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Discover Motiva Card – Is It worth the Pay-on-Time Bonus Reward?

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The Discover Motiva Card is an offering by Discover which rewards paying your balance on time. Its unique feature is that it refunds 5% of your interest charge each month, for making timely minimum balance payments. This is called ‘good credit management’ by Discover for which it offers cash back bonus. You will need a minimum credit score of 581 to get approval for this card.

There is no limit to the rewards which can be earned. Keep spending and keep earning. This Discover Motiva Card is great for those who love to shop, have high monthly credit bills but also pay them on time. The introductory financial offer of a 0% APR is its second attractive feature which makes it stand apart from other cards. Most other cards offer introductory bonuses. But the Discover Motiva is offering no interest on purchases and balance transfers for the initial 14 months period. After this period ends, the interest charge is a competitive variable purchase APR, in accordance with other cards. Some of its standard features are as follows:

Features of the Discover Motiva Card

It is a reward card which offers:

  • 5% interest charge cash back if you make timely balance payments each month.

  • Earn 0.25% cash back bonus on the first $3000 spent in annual purchases. These also include warehouse purchases at warehouse clubs, whole sale distributor, and discount stores

  • 1% on purchases over $3000

  • By shopping online through the discover store, you can earn 5-20% worth of cash back bonus

  • For each friend that becomes a card member, you can earn $50 cash back bonus

Discover has consistently maintained the no.1 rank in customer loyalty since the past 16 years. Additionally, the card gives you benefits like,

  • Access to a U.S based account manager within 60 seconds, available 24/7

  • No Fraud Liability. You will not be charged even a dollar for unauthorized charges on your Discover Motiva Credit Card account.

  • You have the option to receive mobile and email fraud alerts

  • You can manage your account from anywhere, anytime.

  • It also offers 24/7 travel assistance with free rental car insurance

  • Discover financial tools which let you shop smart and safe. Get a clear visual picture of your spending and shop securely through your online account.

  • You can design your own card

  • It also has built in fraud protection to protect you from unauthorized access and payments made on your behalf.

Interest Rates and Charges

  • The Discover Motiva Card offers an introductory financial offer of 0% APR on purchases and balance transfers for the first 14 months. This is an attractive offer.

  • After the initial 14 months period has passed the standard variable purchase APR of 10.99%-22.99% applies to purchases and balance transfers, depending on your creditworthiness.

  • Cash advances carry an APR of 24.99%

Fees and Penalties:

  • There is no annual fee.

  • 3% Balance Transfer Fee of the amount of each transfer

  • For cash advances, a $10 or 5% of amount of each cash advance applies, whichever is greater.

  • A late payment fee of up to $35 applies on late payments and returned payment. However, the introductory offer of 0% APR may be revoked if you make late payments on new purchases and balance transfers.

  • A penalty APR from 15.99% to 27.99% applies if you make a late payment on purchases and balance transfers. However, you can avoid paying interest on purchases if you pay the entire balance amount by the due date, which is at least 25 days after close of each billing period.

Some Disadvantages

Although the Discover Motiva Card offers attractive rewards and the interest payback cash back bonus of 5% is interesting to make customers pay their balance on time. It has some drawbacks to it. Let’s consider these:

  • The first $3000 that you spend in annual purchases will earn a mere 0.25% cash back or only $7.5.

  • Goods like gas and groceries which you can purchases at low price from warehouse stores won’t earn you any cash back.

  • The late payment is quite handsome if you compare it to the 5% cash back of interest for making on-time payment. Consider a balance of $1000 with an interest rate of 15%. That will make $12.5 in interest payment monthly. 5% of this is just 63 cents. So, an incentive of 5% cash back for making you pay on time versus the late payment fees and penalty APR seems unjustifiable.

  • The Discover Motiva Card offers a limited network, so even with it offering 150 brands on its reward program the card is not universally accepted. This kind of limits your choice of purchases for earning rewards.

  • The APR for those who have a slightly lower credit score is higher than some other offers.

Final Word

The Discover Motiva Card has many features that make it an ideal card to acquire for the right kind of customer. It does not require an excellent credit to qualify which as earlier mentioned is a 581 credit score. It is a decent card when you consider it for balance transfer since it offers 0% APR for 14 months and no annual fee. It also offers an unlimited rewards program, but in order to maximize on benefits, one should be able to make timely monthly payments. This Discover Motiva Card could make a very lucrative option to consider for those who have high monthly credit card bills and pay them on time. Its details, features and application are available on the Discover website.

For those users who are not in use of a 0% APR and want more aggressive rewards, this Discover Motiva Card may not be the best choice for them. There are other cards which offer sign up bonuses and their reward points are much more attractive then 0.25% on the first $3000 that the Discover Motiva Card offers.

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