Discover Credit Cards Rules and Tips

Good Things About Discover:

  • 5% rotating categories– The Discover IT card offers 5% rotating categories, which is really the only reason to keep that card since it is pretty much only a 1% cashback card after your first year.
  • Double Your Cashback– If you sign up for the Discover IT or IT Miles, your cashback will be doubled at the end of your first year. This turns the IT card into a 2% cashback card, which is fairly decent. However, the real deal is having the cashback you earned from their shopping portal or the 5% categories doubled. The shopping portal offers cash back at a large number of online merchants for 5-10% cashback, which turns into 10-20% cashback off an online purchase.
  • Churnable Bonuses– Discover’s bonuses are small, but you can cancel and re-sign up as much as you want. 

Bad Things About Discover:

  • 1% Cashback– After your first year, you only earn 1% on non-category spend using the Discover IT card or 1.5% with IT Miles card. This is a really bad rate considered several no annual fee cards offer at least 2% cashback and USAA has a card with 2.5% cashback on all purchases.
  • No or Small Sign Up Bonuses– Most of the time, there is $0 sign up bonus on Discover cards except the doubling of the cash back at the end of the first year. This is why I would highly recommend prioritizing other more lucrative credit cards over Discover cards. So wait until you are way past the 5/24 Rule and signed up for the good cards at the inquiry sensitive banks such as Barclays and Bank of America. 

 

Information:

  • Cards Limit– You can only have a maximum of two Discover credit cards, which is not really an issue since they only have two good cards.
  • Application Limit– You will only be approved for one card every 24 months.
  • You can check if you are pre-approved here without a hard pull. (If you complete the application, there will be a hard pull)
  • Online Status Checker; Reconsideration number is 888-676-3695.
  • After you have your card, you can check for “Special Offers” to see if have any spending bonuses.