Unlike Visa and MasterCard, Discover is both the lender and the credit card payment processor. This means you get to have a full range of services with this type of credit card. As one of the major credit card companies, it was originally founded by Sears.
What Are the Pros and Cons of Having a Discover Card?
They now offer debit card solutions and many lenders offer a Discover card option if Visa, MasterCard, or American Express isn’t wanted. If you’re thinking about applying for a Discover card, then here are some of the pros and cons to consider about this line of credit.
Here Are the Pros of the Discover Card
Most credit card applications are approved or denied in 30 seconds. You’ll be able to know for certain if you’re getting a Discover card almost immediately. Although some complicated credit profiles may take up to 30 days for Discover to fully review, most applications are going to have an online answer in about 30 seconds or less.
It’s got one of the best rewards programs. Although the entire 5% cash back program has been revamped for a rotating categories program, you’ll still be getting the most cash back on every purchase when compared to other major credit card brands. There are even partner retailers that will discount a purchase by up to 20% just by using the Discover card to pay for purchases.
You may have the option to build your own card. Building your own card should go beyond being able to assign a specific picture to your credit card. It should also mean that you get to set some of the terms of the card. Discover allows you to do that by selecting your rewards program benefits, what your APR introductory periods are, and what other welcome bonuses may be associated with your card.
Here Are the Cons of the Discover Card
It typically requires good to excellent credit to be approved for a Discover card. Unless you are applying for the student Discover card, your credit score generally needs to be above 700 in order to be approved for this line of credit. Every consumer has a unique financial history, however, so the credit score is not the only factor that is being considered.
It is not widely accepted, even domestically. Discover is not widely accepted as a point of sale payment option, even with domestic retailers. Some countries do not even accept the Discover card at all. If you plan on traveling internationally, then you way wish to research the viability of using this line of credit as you travel. Look for the Discover logo at a retailer domestically to see if it is accepted.
There’s always a balance transfer fee. Although you might choose to benefit from an extensive low APR introductory period for a balance transfer, there is always a fee associated with this practice. You’ll be paying 3% of the entire balance as a fee and there are minimum fees that apply – you won’t be paying just $1 if you transfer a $100 balance to your Discover card.
View more information about Discover Credit Cards.