Review of the Discover Student Credit Card



The Discover Card for Student was last reviewed on 5th July 2006



discover student credit card
Summary - We recommend the Discover Student credit card to students looking for both a cash rebate and reward card because

  • You can earn 5% cash rebates from purchases at selected merchants
  • You can double the value of your cash rebates by exchanging them for a gift certificates or gift cards

Let us look at this card in greater detail.

Rebate Formula - The Discover Card for Student allows you to earn cash rebates. You can earn 1% rebate once your annual expenditure on your card exceeds $3,000. Your first $1,500 in purchases earn .25% and your second $1,500 in purchases earn .50%. Purchases made at select warehouse clubs, discount stores and their affiliates earn .25%. You can earn up to $500 in rebates in year.

5% Cash Rebate for purchases at Get More Purchase Partners - You can earn 5% cash rebate on Discover's Get More Purchase program. Under this program, shopping at various retailers will enable you to get a 5% cash rebate. The present retailers under this scheme are Ace Hardware, Bed, Bath and Beyond, Lowes, Menard, Restoration Hardware, SHERWIN-WILLIAMS, Smith & Hawken, The Container Store, The Home Depot, Gap, Kohl's, Marshalls�, T.J.Maxx�, Famous Footwear�, Dell�, Office Depot�, OfficeMax�, Staples, Linens 'n Things�, Pier 1 Imports�, and on tuition.

Double Your Cash Back Bonus - Probably the best feature of all Discover cards is that you can exchange your cash rebates for double the value in gift certificates of up to 60 merchant partners. That is equivalent to a 2% in rebates. (ie if you are entitled to $20 in cash rebates, you can redeem a $40 gift certificate with a partner merchant).Below is a table highlighting the various categories and partners.

Restaurants
Bennigan's
Black Angus/Cattle Company Steakhouse
Bonanza Steakhouse
Buca di Beppo
Chili's Grill & Bar�
Maggiano's Little Italy�
On The Border Mexican Grill & Cantina�
Ponderosa Steakhouse
Red Lobster
Romano's Macaroni Grill�
Steak & Ale

Home
Ace Hardware
Bed Bath & Beyond�
Bedroom Expressions
Big City Chefs
Callaway Golf
Cooking.com
Crutchfield
Denver Mattress Co.
Furniture Row Outlet
K B Toys
Kalamazoo Outdoor Gourmet� Grills
Lawn-Boy
Oak Express
Pep Boys
Pier 1 Imports
The Sharper Image�
Sofa Mart
Sprint
Staples�

Entertainment
AMC Theatres�
BLOCKBUSTER�
BLOCKBUSTER Online�
Borders Books & Music�
Fandango
Great American Days
Hollywood Video
Reader's Digest
TicketsNow.com
Waldenbooks�

Gifts
Ethel M Chocolates
FTD.COM�
Lobster Gram�
M&M;'s World
Mrs. Fields
Omaha Steaks

Travel
Carnival� Cruise Lines
Celebrity Cruises�
Enterprise Rent-A-Car
Holland America
Hyatt� Hotels & Resorts
Norwegian Cruise Line
Princess Cruises
Royal Caribbean� International
Samsonite� Company Stores

Electronic Certificates
Big City Chefs
BLOCKBUSTER Online�
Callaway Golf
Cooking.com
Crutchfield
Enterprise Rent-A-Car
FTD.COM�
Fandango
Great American Days
Kalamazoo Outdoor Gourmet� Grills
L.L. Bean
Mrs. Fields
Omaha Steaks
Ultra Diamond Outlet

Charities
American Red Cross
Junior Achievement
Juvenile Diabetes Research Foundation
Make-A-Wish Foundation�

Shop Discover Card - The Shop Discover is another great feature of all Discover cards. When you use your Discover card to shop at partner mechants from Discover's website, you will get discounts. Below is a sample of what you may get

Barnes and Nobles - 7% cash back Overstock.com - 5% discount FTD.com - 20% cash back or discount.



Annual Fee and APR - There is no annual fee for the Discover Card for Student. The APR at Prime Rate plus 8.99% . The Discover Student Card also uses the 2-cycle average daily balance method of calculating balance. New cardholders also get a 0% introductory apr for six months.

Conclusion - The Discover Student credit card is one of the best shopping reward credit cards around. The cash rebate formula is tiered and frankly speaking, not impressive. But Discovers' plus points outweigh this. Firstly, you can earn up to 5% cash back with different "GET MORE" partners each month. Secondly, you can get more than the value of the cash rebates you have earned (up to double) by exchanging them for gift certificates of partner merchants. Lastly, Sop Discover Card allows you to get discounts for popular merchants.

Discover student cards comes in various designs - the Discover Student Classic, the Discover Student Clear Card or the Discover Student Tropical Beach Card

Positives
  • Earn 5% cash rebates from Get More Purchase merchants
  • Double your value of cash rebates by exchanging them for gift certificates or cards
  • No annual fee


Negatives
  • Tiered cash rebate structure
  • Uses the two-cycle avarage daily balance method



Discover Card for Student
Reward Benefits
Rebate Percentages Earn 5% rebate from purchases from Get More Purchase merchants
Earn 1% rebate on purchases when annual expenditure on credit card exceeds $3,000.
Earn only 0.25% for purchases at select warehouse clubs, discount stores and their affiliates
Earn 2% rebate if you exchange your rebates for gift certificates or gift cards from Cashback Bonus Partner merchants
Rebate Limits $500
Other Benefits
Online account access
Cost/Fees/Interest rates
Annual Fee No annual fee
Purchase APR Prime Rate plus 8.99%
Balance Transfer APR Prime Rate plus 8.99%
Cash Advance APR 22.99%
Penalty/Default Rate APR 19.99% (after 2 defaults or exceeding credit lines 2 times) or
24.99% (after 3 defaults or exceeding credit lines 3 times)
Min Finance Charge $0.50
Grace Period 25 days
Balance Calculation Method 2-cycle Average Daily Balance (including new purchases)
Cash Advance fee 3% min $5.00
Over-the-credit-limit fee $15.00 - $1000 or less
$35.00 - greater than $1000
Late Payment fee $15.00 - up to $100
$25.00 - $100-$1000
$35.00 - greater than $1000






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