Discover It Chrome Review: Extra Cash Back on Gas and Dining

When it comes to cash-back credit cards, Discover is best known for the 5% bonus categories it offers on products like the Discover it® Cash Back, the Discover it® Student Cash Back and the NHL® Discover it®. But the Discover it® chrome offers a completely different rewards structure. If you spend a lot on gas and restaurant dining, it's worth a look. But many consumers will probably be better off with another card.

Discover it® chrome: Benefits

• Card type: Cash back.

• Bonus categories. With the Discover it® chrome, you get 2% cash back on restaurant dining and gas purchases, on up to $1,000 in combined spending each quarter, and 1% after that. All other purchases earn 1% cash back. Unlike with Discover's 5% cards, you don't have to "activate" these bonus rewards. They're always "on."

• Double your cash back in the first year. The Discover it® chrome offers the same new-cardholder bonus as Discover's other cards: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.

• A 0% introductory APR. If you're looking to make a major purchase, you'll have some time to pay it off interest-free. You get an introductory APR of 0% on Purchases and Balance Transfers for 14 months, and then the ongoing APR of 14.24% - 25.24% Variable APR.

• Discover's suite of perks. These include free access to your FICO score, 100% U.S.-based customer service, Social Security number monitoring, forgiveness for your first late payment (but try not to be late) and the ability to freeze and unfreeze your account if your card goes missing or your info is compromised.

• A $0 annual fee. 

Discover it® chrome: Drawbacks

• The top rewards rate is weak. Getting 2% cash back on gas and restaurants is better than 1% — and certainly better than nothing! But there are several cards available that will give you 2% rewards on every single purchase — the most prominent example being the Citi® Double Cash Card – 18 month BT offer, which pays 1% on every dollar you spend and 1% on every dollar you pay off. Meanwhile, an array of cards pay 1.5% cash back on every purchase, which, depending on your spending, might well generate more in total rewards than the Discover it® chrome. Consider the Capital One® Quicksilver® Cash Rewards Credit Card, which gives you 1.5% cash back, has a $0 annual fee and also offers a cash sign-up bonus and a 0% intro APR period.

• Bonus rewards are capped. If you drive a lot and eat out most nights, you could crash into the $1,000 quarterly ceiling on 2% rewards rather quickly. Most flat-rate cards, including those described above, don't place any limits on rewards.

• An unconventional bonus. One great thing about Discover's new-cardmember bonus is that the more you spend, the bigger the bonus you ultimately get, meaning you're in control of your bonus. But you have to wait a year to get it.

• Spotty international acceptance. This isn't a good pick for international travel. Discover doesn't charge foreign transaction fees, but Discover's acceptance outside the U.S. lags far behind that of Visa and Mastercard.

Discover vs. Discover: This card vs. the 5% cards

Discover's flagship card, the Discover it® Cash Back, offers 5% cash back in quarterly categories that you activate. You get 5% back on up to $1,500 in bonus category spending per quarter, and 1% on everything else. Here are Discover's current categories:

Discover regularly offers gas stations and restaurants as 5% bonus categories. Say you spend $150 on gas and $150 on restaurants every month. With the Discover it® chrome, you would get $72 in rewards from that spending in a year. With the Discover it® Cash Back you would get ... an identical $72 in rewards from that spending in a year. But you would also get two other quarters each year with opportunities to earn 5% in different categories.

Indeed, if you maxed out the bonus rewards available on each card, here's what you would earn:

• With the Discover it® chrome: An extra 1% on $4,000 per year in spending, or $40 plus 1% on all spending.

• With the Discover it® Cash Back: An extra 4% on $6,000 per year in spending, or $240 plus 1% on all spending.

Mathematicians will tell you that $240 in bonus rewards is more valuable than $40. But what really matters is how you spend money, and whether you want the hassle of activating bonus categories every three months.

Should you get the Discover it® chrome?

The Discover it® chrome isn't a bad choice if you're in need of a low-maintenance, no-fee card to pull out at gas stations and restaurants. But if you're looking for a card to use everywhere, every day, you'd probably be better served with a flat-rate cash-back card or one of Discover's 5% cards.