Discover recently phased out its well-known Discover More credit card, which included the Discover More card for students. It was replaced by the Discover it for Students credit card.
And you know what? This card is a much better deal for you. The terms and conditions are very similar, but the rewards have improved quite a bit. I’ll get to that in a moment.
One reason I’ve always liked Discover is because they offer excellent customer service. I think that’s very important when you’re young and have little experience with credit. I also like the Discover Student Center. It’s a great resource for students and their parents.
None of us are born knowing how credit cards work. It’s way too easy to start carrying a balance when you need so many things for school. So spend some time on the student center and get a good understanding of how it all works. And, of course, you can ask me questions any time at all!
Okay, let’s get to the nitty-gritty details. We’ll start with the much-improved rewards program.
Previously, with the Discover More card, you only got .25 percent cash back on the first $3,000 in purchases. But now, you get a full 1 percent on all your purchases. No thresholds to reach!
In addition, the Discover it for Students card offers 5 percent cash back on rotating categories. You can earn 5 percent Cashback Bonus on up to $1,500 in popular categories, such as gas, online shopping, restaurants, and more. Once you exceed the cap, you earn 1 percent cash back. You do have to sign up quarterly to be eligible for the bonus category rewards. But don’t worry. It’s simple to sign up.
You can redeem your points for cash back, merchandise, gift cards, charitable donations, and more. I really like the option of receiving your cash back as a direct deposit to your bank account. You can also get a statement credit, if you prefer. And you can even use your Cashback Bonus to pay for purchases on Amazon.com and iTunes.
Rewards programs can be a little complex, especially when you have different rewards for certain categories. So Discover offers a “1-on-1 Cashback Concierge” service. All I have to say is…I love this idea! The concierge will walk you through the rewards program online so you know how to really take advantage of your credit card.
And you also get access to the online shopping mall, ShopDiscover, where you can earn from 5 percent to 20 percent Cashback Bonus on purchases.
You can learn more about the rewards program right here.
Rates and fees
The Discover it for Students card has a zero percent intro rate offer on purchases. After the intro rate ends, the go-to variable APR on purchases starts as low as 12.99 percent. Hey, that’s not bad for a rewards card.
APR: You get a zero percent intro APR on purchases for six months. After that, you get a variable rate of 12.99 percent to 21.99 percent, based on your creditworthiness.
Balance transfers: You get a 10.99 percent intro APR on balance transfers for six months. After that, you get a variable rate of 12.99 percent to 21.99 percent, based on your creditworthiness. The transfer fee is 3 percent.
APR for cash advances: You get a variable 24.99 percent rate and there’s a 5 percent transaction fee. Interest on a cash advance starts ticking right away. If you’ve read any of my reviews, you know my mantra…Just say no to a cash advance!
Annual fee: None.
Penalty fees: There’s no fee for the first time you make a late payment. After that, though, you’re looking at a fee of up to $35. For a returned payment, you’ll pay a fee of up to $35, even if it’s your first offense.
Foreign transaction fees: None. Fabulous!
The bottom line
Overall, the Discover it for Students credit card is a good way for students to get a good start on their credit lives. I give it a thumbs-up rating without any hesitation. You do need fair (limited) credit to qualify for this card.
If you’re not enrolled in college, don’t bother to apply. A Discover official confirmed for me that they will check to make sure you’re currently a college student.
Another plus with the Discover it for Students card, is that there are no foreign transaction fees. So if you ever study abroad, this will save you a lot of money. You do have to keep in mind that Discover isn’t as widely accepted as Visa or MasterCard. So if you know where you’ll be going overseas, check Discover’s International Travel page to see if your Discover it student card is accepted at your destination.
Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.