The Ultimate Guide to Credit Cards
Tuesday, March 19, 2024

Discover it® Balance Transfer Review

Eric Bank

By: Eric Bank

Eric Bank
Eric Bank

Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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Editor: Jon McDonald

Jon McDonald
Jon McDonald

Jon leverages 15-plus years of journalism expertise to inform financial consumers about emerging trends and companies making an impact in the industry. He is most knowledgeable in the areas of budgeting, credit card rewards, and responsible credit use. Jon has a passion for writing and editing, and his articles have appeared in publications produced by The New York Times.

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Reviewer: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Discover it® Balance Transfer Review

Rated 4.9 /5.0 ★★★★★

Balance transfers allow you to consolidate your credit card debt into a single account and save on costly interest fees. Most cards for good credit (and some for fair credit) support balance transfers, but all have varying promotions and terms you must meet to qualify for interest-free financing.

The Discover it® Balance Transfer card is a leading option in the space. We’ll take a closer look and compare its benefits to three other balance transfer cards to see which one offers the most value. One of them may fit your financial requirements perfectly.

What to Know About The Card:

  • The card offers a 0% Intro APR (18 months) on balance transfers, which is longer than the typical 15 months you’ll see from competing banks. The card’s standard APR resumes once the promotional period ends.
  • It also offers a short 0% Intro APR (6 months) on purchases, after which the regular rate applies.
  • Good credit is required for approval
  • Unlike some of its competitors, this card pays cash back on eligible purchases and provides new cardmembers with unlimited Cashback Match on the cash rewards posted during the first 12 months after account opening.

Credit & Income Requirements

You need good credit to qualify for the Discover it® Balance Transfer card. A FICO score of 670 or higher should be sufficient. You must collect enough income to afford the monthly minimum payments. This required amount varies directly with your credit line.

You must also be a US resident, age 18 or older, with a Social Security number and email address. In addition, the online application form will collect your employment status, monthly housing/rent payment, and total gross income.

You can learn more about the card and apply directly on Discover’s website by clicking the Apply Now button below:

Discover it® Balance Transfer Review

at Discover Card'ssecure website

BEST OVERALL RATING

★★★★★

4.9

OVERALL RATING

  • INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
  • Redeem your rewards for cash at any time.
  • Your account may not always be eligible for balance transfers. Balance transfer eligibility is determined at Discover’s discretion.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
  • No annual fee.
  • Terms and conditions apply.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 6 months
0% Intro APR for 18 months
17.24% - 28.24% Variable APR
$0
Excellent/Good

You should get an immediate decision when you apply. You can e-sign the cardmember agreement if you receive a thumbs-up, but read it over carefully first. The issuer does a hard credit pull when you formally apply, which may have a minor impact on your credit score. Discover expedites its credit card shipments, so you should receive yours within five days.

Discover also allows you to prequalify for the card without a hard credit check, but success does not guarantee final approval.

Benefits & Drawbacks

The following chart summarizes the benefits and drawbacks of the Discover it® Balance Transfer card. This attractive credit card clearly provides much value and little downside.

BENEFIT DESCRIPTION
Introductory APR 0% Intro APR (18 months), after which the regular APR applies.
Cashback Rewards You earn cash back on all eligible purchases.
Cashback Match Discover matches all the cash back new cardmembers earn at the end of the first year.
Annual Fee $0
Credit Score Access You receive free access to your FICO credit score.
Customer Service Discover offers excellent 24/7 US-based customer service support.
Foreign Transaction Fee None
First Late Payment Amnesty The card waives the penalty fee on your first late payment.
Security and Privacy The card provides identity alerts and instant card freeze.
Balance Transfer Fee The card charges a fee for each balance transfer.
Good Credit Requirement The card requires a good to excellent credit score for approval.
Complex Rewards You must activate the rotating bonus category each quarter. Limits apply to the top rewards tier.
Acceptance Abroad Foreign merchants do not accept Discover as widely as Visa and Mastercard.

