Discover’s Balance Transfer Card: Zap Debt, Then Enjoy Rewards
The Bottom Line
4.9
This is the rare balance transfer card that has significant value beyond its introductory APR period, although the rewards entail a little work.
Rates, fees and offers
Annual fee
$0
Rewards rate
1%-5%
Bonus offer
INTRO OFFER: Unlimited Cashback Match for all new cardmembers – 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.
Intro APR
0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months
Ongoing APR
APR: 18.49%-27.49% Variable APR
Cash Advance APR: 29.49%, Variable
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
0%
More details from Discover
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – 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.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get a 0% intro APR for 18 months on balance transfers. Then 18.49% to 27.49% Standard Variable APR applies, based on credit worthiness.
- Terms and conditions apply.
Pros and Cons
Pros
No annual fee
Intro APR period
Bonus categories
Cash rewards
Cons
Complicated rewards
Spending caps on bonus rewards
Lower acceptance abroad
Detailed Review
If you're chipping away at high-interest credit card debt, moving it to the Discover it® Cash Back - 18 Month Intro Balance Transfer Offer 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® Cash Back - 18 Month Intro Balance Transfer Offer 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 could be as high as 5%.
Discover offers a version of this card with the same rewards structure but an introductory APR period that's longer for purchases and shorter for balance transfers. That card is known simply as the Discover it® Cash Back.
Discover it® Cash Back - 18 Month Intro Balance Transfer Offer: Basics
Card type: Balance transfer and cash back.
Annual fee: $0.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – 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.
Rewards:
5% back in rotating quarterly categories on up to $1,500 in purchases each quarter (requires activation).
1% back on all other purchases.
Redemption: You can redeem cash back in any amount, except in the case of gift certificates and eCertificates, which start at $5. Redemption options include:
Direct deposits into any account.
Statement credits on your credit card.
Donations to select charities.
Shopping at Amazon. (You can do this by linking your eligible Discover card to your Amazon account, paying with that card and applying your cash back at checkout.)
Gift cards and eCertificates.
Interest rate: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 18.49%-27.49% Variable APR.
Foreign transaction fees: None.
Balance transfer fee: A 3% introductory fee and up to 5% on future balance transfers. Terms apply.
Other benefits:
Free access to FICO score.
Access to Discover's free Social Security number monitoring service.
The card's current quarterly bonus categories are listed below:
Discover bonus rewards categories for 2024 | |
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Q1 (Jan. 1–March 31) |
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Q2 (April 1–June 30) |
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Q3 (July 1–Sept. 30) |
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Q4 (Oct. 1–Dec. 31) |
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Q1 2025 (Jan. 1-March 31) |
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Compare to Other Cards
Benefits and Perks
Generous 0% intro APR period for transfers
The Discover it® Cash Back - 18 Month Intro Balance Transfer Offer offers one of the longest 0% introductory APR periods for balance transfers on any rewards credit card: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 18.49%-27.49% Variable APR. There's an introductory balance transfer fee of 3%, which is on the low end; later transfers, however, can incur a fee of up to 5% (see terms). Just keep in mind that if you're using the card as a balance transfer option, you'll likely want to avoid making new purchases with it, and instead use the card solely for paying off debt. That might mean missing out on the rich sign-up bonus offer.
5% cash back in rotating categories
You would be hard-pressed to find a card with no annual fee that earns more than 5% cash back in bonus categories, which for the Discover it® Cash Back - 18 Month Intro Balance Transfer Offer have recently included things like gas stations, grocery stores, restaurants and more.
If you max out the 5% rotating quarterly category rewards each year on this card — that is, if you activated and spent up to $1,500 in those categories each quarter all year — you would earn $300 in bonus cash back, plus 1% back on every other purchase. For many shoppers, those lucrative ongoing rewards make this card a keeper.
A potentially valuable sign-up offer
The Discover it® Cash Back - 18 Month Intro Balance Transfer Offer comes with an uncommon sign-up bonus for new cardmembers in their first year: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – 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.
For example, if you earned $500 in rewards, Discover will give you another $500 in cash back at the end of your first consecutive 12 months of being a cardholder. For folks who plan to do a lot of spending on the card during that time, this unusual offer could prove incredibly valuable.
Drawbacks and Considerations
The Discover it® Cash Back - 18 Month Intro Balance Transfer Offer 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 Wells Fargo Reflect® Card offers a longer 0% APR period for transfers — and a matching one for purchases. You get 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 17.49%, 23.99%, or 29.24% 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 has an introductory APR of 0% intro APR on balance transfers for 18 months, and then the ongoing APR of 18.49%-28.49% 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 could fit the bill.
To see how these options compare versus other cards, visit the NerdWallet best credit cards roundup.
How To Decide If It's Right For You
If you want a long time to pay down a credit card balance while still earning cash back on new purchases, the Discover it® Cash Back - 18 Month Intro Balance Transfer Offer is tough to beat. The introductory balance transfer fee is comparatively low, and the cash-back earning potential is promising.
Cashback Match details from Discover: No purchase minimums. After the first 12 consecutive billing periods that your new account is open, we will match all of the cash back rewards you've earned and apply them to your account in the following one or two billing periods. If your account is closed or no longer in the cash back reward program at the time we calculate your potential award, your cash back will not be matched. You've earned cash back rewards when they have posted to your account by the end of the 12th consecutive billing period. This promotional offer may not be offered in the future. This exclusive offer is available only to new cardmembers.
Not in the mood to activate categories or keep track of what you're earning where? This card makes it easy. You get 2% cash back on every purchase — 1% when you buy something and 1% when you pay the bill.
Looking For Something Else?
Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
Frequently asked questions
How does Discover 5% cash back work?
Discover offers 5% cash back in bonus categories that change every three months. You must opt in (or “activate”) online to be eligible for the latest categories. Once you do, you get 5% cash back on up to $1,500 per quarter in spending in the bonus categories. All other purchases earn 1% cash back. The 5% categories include common expenses like grocery stores, gas stations and restaurants. See current and past categories here.
Is there a limit on cash back with Discover?
There’s no limit to how much total cash back you can earn. The 5% rewards are limited each quarter, but even after you hit the $1,500 quarterly spending cap in those categories, you’re still earning 1%.
How do I redeem cash back with Discover?
The simplest way to redeem cash back with Discover is to take the money as a statement credit. If you have, say, $30 in cash back, you can apply it to your account and reduce your balance by $30. You can also get your cash back as a direct deposit into a bank account, spend it on Amazon.com or via PayPal, or redeem it for gift cards.
Does Discover match my cash back every year?
Discover doubles the rewards you earn in the first year — but only in the first year. This is a special offer only for new cardholders.
What credit score do I need to get the Discover it® Cash Back?
You’ll need at least average credit to qualify for the Discover it® Cash Back. Generally speaking, this is defined as a score of 630 or better. But a credit score alone isn’t enough to qualify for any credit card. Issuers take into account your income, existing debts and other information.
