Discover Rewards Program Guide: Everything You Need to Know
Discover Rewards program offers a range of credit cards with high cash-back earnings in popular spending categories. While not as lucrative as its rivals, Discover Rewards provides no-annual-fee cards, simple redemptions, cashback match, and generous earn rates on everyday purchases. Although it lacks travel partners for miles transfers and all rewards are valued at one cent each, the program still benefits many consumers. Discover credit cardholders also enjoy no annual or foreign transaction fees on purchases abroad. With flexibility and transparency, Discover stands out in the rewards program landscape. Read on to learn more about the Discover Rewards program and how you can maximize its benefits.
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Pros and cons of Discover rewards
There are many pros and cons to the Discover rewards program. While the program offers high rewards potential on everyday spending, the rewards are essentially cash back and not as valuable as airline miles or transferable rewards. Discover cards also lack welcome bonuses, which are lucrative on other travel rewards cards. However, Discover rewards can still offer a lot of value. Here’s a look at the main pros and cons to consider:
Pros
- High rewards potential on everyday spending: Discover cards offer generous category bonuses and high earn rates on all spending.
- No annual fee: All Discover cards lack annual fees, making it a cost-effective option for those who don’t want to pay for the privilege of earning rewards.
- Double rewards during the first year of card membership: At the end of your first year as a cardholder, Discover will match all the rewards you’ve earned.
- No foreign transaction fees: All Discover cards waive foreign transaction fees on purchases abroad.
Cons
- Miles are equivalent to cash-back rewards: Discover rewards cards may earn miles but are not transferable to airlines. Instead, they’re worth just one cent each towards statement credits.
- No welcome bonuses: Discover credit cards currently don’t offer welcome bonuses for new cardholders.
- Limited travel benefits: Discover cards don’t offer extensive travel benefits, such as travel insurance and airport lounge access.
- Lower acceptance abroad: Discover cards are generally less accepted outside the US, making them less suitable for international travel.
How to earn Discover rewards
You can earn Discover rewards by using your Discover credit card for everyday spending, taking advantage of category bonuses, and maximizing the first-year rewards match. For example, the Discover it Miles card earns 1.5 miles per dollar spent. Meanwhile, the Discover it Cash Back earns 5% cashback rewards on rotating category bonuses, typically on a quarterly basis. To maximize your rewards, keep an eye on these categories and use your Discover card for eligible purchases during those periods. Here’s a list of all the ways to earn Discover rewards:
Using Discover credit card for everyday spending
By using your Discover credit card for your everyday purchases, you can earn rewards on every dollar spent. Whether it’s groceries, gas, dining out, or online shopping, every transaction can contribute to your rewards balance.
Taking advantage of category bonuses
Discover offers category bonuses that allow you to earn higher cash back or miles on specific types of purchases. These bonuses can change on a quarterly basis, so it’s important to stay updated with the latest categories to maximize your rewards potential.
Maximizing the first-year rewards match
One of the unique features of Discover’s rewards program is the first-year rewards match. Discover will match all the rewards you earn during your first year as a cardholder, effectively doubling your cash back or miles. This is a great opportunity to earn a significant amount of rewards without any limitations.
Discover’s 5% cash back rewards calendar
The Discover 5% cash back calendar is a distinctive feature of Discover’s credit card rewards program. It’s designed to help Discover It cardholders earn more cashback rewards on their everyday spending. The calendar typically includes rotating categories that are eligible for 5% cashback rewards every quarter. These categories often encompass common expenses like groceries, gas, dining, online shopping, or home improvement stores.
Cardholders can earn up to 5% cashback on purchases made within these specific categories during their respective quarters, up to $75 per quarter. It’s a great way to maximize rewards, as cardholders can adapt their spending to align with the categories in any given quarter. To make the most of the 5% calendar, cardholders should regularly check Discover’s website or app for the latest calendar updates so they can plan their spending accordingly and take full advantage of the available rewards.
Discover Cashback Match bonus
The Discover Cashback Match bonus is a valuable feature of the Discover rewards program. With this bonus, all rewards earned during your first year as a Discover cardholder will be matched, effectively doubling the amount of cash back you earn. This means that if you earn $100 in cash-back rewards, Discover will match it and give you an additional $100 at the end of the cardmember year. There is no limit to how much cash back you can earn during this promotional period.
