Discover Student Credit Card Bonus: 5% Cashback

April 25, 2010 No Comments »

Discover Bank, a leading provider of cash back credit cards, currently has a fairly nice bonus offer for their new student “mix tape” credit card customers.

From April until June, card members can earn 5% cash back bonus on up to $400 in home and fashion purchases.

This reward structure rotates between different sets of category purchases. After the fashion related bonus ends in June, the 5% cash back can then be applied to gas, hotels and movies throughout the summer (through September), the categories then shift back to fashion and restaurant purchases next Fall.

Did you know? The “Mix Tape” student credit card by Discover was the winner of a card design contest and it received roughly a quarter of a million votes! Check out the 5 most creatively designed credit cards here.

The student credit card by Discover Bank also features a nice 0% APR intro rate for the first 6 months. The APR then moves to the standard variable rate of between 15.99 and 19.99% APR. We would discourage students from taking cash advances however, because the APR associated with this is a much higher 23.99%.

Related: Is your credit APR too high? Here are our top 5 ways to bring it down quickly.

We like this card primarily because it’s a decent way for students to start building some credit. The one aspect of this card where we foresee a potential pitfall is with the ‘special intro rate.’ A zero percent intro APR for promotional period of time is solely offered by the issuer to encourage spending. We strongly advise students (especially those with no jobs!) to not get sucked into overspending during the promotional period. Keep in mind, the default rate after the promotion could hit you pretty hard. We suggest using this card primarily for emergencies and the cash back category purchases.

Other Facts from the Fine Print to pay attention to:

- Your due date is at least 25 days after the close of each billing period.

- They will not charge you periodic finance charges on new purchases, or any portion of a new purchase.

- This card comes with zero annual fees.

- All cash advance transaction fees charge 5% for each cash advance, with a minimum of $10 and no maximum.

- Late fee of $19 on balances up to $250 and $39 on balances over $250.

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