Discover it Balance Transfer Review: A Debt Zapper With Rewards: The Discover it® Balance Transfer card is a financial product designed for individuals who are interested in transferring balances from other credit cards to take advantage of lower interest rates. Here’s a review based on the information available as of my last update in April 2023:
Discover it Balance Transfer Review
- 0% Intro APR: The card typically offers a 0% introductory APR for a specified period on balance transfers, which can help cardholders save money on interest.
- Cashback Rewards: Cardholders can earn cashback on purchases, which is a significant benefit for a balance transfer card.
- No Annual Fee: There is no annual fee, which is excellent for those who want to minimize card-related expenses.
- Introductory Offer on Purchases: The card may also offer a 0% APR on purchases for a certain period after account opening.
- Discover’s Cashback Match: At the end of the first year, Discover automatically matches all the cash back you’ve earned.
- Flexible Redemption Options: Cashback can be redeemed at any time and for any amount.
- Balance Transfer Fee: There is typically a balance transfer fee, which is a percentage of the amount transferred or a minimum fee, whichever is greater.
- Requires Good to Excellent Credit: The card is generally targeted at individuals with good to excellent credit scores.
- Limited Acceptance Internationally: Discover cards are not as widely accepted outside the United States as Visa or Mastercard.
- End of Introductory Period: Once the introductory 0% APR period ends, the standard APR applies, which can be relatively high.
- Rewards Structure Complexity: The cashback rewards structure might be complex for some, as it may involve activating bonus categories each quarter.
Who It’s Best For:
- People who have existing credit card debt and are paying high-interest rates.
- Those who plan to make a large purchase and pay it off during the introductory 0% APR period.
- Cardholders who want to earn cashback rewards while they pay down their balance.
Who Should Avoid It:
- Individuals who can’t transfer their balance within the introductory period may end up paying a higher fee or a higher interest rate.
- Those who are seeking wider international acceptance from their credit card.
- People who don’t want to manage rotating bonus categories for cashback rewards.
The Discover it® Balance Transfer card is a solid option for those looking to transfer high-interest balances and who can also benefit from cashback rewards. The lack of an annual fee and the 0% intro APR offer are enticing features. However, it’s important to pay attention to the balance transfer fee and the length of the introductory period to ensure it aligns with your financial plan.
Before applying for any financial product, it’s essential to read the most current terms and conditions, as credit card offers can change. Additionally, consider how the card’s features align with your personal financial situation and goals.
Discover it Balance Transfer FAQs
Certainly! Here are some frequently asked questions (FAQs) about the Discover it® Balance Transfer credit card:
What is the introductory APR for balance transfers on the Discover it® Balance Transfer card?
The Discover it® Balance Transfer card typically offers a 0% introductory APR on balance transfers for a certain period from the date of the first transfer, provided the transfer is completed by a specified date.
Is there an introductory APR for new purchases?
Yes, there is often a 0% introductory APR for new purchases for a specified period from the date of account opening.
What will be the APR after the introductory period ends?
After the introductory APR period ends, the standard variable purchase APR will apply to any remaining balance. This APR will vary based on the market based on the Prime Rate.
Is there a balance transfer fee?
Yes, there is usually a balance transfer fee, which is a percentage of the amount of each transfer or a minimum amount, whichever is greater.
How long do I have to transfer a balance to take advantage of the introductory APR?
You typically have a limited time from account opening to transfer a balance and qualify for the introductory APR. The exact timeframe can be found in the cardmember agreement.
Can I earn cash back on balance transfers?
No, cash back is not earned on balance transfers. You earn cash back on new purchases.
Are there any annual fees?
No, the Discover it® Balance Transfer card does not have an annual fee.
Can I transfer balances from other Discover cards?
No, you cannot transfer balances from other Discover cards or loans.
What kind of credit score do I need to qualify for the Discover it® Balance Transfer card?
You generally need a good to excellent credit score to qualify for this card.
Is the Discover it® Balance Transfer card good for international travel?
Discover cards are not as widely accepted internationally as Visa or Mastercard. However, Discover does not charge foreign transaction fees, so it can still be a good option if you’re traveling to a place where Discover is accepted.
Can I choose the categories for the cash back program?
Discover has rotating categories that change each quarter. You need to activate these bonus categories to earn the higher cash back rate.
How does the Cashback Match work?
At the end of your first year as a cardholder, Discover will automatically match all the cash back you’ve earned during that year. There is no limit to how much is matched.
For the most current information and any additional questions you might have, it’s best to check Discover’s official website or contact their customer service. Credit card terms and promotions can change, and it’s important to have the latest information when making financial decisions.