It’s a great way to maximize your rewards and get more value from your purchases. Whether you’re earning cash back on everyday expenses or big-ticket items, the cashback match bonus can help you make the most of your rewards.
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Refer a friend
Discover is one of the few banks that allow customers to earn credit card rewards by referring their friends. You can access your unique referral link by logging into your Discover account and navigating to the referral page. From there, you can copy your link and send it to friends and family. If they’re approved and make a purchase within three months, you’ll both receive a cash reward. At the moment, Discover is offering up to $100 per successful referral.
Discover Rewards credit cards
Discover offers a variety of rewards credit cards, including cash back, gas and restaurant, travel, student, secured, and NHL® branded credit cards. There’s something for virtually every type of consumer. It’s worth noting that all of these cards are essentially cash-back cards; even the mileage rewards are cash-back equivalent. Here’s a closer look at each card:
Discover it Miles
The Discover it Miles card earns unlimited 1.5 miles per dollar on everything, allowing you to accumulate points quickly for your dream vacation. Unlike many travel credit cards, this one doesn’t charge any annual fee or foreign transaction fees. This means extra savings when making purchases overseas! Your hard-earned Miles won’t expire and can be used at any point in time for travel purchases, providing flexibility unmatched by others. While none of these cards offer welcome bonuses, they also carry no annual fees.
Discover it Cash Back
The Discover it Cash Back credit card offers unlimited 1% cash back on all purchases and 5% cash back in rotating bonus categories each quarter (up to $75). With no annual fee, the Discover it Cash Back Credit Card offers an unlimited dollar-for-dollar match of all the cash back earned at the end of the first year.
NHL Discover It Credit Card
The NHL Discover It Credit Card is the same as the Discover Cash Back Card, except with your favorite National Hockey League team’s logo on it. The card earns unlimited 1% cash back on all purchases while enjoying a whopping 5% in certain categories that change each quarter, enhancing the overall value of this unique credit card.
The lack of an annual fee boosts its appeal even further for those who are passionate about the NHL and want to express their fandom every time they make a payment or transaction.
Being part of the Discover Rewards Program, you also have access to redeem your rewards through direct deposit, statement credits, or gift cards from partner brands.
Gas & Restaurants Credit Card
The Discover it Chrome Gas and Restaurants Credit Card make dining out and fueling up more rewarding. Both gas station purchases and restaurant bills earn a generous 2% cash back until you reach the $1,000 limit on combined spending for each quarter.
With no annual fees to worry about, your rewards won’t be offset by extra costs.
Whether you’re commuting daily or enjoying a night out, this card turns routine expenses into useful cashback bonuses. Rewards never expire and can be redeemed at any time in any amount.
Student Chrome Credit Card
The Discover it Student Chrome credit card is specifically designed for students, offering them a great way to earn cash back on their purchases. With this card, students can enjoy 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter.
Plus, like all Discover credit cards, there’s no annual fee to worry about. It’s a fantastic option for students who want to start building their credit history while earning rewards along the way.
Don’t miss out on the opportunity to make the most of your spending with the Discover it Student Chrome credit card.
Discover it Student Cash Back
The Discover it Student Cash Back Credit Card is designed for students looking to earn cash back on their purchases. The card has no annual fee and earns 5% cash back on up to $1,500 spent in rotating bonus categories each quarter. All other purchases earn 1% cash back.
Plus, for the first year of owning this credit card, Discover will match all the cash back earned dollar-for-dollar. This makes the Discover it® Student Cash Back Credit Card a smart choice for students who want to make their money go further while building good credit habits.
Discover it Secured Credit Card
The Discover it Secured Credit Card is designed to help users build or rebuild their credit. To open an account, customers must provide a minimum security deposit of $200, with the option to deposit up to $2,500.
Users can improve their credit scores over time by using this card responsibly and making timely payments. One major advantage of Discover’s secured credit card is that it has no annual fee, which makes it more affordable for those looking to establish or rebuild their credit history.
Additionally, Discover cardholders have the flexibility to redeem their rewards for cash at any time and in any amount they choose.
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