Discover It Chrome Review: Terrific for Transfers, OK for Rewards

Generous 0% intro APR period for transfers

The Discover it® Chrome 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 18.24%-27.24% 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).

Bonus categories that would benefit most people

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. And 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: 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.

Intro APR period is only so-so for purchases

Although the intro APR period for balance transfers on the Discover it® Chrome is nice and long, it's considerably shorter for purchases, making this a subpar option for those who need to finance a big purchase. In fact, because of the mismatch between those periods, you could wind up without a grace period, which would mean paying interest on purchases even if you never carry any purchase debt from month to month.

Here's why: When you pay your credit card statement balance in full each month, you benefit from a grace period — new purchases don't start accruing interest until after the next due date. And if you're always paying in full, new purchases are always paid off by then, so no interest ever gets charged. But when you're carrying a transferred balance, even at 0%, you're not paying in full each month, so there's no grace period. This isn't an issue on cards that have matching 0% periods for purchases and transfers, since any "interest" that accrues on purchases just does so at 0%. But when the 0% period for transfers is longer than that for purchases, it can become a problem.

That's another reason why it may be best to hold off on putting purchases on this card until you've paid off any transferred debt. Or consider a card with matching 0% periods. The Wells Fargo Reflect® Card, for example, offers a 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 17.24%, 23.74%, or 28.99% Variable APR.

Top rewards rate is weak

Getting 2% cash back on gas and restaurants is better than 1% — and certainly better than nothing! But if you're looking for rewards on gas and dining, you'll probably be better off looking elsewhere. The U.S. Bank Altitude® Go Visa Signature® Card also offers 2X back on gas, but it comes with a whopping 4X back on dining. All with no spending caps and an annual fee of $0.

If you're willing to look beyond the gas and dining rewards structure, several cards will give you 2% back on every purchase, without any spending cap. The Wells Fargo Active Cash® Card gives you an unlimited 2% back on all purchases, while the Citi Double Cash® Card pays 1% on every dollar you spend and 1% on every dollar you pay off. Both of these cards don't charge an annual fee.

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 Chase Freedom Unlimited®, which gives you 1.5% cash back (plus between 3% and 5% back on select categories) has a $0 annual fee and also offers a welcome 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.

» MORE: Discover it® Chrome vs. Discover it® Cash Back