Discover it Student Cash Back Review: A Rewarding Introduction to Credit
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Our Take
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.
on Discover's website, or call 800-347-0264
Quick Facts
Pros & 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
This $0-annual-fee card earns up to 1.5% cash back on every purchase with on-time payments. It starts off at 1% cash back on all purchases, and increases to 1.25% after six on-time payments, then 1.5% after 12 on-time payments. It's possible to qualify for this card with no credit history, and no security deposit is required. Petal's cards are issued by WebBank.
Compare to Other Cards
Annual fee$0 | Annual fee$0 | Annual fee$0 |
Regular APR20.99% Variable | ||
Intro APR0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months | Intro APR0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months | Intro APRN/A |
Recommended Credit Score |
Recommended Credit Score |
Recommended Credit Score |
Full Review
The Discover it® Student Cash Back is a rare beast among student cards, offering generous cash-back rewards with an annual fee of $0. 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 – 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 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 14.49%-23.49% Variable APR.
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.
Discover's Freeze It feature allows you to block new purchases, balance transfers and cash advances remotely from the issuer's online portal or app, in case your card goes missing.
Free overnight shipping helps you quickly replace your card if it's lost, damaged or stolen.
Why you might want the Discover it® Student Cash Back
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 2022 | |
|---|---|
Q1 (Jan. 1–March 31) | • Grocery stores*. • Fitness clubs and gym memberships. |
Q2 (April 1–June 30) | • Gas stations. • Target. |
Q3 (July 1–Sept. 30) | • Restaurants. • PayPal. |
Q4 (Oct. 1–Dec. 31) | • Amazon.com. • Digital wallets. |
*The grocery stores category does not include grocery purchases at Walmart or Target or at other superstores or wholesale clubs. | |
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 14.49%-23.49% Variable APR. 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.
Why you might want a different credit card
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 Citi Rewards+℠ Student Card. It offers 2 ThankYou points per dollar spent at supermarkets and gas stations (for the first $6,000 spent per year) and 1 point per $1 on all other purchases. You'll also get to round your purchases up to the nearest 10 points and earn 10% of your points back (on up to the first 100,000 ThankYou points redeemed per year).
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 Journey Student Rewards from Capital One, a Visa, is more widely accepted and also skips foreign transaction fees. It offers a decent 1% cash back rate on all spending, plus an extra 0.25% for paying on time.
Not an option for international students
You can qualify for the Discover it® Student Cash Back without a credit history, but Discover confirms that a Social Security number is necessary for approval.
If you lack a Social Security number and a U.S. credit history, the Deserve® EDU Mastercard for Students can be an excellent starter card. The issuer uses its own underwriting process to evaluate applications based on alternative factors such as your bank account and contact information. The card earns 1% cash back on all purchases and it even offers some perks, too. It has a $0 annual fee. Terms apply.
See NerdWallet's roundup of the best credit cards to have for even more options.
Is the Discover it® Student Cash Back 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.
on Discover's website, or call 800-347-0264
