The Discover it® Student Cash Back Card is a perfect credit card for first-time applicants and students looking to build credit. As a $0 Annual Fee card with no foreign transaction fees, awesome cash back rewards, and late payment forgiveness, it’s a no brainer.
- 5% rotating cash back rewards categories, double cash back during first year
- $20 statement credit each year for “good grades” for up to five years (GPA 3.0 or better)
- Late Payments don’t raise APR
- No late fee on first late payment
- No foreign transaction fees
- Free FICO Credit Score every 30 days
Cash Back Rewards
The Student Cash Back card offers 5% Cash Back on rotating categories throughout the year, as well as 1% Cash Back on everything else. Additionally, any cashback rewards earned during the first year of account ownership will be doubled. You can only earn up to $75 cash back per quarter, but during the first year this limit is essentially $150 per quarter since your rewards will double at the end of the year.
2019 Discover it® Student Cash Back Rotating Categories:
- January through March: 5% off Grocery Stores (excludes Walmart + Target)
- April through June: 5% off Gas Stations, Uber and Lyft (Uber Eats counts, too!)
- July through September: 5% off Restaurants and PayPal (online transactions count both through eBay and the PayPal website)
- October through December: 5% off Amazon.com, Target and Walmart.com
Being an authorized user on a credit card means that you are authorized to use another person’s credit card in your own name. You get your own “copy” of the card but have none of the obligations of the primary account holder.
Who should become an Authorized User?
Anyone with no credit history or young credit history can benefit from becoming an authorized user. Parents commonly add children as authorized users to help them build their otherwise wholly independent credit history.
If your credit score is sub-par you can also benefit from becoming an authorized user. The primary account holder’s activity will boost your score as well, provided they are using their card responsibly.
Providing the primary account holder follows good credit practices, the authorized user can receive quite a significant credit score boost in a short time after being added to the card. Payment History, Credit Utilization, and Length of Credit History combined account for 80 percent of your FICO credit score. Being added as an authorized user to an established credit account means you will share the benefits of the primary account holder’s on time payments, low utilization, and old age of account.
The authorized user can spend whatever balance they like on the card and has no obligation to pay any amount. However, most card issuers will let you set a limit on the authorized user card. With or without a limit, all responsibility for use of the card falls on the primary account holder regardless of who it was used by. Additionally the authorized user only benefits when the primary account holder uses the card responsibly. A late payment impacts everyone named on the card, so make sure the primary account holder has good credit history before being added to their card.