Everyone wants a good credit card when starting, but your options are limited when you have no credit history. Especially if you are a student, you will fare better with a student credit card. But, Is The Discover Student Card Worth It?
The card was designed for college students aged 18 and above to help them build good credit while catering to necessary college expenses. With no annual payment fee and other compelling benefits, the Discover Student Card sounds like a smart choice. Here’s some enlightenment, so you’re fully informed.
What Makes It a Big Deal
Great perks include:
- You don’t need a good credit history. You may qualify without any.
- There is no annual fee, no rewards limit, no stipulated minimum spending fee, no foreign transaction fee, and no fine for showing up late on your first payment.
- You get 5% cashback up to $1500 on expenses incurred on Amazon, PayPal, gas stations, restaurants, fitness clubs, and gym memberships.
- There is no maximum spending target to obtain a signup bonus, yet you get double the amount of money you earned in Cashback in your first year.
- You are kept in the loop of your credit-building progress via your credit score card, and every payment you make is duly reported to the three major credit bureaus, TransUnion, Equifax, and Experian, to boost your credit record.
However, as much as the Discover Student Card might seem worth it, there are a few things that might lead you to consider a different credit card.
- It has a complex, rewarding system that is constantly changing and can be quite exhausting to keep track of.
- It also has a limited acceptance range universally and may not be suitable for International online payments.
- Another downside is that, although a credit history is not necessary to qualify for the Discover student card, a Social Security Number is. This means that international students without this number will not be able to acquire one.
How the Card Works
The Discover Student card has two types; the Cashback {benefits have been previously outlined} and the Chrome Credit card. The Chrome Credit card lets you earn 2% cash back at gas stations and restaurants, up to $1000 combined purchases, and 1% on other purchases.
When compared with its counterpart, the Cashback card is more of a favorite. Here’s how it works.
The Cashback calendar splits the year into four quadrants; January – March, April – June, July – September, and October – December. For each quadrant, you can earn 5% cashback up to $1,500 on various categories. By the end of each quarter, the cycle begins afresh with a new opportunity to earn another 5%. The Cashback Calendar is released annually to help you keep track of the bonus categories. You have to enroll at the beginning of every activation period, though, to enjoy this.
As a freebie for newbies, you get double the Cashback you’ve earned by the end of your first year {only applicable in your first year}.
Your rewards can be electronically transferred to your bank account, converted into points for payment at Amazon or PayPal checkouts, into gift cards worth as much as $200, or donated to a chosen charity organization if you so desire.
Obtaining the Discover Student Card
You must be
- 18 years or above,
- A college student is studying a 2 or 4 years course. Proof of enrollment will be required.
- A registered citizen of the United States possesses a social security number and US address.
- You must have a reliable source of income, preferably independent, with verifiable proof.
Conclusion
For the first six months, Discover welcomes you with 0% APR. Consequently, however, 13.24% to 22.4% standard variable purchase APR will apply. Though usually only a few seconds online, it can take longer where further information is needed. It’s quicker when using your email address from school.
The Discover student card is a smart choice if you have a social security number, and it is accepted in countries with whom you often have online transactions.
FAQs
- Why did my application for the Discover student card get denied?
Your application will be denied if you have a high debt record and bad credit history, also if your stated annual income is questionable, i.eThere are no monthly bank statements to back your claim, or if you listed an income found to be higher than your actual means.
- How long do my Rewards last?
There is no stipulated expiry date, but if your card is out of use for up to 18 months, your rewards will be automatically included in your account balance.
- Do I lose access to my account if I lose my card?
No. Your card is easily replaceable and can be delivered in no time, should it get lost, damaged, or picked up by thieves.
