Discover it Student Cash Back Review: A Rewarding Introduction to Credit
This no-annual-fee card offers the same rewards and new-cardholder bonus as Discover's regular cash-back cards; there's also a statement credit for students with good grades.
Our Take
4.9
The bottom line: 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.
Full Review
on Discover's website, or call (800) 347-0264
on Discover's website, or call (800) 347-0264
Annual Fee
$0
Regular APR
12.99% - 21.99% Variable APR
Intro APR
0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months
Recommended Credit Score
Quick FactsView rates and fees
Pros & Cons
Pros
Earn 5% Cash Back in rotating categories each quarter up to the quarterly maximum when you activate
No FICO history required.
Bonus cash back categories
No annual fee
Intro APR period on Purchases and Balance Transfers
No foreign transaction fee
Cons
Slightly less merchant acceptance for Discover in US - acceptance outside of US can be an issue
Bonus rewards categories require quarterly activation
Alternate Pick: Simple rewards with no credit
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Earn a decent rewards rate on all purchases
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.
Compare to Other Cards
Annual Fee$0 | Annual Fee$0 | Annual Fee$0 |
Regular APR18.74% 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 |
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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 12.99% - 21.99% 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.
Good Grades Rewards offer a $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
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 — and far superior to what's available on just about every other card for college students. 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 2021 | |
---|---|
Q1 (Jan. 1 – March 31) | • Grocery stores*. • CVS. • Walgreens. *The grocery stores category includes Walmart Grocery Pickup & Delivery, but not grocery purchases inside Walmart or at other superstores such as Target or wholesale clubs. |
Q2 (April 1 – June 30) | • Gas stations. • Wholesale clubs. • Select streaming services. |
Q3 (July 1 – Sept. 30) | • Restaurants. • PayPal. |
Q4 (Oct. 1 – Dec. 31) | • Amazon.com. • Target.com. • Walmart.com. |
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.
The card also offers an incentive for good grades. Every year you have a GPA of at least 3.0 (for up to five years), you're eligible for a $20 statement credit.
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 12.99% - 21.99% 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.
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
Frequently asked questions
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 – 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." You can earn statement credits for getting good grades, too.
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.
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.
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.
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.
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.
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.