Introduction to the Discover it Balance Transfer Card

The Discover it® Balance Transfer Card is one of the top credit cards designed specifically to help individuals pay off existing credit card debt. Offering an introductory 0% APR on balance transfers for an extended period, this card is ideal for people looking to save on interest while working toward paying off high-interest balances. In addition to its great balance transfer features, the Discover it® Balance Transfer Card also provides rewards on everyday purchases, making it a well-rounded option for those looking to manage debt while earning cash back.

In this guide, we’ll break down all of the Discover it® Balance Transfer Card’s features, including its rewards program, benefits, fees, and how it compares to other balance transfer cards.

Key Features of the Discover it® Balance Transfer Card

The Discover it® Balance Transfer Card is packed with benefits that can help you save on interest, earn cash back, and pay off debt faster. Here’s a detailed look at the features:

1. 0% Introductory APR on Balance Transfers

One of the primary features of the Discover it® Balance Transfer Card is its 0% introductory APR on balance transfers for the first 18 months. This means you won’t pay any interest on balances transferred to the card for the first 18 months after account opening, which can significantly reduce the amount you pay toward your balance each month. After the intro period ends, a variable APR of 16.24% – 27.24% applies, depending on your creditworthiness.

2. Balance Transfer Fee

While the 0% APR on balance transfers is a major perk, it’s important to note the balance transfer fee: 3% of the amount of each transfer for transfers made in the first 60 days. After that, the fee increases to 5% of the amount of each transfer. This fee is a common practice among balance transfer cards, but the 3% fee for the first 60 days is still relatively low compared to some other cards that charge higher fees.

3. Earn 1% Cash Back on All Purchases

Beyond balance transfers, the Discover it® Balance Transfer Card allows you to earn 1% cash back on all purchases. This is a great feature for those who want to continue earning rewards while paying down their transferred balances. While the cashback rate isn’t as high as some other cards with bonus categories, it’s still a nice perk for everyday purchases.

4. 5% Cash Back on Rotating Categories

In addition to the 1% cash back on all purchases, the Discover it® Balance Transfer Card offers 5% cash back on rotating quarterly categories (up to the quarterly maximum, which is typically $1,500 in purchases). These categories change each quarter and may include purchases such as:

• Grocery stores
• Gas stations
• Restaurants
• Amazon.com

You need to activate the rotating categories each quarter to earn the 5% cash back, and the 5% rate applies up to the quarterly cap, after which you’ll earn 1% cash back on those purchases.

5. Cashback Match – A First-Year Bonus

A standout feature of the Discover it® Balance Transfer Card is its Cashback Match offer. At the end of your first year, Discover will match all the cash back you’ve earned, dollar for dollar. For example, if you earn $300 in cash back during the first year, Discover will match that, giving you an additional $300 in cash back, for a total of $600. This is a valuable benefit, especially if you’re using the card for both balance transfers and everyday spending.

6. No Annual Fee

Unlike many rewards credit cards, the Discover it® Balance Transfer Card has no annual fee. This makes it an even better choice for those who are looking to minimize costs while working to pay down their credit card debt. With no annual fee, all the benefits of the card go toward helping you save on interest and earn rewards, without any extra charges.

7. Fraud Protection and Alerts

Discover provides $0 fraud liability protection, meaning you won’t be held responsible for unauthorized purchases made with your card. Additionally, the card offers real-time alerts, so you can keep track of your spending and report any suspicious activity immediately.

8. Access to Discover’s Customer Service

Discover is known for its excellent customer service. You can reach customer support anytime, and you’ll also have access to online account management tools, where you can track your balance, payments, and rewards.

How to Use the Discover it® Balance Transfer Card Effectively

The Discover it® Balance Transfer Card is an excellent tool for managing credit card debt and earning cash back. Here are some tips on how to make the most of this card:

1. Take Advantage of the 0% Introductory APR

To maximize the benefits of the 0% APR on balance transfers, aim to transfer high-interest credit card balances to the Discover it® Balance Transfer Card as soon as possible. The longer you wait to transfer, the less time you’ll have to pay down your debt without accruing interest. Pay down your transferred balances as quickly as possible during the 18-month introductory period to avoid interest charges when the standard APR kicks in.

2. Be Mindful of the Balance Transfer Fee

While the 3% balance transfer fee is relatively low, it’s still important to calculate whether transferring a balance makes sense. For example, transferring a $1,000 balance will cost you a $30 fee (3%). However, if you can pay off that $1,000 within the 18-month 0% APR period, the savings in interest could be significant.

3. Maximize Cash Back with Rotating Categories

To maximize your cash back, activate the rotating 5% categories each quarter and be sure to spend up to the $1,500 limit in those categories. While 5% cash back is a strong rate, it’s limited to specific categories, so be mindful of your spending and take advantage of this offer when it aligns with your purchases.

4. Don’t Forget About the Cashback Match

If you’re using the Discover it® Balance Transfer Card for your everyday purchases, remember that all cash back earned in the first year will be matched. So, if you’re able to earn a significant amount of cash back, that matched bonus can really boost your rewards.

Discover it® Balance Transfer Card vs. Other Balance Transfer Cards

How does the Discover it® Balance Transfer Card compare to other popular balance transfer credit cards? Here’s a comparison with two other top contenders:

Discover it® Balance Transfer vs. Chase Slate® Edge

• Introductory APR: Both cards offer 0% APR on balance transfers, but the Chase Slate® Edge has a shorter 18-month period, while Discover’s period is the same.
• Balance Transfer Fee: The Chase Slate® Edge charges no balance transfer fee for the first 60 days, while the Discover it® Balance Transfer Card charges a 3% fee in the first 60 days, then 5% after that.
• Cash Back: Discover offers cash back rewards (up to 5% on rotating categories), while Chase Slate® Edge does not offer rewards.
• Annual Fee: Both cards have no annual fee.

Discover it® Balance Transfer vs. Citi® Double Cash Card

• Introductory APR: The Citi® Double Cash Card doesn’t offer an introductory APR on balance transfers, unlike the Discover it® Balance Transfer Card.
• Cash Back: The Citi® Double Cash Card offers 2% cash back on all purchases (1% when you make a purchase and 1% when you pay it off), which is higher than the 1% cash back offered by the Discover it® Balance Transfer Card, but Discover’s rotating 5% categories can offer more value in certain months.
• Annual Fee: Both cards have no annual fee.

Who Should Consider the Discover it® Balance Transfer Card?

The Discover it® Balance Transfer Card is ideal for:

• People Looking to Pay Off Credit Card Debt: With 0% APR on balance transfers for 18 months, this card is a great option for those who want to save on interest while paying down existing debt.
• Cash Back Earners: The card’s 5% cash back on rotating categories and 1% cash back on all other purchases make it a great choice for those who want to earn rewards while managing their balances.
• Those Who Want to Maximize Rewards: If you spend strategically in the rotating categories, you can earn significant rewards while benefiting from the 0% APR period.

Final Thoughts on the Discover it® Balance Transfer Card

The Discover it® Balance Transfer Card is an excellent option for those looking to transfer high-interest credit card balances and save on interest while also earning cash back. With its 0% introductory APR on balance transfers for 18 months, rotating 5% cash back categories, and the Cashback Match feature, it offers both financial relief and rewards potential.

If you’re focused on paying off debt without paying hefty interest charges and want to earn rewards on everyday purchases, the Discover it® Balance Transfer Card is an ideal choice.