Should You Get A Discover Card
One pretty big card player, that flies well under the radar in the miles and points space, is Discover. While people that are getting a bit long in the tooth in miles and points are well versed with Discover, and what they offer, many people that are newer to award travel overlook them. Probably rightfully so too, since it is a cash back earning network. At some point in your journey you realize that miles and points don't cover everything though, and that having some cash to offset trip costs is mighty nice too. That is how people usually find cashback earning cards eventually after all. It is also why I want to answer the question, should you get a Discover card? I also want to discuss why now may just be the time to do it.
What Cards Do Discover Offer
Discover cards are pretty limited in their offerings, unlike a Chase or American Express with oodles of cards to choose from. They offer quite a few student cards, and are a good place to start on your credit journey, but they have two main cards experienced people focus on:
- Discover it Cash Back Credit Card*
- Earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum ($1,500 in spend) when you activate.
- Plus, earn 1% cash back on all other purchases.
- No annual fee
- Discover it Miles Credit Card*
- Earn 1.5x “miles” on every purchase
- No annual fee
*These will both count against your Chase 5/24 count, and should only be considered once you go over.
Funny enough, the Discover it Cash Back works like a Freedom Flex with 5% cash back rotating quarterly categories. The Discover it Miles Credit Card works like the Freedom Unlimited with 1.5% back on everything. The downside is that both Discover cards only earn cash back, and you can not unlock them as transferrable points like you can with Ultimate Rewards. Even though the miles card name makes it sound like you would need to redeem the points towards travel charges, it works just like a normal cash back earning card.
I think most people will be better off grabbing the Discover it Cash Back credit card because of the rotating 5% categories. If you can maximize the $1,500 in spend each quarter that is $300 in cash back per year. Not too bad on $6,000 total in spend. It gets better within the first year though.
The Unique Welcome Offer
One reason you should consider getting a Discover card (when over 5/24) is because of their unique welcome offer. They will give you a $100 bonus after your first purchase, at least when you sign up via a referral (which I will share below). They also double ALL cashback for the first year, which is where the real value lies. There is no limit on the amount they will double. Pretty wild, right?
That doubling also includes the 5% rotating categories, so 10% back the first year! I should note that the $100 initial sign up bonus is not doubled. Once again, if you maximize the the rotating categories in the first year that would now be $600 richer on $6,000 in spend. That is pretty tough to beat. If you instead have a ton of non bonus spend, then the Discover it Miles card could make sense for you. That card would have you essentially earn 3% back on everything for an entire year. Most will be better off with the easier $600 win off of $6,000 in spend though with the Discover it Cash Back though.
It Gets Even Better With Proper Timing
We can do better then the $600 if we time the application though. If you apply during the middle of a quarter, like it is now, then you actually get a shot at 5 quarters in the first year. That is because you will have the opportunity to split one quarter into two essentially. Let's say you applied today, on 2/23/25 for example:
- You have until 3/31/25 to finish the first quarter $1,500 in spend
- You would get the entire second quarter to spend $1,500 in the new category ending 6/20/25
- Same thing for the third quarter ending 9/30/25
- And again you get the entire quarter to spend $1,500 for the 4th quarter ending 12/31/25
- You would now get a chunk of the first quarter of 2026 to spend $1,500 – until your year is up on 2/23/26
If you were able to maximize all five available quarters that would be $750 in cash back on $7,500 in spend. It also allows you to fall short in one or two quarters, that maybe don't line up great for you, and still get around that $600 initial maximum.
What Is The Push To Apply Now Though?
Why should you consider signing up for a Discover card now though (if over 5/24)? Because Capital One is supposed to finalize a deal for Discover sometime over the next few months. I doubt much will change early on, and the companies will be run separately for a while, but what changes down the road? Discover is a pretty easy approval right now, and Capital One is anything but easy. Could Capital One change the underwriting process and make Discover a more difficult get? Could they combine the card families and have caps on how many of the cards you can get across both portfolios? No one knows at this point, but it could make sense to hedge the potential downside with an approval now.
Speaking Of Application Rules
The final thing we should discuss is Discover's application rules. They allow you to carry two of their credit cards at any time. If you try for a third you will be denied. They do not care if the two cards are the same (as long as both are not student cards). My wife and I each carry two Discover it Cash Back credit cards for the long term 5% rotating category earning. One can never have too much 5x / 5% earning after all!
You do need to wait twelve months to grab the second card after your first ever Discover card. It is also important to unfreeze all of your credit reports before applying.
My Discover Credit Card Referral
If you think signing up for a Discover card makes sense for you then here is my referral (for the 5% card). This will also get you the extra $100 bonus (as well as give me one too – so thank you if you use it). The 5% back earning will come in handy for years down the line too. Just remember that this is an over Chase 5/24 application.
My Personal Referral
Should You Get A Discover Card: ToP Thoughts
Hopefully you now have a better understanding on why maybe you should consider getting a Discover card. If you have been around miles and points long enough then you could be looking for other options, and starting to get into cash back some. With the upcoming Capital One purchase of Discover things could get a bit tougher on the approvals end in the near future. This could also be a good option for people starting out as well, since many start their credit card portfolio with Discover. Getting to earn a little bit of rewards with your first credit card is a cherry on top.
If you have any questions about Discover, or properly timing the application, then reach out over in the ToP Facebook Group.