DRAWBACK DESCRIPTION
Balance Transfer Fee The card charges a fee for each balance transfer.
Good Credit Requirement The card requires a good to excellent credit score for approval.
Complex Rewards You must activate the rotating bonus category each quarter. Limits apply to the top rewards tier.
Acceptance Abroad Foreign merchants do not accept Discover as widely as Visa and Mastercard.

Even though the card specializes in balance transfers, it is nevertheless an excellent all-around credit card that should appeal to a broad swathe of thrifty consumers.

Other Balance Transfer Cards to Consider

Understanding your options when selecting a new credit card is essential. These three cards provide balance transfer promotions and other valuable perks, including rewards and 0% APRs on new purchases, and are all from different major banks.

Bank of America® Customized Cash Rewards credit card Review

at Bank Of America'ssecure website

BEST OVERALL RATING

★★★★★
4.9

OVERALL RATING

  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
  • Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishing purchases.
  • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
  • No annual fee and cash rewards don’t expire as long as your account remains open.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • Contactless Cards - The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%)
18.24% - 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

The Bank of America® Customized Cash Rewards credit card gives you control over how you earn cash back rewards. The bank offers several merchant categories that qualify for the highest reward rate. You can select the top-tier rewards category from a list that includes online shopping, travel, gas, dining, drug stores, and home furnishings.

You can change your bonus category once per calendar month. This Visa card pays a signup bonus when you spend a set amount on purchases in the first 90 days after account opening. As a new cardmember, you may receive an introductory 0% APR period on balance transfers and new purchases.

BEST OVERALL RATING

★★★★★
4.5

OVERALL RATING

  • 0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening. After that the variable APR will be 18.24% - 28.99%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
  • There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater
  • Get free access to your FICO® Score online.
  • With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more.
  • No Annual Fee - our low intro rates and all the benefits don’t come with a yearly charge.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% 12 months on Purchases
0% 21 months on Balance Transfers
18.24% - 28.99% (Variable)
$0
Excellent, Good

Additional Disclosure: Citi is a CardRates advertiser.

The Citi® Diamond Preferred® Card offers an extended period for balance transfers and a shorter period for interest-free purchases. A fee applies to each balance transfer transaction. The card provides relatively high credit limits — yours will hinge on your credit profile — but no rewards.

This Mastercard offers automatic account alerts and lets you select a payment due date. You can tap this contactless, chip-enabled card on a merchant’s card reader to charge your purchases securely.

Blue Cash Everyday® Card Review

at the issuer'ssecure website

BEST OVERALL RATING

★★★★★
4.5

OVERALL RATING

4.5/5.0
  • Earn $200 back in the form of a statement credit after you spend $2,000 in purchases on your new Card within the first 6 months of Card Membership
  • 3% cash back on groceries from U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
  • 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%)
  • 3% cash back at U.S. gas stations, 1% back on other purchases
  • Introductory 0% APR for 15 months on purchases and balance transfers, then a variable rate applies
  • Find out if you Pre-Qualify for the Blue Cash Everyday® Card or other offers in as little as 30 seconds
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
18.49% - 29.49% Variable
$0
Good

The Blue Cash Everyday® Card is an excellent choice for online, gas, and grocery purchases, with limited bonus cash back on eligible transactions. The card offers relatively high credit limits and doesn’t charge an annual fee.

This American Express card provides an attractive introductory APR promotion on balance transfers and new purchases but imposes a substantial penalty APR if you miss a payment. The small signup bonus allows you a full six months to spend the necessary amount on purchases.

FAQs: How Do I Transfer a Balance to the Card?

Your new Discover card account must be open for at least 14 days before you can request a balance transfer. Discover requires up to four days to process a transfer request.

Before requesting a transfer, check your card’s available balance to see how much of your other card’s current balance you can transfer. Verify you are within the introductory APR promotional period, or else you’ll have to pay interest on the transferred amount (or get another balance transfer card).

You can request balance transfers online or via phone. Supply the required data, including the other card’s account information and amount to transfer. Note Discover’s fee for the transaction.

Discover may immediately approve the transfer, but it can take longer if someone needs to review the request. The issuer will notify you when the transaction is complete, and you should check the balances on both cards to verify the transfer took place as you specified.

