Full review of the Discover it® Cash Back credit card (2024)

By David Carlson / Last updated: January 27, 2024 / Credit Cards, Lifestyle, Personal Finance

There are hundreds of credit card options out there, so how does someone go about choosing their first credit card?

“What credit card should I get?” is a question I hear often. Many who are picking out their very first credit card are overwhelmed by the options.

Not all credit cards are available to those who have never opened one. Many require good or excellent credit scores. But if you haven’t opened a credit card you haven’t had time to build a solid credit history that would qualify you for a wide range of cards.

There’s a few things I think people should keep in mind when opening their first card, such as opening one with no annual fee, using only a small percentage of your available credit, and more. We’ll get into all of that, but first let’s get to what I recommend for a first credit card.

The Best First Credit Card

The card I recommend for a first credit card is the Discover it® Cash Back card.

Discover was my first credit card. I opened my Discover card about a decade ago and have been using it ever since.

Special Offer: When you use our link to sign up (any link on this page), you will get a $100 statement credit when you record your first purchase within three months.

Here’s some reasons I think the Discover it® Cash Back card is the ideal first credit card:

1) No Annual Fee

When it comes to a first credit card, having no annual fee is the most important feature I look for. If a card has an annual fee, it’s simply not a good first credit card.

Your credit score is, in part, based on your credit history. If you open a card with no annual fee you can keep it open forever even if you decide to stop using it and move on to a different card. If you open a card with an annual fee you will likely end up closing it, perhaps even within a year or two of opening it.

The Discover it® Cash Back card does not have an annual fee, so it fits the bill.

2) Solid Rewards

While it’s true that there is no huge sign-up bonus for the Discover it card, it does have solid rewards you will be able to take advantage of.

• 1% Cash Back on Every Purchase
  
  The Discover it® Cash Back card has always offered 1% cash back, regardless of where the purchase was made, what was purchased, etc. No matter what you will always get 1% cash back on every purchase.

• 5% Revolving Quarterly Cash Back Categories
  
  Each quarter of the year Discover offers a new 5% cash back offer. For example, this quarter it may be 5% cash back on restaurants, up to a certain amount (i.e. $1,500). Next quarter it could be Amazon purchases. There is a new category every quarter.
  
  This is a great perk if you take advantage of it. 5% cash back is not something you will find on many other cards.

• Partner Gift Cards
  
  One of my favorite benefits of the Discover it® Cash Back card is the partner gift card program. My wife and I have used this for years and it’s always nice to get a “free” gift card.
  
  It’s a really simple program. If you use your cash back rewards to redeem a gift card, you will get the gift card at a discounted rate. For example my two personal favorite gift cards to get are $50 Starbucks and Chipotle gift cards. You can get either of these for just $45 of your cash back, which means you get another free $5 on top of the $45 you already accumulated through cash back rewards.
  
  There are currently 100+ participating stores/brands and some have even better deals than what I described for Chipotle and Starbucks. For example, a $50 Gap gift card can be had for just $40 in cash back rewards. A $50 AMC gift card can be had for $45 in cash back rewards, and so on.

3) Free FICO Credit Score

If you get a Discover it® Cash Back card you have complimentary access to your FICO credit score. This perk is no longer unique, as many if not most credit cards now offer a free credit score. With that being said, I like how the Discover FICO credit score shows your total number of accounts, length of credit history, number of credit inquiries the past 12 months, and what your credit utilization is.

Special Offer: When you use our link to sign up (any link on this page), you will get a $100 statement credit when you record your first purchase within three months.

Tips for People Getting their First Credit Card

It’s important to use your first credit card responsibly. It can be a great tool to build your credit history, but only if you use it right. It’s best to be disciplined from the get-go so you don’t fall into the trap and habit of maxing out your credit cards.

Here’s 3 tips for people getting their first credit card:

• Treat your credit card like cash
  
  The fact that you are getting your first credit card means that you are not in credit card debt. You have an opportunity to never get into credit card debt, but it requires you to immediately get in the mindset of treating your card like cash.
  
  If you don’t have the money, don’t charge it, and make sure you pay off your credit card in full each month.

• Only use 1/3 of your available credit at any one time
  
  Using only 1/3 of your available credit may not seem like common sense, but your credit score is impacted by how much credit you utilize. So if you were approved for $1,000 in credit you should keep the balance on your card below $333, or less, at any given time.
  
  There is no penalty for making multiple payments towards your credit card throughout the month, so consider taking that approach if you are worried you will go above the 1/3 credit utilization threshold.
  
  This can be difficult with your first credit card. There is a good chance you will only be approved for a small amount, such as $500. 1/3 of that is not much, so you’ll need to limit what you charge to your card as well as pay it off diligently.

  That brings us to our next tip of requesting an increase in your credit after 6-12 months.

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• Request a credit increase after 6-12 months
  
  Along the same lines of only using 1/3 of your available credit, you will also want to consider requesting a credit increase after 6-12 months. If you have been consistently paying off your card you are likely in a good position to have your request approved.
  
  How do you request a credit increase? With Discover it’s an option within their online dashboard. If you aren’t approved, don’t sweat it. You can wait another few months and submit the request again.

To summarize, I recommend the Discover it® Cash Back card as a first credit card. It has no annual fee, solid rewards, and a free FICO credit score.

When you apply through our link, you get a $100 statement credit when you make your first purchase within 3 months.

To be clear, this isn’t the only option for a first credit card. There are other good cash back and rewards credit cards that you may want to consider for your first credit card. You can browse the other options here.