Discover More Card Review: Balance Transfer with No Annual Fee

The Discover More card is a straightforward cash back credit card. It is perfect for consumers who are looking for a basic credit card that also provides easy cash back opportunities. The card is free of annual fees making it so cardholders will be able to put cash back into their pocket from the moment they start to use the card.

Discover More Card Intro APR (P) Intro APR (BT) APR as low as 0% 0% 11.99% - 20.99% (Variable) 0% intro APR on purchases for 6 months, then the variable standard purchase APR of 11.99% - 20.99%* 0% intro APR on balance transfers for 18 months, then the variable standard purchase APR of 11.99% - 20.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report)

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However, consumers should be aware that the card does feature interest rates that may be higher than the rates offered by other credit cards. After an initial 6 month 0% introductory APR (annual percentage rate) period, the rate will go to 11.99% to 20.99% depending upon credit worthiness. If you fall on the higher end of the scale, you will want to ensure you are paying the entire balance each month or the cash back rewards you accrue will just be going toward interest payments.

Despite the interest rate, there are three benefits that make the Discover More card appealing for many consumers:

Introductory Balance Transfer Offer

Most credit cards these days come with a 0% introductory balance transfer offer. However, these introductory rates typically last for just the first 6 months. The Discover More card offers the 0% balance transfer rate for the first 18 months of the card. This provides cardholders extra opportunity to whittle down their existing credit card balances without having to shell out cash toward interest payments.

There is a balance transfer fee that will be applied to the card, so you will want to take that into consideration before you take advantage of the offer.

After the introductory period ends, the remaining balance transfer balance will be subject to an APR between 11.99% to 20.99% depending upon creditworthiness.

Cash Back

The Discover More offers cardholders with an easy way to earn cash rewards. However, there is a spending threshold that has to be met in order to accrue the highest earnings. During the first $1,500 that is charged to the card annually, the cardholder will earn cash back at the rate of 0.25%. From $1,500 to $3,000, cardholders earn 0.50%. Once the $3,000 threshold is passed, cardholders will earn a full 1% on their purchases. When determining if the cardholder has met the earnings thresholds, Discover excludes all warehouse purchases and purchases that qualify for their 5% Cashback Bonus program.

There are also promotional periods where Discover More cardholders will earn 5% cash back. This is through the 5% Cashback Bonus program; cardholders must enroll in the program during each period in order to earn the bonus points. Once the cardholder has enrolled, they will earn the 5% on top of the 1% they are already earning. Common categories that are included in the program are travel, gas, groceries and restaurants.

Cardholders are able to redeem their accrued rewards in $20 increments. The spending thresholds can make it difficult to accrue points if you don’t use your credit card for all of your purchases. However, cardholders do have the opportunity to make the most out of their accrued points when they redeem them for gift cards. When they choose to redeem for gift cards, they are able to get up to twice the amount that they would have received in cash. Gift cards are available for more than 100 retailers, including Kohl’s, Bed Bath & Beyond, and AMC Theater. This is a great option for cardholders who actively shop at one of the gift card retailers or are looking for presents for their family members.

Write to Meghan Clark at meghan@creditdonkey.com

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Disclaimer: This content is not provided or commissioned by Discover. Opinions expressed here are author's alone, not those of Discover, and have not been reviewed, approved or otherwise endorsed by Discover. This site may be compensated through Discover Affiliate Program.

Disclaimer: This content was first published on October 1, 2011. This content may have been updated on January 31, 2012. Information including APR, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check Discover website for updated information.