Discover ≤ $200 Sign Up Bonus

[kevinjjc]

You can choose the bonus offer by using their CardBuilder: https://www.discover.com/credit-cards/get-discover/build-card/

•  $200 Cashback Bonus for spending $1500 in your first 3 months
•  $150 Cashback Bonus for spending $1000 in your first 3 months
•  $100 Cashback Bonus for spending $750 in your first 3 months
•  $75 Cashback Bonus for spending $500 in your first 3 months
•  $50 Cashback Bonus for spending $500 in your first 3 months

 

[kevinjjc]

Anyone itchin' to app for a Discover card?  

[SwiftTone]

I think this is a regular offer on Discover more if you pre-qualify for it. Back in April when I applied, I had the same offers. I took the $150/$1000 thinking it would give me more starting CL but apparently it doesn't affect it.

[WunderCard]

This is a trick!   Do the math.  The ROR on the cash back rates isn't linear.

$200 / $1500 = 13.3%

$150 / $1000 = 15%

$100 / $750 = 13.3%

$75 / $500 = 15%

$50 / $500 = 10%

As you can see, the $150 and $75 cash back deals actually give the best return on your spending over 3 months.  Going for the $200 deal would mean spending MORE to get LESS back.  How convenient!  They would need to offer $225 cash back for $1500 in spending to match the 15% rate.

[nickn86]

It's still a good deal if you're going to spending the money anyway and don't have too many other spend thresholds to meet for other introductory offers.

[Jutz]

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@nickn86 wrote:

It's still a good deal if you're going to spending the money anyway and don't have too many other spend thresholds to meet for other introductory offers.

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+1. My thoughts exactly. Decent deal, decent card too

[Kendro]

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@WunderCard wrote:

This is a trick!   Do the math.  The ROR on the cash back rates isn't linear.

$200 / $1500 = 13.3%

$150 / $1000 = 15%

$100 / $750 = 13.3%

$75 / $500 = 15%

$50 / $500 = 10%

As you can see, the $150 and $75 cash back deals actually give the best return on your spending over 3 months.  Going for the $200 deal would mean spending MORE to get LESS back.  How convenient!  They would need to offer $225 cash back for $1500 in spending to match the 15% rate.

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What if you spend over $1500 over 3 months in regular spending?  Don't go for the $200 as a matter of principle? 

[ccnewcc]

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@WunderCard wrote:

This is a trick!   Do the math.  The ROR on the cash back rates isn't linear.

$200 / $1500 = 13.3%

$150 / $1000 = 15%

$100 / $750 = 13.3%

$75 / $500 = 15%

$50 / $500 = 10%

As you can see, the $150 and $75 cash back deals actually give the best return on your spending over 3 months.  Going for the $200 deal would mean spending MORE to get LESS back.  How convenient!  They would need to offer $225 cash back for $1500 in spending to match the 15% rate.

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Hmm, you pose an interesting take on this.  I would like to know more.

I see this offer as CB and nothing more.  This isn't an annuity where you would be concerned about calculating RoR over a 3 month period.  This is a means of offering a CB savings.

So if money spent was done in the 1st month (and not spread out over 3 months) for a total of $1500, the savings in CB would be > than the amt of return of money spent in 3 months time.

So, Case in Point:  A round trip ticket and a hotel stay example:  

Total cost for trip is $1500.  If i opt for the 200/1500 then I save 200$ making my Total Trip Cost = $1300.

Total cost for trip is $1500.  If i opt for the 150/1000 then i save 150$ making my Total Trip Cost = $1350.

But I am intrigued by your take on this.  So please oblige and let me know your thinking on this 

[HiLine]

You guys are kidding, right?

[navigatethis12]

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@WunderCard wrote:

This is a trick!   Do the math.  The ROR on the cash back rates isn't linear.

$200 / $1500 = 13.3%

$150 / $1000 = 15%

$100 / $750 = 13.3%

$75 / $500 = 15%

$50 / $500 = 10%

As you can see, the $150 and $75 cash back deals actually give the best return on your spending over 3 months.  Going for the $200 deal would mean spending MORE to get LESS back.  How convenient!  They would need to offer $225 cash back for $1500 in spending to match the 15% rate.

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Clearly the only reason to take the lower offers is if you can not spend the higher amounts in three months. Not sure why they have two 500 offers, as you would have to be an idiot to choose the $50 one. If you are going to spend 1500 anyway, it would be incredibly silly to choose the 150 or 75, because then it goes down to 10% and 5%.