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Discover it – Which Offer Should You Apply For?

discover itEarlier this year, Discover ceased offering most of its products and unveiled their new “it” card. The “it” card features 1% cash back on all purchases, and 5% back on purchases from selected categories of merchants that change each quarter.

But in addition, “it” also features 0% APR promotional financing on both new purchases and balance transfers. In fact, prospective cardholders can apply for either of two versions that are identical except for the terms of the interest free financing.

Offer #1: 14 months of interest free financing on both new purchases and balance transfers

This offer features 14 month promotional financing periods for both new purchases and balance transfers. This version will be ideal for cardholders who can reasonably expect to pay off their credit card debt in about a year, and want to enjoy interest free financing on new purchases during that time.

  • 0% intro APR on purchases & balance transfers for 14 months—then a variable purchase APR applies, currently 10.99% - 22.99%. A 3% fee applies to each transferred balance.
  • Over 5,000 cardmembers rated 4.8 out of 5 stars* and now Discover 'Ranked Highest in Customer Satisfaction with Credit Card Companies in a Tie' by J.D. Power*.
  • 5% cash back for online shopping and department store purchases on up to $1,500 - Oct. through Dec. 2014 when you sign up*. 1% cash back on all other purchases.
  • Free FICO® Credit Score online and on monthly statements*.
  • No annual fee, no late fee for your first late payment - APR won't go up for paying late, no overlimit fee and no foreign transaction fee.*
  • Each Discover purchase is monitored. If it's unusual, you're alerted by e-mail, phone or text-and never responsible for unauthorized Discover card purchases.
  • 100% U.S.- based customer service—anytime, day and night.
  • *See rates, rewards, free FICO® Credit Score terms and other info by clicking 'Apply.'
Purchases Intro
Balance Transfers Intro
Regular APR
Annual Fee
Credit Needed

0% for 14 months*

0% for 14 months*

10.99% - 22.99% Variable*

$0

Excellent Credit


Offer #2: 18 months of interest free financing on balance transfers, but only six months on new purchases

This version of  “it” is kind of a wild card. This appears to be designed for applicants who want to take advantage of the full 18 months in order to pay off their credit card balance that they transferred. But at the same time, cardholders will run out of interest free financing on new purchases a year before their terms for the balance transfer expire.

But in addition, those who accept this offer should be advised that after six months, Discover will apply the minimum payment to the balance transferred, not any balance created from new purchases. Due to a loophole in the CARD Act, only payments above the minimum must be applied to the highest APR balance.

Therefore, this card makes the most sense for people who do not need it to make new purchases, or those who have the financial flexibility to pay both the minimum payment and cover the cost of any new purchases made after six months.

  • 0% intro APR on balance transfers for 18 months—then a variable purchase APR applies, currently 10.99% - 22.99%. A 3% fee applies to each transferred balance.
  • 0% intro APR on purchases for 6 months. Then the variable purchase APR applies, currently 10.99% - 22.99%.
  • Over 5,000 cardmembers rated 4.8 out of 5 stars* and now Discover 'Ranked Highest in Customer Satisfaction with Credit Card Companies in a Tie' by J.D. Power*.
  • 5% cash back for online shopping and department store purchases on up to $1,500 - Oct. through Dec. 2014 when you sign up*. 1% cash back on all other purchases.
  • Free FICO® Credit Score online and on monthly statements*.
  • No annual fee, no late fee for your first late payment - APR won't go up for paying late, no overlimit fee and no foreign transaction fee*.
  • Each Discover purchase is monitored. If it's unusual, you're alerted by e-mail, phone or text-and never responsible for unauthorized Discover card purchases.
  • *+See rates, rewards, free FICO® Credit Score terms and other info by clicking 'Apply.'
Purchases Intro
Balance Transfers Intro
Regular APR
Annual Fee
Credit Needed

0% for 6 months*

0% for 18 months*

10.99% - 22.99% Variable*

$0

Excellent Credit


What both cards offer

Despite their differences, these cards are mostly the same. They both have no annual fee, no foreign transaction fee, and the same rewards program. In addition, cardholders will have their first late payment waived automatically. And finally, Discover preserves their strong reputation for customers service by boasting of “100% U.S. based customer service available any time.”

By understanding the differences between these two offers, applicants can chose the one that best meets their needs.

Editor's Note: This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by the Citi or any of the other companies whose products are featured in this content.

About the author

Jason Steele

Jason Steele is a freelance journalist specializing in personal finance and travel and is recognized as an expert in credit cards. He is a regular contributor to many of the top personal finance sites such as Wise Bread and Money Talks News. His work has been frequently carried on mainstream news outlets such as MSN Money, Yahoo, Finance, and Business insider.

Jason lives in Denver Colorado with his wife and two daughters.

– has written 325 posts.

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