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Discover Student Credit Card – The Student’s Box of Chocolates?


The Discover Student Credit Card has some interesting features and benefits, such as having your FICO score printed on your monthly statement. This and many other generous features are being offered by Discover Credit Cards under their “Discover It” brand, in line with the rest of the company’s cards. By itself this isn’t a huge game-changer, services such as Credit Karma offer similar web-based credit score information for free. But it is one of several innovative parts of a well-rounded package for students who have established good credit.

Student cards are a way that financial services companies introduce themselves to future consumers. They tend to give more generous terms and be more forgiving of the missteps of new users than for cardholders with poor credit histories. They are willing to take a chance because students are potentially the platinum cardholders of the future. The Discover Student Credit Card is exceptionally generous as this type of card goes, so it may be a good starting-point for a long-term customer relationship.

Discover Credit Cards Is Inviting Students To Discover It

  • Monitor your credit score
  • Less fees and more forgiving penalties than the competition
  • Cash back rewards
  • Competitive APR

The terms that are promoted for the Discover Student Credit Card are generous. You get at least 1% cash back rewards on all purchases. The seasonal 5% rewards apply to all discover cards and changes every three months. The introductory offer of 0% APR for six months on newly issued cards helps to get your use of this card off to a fine start. Of course, they do want to earn some interest from you, so they have a motive to get you to start carrying a balance. After the introductory period the APR has a comparatively reasonable interest range of between 12.99% and 21.99%, depending on your credit score.

Discover Card is working hard to innovate and differentiate itself from the pack. They give you features such as Free FICO Credit Score on your monthly statement. This is a good tool to have available because you can get a picture over time of how your card activity changes your credit report. There are no late fees or raised APR on the first missed payment, along with no over-limit fees and no annual fee for the Discover Student Credit Card. If you happen to step out across a border there are no foreign transaction fees.

This is all well and good if you can get accepted. Having a limited credit history will negatively impact your chances of getting the card. A lack of credit history is likely to either cause a low credit limit initially or to deny the application outright.

Seasonal Rewards Are Like A Box of Chocolates

  • A variety of 5% rewards offers
  • Redeem for gift cards or with select online retailers
  • Redeem for cash and statement credits
  • Give your rewards to charities

The cash back promotion for the Discover Student Credit Card is 5% cash back on selected purchases. What you get the discount on depends on what they offer for the season. This isn’t a promotional sign up offer like 0% APR for the first six months, the 5% rewards are always available on specific categories and, like a box of chocolates, it’s an assortment that is changed four times throughout the year.

Fortunately, in the case of the Discover Student Credit Card, they do let you know a little bit about what you’re going to get. The year ahead is scheduled and posted on the Discover Card Website. For example, in 2014, it rotates from dining and entertainment, to home improvement, to summer related items, and finally to holiday related purchases.

Discover Student Credit Card points can be redeemed by spending them directly on Amazon.com, iTunes, FaceBook and other Websites. If you choose to redeem your points as gift cards they can be either partner cards such as Outback, Shell and Lowes or Discover gift cards. You can use your rewards points to donate to charities such as Red Cross, Junior Achievement and Make-A-Wish Foundation. Finally, you have the option to redeem them as statement credits  from a minimum of $50, or cash by direct deposit to a bank account of your choice.

The Discover Student Credit Card Report Card

For the student who’s applying for their first serious credit card the Discover Student Credit card is a strong and appealing offer. Applying for this card is a bit like applying to your first choice of college. As long as your application is accepted you may find that you want to stick with Discover Card for the long run. However, should you not be chosen, you can always apply elsewhere.

The Discover Student Credit Card sends you off to school on the right path. Fees are few, the APR, while not the lowest ever, is competitive. The rewards are generous and easy to redeem.

Eight out of the thirteen reviewers on creditkarma.com give the Discover Student Credit Card a five star rating out of five. The reviewers who provided a negative written review mainly appeared to have had their applications denied. Once you are approved you can take advantage of the rewards that are being offered at that time.

Finance companies love students. They want to catch ambitious young people while they are impressionable and can be converted into loyal lifetime customers. That can be good for both the bank and you because they’re willing to give students a better deal than otherwise. It also means there are a lot of deals out there that are directed at students. So, it’s always good to shop around before you commit to one particular card.

Once they have you and you’ve built up a balance on the card, it’s not so easy to get away from them. You can either pay it off or start work and build up your credit score enough to get a balance transfer. Not as easy as it sounds when you have started to repay student loans and have to make card payments on top of that. Credit cards are good to have in case of emergencies but a burden if you depend on them too much. Choose and use carefully.

Discover card is widely accepted but not universally so. With 1% cash back on all purchases you may wish to shop around to be certain that you can use it for everything that you buy. With the cash back rewards, 0% introductory rate and credit monitoring it is a competitive offer for eligible students. The special seasonal offers of 5% on select categories of purchases only serve to make the Discover Student Credit Card even more appealing.


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