Why it (Occasionally) Pays to Discover

My very first credit card was from Discover, and it was the only credit card I had for years (before I knew anything about money and credit). I was satisfied with it because I knew it had a “cashback” program, and in my ignorance I just always assumed it was always up to 5% cashback.

Boy, was I wrong. Of course, I’ve known for the last few years how their cashback program really works, and it’s a ripoff most of the time.

Discover Tiered Cashback System

In case you are uninitiated, here’s how it works:

Up to $1,500 spent annually on purchases: 0.25% cashback
From $1,501 to $3,000 spent annually on purchases: 0.5% cashback
Above $3,000 spent annually on purchases: 1% cashback

This means that unless you are a big spender, most of the time you will only receive a half of one percent or less, which stinks.

So, why should anyone own a Discover card if the tiered cashback system is so pathetic? For the Get More program, of course.

Get More

Every quarter, Discover does offer 5% cashback for purchases in certain areas. Naturally, the purchase areas change every quarter. For instance, the current offer (ranging from July through September) is 5% cashback on gasoline, hotels, and “summer fun” (museums, theme and water parks, zoos, and aquariums). For the record, the next quarter in the Get More program is 5% cashback on restaurants.

Essentially, a regular Discover card is practically worthless unless you subscribe to the Get More program. Yes, that’s right, you have to enroll each quarter if you want your purchases to qualify for the 5% cashback in those offered categories. Thankfully, enrolling is easily done via their web site or by calling them.

I keep my Discover More Card in my wallet strictly for the Get More offers. From July through September I’m only buying gas with it, and starting in October I will use it for restaurants. For all other purchases, there are many cards with better rewards.

In personal news, my apologies for the absence in posting frequently. I have doctoral comprehensive exams rapidly approaching, and naturally I have to keep my priorities straight.