Discover it® Student Cash Back review: Rotating rewards for students
The Discover it Student Cash Back card offers rotating cash back categories, credit-building opportunities for college students, and a first-year cash back match.
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Joseph Hostetler is a Certified Educator in Personal Finance (CEPF) and a travel rewards expert who has written professionally about credit cards and card loyalty programs since 2016.
Updated October 25, 2024, 6:44 AM EDT
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Editor
Gabriela Walsh is a Certified Educator in Personal Finance® and a personal finance editor at Red Ventures. Her previous work experience includes various editorial positions at FinanceBuzz. She combines her understanding of language and literature with her commitment to delivering content that empowers others to build healthy money management skills.
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Not all credit cards marketed to beginners offer noteworthy perks. Their main purpose is to help you establish a healthy credit history — which should be your main focus if you're new to credit.
The Discover it® Student Cash Back card, however, stands out from the pack. Offering solid cash back on everyday purchases and a decent intro APR window, it's a top contender in the student credit card market.
Fox Money rating: 8.2/10
The Discover it Student Cash Back Card offers students a rewarding way to build credit. It combines rotating cash back categories, a first-year cash back match, and student-friendly features with no annual fee.
How the Discover it Student Cash Back works
The Discover it Student Cash Back keeps things simple with a straightforward cash back structure. While it isn’t flashy, rewards are easy to understand and redeem.
Its introductory offer stands out as one of the most intriguing (and potentially valuable) on the student card market. With some strategic spending, you could potentially earn hundreds in bonus cash simply by making purchases you'd planned anyway.
Pros
- Student-friendly approval odds
- Solid cash back on everyday expenses
- No annual fee
Cons
- Average base cash back rate
- Bonus cash has quarterly spending caps
- Limited to currently enrolled students
Discover it Student Cash Back rewards
Earning rewards
You’ll earn 5% cash back on rotating bonus categories (up to $1,500 in spending each quarter, then 1%) after you activate. These categories often line up with typical student expenses. You can check the Discover cash back calendar to see the current categories.
Redeeming rewards
Cash back redemption options include:
- Statement credit
- Direct deposit
- Shop with rewards at Amazon, PayPal, or Apple Pay
- Gift cards (minimum $5 redemption)
- Donations to charity
Your cash back always maintains its value — $1 will always equal $1, regardless of how you redeem it.
Discover it Student Cash Back benefits
Welcome bonus
Rather than a traditional sign-up bonus, Discover will automatically match all the cash back you’ve earned at the end of your first year. This means your potential bonus grows with your spending — an opportunity to maximize your rewards if used responsibly.
Intro APR on purchases
The Discover it Student Cash Back offers 0% intro APR on purchases for six months (then 18.24% to 27.24% variable APR). This can help manage larger school-related expenses, but be sure to have a repayment plan before that intro period ends.
Additional perks
While the Discover it Student Cash Back doesn't boast an extensive list of premium benefits, that's typical for student cards. Their primary value lies in helping students build a healthy credit score.
Beyond that, you can expect standard features such as:
- Free FICO score access
- The ability to instantly freeze your card with Discover’s Freeze it tool if it gets lost or stolen
- Free dark web monitoring for your Social Security number
Discover it Student Cash Back drawbacks
Only enrolled students qualify
Like most student cards, you must be a current student to apply. If you’re not a student, you’ll need to explore other options.
Cash back is limited
The 5% bonus cash back is limited to $1,500 in quarterly spending after activation, then drops to 1%. All other purchases earn a modest 1%. Some competing student cards, like the Capital One Savor Student Cash Rewards Credit Card, offer uncapped bonus categories.
How the Discover it Student Cash Back compares
Despite these limitations, the Discover it Student Cash Back holds its own against other student credit cards. Here's how it stacks up:
Discover it Student Cash Back vs. Capital One Savor Student Cash Rewards Credit Card
The Capital One Savor Student Cash Rewards Credit Card offers unlimited 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases. It also offers 5% cash back on hotels and rental cars booked through Capital One Travel and 8% on Capital One Entertainment purchases.
Like the Discover it Student Cash Back, you’re only eligible if you’re enrolled in a higher education institution or an admitted student planning to enroll within the next three months.
Discover it Student Cash Back vs. Bank of America® Customized Cash Rewards Credit Card for Students
The Bank of America® Customized Cash Rewards Credit Card for Students features a unique choose-your-own spending bonus category. You can select from options like dining, travel, drug stores, and more to earn 3% cash back.
The card also provides 2% cash back at grocery stores and wholesale clubs. However, like the Discover it Student Cash Back, bonus cash earnings are capped quarterly — in this case, up to $2,500 in combined 3% and 2% category spending (then 1%).
Notably, the Bank of America Customized Cash for Students doesn't require student status for eligibility, potentially making it a viable option for those with limited credit history who aren't currently enrolled in college.
Who should get the Discover it Student Cash Back?
This card is ideal for students looking to improve their credit scores while earning rewards.
It's particularly well-suited for those with upcoming student-related expenses. The intro APR offer could potentially save you significant interest on necessary purchases like textbooks or dorm furnishings.
This card is also a good fit if you prefer a straightforward rewards program. While travel points can offer higher potential value, cash back is simpler to understand and use.
Who should choose a different card
If you've already built some credit history, perhaps as an authorized user on a parent's card, you might qualify for more rewarding options. In this case, the Discover it Student Cash Back might be an unnecessary stepping stone.
Most importantly, avoid applying for this (or any) credit card if you struggle with overspending. Building credit is important, but it's better to have no credit than bad credit with mounting debt. Wait to start your credit journey until you feel confident in your budgeting skills.
How we rated this card
Every credit card review we publish has gone through a rigorous editorial process to ensure accuracy and objectivity.
We rate all credit cards on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here.
The bottom line
The Discover it Student Cash Back stands out in the student credit card market with its rotating cash back categories and first-year match. While it requires some effort to maximize rewards, it offers an excellent opportunity for students to build credit responsibly while earning cash back.