Potential Balance Transfer Savings

You may close the other card account if the balance is zero. But before you proceed, consider that doing so may harm your credit score by reducing your average credit account age and increasing your credit utilization ratio.

If the old card doesn’t charge an annual fee, you may want to keep it open and use it occasionally.

You can repay the transferred balance at any pace as long as you make the monthly minimum payment. Ideally, you’ll want to pay off the transfer before the promotion ends because any remaining balance is subject to the card’s regular APR.

Your credit limit and available credit dictate how much money you can transfer to your card. There is no limit on the number of cards from which you can transfer balances. Be aware that if your transfers exhaust your Discover it® Balance Transfer credit line, you can’t use it for purchases until you pay off at least some of the balance.

What Should I Look For in a Balance Transfer Credit Card?

The top two things to consider when searching for a new balance transfer card are the length of the introductory promotion, i.e., how long the 0% interest rate will last, and the amount of the balance transfer fee. I wouldn’t personally pay anything higher than 3%, and some credit union cards omit balance transfer fees altogether. But you should also consider:

  • Transaction deadline: Several cards (excluding those from Discover) impose a short deadline (typically 45 to 120 days) for your balance transfer requests. Any requests you make after this deadline won’t be part of the 0% APR promotion.
  • Regular APR: The standard APR applies after the introductory promotion ends. You’ll avoid this interest by repaying your transfers in full by the end date of the promotion.
  • Credit Requirements: Most cards with balance transfer promotions require good to excellent credit. You may want to apply for a different credit card if your FICO score is fair or lower.
  • Annual fees: Seek cards with no or low annual fees. The goal is to pay off card debt, not pay more fees!
  • Rewards and perks: You’ll save money by getting a card that offers cash back, points, or other rewards if you intend to continue to use it for new purchases.
  • Customer service: Good support is valuable when you have an issue with your card. Discover’s customer service is second to none.
  • Acceptance: If you travel internationally, choose a card that is more accepted worldwide. Merchants universally welcome the Visa and Mastercard logos. Discover is widely accepted in the United States but less so abroad.

Generally speaking, we believe the Discover it® Balance Transfer card is among the best credit cards for balance transfers, and it charges no annual fee. That said, a few other banks offer longer 0% APR promotions for balance transfers, and some credit union cards don’t charge balance transfer fees.

What is the Starting Credit Limit?

You should receive a credit limit of at least $500 when you apply for the Discover it® Balance Transfer card. But forum contributors report having Discover cards with credit limits of $50,000 or more.

According to some contributors, you will probably have better luck requesting a credit limit increase by employing the following tactics:

  • Use the card frequently, not just for balance transfers.
  • Make large payments to reduce your outstanding balance when it mounts up.
  • Wait at least six months between requests.
  • Inform Discover when your income increases.
  • Build credit by always paying your bills on time.
  • Be aware that previous card use and fee payments may influence Discover’s approval decision.

Online comments indicate that Discover does a soft credit pull when you request a higher limit. Soft pulls do not affect your credit score.

How Much Interest Can I Save with the Card?

Let’s set up an example to see how much you can save by transferring a credit card balance to the Discover it® Balance Transfer card.

Assume these initial conditions:

  • Balance on original card: $20,000
  • APR on original card: 25%, accrued daily and compounded monthly
  • Fee for transfer: 3%
  • Promotional period: 15 months

Assume you would have repaid the original card’s balance in 15 equal installments. By transferring the balance to the Discover it® Balance Transfer card, you could see following results:

  • The total interest you save over 15 months with equal payments of $1,566.23 is $3,493.45.
  • The balance transfer fee for transferring $20,000 at a 3% rate is $600.
  • The total savings after accounting for the balance transfer fee is $2,893.45.

The results assume you repay the entire balance before the 0% Intro APR (18 months) ends. The card’s standard APR resumes once the promotional period ends.

This example illustrates the fantastic savings available to you when you are able to utilize introductory offers. Naturally, your results depend on the amount transferred, the original card’s APR, and the timing of the payments you would have made absent the transfer.

How Do the Card’s Rewards Work?

