Are you chipping away at credit card debt at a high-interest rate? If so, you should consider moving your balance to a lower-interest credit card like the Discover it® Balance Transfer card.
Unlike other balance transfer credit cards, the Discover it® Balance Transfer credit card offers rewards beyond an introductory APR. You can earn cash back on rotating categories, earn an unlimited cashback match at the end of your first year, and enjoy no annual fee.
This is all in addition to the highly competitive 0% balance transfer APR offer for the first 15 months.
Discover It® Balance Transfer Credit Card Overview
The Discover it® Balance Transfer card is designed to help cardholders manage their credit card debt.
You can move existing balances from other credit cards to the Discover card for a fee. This can potentially save you money on interest payments and help you pay down your debt faster.
The rewards and benefits cardholders receive set the Discover it® Balance Transfer card apart from other balance transfer cards.
With this credit card, you will earn 1% cash back on all purchases and 5% cash back on rotating categories. While some may find tracking ongoing rewards cumbersome, the 5% rate is competitive compared to other reward rates.
The Discover it® Balance Transfer card also has the signature security and fraud protection that comes with Discover cards.
Discover is known for its US-based customer service team and robust security features. Their $0 fraud liability guarantee means you won’t lose a cent for fraudulent transactions. This offers peace of mind if you’re concerned about fraud or identity theft.
Keep Reading: See all Discover Credit Card Reviews
Discover It® Balance Transfer Main Benefits & Perks
The Discover it® Balance Transfer card is one of the best balance transfer credit cards available thanks to perks that go beyond intro APR rates.
Here are some of the perks and benefits that make the Discover it® Balance Transfer credit card one of the best cards for new cardholders:
- Generous Intro APR of 0%: Many balance transfer credit cards offer 0% introductory APR. But the Discover it® Balance Transfer card offers one of the longest introductory APR periods. You will enjoy 0% APR on new purchases for six months and 0% APR on introductory balance transfers for an 18-month intro APR period. After the introductory period, an ongoing variable APR of 17.24%-28.24% will apply based on creditworthiness.
- Unlimited Cashback Match: Discover offers an incredible intro offer for new cardholders. Discover will match all the cash back that you’ve earned at the end of your first year after account opening. There is no maximum reward or minimum spending threshold. Plus, you don’t need to enroll to earn this match. Discover will automatically apply this match to your cashback balance at the end of your first year.
- Cashback for Rotating Categories: Discover offers 5% cashback when you make new purchases on quarterly bonus categories. These reward categories can range from retailers like Amazon to gas stations to grocery stores. You may also earn additional cashback rewards by shopping using your digital wallet instead of your physical credit card. These offers require activation, so be sure to check your Discover mobile app to make sure you’re taking advantage of cashback opportunities.
- Cashback for All Purchases: For every purchase you make with your Discover it® Balance Transfer card, you will receive 1% cash back automatically. You don’t need to activate anything on Discover’s website or mobile app to receive this perk.
- Low Threshold to Redeem Cashback: Most credit card issuers require you to reach a certain threshold on your cashback balance before you can redeem it. Discover has an uncommonly low threshold for redeeming cashback. You can redeem every whole dollar that you earn in cashback.
- Complimentary Data Protection: Discover offers a compelling free feature that appeals to those who want to reduce the amount of their information floating around online. They will remove you from select people-search sites that sell your data by reducing the exposure of your personal information online. This free feature can be activated on the Discover mobile app.
- No Annual Fee: When paying off debt, cutting costs where you can is essential. The Discover it® Balance Transfer card does not charge an annual fee, which is unique among rewards credit cards.
Who Is The Discover It® Balance Transfer Card Best For?
The Discover it® Balance Transfer card is a versatile financial tool that appeals to many different types of consumers. This card offers a wide range of benefits that cater to a broad spectrum of financial profiles.
Whether you’re looking to consolidate debt, save through cashback, or enjoy Discover’s card details and features, the Discover it® Balance Transfer card is a great tool to add to your wallet.
Debt Consolidators
People with multiple high-interest credit card balances will be the ideal user for the Discover it® Balance Transfer card.
The Discover it® Balance Transfer card offers a generous 18-month intro balance transfer APR window. This extended interest-free period lets cardholders work on relieving their debt without the looming threat of more accumulated interest.
