Important Note: This card has been discontinued and replaced by the newer Discover it Card for Students.
Recommending a credit card for college students is a risky proposition. Let’s face it: Students generally don’t have a great track record when it comes to managing their spending. Nevertheless, there are still some out there who are savvy enough to earn rewards on their spending without incurring crippling credit card balances and interest charges.
For such young adults, the Discover Student More Card is a good credit card to start with. It offers 1% cash back on all purchases, as well as a 0% introductory financing offer.
Key Features
- Sign-Up Bonus. New cardmembers receive a $20 bonus after making their first purchase on the card within three months.
- 0% Introductory Financing. New applicants will be able to carry a balance on purchases without interest for the first six months after opening an account. After the introductory financing period ends, cardholders will incur interest at a variable APR, depending on the applicant’s credit history.
- Standard Cash Back. Cardholders earn 1% cash back on all their purchases with no limits.
- Bonus Cash Back. Every quarter, cardholders have the opportunity to earn 5% cash back on purchases within particular spending categories, such as gas, entertainment, and restaurants. These bonus categories change every quarter. This bonus cash is limited to the first $1,500 in spending each quarter.
- No Annual Fees or Foreign Transaction Fees. Like many Discover cards, there is no annual fee and no foreign transaction fees for this product.
Advantages
- 0% Financing. Six months of interest-free purchases is a great deal on any card, let alone a product aimed at students.
- Cash Back Bonuses. Everyone who pays their balance in full should always be earning a reward for their spending. 1% is a nominal rate of return, but the 5% earned in bonus categories is exceptional.
- Interest Rates. This is not a low-APR credit card, but a low interest rate is not to be expected from a rewards credit card or a student card. Considering the nature of this card, the interest rates could be a lot worse.
- Excellent Customer Service. Discover is well-regarded for having great customer service. Discover boasts that all calls are handled by agents based in the United States.
- No Fees. Students with modest budgets should not be spending extra for a premium card with additional fees. The Discover card is one of a dwindling number of reward cards that don’t impose an annual fee.
Disadvantages
- 0% Financing. These offers are only advantageous if you pay off your entire balance before incurring interest. However, Discover knows that not everyone will do that. If this offer tempts students to incur debt that they can’t pay off in time, it is a serious drawback.
- Bonus Cash Back. Just like the financing offer, some students will find the bonuses as an encouragement to spend more, and students who are just learning to manage their finances don’t need that kind of incentive. Furthermore, the bonus cash back is limited each quarter to a mere $75.
- Changing Bonus Categories. It is a lot easier for reward cardholders to keep track of fixed bonus categories, rather than attempting to keep up with promotions that change every few months.
- No Promotional Balance Transfer Offer. The 0% financing applies to new purchases, but not to balance transfers. Many competing products offer 0% financing on balance transfers as well.
- Limited Acceptance. Fewer stores take Discover than MasterCard,Visa, or even American Express. Furthermore, Discover isn’t accepted in most foreign countries, which often negates the benefit of no foreign transaction fees.
Final Word
It is not easy to find a student card that offers low fees as well as some rewards. By combining valuable introductory financing and opportunities to earn bonus cash back, the Discover Student More Card can earn a place in the wallet of the most responsible students.
What are your thoughts on the Discover Student More Card?