The Discover it® Balance Transfer card pays cash back rewards on all eligible purchases. It uses a quarterly rotation system for bonus cash back. Every three months, the card offers its top cash back rate on purchases in specific categories, up to a quarterly maximum.

You must sign up (or activate) these bonus categories each quarter to earn the higher cash back rate. You can activate your quarterly bonus rate online or through the Discover mobile app. You may want to set up reminders via email or text so you don’t forget to activate each quarter and miss out on the bonus rate.

Discover Cashback Bonus description
Source: Discover website

The reward categories change each quarter, covering various merchants or spending areas such as gas stations, grocery stores, restaurants, and online shopping. A quarterly cap limits the rewards you can earn at the bonus rate.

This system allows you to earn higher cash back in different areas throughout the year. Purchases outside these categories or beyond the quarterly limit earn the standard cash back rate, as do purchases from bonus categories you haven’t activated. Balance transfers do not earn rewards.

You can redeem your cash back for a statement credit, check, direct deposit, gift cards (starting at $5), Amazon and PayPal purchases, or donate your cash back to select charities.

New cardmembers receive an unlimited Cashback Match. Discover matches all the cash back rewards you earned from account opening through your first 12 consecutive billing periods or 365 days, whichever is longer. It will add the matched rewards to your account within two billing periods.

Discover matches rewards only on transactions that it posts within the match period, which may be after the transaction date. Discover will not match rewards that are:

  • Processed after your match period ends
  • Statement credits
  • Reward transfers from Discover checking or other deposit accounts
  • Rewards for closed accounts

As an example, if you earn $200 in cash back during the first year of card ownership, Cashback Match will reward you with another $200 at the end of the first year.

How Does It Compare to the Discover it® Cash Back?

As of the date of publication, the two cards are identical, with the same introductory promotions and APRs.

Discover it® Balance Transfer Review Discover it® Cash Back Review

Credit cards frequently adjust their rewards, promotions, and benefits to respond to market forces. That’s why it pays to read the cardmember agreement for the latest information about any credit card you’re thinking about applying for.

How Does Discover Protect My Security?

Discover provides several features to protect the privacy and security of your information, including the following:

  • Freeze it®: You can instantly freeze your account online or via the Discover mobile app. When you freeze your account, Discover will stop authorizing new purchases, balance transfers, and cash advances. However, some activity will continue, including recurring payments, dispute adjustments, bill payments, credits, returns, other account fees, interest, reward redemptions, and certain other exempted transactions.
  • Discover Identity Alerts: Discover monitors your Experian® credit report daily and alerts you when a new account or inquiry appears. The issuer, Discover® Bank, also observes thousands of Dark Web sites known for revealing personal information. You’ll receive an alert if Discover finds your Social Security number on such a website.
  • Online Privacy Protection: This feature is available on the mobile app at no cost. Every 90 days, Discover will scan at least 10 people-search sites for your online personal information and help you submit opt-out requests.
  • Zero Liability Protection: You are not responsible for unauthorized or fraudulent transactions, but you must report credit card theft or loss right away.
  • Two-Factor Authentication: Discover requires you to complete two actions to access your account, such as inputting a secure password and responding to an email or direct message.
  • Secure Account Access: The issuer encrypts your data to secure your online and mobile banking activities.

No credit card issuer beats Discover when it comes to providing extensive security features.

This Card May Be For You If…

The Discover it® Balance Transfer card is a fine choice when you want an excellent everyday credit card. It offers numerous perks, including:

  1. 0% Intro APR (18 months) for balance transfers: You can use this feature to consolidate and repay your high-interest credit card debt without interest charges. The card’s standard APR resumes once the promotional period ends.
  2. Cash back rewards: The card provides cash back on every eligible purchase, with bonus rates when you activate the rotating quarterly categories.
  3. Cashback Match: Discover matches all the cash back posted in the first year, so new cardmembers double their rewards.

You’ll appreciate these features if you want to reduce your existing debt and earn cash back on your eligible purchases.

About the Author

Eric Bank
Eric Bank Finance Expert

Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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Eric Bank