Discover it Balance Transfer Review: A Debt Zapper With Rewards

If you're chipping away at high-interest credit card debt, moving it to the Discover it® Balance Transfer – NerdWallet Exclusive! can get you a nice long time to pay it off without interest.

It also offers a rare feature for a balance transfer card: elevated rewards on everyday spending. That gives you a good reason to keep the card around long after paying off your transferred balance.

One thing to be aware of, though, is that unlike other some other 0% intro APR cards, the Discover it® Balance Transfer – NerdWallet Exclusive! isn't a great choice for financing a large new purchase. And while the card does limit certain common fees, there is one fee you’re going to want to pay attention to: a balance transfer fee that increases over time from 3% to 5% after several months.

» MORE: NerdWallet's best balance transfer credit cards

Discover it® Balance Transfer – NerdWallet Exclusive!: Basics

Card type: Balance transfer and cash back.

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.

Ongoing rewards:

• 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 categories.)

• 1% cash back on all other purchases. (Note: Rewards are earned only on purchases, not on balance transfers.)

Redemption options: Cash back can be redeemed for a direct deposit into any account, a statement credit on your card, gift cards and eCertificates, charitable donations, or shopping on Amazon.com and via PayPal. There's no minimum redemption requirement unless you redeem for gift certificates or eCertificates, which do require a minimum of $5.

• For the Amazon option, sign in to your Amazon account and link it to your card. You can pay with your Discover it® Balance Transfer – NerdWallet Exclusive! card and apply cash-back rewards when you check out. The PayPal option also requires that you link accounts.

New cardholder bonus: Discover offers a unique sign-up bonus for new cardmembers in their first year, 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."

Balance transfer fee: 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).

Foreign transaction fees: None.

Other benefits: 

• Free Social Security number monitoring.

• Free access to your FICO® score.

» MORE: Benefits of Discover it Cash Back and Balance Transfer cards

Why you might want the Discover it® Balance Transfer – NerdWallet Exclusive!

Generous 0% intro APR period

The Discover it® Balance Transfer – NerdWallet Exclusive! offers one of the longest 0% introductory APR periods for transfers: 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.

High rewards rate

Other credit cards also offer the dual benefits of a 0% intro APR period plus rewards. But few of them can match the 5% cash-back rate that the Discover it® Balance Transfer – NerdWallet Exclusive! offers on up to $1,500 in combined spending on bonus categories per quarter (after activation). All other purchases earn 1% back. The current 5% categories on this card:

Potentially lucrative sign-up bonus

Discover's unique bonus allows cardmembers to essentially chart their own course for a personalized sign-up bonus in the first year of having the card.

Keep in mind, though, that if you’re using the balance transfer option on the Discover it® Balance Transfer – NerdWallet Exclusive! card, you may want to avoid making new purchases with it entirely, and instead use the card solely for paying off debt — and that might mean missing out on the rich sign-up bonus offer, which you're eligible for only in your first year.

» MORE: Discover credit cards mobile app review

Why you might want a different card

The Discover it® Balance Transfer – NerdWallet Exclusive! is a solid choice, but depending on what you're looking for in a balance transfer card, there are some other promising options available.

You can get a longer 0% period

The U.S. Bank Visa® Platinum Card offers a longer 0% APR period for transfers — and a matching one for purchases. You get 0%* intro APR for 20 billing cycles on purchases and balance transfers*, and then the ongoing APR of 14.49% - 24.49%* Variable APR. The annual fee is $0*. There are no rewards, however.

a flat-rate card may better suit your spending

The Citi® Double Cash Card – 18 month BT offer has an introductory APR of 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 13.99% - 23.99% Variable APR. There is, however, no 0% intro APR period for purchases. What makes it especially attractive is its flat-rate rewards, which make the card a good choice for someone not interested in keeping track of bonus categories. You'll earn 2% cash back on all purchases: 1% when you buy, then 1% as you pay. If simplicity is important to you, the Citi® Double Cash Card – 18 month BT offer could fit the bill.

To see how these options compare versus other cards, visit the NerdWallet best credit cards roundup.

Should you apply?