Is the Discover it Cash Back Worth It?

A young woman holds a credit card as she shops online on a tablet while relaxing on her sofa.

The Discover it® Cash Back has been a reliable option in the rewards credit card space for years, and for good reason. It offers straightforward rewards that can provide great value if you’re willing to do a little quarterly planning. Plus, the card’s generous Cashback Match® in the first year of card membership can add up quickly. 

Whether this card is the right fit for you depends on your spending habits, your willingness to manage rotating bonus categories, and whether you already have cards that overlap with what Discover provides.

In this deep dive, I’ll walk you through everything you need to know about the Discover it Cash Back Card, so you can make an informed decision about whether it’s the right choice for you.

The Discover it Cash Back Card is a great choice for those who can take full advantage of its quarterly rotating cash back categories. After activation, cardholders can earn 5% cash back in rotating categories that change every quarter, on up to $1,500 in combined purchases, then 1% back. With no annual fee and an unlimited Cashback Match for all earnings during the first year, it presents a low-risk opportunity to earn valuable rewards.

That said, it may not be suitable for everyone. If you forget to activate the quarterly bonus categories or if your spending doesn’t align with those categories, you might find better value with a flat-rate cash back card. The 1% earning rate on non-bonus category purchases is decent but not exceptional. And Discover isn’t as widely accepted as Visa and Mastercard, especially in remote areas and abroad.

For someone who values simplicity along with the opportunity to optimize rewards, this card can easily provide $300+ in annual rewards with minimal effort.

  • Annual Fee: $0
  • Welcome offer: Cashback Match® — Discover automatically matches all the cash back you’ve earned at the end of your first year
  • Rewards structure: Earn 5% Cash Back At Different Places Each Quarter Up To The Quarterly Maximum When You Activate. Earn 1% Unlimited Cash Back On All Other Purchases - Automatically
  • Statement credits and perks: No foreign transaction fees, free FICO score access, 0% Intro APR on purchases and on balance transfers for 15 months, then 17.99% - 26.99% Variable APR
  • Estimated value: $300+ annually for active users who maximize quarterly categories

I’ve held the Discover it Cash Back for several years and have had other Discover credit cards in the past. I always look forward to opening my Discover statement to see the rewards I’ve earned. I took advantage of the rewards bonus at home improvement stores earlier this year by purchasing a new refrigerator. The rewards I earned were enough to cover a dinner out, reminding me that the best cash back card isn’t just about percentages; it’s about finding a card that aligns with your spending patterns. 

If you’re in the market for a no-annual-fee rewards card, the Discover it Cash Back card is worth considering. Unlike premium rewards cards that often charge $100 or more annually, the Discover it Cash Back offers great value without requiring you to spend a fortune just to reap the benefits. 

This card is particularly beneficial for organized spenders who enjoy managing and optimizing their purchases. The rotating categories focus on major spending areas, such as gas stations, grocery stores, restaurants, Amazon.com and wholesale clubs — places where most people already spend a significant amount of money.

First-year cardholders get a particularly sweet deal thanks to the Cashback Match, where Discover matches every penny you earn in year one. Earn $400 in cash back during your first 12 months, and you’ll end up with $800: no complicated spending requirements, no spending caps and no spending deadline to stress about.

Plus, new cardholders qualify for a 0% Intro APR on purchases and on balance transfers for 15 months, then 17.99% - 26.99% Variable APR. Suppose you have big purchases coming up, or want to consolidate debt with a balance transfer. In that case, this feature can save you money on interest — as long as you make the minimum payments each month and pay off your full balance before the intro period ends.

If you’re the “set it and forget it” type, the Discover it Cash Back may not be your best bet. While activating categories takes literally 30 seconds through the app or website, it’s one more thing to remember. If you miss an activation, you’ll only earn 1% in categories where you could have earned 5% each quarter up to the quarterly maximum on rotating categories. This might seem like a minor issue, but I can assure you it’s a frustrating mistake to make.

Additionally, if your spending doesn’t align with Discover’s typical bonus category rotation, it might not be worth it. If you spend a lot on travel, for example, you’re likely better off with a dedicated travel rewards card. Discover rarely features airlines or hotels in its categories, and the 1% you’d earn on those purchases can’t compete with what travel-specific cards offer.

