Is Discover a good credit card? (2024)

Is Discover a good credit card?

Discover

is a good credit card company, ranking third-best in customer satisfaction and offering cards with $0 annual and foreign transaction fees. Plus, Discover rewards users with at least 1% cash back on purchases and will match new cardholders' earnings from their first year as a special anniversary gift.

Is Discover card worth having?

Cardholders that don't mind a little elbow grease to make their rewards cards shine will find the Discover it® Cash Back is one of the best no-annual-fee credit cards for low rates and fees, cash back, first-year offers and customer service.

Is it hard to get a Discover credit card?

If you want to get a Discover® credit card, you may be wondering how hard it is to get approved. Your credit score plays an important role here. The best Discover credit cards are aimed at consumers with FICO® Scores of 670 or above. If you have good or excellent credit, that helps quite a bit.

Is it better to get a Visa or Discover card?

Visa, one of the biggest differences you'll find is that Discover is both a credit card issuer and a card network while Visa is only a network. Visa is more widely accepted, too, and it has more supplemental benefits as well as more cards to choose from.

Are Discover cards good for building credit?

For example, the Discover it^® Secured credit card can help you build your credit if you responsibly use your account and pay your other loans on time. Be sure to make at least your minimum monthly payment due on time. It may also help to pay down existing credit card debt and dispute errors on your credit report.

What is the disadvantage of Discover?

Many of its accounts have no fees including no maintenance fees, insufficient funds fees or stop payment fees. Con: Limited account options. Discover offers only one checking account, savings account, and money market account. This can be a drawback for those who have more complex financial needs.

What are the cons of having Discover it card?

Depending on your spending patterns, it may be difficult to spend $1,500 in a quarter in these categories. Compare this to the Citi Custom Cash^® Card, which awards you 5% back in your highest category of spend each month. Another drawback is that you have to activate your bonus cash back each and every quarter.

What credit limit does Discover give?

How much you get is determined by your creditworthiness. The only exception is if you have Discover it® Secured Credit Card. In that case, your credit limit is the amount of money you put down as a security deposit, at least $200 and up to $2,500. But every other available Discover card has a credit limit of $500+.

What is the starting limit for Discover it?

The Discover it® Cash Back credit limit is at least $500 for all cardholders. It has the potential to be higher, too. Discover does not disclose a maximum credit limit, but there are reports of some cardholders receiving credit limits between $2,000 and $11,000.

How many credit cards are too many?

Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many. The important thing is to make sure that you use your credit cards responsibly.

Why is Discover card so popular?

Bottom Line. Discover offers straightforward credit card products with no annual fees, solid rewards and favorable balance transfer terms.

What are the 4 major credit cards?

The four major credit card networks are Mastercard, Visa, American Express and Discover.

Where does Discover not work?

One major national chain outlet that doesn't accept Discover at any outlets is Costco, which only honors one credit card brand at its members-only warehouse stores, tire centers and gas stations. In 2016, Costco ended a 16-year partnership with American Express, and it currently accepts only Visa cards.

What is the #1 credit card to have?

The best credit card overall is the Wells Fargo Active Cash® Card because it gives 2% cash rewards on all purchases and has a $0 annual fee. For comparison purposes, the average cash rewards card gives about 1% back. Cardholders can also get an initial bonus of $200 cash rewards after spending $500 in...

What credit card is best for beginners?

Does closing a credit card hurt your credit?

Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.

Why is Discover so hard to get?

Credit card companies will question why you need so much credit. If you've opened multiple cards with other card issuers in the last six months to a year, Discover may decide not to issue you a card. Recent credit inquiries: A high number of credit applications also makes you a riskier applicant.

Why does Discover decline?

Key points about: declined credit cards

If you reach your credit limit or make a purchase that exceeds your available credit, your card may be declined. A large purchase that doesn't fit your spending patterns may appear suspicious to your credit card company, so they may decline the transaction.

What happens if you don't use your credit card Discover?

Your credit card account may be closed due to inactivity if you don't use it. You could overlook fraudulent charges if you're not regularly reviewing your account. If your credit card account is closed, it could negatively impact your credit score.

Why is Discover card not popular?

There's about one-seventh the number of Discover cards as Visa cards, so merchants may not have as much of an incentive to accept them. Discover sometimes charges merchants more for card acceptance than either Visa or Mastercard. Discover hasn't pushed into international markets as aggressively as its rivals.

What is Discover it card best for?

The Discover it® Secured Credit Card is one of our top choices for those who need to build their credit history. Cardholders will need to put down a deposit (the amount becomes equal to the cardholder's credit limit), but it offers what few cards in its class do—the ability to earn decent rewards without an annual fee.

What type of credit card is the best?

How much should I spend if my credit limit is $1000?

The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%. If you have a card with a credit limit of $1,000, try to keep your balance below $300.

How often does Discover increase credit limit?

Discover will automatically increase the credit limit for eligible credit card accounts based on periodic account reviews that typically begin six months after an account is opened. Automatic credit limit increases are done at Discover's discretion, and there's no guarantee when one will occur.

How does Discover raise credit limit?

Account and payment history

You'll have an easier time getting approved for a higher credit limit if you have a good account history—that is, you've made on-time payments and keep your credit utilization low. If you have a history of missed or late payments, you may be considered a higher risk to creditors.