Which Student Discover Card Is Better
For college students navigating the world of credit cards, choosing the right option can be a crucial step towards building a strong financial foundation. Discover offers two main student cards: the Discover it® Student Cash Back and the Discover it® Student Chrome. Deciding which card is the better fit depends largely on individual spending habits and priorities.
This article aims to provide a balanced comparison of both cards, highlighting their respective strengths and weaknesses to help students make an informed decision. We will analyze their rewards structures, fees, APRs, and additional perks. We also aim to present data-backed insights and expert opinions.
Key Differences and Similarities
Both the Discover it® Student Cash Back and Discover it® Student Chrome offer $0 annual fee. This makes them accessible options for students on a budget. They also share key features like purchase protection and fraud liability coverage, providing peace of mind for cardholders.
Rewards Structure
The primary distinction lies in their rewards programs. The Discover it® Student Cash Back card offers 5% cash back on rotating categories each quarter (up to a quarterly maximum when you activate). Examples include Amazon.com, grocery stores, restaurants, or gas stations, then 1% cash back on all other purchases. These categories change quarterly and require activation to earn the bonus.
The Discover it® Student Chrome card provides 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1% thereafter. All other purchases earn 1% cash back. This structure offers a more consistent, albeit potentially lower, rewards earning potential for some users.
APR and Fees
Both cards have a similar APR range. This is variable and dependent on creditworthiness. Late payment fees may apply, so responsible card use is crucial to avoid unnecessary charges.
Sign-Up Bonus and Other Perks
Discover provides a unique sign-up bonus for both cards: a cash back match. Discover automatically matches all the cash back earned at the end of the first year, essentially doubling the rewards earned during that period. Both cards also offer good grade rewards, where students with a 3.0 GPA or higher can receive a statement credit each school year for up to 5 years.
Who Should Choose Which Card?
The Discover it® Student Cash Back is generally recommended for students who are organized and strategic spenders. These individuals are willing to track rotating categories and activate them to maximize their rewards. If your spending aligns with the quarterly categories, this card can yield higher returns.
The Discover it® Student Chrome is a better choice for students who prefer a simpler, more predictable rewards structure. If you spend significantly on gas and dining, this card provides a solid return without the need to track rotating categories. This is generally considered a more straightforward reward structure.
Expert Opinions and Data
According to credit card comparison websites, the Discover it® Student Cash Back often ranks higher in terms of potential rewards value. This is assuming that the user takes full advantage of the 5% categories. However, the Discover it® Student Chrome is frequently cited as a good option for beginners due to its ease of use.
"Choosing a student credit card is a pivotal step in building credit. It's not just about the rewards, but also about responsible financial management," says Ted Rossman, a senior industry analyst at CreditCards.com.
The Bottom Line
Ultimately, the "better" Discover student card depends on individual spending habits and preferences. Students should carefully evaluate their spending patterns, considering whether they prefer the potential for higher rewards with the Discover it® Student Cash Back or the simplicity and consistency of the Discover it® Student Chrome. Responsible use and on-time payments are paramount for building a positive credit history regardless of the card chosen.
