Discover was the first card to give cash back. It also didn't charge an annual fee. I think it was a 1/4% cash back for the first $3000 and 1% after that. I got this card when it first came out. The new Discover card is 1% cash back on all purchases. I also got this card because my daughter referred me and we both got $100 when I was accepted and spent a minimal amount.
Discover does offer bonus 5% cash back for certain purchases. The bonus categories are varied, change on a quarterly basis, and have a limit of $75 bonus on $1500 of purchases. For example, this quarter (April - June), restaurant and home improvement store charges receive a 5% cash back.
Cash back rewards can be used as follows:
- Payoff card balance.
- Deposit to linked bank account.
- Purchase gift cards at a 5-20% discount.
I don't don't link to a bank account. I originally got gift cards but only when I expected to use it right away. Lately, I've been paying part of my card balance.
Disclosure: I was not compensated by Discover for this post.
This is not financial nor credit card advice. Please consult a professional advisor.
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