I don't get the appeal of the Discover Cash back match?

[longtimelurker]

---

@JNA1 wrote:
I'd argue that it is the best SUB there is if somebody is going to use one card. Last year, the Discover It was my only credit card (I ad the Summit/Car Care card, but its limited to Summit, gas stations, garages, and parts stores with no rewards structure). We funneled all of spending except mortgage and car payments through it for 11 months until I got a couple more cards. For the year, we spend right at $46K and earned $691.62 and Disco matched it for a total of $1383.24. It averaged almost 3.1% cash back for that first year, which would make it overall the best card there is as far as cashback, if it wasn't a one year thing. I'm averaging 3.7% cashback through 3 months with my current card lineup, but the Disco for the first was definitely much simpler to manage. Short of the Alliant Signature Visa or the Discover Miles, IDK of another single card that would yield that kind of return in a year.

---

It looks like a lot of the reward comes from the doubling to 2%  (using a plain 2% would have given you $920 throughout the year) so it wouldn't take much of a SUB on a higher earning card to do better, but if 1 card is really important.  $46K would have allowed for a few subs!

[wasCB14]

BofA Premium wins for the first $27k of first-year off-category spend.

($500-$95)/(3%-1.5%)

Add in Platinum Honors and the airfare extras credit (but not GE or whatever, and no travel/dining spend) and that figure rises to almost $135k of first-year off-category spend.

($500-$95+$100)/(3%-2.625%)

[Anonymous]

---

@Anonymous wrote:

Discoverer Cash back Match is one of the unique SUB (sign up bonus) in the credit card application game. It seems to be well received and like according to various post read here.

However, when you really think about Discoverer Cash back Match, it's the worse SUB of any credit card. It forces you to spend much more money to earn a commensurate cash back.

For example, the Discover It Business card is 1.5% unlimited cash back with the first year cash back matched. This effectively gives you the ability to earn 3% cash back on all credit card purchases the first year you own the card.

A typical cash back offer, I have observed, $150 cash back after spending $500 in three months. Spending $500 ,organically, in three months is child's play for me and I presume for most people.

How much would you have to spend to make the same $150 cash back on the Discover card? Take the $150 and divide by 3% earn rate:
$150 / .03 = $5000

Yes, you would have spend $5000 with the Discover card, over the course of the year to earn that same cash back. I would rather only spend $500 to earn $150 instead of spending $5000.

Am I missing something.

---

Discover is best if you are going to use the card exclusively for a year.  For example for the personal Discover It card I was doing home remodeling at the time and using it for all my general spend as well as for category spend and I got a $400 cashback match.  That was with me not putting all gas spend on the card since I had the Sam's Club Mastercard at the time which gives 5% back on gas so I only used the Discover It card when gas was a category since 10% back is better than 5%.  So yes Discover products are very very nice if your going to put year long spend on them. 

As far as the Discover IT business card goes if you are going to spend 60K in a year on it that will give you $1,800.00 cashback in the first year.  That's great amount of cashback by any standard.  Discover It Business card is really for business expenses which in the first year is excellent after that it's average with on 1.5% back on all purchases.

OP if your looking just to get a quick signup bonus then yes Discover is not great for that.  However, if you are going to put alot of spend on the card in the first year the cashback you'll get is awesome.  After the first year the Discover It card is still a great 5% rotating category card which is arguably better than chase freedom especially if you don't use transfer partners for Ultimate Rewards.  The Discover It Business and Discover It Miles are also still 1.5% cashback cards at the end of the first year which while not excellent is still average and not horrible.   

[Anonymous]

---

@longtimelurker wrote:

---

@JNA1 wrote:
I'd argue that it is the best SUB there is if somebody is going to use one card. Last year, the Discover It was my only credit card (I ad the Summit/Car Care card, but its limited to Summit, gas stations, garages, and parts stores with no rewards structure). We funneled all of spending except mortgage and car payments through it for 11 months until I got a couple more cards. For the year, we spend right at $46K and earned $691.62 and Disco matched it for a total of $1383.24. It averaged almost 3.1% cash back for that first year, which would make it overall the best card there is as far as cashback, if it wasn't a one year thing. I'm averaging 3.7% cashback through 3 months with my current card lineup, but the Disco for the first was definitely much simpler to manage. Short of the Alliant Signature Visa or the Discover Miles, IDK of another single card that would yield that kind of return in a year.

---

It looks like a lot of the reward comes from the doubling to 2%  (using a plain 2% would have given you $920 throughout the year) so it wouldn't take much of a SUB on a higher earning card to do better, but if 1 card is really important.  $46K would have allowed for a few subs!

---

Discover It card is really great for someone who doesn't have a lot of credit cards.  Someone just getting started living on their own getting approved for the Discover It card and putting all spend on it in the first year will find the best value from it.  Or those who are older and didn't credit cards when they were younger because they saw others in credit card debt growing up and were leery about getting credit cards for a long time because of that.  For them making 50K, 60K, 70K or more a year and Discover It being their first real rewards credit card and them putting all their spend on is going to work out great.  They get the Discover It card first use that for a year and then go apply for the Double Cash card, Chase Freedom, etc. after that. 