The earning cap on the bonus categories might feel limiting to big spenders. After you enroll and reach the $1,500 threshold in a 5% category each quarter, any additional spending drops to 1%. 

Another legitimate consideration is Discover’s acceptance (or lack thereof) at various merchants, especially outside the US. While Discover claims that 99% of places that take credit cards now accept Discover, according to the February 2025 issue of the Nilson Report, you’ll still occasionally encounter a local business or international merchant that doesn’t. If your Discover it Cash Back is the only card you’re carrying, you may find yourself in an awkward situation. Even as a backup card, it can be mildly annoying when you’ve specifically planned to use it only to discover (pun intended) the merchant doesn’t take it.

Maximize the Cashback Match

In the first year, Discover matches all the cashback you’ve earned at the end of that year. To maximize your Cashback Match, consider using your Discover it Cash Back for all of your purchases during your first year of card membership, as you’d be surprised at how quickly things can add up. I remember earning nearly $1,000 my first year as a cardholder. 

Activate Categories Religiously

The first thing I suggest for a new Discover it Cash Back cardholder is to set a recurring calendar reminder for the first day of each quarter (Jan. 1, April 1, July 1, Oct. 1). You’ll be reminded of which categories qualify for the bonus that particular quarter and have a chance to activate the bonus on your card. This single habit can be the difference between maximizing the card and leaving a few hundred dollars on the table.

Strategize Major Purchases 

When Discover announces upcoming categories, take note. If Q2 features home improvement stores and you’ve been considering a kitchen refresh, that’s your sign. If Q4 includes Amazon and the holidays are approaching, front-load your gift shopping. I earned over $120 in one year by timing a new laptop purchase and all my holiday shopping to coincide with Q3 and Q4 categories.

Leverage the FICO Score Feature

The Discover it Cash Back Card’s free FICO score access is a great way to monitor your credit health. Understanding your score’s trajectory helps with everything from mortgage applications to negotiating better insurance rates.

The Discover it Cash Back Card has some drawbacks: merchant acceptance can be an issue, the $1,500 quarterly cap can feel limiting if your regular spending is high, and the base 1% rate isn’t particularly impressive. But when you weigh those limitations against zero annual fee, generous category bonuses and meaningful first-year benefits, the Discover it Cash Back can be a great choice for many individuals.

One of the key advantages is the first-year Cashback Match, which makes trying the card virtually risk-free. After that, you can decide if the quarterly category system fits your lifestyle. If you’re willing to spend just a few minutes each quarter to activate the categories, the Discover it Cash Back Card is definitely worth serious consideration.

What credit score do you need for the Discover it Cash Back?

The higher your score, the more likely you are to get an approval for the Discover it Cash Back. But it isn’t the only thing on your credit profile that counts. Discover generally approves applicants with good to excellent credit (FICO scores of 670 or higher) for the Discover it Cash Back. It’s also possible to check to see if you’re preapproved for a Discover card, with no impact on your credit.

How does the Cashback Match work?

At the end of your first year as a cardmember, Discover automatically matches all the cash back you’ve earned. There’s no activation or enrollment required. If you earned $500 in cash back during year one, Discover adds another $500 to your account, essentially doubling your rewards rate for the first year.

Can you choose your own 5% categories?

No, Discover determines the rotating categories each quarter, and you have to activate the category to earn the rewards. However, they announce upcoming categories in advance so you can plan your spending. There is a spend cap of up to $1,500 in combined category spending, and all other purchases get 1% cash back. In the past, categories have included gas stations, grocery stores, restaurants, Amazon.com, PayPal, wholesale clubs and home improvement stores, among others.

Is Discover accepted everywhere?

Discover is accepted at millions of locations in the US. and internationally, but acceptance isn’t quite as universal as Visa or Mastercard. For this reason, it’s wise to carry a Visa or Mastercard as a backup.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
*CardCritics™ references a FICO® 8 score, which is one of many different types of credit scores. A financial institution may use a different score when evaluating your application.