on Balance Transfers for 12 months, and then the ongoing APR of 14.99% - 23.99% Variable.
If you’re still interested, read our full review.
It can be a hassle to remember the categories
With the Citi® Double Cash Card – 18 month BT offer, you’ll also get free access to your FICO score, a $0 annual fee and a solid balance transfer promotion: 0% on Balance Transfers for 18 months, and then the ongoing APR of 14.49% - 24.49% Variable APR.
For more details, see our full review.
Is the Discover it® - Cashback Match™ right for you?
If you’re looking for a solid cash-back credit card with a chance to maximize your cash back far beyond 5%, the Discover it® - Cashback Match™ with its double-cash-back bonus and Discover Deals is hard to ignore. If you want that, plus a longer balance-transfer period, go for the Discover it® - 18 Month Balance Transfer Offer.
If, however, you’re looking to get a bonus sooner, you want a wider variety of categories to earn bonus cash on, or you prefer a flat-rate cash-back card, there are plenty of options to choose from.
Last updated February 23, 2017.
Image via iStock.