The Discover it credit card has long been considered the best credit card for beginners. But is it still worth it in 2023? In this article, we will explore the features of the Discover it credit card and compare it to other competing products.
Features of the Discover it credit card
The Discover it cash back credit card offers several great features. There is no annual fee and offers 5% cash back on daily categories that change quarterly. Some of these categories include Amazon.com, grocery stores, restaurants and gas stations. Plus, you earn 1% cash back on all other purchases.
A standout feature of the Discover it card is unlimited cash back at the end of your first year. That means if you earn $150 in cash back, Discover will double it to $300. Essentially, you get 10% cash back in mobile categories and 2% on everything else for your first year.
Competitor products
Although the Discover it card is popular, it’s important to consider other options in the market. Competitors such as the American Express Blue Cash Everyday Card and the Citi Custom Cash Card offer similar benefits with no annual fee. The American Express card gives you 3% cash back on groceries, online retail purchases, and gas, while the Citi card offers 5% cash back on your highest spending category every month . There are also simpler products like the SoFi Credit Card and the Wells Fargo Active Cash Card, both of which offer flat 2% cash back on all purchases.
Advantages and disadvantages of the Discover it card
While the Discover it card has many advantages, it also has certain disadvantages to take into account. The 5% cash back is capped at $1,500 spent each quarter, meaning you can earn a maximum of $75 cash back per quarter or $300 per year in the 5% sliding categories. The 1% cash back, while unlimited, may not be as attractive. Some users also find it inconvenient to enable sliding categories through the Discover app.
However, Discover offers unparalleled customer support, available 24/7 and 100% US-based. They also offer additional features like online privacy protection, social security number monitoring, and a $0 fraud liability guarantee.
Conclusion: is the Discover it card worth it?
The Discover it credit card is still worth considering, especially for people with no credit history. It offers enticing benefits, including cash back for the first year. However, with the rise of competing products, it is important to explore other options that might better meet your specific needs and reward your preferences.
Remember to weigh the pros and cons, compare different credit cards, and choose the one that fits your financial goals. To see a complete list of my favorite beginner credit cards, click the link below. Let us know in the comments if you think the Discover it card is still worth it in 2023.
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