[notmyrealname23]

I'm using it for 2020 at a minimum because I'm still in a credit rebuild to the Chase/Citi/real premium cards, and the bonus categories in Q1/Q3/Q4 align with planned spend. Q2 doesn't because I have better ways to do Uber/Lyft (mostly) and don't own a car or do warehouse store shopping, but even there I'll get a little bit in. I have a different card I need to wring for a SUB in early 2020 and then I'll be done for the year, and given that I have Chase 5/24 concerns for 2021 I can't be going hog wild after SUBs (DiscoverIt Cashback is a perfect garden card). It's also no AF and as long as those categories exist it's competitive with Chase Freedom even after year 1 if you don't have the CSR/CSP.

Right now after I milk and churn a card, my spend is going to be:

- DiscoverIt for bonus categories - 2% cashback (Fidelity Rewards domestically, Capital One Venture international or domestic, SUBs were in 2019)

That's going to be something like 3%+ return. In a perfect world I would have a better card for (not inconsiderable) travel expenses, but again, still in a rebuild (and Amex is a lol, you burned us, fuggedaboudit).. HOWEVER, Discover lets me burn cashback for Hotels.com gift cards at 10% off, which I can use for defraying travel expenses, so it's not the worst option ever.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

Discoverer Cash back Match is one of the unique SUB (sign up bonus) in the credit card application game. It seems to be well received and like according to various post read here.

However, when you really think about Discoverer Cash back Match, it's the worse SUB of any credit card. It forces you to spend much more money to earn a commensurate cash back.

Am I missing something.

---

Discover is best if you are going to use the card exclusively for a year. 

---

I would argue that Discover It with the 5% categories matched to 10% is best IF YOU CAN MAX OUT THOSE  CATEGORIES.

The match of 1% to 2% is relatively meaningless when other options (BBP, Citi DC) already offer 2% (or more than 2% in points) for noncategory spend.

So the juice is in the extra 5% or so you get on the category spend over what you can get elsewhere.  And that extra 5% is worth more $ if you can max out those categories.

Is that as good as spending that money hitting SUBs?  No. But 10% back is probably more than most retention offers.

[KLEXH25]

Discover It categories are all things I spend my money on, so when they match the first year and I'm essentially getting 10% back on my purchases, I'm ok with that. Not to mention 0% APR for 14 months. If all you're looking for is chasing SUBs, then sure Discover is not good for that. But a lot of us still find value in the 5% categories well past the first year, as well as additional BT offers and extended 0% apr offers. 

[Anonymous]

---

@KLEXH25 wrote:

Discover It categories are all things I spend my money on, so when they match the first year and I'm essentially getting 10% back on my purchases, I'm ok with that. Not to mention 0% APR for 14 months. If all you're looking for is chasing SUBs, then sure Discover is not good for that. But a lot of us still find value in the 5% categories well past the first year, as well as additional BT offers and extended 0% apr offers. 

---

I use the 0% APR on new cards and store away the full payment to earn interest. Depending on the spend and length of the promo, I can usually grab at least an additional $200 (taxable interest) on a new card, thus expanding the "SUB".

[Anonymous]

As others have pointed out, this is a minimum 2% card for the first year and potentially 10%.
You Kay attention to categories and make sure you've clicked into it.

Another perk is zero interest for the first 14 months also.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

Discoverer Cash back Match is one of the unique SUB (sign up bonus) in the credit card application game. It seems to be well received and like according to various post read here.

However, when you really think about Discoverer Cash back Match, it's the worse SUB of any credit card. It forces you to spend much more money to earn a commensurate cash back.

Am I missing something.

---

Discover is best if you are going to use the card exclusively for a year. 

---

I would argue that Discover It with the 5% categories matched to 10% is best IF YOU CAN MAX OUT THOSE  CATEGORIES.

The match of 1% to 2% is relatively meaningless when other options (BBP, Citi DC) already offer 2% (or more than 2% in points) for noncategory spend.

So the juice is in the extra 5% or so you get on the category spend over what you can get elsewhere.  And that extra 5% is worth more $ if you can max out those categories.

Is that as good as spending that money hitting SUBs?  No. But 10% back is probably more than most retention offers.

---

Considering the fact the Discover It card tends to be the first real rewards card for a lot of people them using it for a year exclusively makes a lot of sense.  Also not everyone is going to get the double cash card right way or at all for that matter due to it being .5% better rate then a 1.5% card but not having a bonus on it and the card charging a foreign transaction fee makes it not the greatest card in the world. The BBP also has the same issues with it ocassionally having a bonus and MR points value can be anywhere from $.004 to over $.02 so YMMV in regards to using that card as well.    

Again like I've stated in a previous post the Discover It card should really be someone's first real rewards credit card.  It was for a lot of us and that is why the card is so well liked and Discover itself for that matter.