Discover it Student Cash Back Review: A Rewarding Introduction to Credit
The Bottom Line
4.6
This is a great card for a student learning to handle credit. On top of the rewards, you get a free FICO score, low fees and forgiveness for your first late payment.
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! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Intro APR
0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months
Ongoing APR
APR: 17.49%-26.49% Variable APR *Rates as of December 12, 2024.
Cash Advance APR: 29.49%, Variable *Rates as of December 12, 2024.
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! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- 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.
- No credit score required to apply.
- 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.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies. Rates as of December 12, 2024.
- Terms and conditions apply.
Pros and Cons
Pros
No annual fee
Qualify with limited/bad credit
Bonus categories
Intro APR period
Reports to the three major credit bureaus
Cons
Complicated rewards
Detailed Review
The $0-annual-fee Discover it® Student Cash Back offers generous cash-back rewards, on par with some non-student options. And even with no credit history at all, you may be able to qualify.
Discover it® Student Cash Back: Basics
Card type: College student.
Annual fee: $0.
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! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards: You’ll earn 5% cash back in categories that change every three months, on up to $1,500 in spending per quarter when you activate and 1% back on everything else.
APR: 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months, and then the ongoing APR of 17.49%-26.49% Variable APR. *Rates as of December 12, 2024.
Foreign transaction fee: None.
Other perks:
Payments are reported to the three major credit bureaus (TransUnion, Equifax and Experian), which helps you build credit.
No late fee on your first late payment.
Access to your Credit Scorecard lets you track your progress.
Free Social Security number alerts let you know if your information is found on the dark web.
Compare to Other Cards
Benefits and Perks
Standout rewards for a starter card
The rewards program on the Discover it® Student Cash Back is the same as on Discover's regular cash-back credit cards. For students without a credit history, the rewards are far superior to just about every other option. For an annual fee of $0, you get 5% cash back in categories that change every three months, on up to $1,500 in spending per quarter and 1% back on everything else. The 5% categories, which you must opt in to every quarter, tend to be everyday expenses. The current categories include:
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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Student-friendly ways to earn bonuses
With the Discover it® Student Cash Back, you aren't under any pressure to hit a high spending requirement to lock down a sign-up bonus. Instead, it doubles all the cash back you earned in your first year. For students who don't spend much, this flexibility is a plus.
A 0% intro APR period
Introductory 0% APR offers are a rare find on student credit cards. This card has introductory APRs of 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months, and then the ongoing APR of 17.49%-26.49% Variable APR. *Rates as of December 12, 2024. You'll get a smooth interest-free transition as you get started with credit and maybe a long enough break to help you pay off some pricey textbooks. Keep track of when the promotional period ends, though; you don't want to be paying the high ongoing APR afterward.
Drawbacks and Considerations
Rotating bonus categories
The Discover it® Student Cash Back offers rich ongoing rewards, but its rotating bonus categories can be a hassle to manage and track. If you want a card with bonus categories that stay put, consider the Capital One Savor Student Cash Rewards Credit Card. It offers 3% cash back on dining, groceries, entertainment and popular streaming services.
Limited acceptance abroad
Compared with Mastercard and Visa, Discover's acceptance abroad is more limited. So even though the Discover it® Student Cash Back doesn't charge foreign transaction fees, you don't want to set off for a semester abroad with only this card in your pocket. The Capital One Savor Student Cash Rewards Credit Card is more widely accepted and also skips foreign transaction fees.
See NerdWallet's roundup of the best credit cards to have for even more options.
How To Decide If It's Right For You
The ideal starter credit card should help you build credit at a minimal cost. The Discover it® Student Cash Back does that and more with its annual fee of $0 and rich rewards. For students who can benefit from its rotating bonus categories, it's a good fit.
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 do you earn rewards with the Discover it Student Cash Back?
The card pays 5% cash back in rotating quarterly categories on up to $1,500 spent each quarter (requires activation) and 1% cash back on all other purchases. (See current and past bonus categories here.) New cardholders also get a bonus offer that the issuer describes this way: "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! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match."
Does the Discover it Student Cash Back have a rewards limit?
Although the amount of bonus cash back you can earn per quarter is limited, there's no limit to the total cash back you can earn. Even after you hit the quarterly cap on bonus spending, you still earn 1% in those categories.
Do you have to be a student to get the Discover it Student Cash Back?
You must be a student enrolled at a two- or four-year college or university to be eligible for the Discover it® Student Cash Back.
Is it hard to get the Discover it Student Cash Back card?
The Discover it® Student Cash Back doesn’t require a FICO credit history, making it easier for beginners to credit to qualify. You’ll still have to meet other requirements, including being a student and having sufficient income, so approval is never guaranteed. Credit cards for those under 21 years old tend to have strict requirements to qualify.
Which Discover student card is best?
Discover offers two student cards; the right one for you depends on your spending and account management habits. (See a side-by-side comparison.) The Discover it® Student Chrome offers decent ongoing rewards and is a good fit if you value the simplicity of a low-maintenance card. If you’re willing to put in some effort to activate bonus categories each quarter and keep them top of mind when you spend, the Discover it® Student Cash Back may offer more value.
What happens to the Discover it Student Cash Back card when I graduate?
Once you notify Discover of your graduation, the issuer removes the “student” designation from your card account. You get to keep the same card and the rewards that come with it, but post-graduation you’ll be considered a Discover it® Cash Back cardholder. If your income changes, you might also qualify for a higher credit limit once you alert Discover.
Can you get the Discover it Student Cash Back with no credit history?
Yes, you can qualify with no credit. The Discover it® Student Cash Back does not require a FICO credit history, although you have to meet other eligibility standards, including having sufficient income.
