If you are in the market for a new credit card the Discover More card might be an enticing option. Upon first glance it seems to offer 5% back on all purchases - look out for the word "max" after a percentage whenever you are looking at comparison sites. Upon closer inspection one learns that the 5% back is given on different categories that rotate each quarter*. Right now the categories being featured are very suited to summer - gas, hotels and bookstores among the options. This all sounds great, right, but depending on your spending habits and tolerance for deal shopping though this might not be the perfect card for you. When you read the fine print you see that this 5% back applies to the first $300 in purchases per quarter. BUT you must sign up to receive the 5% back - you are not automatically enrolled for this. Say you do enroll this works out to 5% back on $100 a month or a max of $5 per month. Where you buy your gas or book your hotel stay can also limit your rewards. If you are planning on buying your gas through costco or booking your rooms through a site like hotels.com you can kiss your 5% goodbye. Gas cannot be bought through a discount store - it must be purchased at a stand alone station; hotels must be booked through the hotel itself to register as a hotel stay. Well, as they say, the large print giveth and the small print taketh away. Check back for more reviews of rewards cards!
[The fine print: all other purchases receive cash back of .25% when you spend $0-3000 for the year. If your annual spending exceeds $3000 on the card you will receive 1% cash back on your purchases. All warehouse club purchases receive a maximum .25% cash back reward. "Program purchases" - those that give you the 5% reward and warehouse club purchases do not count toward your annual spending. So, let's say you spend the max $300 a quarter (or $1200/year) to receive the 5% bonus you must spend $3000 per year beyond this to receive 1% cash back.]
Penny Wise Verdict ****/10
Cons: This 5% back card breaks down to about $60 back a year. While 5% back sounds enticing, the savings just don't add up. Our recommendation: keep track of your rewards and utilize this card for the categories you will use, i.e., just use it for the first $300 of gas this summer. Use a different card with a straight percentage back and no cap for your other purchases.
Pros: This beats using your debit card - you might as well get something back on your spending! The real reason to have a Discover card is to use it with their star program ShopDiscover. When you log in to the Discover site and click through ShopDiscover you can get 5-20% back on your online purchases with no cap on your cash back (check out my review of ShopDiscover)! This online program really allows the Discover More to shine. If you're a brick and mortar addict shop for anther card.
Have a favorite rewards card? Share it in the comments!
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