Inside this article
Introduction
Building a stellar credit history while still in college can set you up for success later in life, influencing things like the rates you’ll be offered on auto loans and mortgages, whether you’re approved when applying to rent an apartment, and even certain job applications. The Discover it Student Cash Back is a great choice for a credit card that can aid you on this journey.
Most important when considering a first card to build credit, Discover reports your spending and payment activity to all three major consumer credit bureaus—Equifax, Experian, and TransUnion. Each of these bureaus maintains a credit report on consumers. Some credit cards may report to just one or two of the credit bureaus, making them a less-than-ideal choice.
Also important, the Discover it Student Cash Back charges no annual fee. You may decide later in life it’s worth paying an annual fee for a credit card with premium rewards and benefits, but for the time being, you’re better off with one that rewards you but doesn’t charge you to carry it.
Let’s talk about those rewards: Cardholders earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. The 5% rate is on the first $1,500 of eligible spending each quarter.
And, Discover will automatically match all the cash back earned in your first year with the card.
It does take a little effort to activate a new category every quarter, but Discover typically sends out reminders when the time to do so rolls around. Overall, this student card has a lot to offer.
Discover it Student Cash Back basics
Annual fee: $0
Welcome bonus: Discover will automatically match the cash back you earn in your first year with the card (the first 12 billing cycles or 365 days, whichever is longer).
Rewards: Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum of $1,500 spent (when you activate). Plus, earn unlimited 1% cash back on all other purchases – automatically.
Intro APR: 0% for six months on purchases. 10.99% for six months on balance transfers from the date of the first transfer.
Regular APR: 16.74% - 25.74% variable
Balance transfer fee: 3% intro balance transfer fee, up to 5% on future transfers.
Other perks and benefits: Free access to your FICO Score, Social Security number Dark Web alerts (when you enroll), and Discover’s Freeze feature.
Reports to all three credit bureaus: Yes
Pre-approval tool offered by issuer: Yes
Recommended credit score: New to credit
Discover it Student Cash Back other details
Discover it Student Cash Back rewards
The Discover it Student Cash Back card earns 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations, up to the quarterly maximum of $1,500 spent (when you activate). Plus, earn unlimited 1% cash back on all other purchases – automatically. If you were to max out the $1,500 spending cap each quarter, that would be $300 in cash back per year at the 5% cash-back rate.
Plus, thanks to Discover’s cash-back match welcome bonus, earnings in the first year are doubled. For instance, maxing out the quarterly categories would net $600 in cash back.
You can redeem your cash back for any amount at any time as a deposit to a bank account or a statement credit to your card, or for gift cards from a variety of retailers starting at just $5. Additional options include donations to charity and using rewards at Amazon and PayPal.
Rewards won’t expire. If your account is closed or you haven’t used your credit card in 18 months, Discover will automatically credit your account with any accrued rewards balance.
Discover it Student Cash Back APR details
The Discover it Student Cash Back offers intro APRs of 0% for six months on purchases and 10.99% on balance transfers. After, a 16.74% - 25.74% variable APR applies.
There’s a 3% intro balance transfer fee, with a fee of up to 5% on future transfers.
Discover it Student Cash Back benefits and perks
Free FICO Score: FICO is the scoring model most commonly used when lenders are evaluating whether or not to extend credit. By tracking your FICO Score through your Discover account, you can make sure that you’re building a strong credit profile.
SSN alerts: When you activate this feature for free, Discover will alert you if your SSN is found on any of thousands of sites on the Dark Web.
Freeze it: If you happen to misplace your card, you can freeze it online or in the mobile app to prevent new purchases, balance transfers, and cash advances.
Discover it Student Cash Back drawbacks
May not be widely accepted: Discover is now accepted at most merchants in the United States that take credit cards, but that’s not necessarily the case outside the country. Visa and Mastercard credit cards are often still better for travel abroad.
It’s possible to find a longer intro APR offer: While the Discover it Student Cash Back has a six-month intro period, that’s not the best deal in town. For example, the Bank of America® Travel Rewards Credit Card for Students has an 18-month intro period.
Categories require activation: If you don’t remember to activate each new quarterly category, all purchases will earn a mere 1% cash back rather than 5% back.
Alternate student credit cards
Discover it Student Cash Back vs. Discover it Student Chrome Credit Card
The Discover it Student Chrome charges no annual fee and earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter, 1% back on other spending. Plus, Discover will match the cash back you earn in your first year with the card.
There are also intro APR periods: 0% for six months on purchases and 10.99% for six months on balance transfers (from the date of the first transfer). After, a 16.74% - 25.74% variable APR applies. Transfers are subject to an intro 3% balance transfer fee, up to 5% in the future.
The Discover it Student Cash Back offers higher earning potential than the Discover it Student Chrome. However, students who spend frequently on gas and dining—and don’t want to deal with activating rotating categories—may prefer the simplicity offered by the latter card.
Discover it Student Cash Back vs. Bank of America Travel Rewards Credit Card for Students
The Bank of America Travel Rewards Credit Card for Students keeps things simple with 1.5 points per dollar spent. Points can be redeemed for a value of 1 cent each as statement credits to offset eligible travel and dining purchases. There’s also a welcome bonus of 25,000 points after making at least $1,000 in purchases within 90 days of account opening.
The card charges no annual fee and no foreign transaction fee—great for studying abroad.
And, as a Visa, this card will be widely accepted in the U.S. and outside the country too.
Finally, there’s a long intro APR period: 0% for 18 months on purchases and on balance transfers made within 60 days of account opening. After, a 17.74% - 27.74% variable APR applies. A 3% balance transfer fee ($10 minimum) applies to all balance transfers.
Discover it Student Cash Back vs. Chase Freedom Student Credit Card
The Chase Freedom Student charges no annual fee and earns 1% cash back on all purchases. While the rewards rate is subpar, the card could be a good choice for students who are thinking ahead and want to build a relationship with Chase early—after all, the bank issues some of the most popular rewards credit cards on the market, such as the Chase Sapphire Preferred.
There’s a welcome bonus for new Freedom Student cardholders: $50 after making a first purchase within three months of account opening. Plus, cardholders can earn a Good Standing Reward worth $20 after each account anniversary for up to five years. Earning this reward is simple, as Chase defines “good standing” to mean your account is open and not in default.
The card has a 18.74% variable APR and charges a 3% foreign transaction fee.
Should you get the Discover it Student Cash Back?
The Discover it Student Cash Back is an excellent choice if you’re enrolled in a two- or four-year institution, want to start building credit, and are willing to activate rotating cash-back categories.
However, students planning to travel abroad may wish to consider a Visa or Mastercard credit card, since cards on those networks are more widely accepted in some countries than Discover.
Discover it Student Cash Back summary
| Annual fee: | $0 |
| Rewards: | Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations, up to the quarterly maximum of $1,500 spent (when you activate). Plus, earn unlimited 1% cash back on all other purchases – automatically. |
| Intro APRs: | 0% for six months on purchases and 10.99% for six months on balance transfers. |
| Regular APR: | 16.74% - 25.74% variable |
| Balance transfer fee: | 3% intro balance transfer fee, up to 5% on future transfers. |
| Foreign transaction fee: | None |
| Benefits: | Free FICO Score, SSN alerts when you activate and the ability to freeze your card online in case you’ve misplaced it. |