For those who want to streamline their financial obligations and focus on a single consolidated payment, the Discover it® Balance Transfer card is an excellent solution.
Reward Maximizers
The Discover it® Balance Transfer card is great for savvy spenders who like to maximize their cashback, travel rewards, or any other perks offered by rewards credit cards.
With 5% cash back on rotating categories and 1% cash back on all purchases, the Discover it® Balance Transfer card can offer significant rewards. Plus, the intro offer of cashback match at the end of the first year can translate to a chunk of savings if you can track the quarterly categories.
First-Time Discover Users
The Discover it® Balance Transfer card is an ideal entry point for people who haven’t dabbled in Discover’s range of credit cards.
Beyond specific card details, Discover offers perks like the FICO score feature, the $0 fraud liability guarantee, and top-tier security. This card offers a blend of features and perks that make it perfect for Discover newbies.
Pros And Cons
Pros
- Intro Offer: Unlimited Cashback Match: The Discover it® Balance Transfer card offers one of the most compelling cashback offers of any rewards card on the market. At the end of your first year, Discover will match any cashback you’ve earned so far. There’s no minimum amount you have to earn or maximum amount they’ll pay out. You can turn $200 into $400.
- 0% Intro APR for 15 Months: You can take advantage of an extended interest-free period with the Discover it® Balance Transfer card. For six months, you’ll enjoy 0% purchase APR. You’ll also enjoy 15 months without additional interest on your transferred balance.
- Cash Back on Every Purchase: With the Discover it® Balance Transfer card, you will earn 5% cash back on rotating quarterly categories and 1% on all other purchases. As long as you don’t mind tracking cashback deals and activating them, this is competitive among rewards credit cards.
- $0 Fraud Liability: Discover offers a $0 fraud liability guarantee, which means you’ll never be responsible for fraudulent transactions made on your account. This provides an extra layer of protection and peace of mind.
Cons
- Balance Transfer Fee: Many credit card issuers that offer balance transfer cards make their money by charging a balance transfer fee. A balance transfer fee is typically a percentage of the balance that you’re moving to the new card. The Discover it® Balance Transfer card charges an intro balance transfer fee of 3% and fees as high as 5% on future balance transfers. Depending on how much you’re transferring, this could be pretty hefty.
- No Immediate Sign-Up Bonus: Some balance transfer credit cards offer an immediate sign-up bonus to get started. Unfortunately, you won’t be able to take advantage of Discover’s intro offer – an unlimited cashback match – until the end of your first year.
- Rotating Rewards Structure: Discover only offers the 5% cashback on categories running on a quarterly calendar. This can mean tediously checking and tracking which purchases are eligible for 5% cashback each quarter.
- Some Fees Apply: Unfortunately, the Discover it® Balance Transfer card is not a fee-free solution to paying off debt. You won’t face an annual fee, penalty APR, or late fee on your first payment, but you will be charged late fees for late payments thereafter. You will also face foreign transaction fees, which can be challenging for frequent travelers.
Frequently Asked Questions
How does the Discover it® Balance Transfer credit card work?
The Discover it® Balance Transfer credit card is designed to help individuals consolidate their debt by transferring outstanding balances from one or more credit cards at a lower rate. The 0% purchase and balance transfer APR gives cardholders an interest-free window in which to pay down their balance.
What is the credit score requirement for the Discover it® Balance Transfer card?
In general, you should have a good or excellent credit score (700+) to qualify for the card. Discover’s credit approval methodology will look at several factors on your credit report that may influence your approval odds, such as debt-to-income ratios.
What is the balance transfer limit for the Discover it® Balance Transfer card?
You can transfer a balance to your Discover it® Balance Transfer card up to your available credit.
What is the Discover it® Balance Transfer card credit limit?
The card has a minimum credit limit of $500. However, the exact credit limit and regular APR of the card will depend on the applicant’s credit score, income, existing debt, and other financial factors.
Is The Discover It® Balance Transfer Card Worth It?
The Discover it® Balance Transfer card is a strong contender for anyone keen on consolidating or reducing their credit card debt.
The generous balance transfer offer combined with the competitive cashback rewards make it an appealing choice for debt consolidators and rewards maximizers alike.
However, the bottom line is that it’s essential to weigh benefits against costs when it comes to financial decisions like applying for a new credit card.
Be sure to research your options to determine if the card is a valuable addition to your wallet.