When it comes to cashback reward credit cards, the gold standard is 2% cashback on all purchases. You might be able to get 2.3% cashback on travel cards when you sign up for new cards, but that is pretty close to 2%. But what if you could get 2% cashback on everything, 10% cashback on rotating categories, and even up to 42% cashback on certain purchases? Well, I did, and I’ll show you how.
This post contains affiliate links. If you sign up for the DiscoverIt credit card, we’ll both get a cool $50!
The DiscoverIt credit card offers a variety of benefits. First of all, they show show your credit score which is extremely useful. In addition, you can sign up as a college student with a limited credit history and income.
Now onto the “big” benefits. The first one is 1% cashback on all purchases. This doesn’t exactly compare favorably to our “gold standard” of 2% cashback on all purchases. However, they also offer 5% cashback on rotating categories. People like to complain that signing up for these categories is too annoying. If unlocking your smartphone, logging into your Discover app and clicking a button is too difficult, honestly this might not be for you.
Discover has 4 quarterly rotating categories that earn 5% cashback, and from what I can tell, they are similar every year.
- Gas stations, ground transportation, and wholesale clubs
- Home improvement stores and wholesale clubs
- Amazon + more
Whenever you make a purchase in these categories, you get 5% back on your purchase price on up to $1,500 spending in each category per quarter. I’ve also seen other categories including grocery stores and movie theaters.
In addition, Discover also has a special cashback program called Discover Deals. Here, individual retailers can give additional rewards. For example, the North Face will give you a 10% cashback bonus. Right now is the perfect time to buy a new discounted winter coat if you actually need one.
Double Cashback Rewards
After you are approved for your DiscoverIt credit card, you’ll notice that their customer service is awesome! You can talk to their reps via chat message on their website, and they are always extremely knowledgeable. Once you get your card, you should either call them or start a chat session, and ask to active double cashback rewards.
What is double cashback rewards? It is a program that remains active on your account for 12 months. Discover will still give you your normal cashback rewards at the end of the month. However, at the end of the 12 months, Discover will give you a lump sum credit equal to all of the cashback rewards that you’ve earned during the last 12 months. You effectively earn double rewards. For example, if you earned $350 in cashback rewards during the year, at the end of your 12 months, you will get an extra $350.
This is HUGE! This means the DiscoverIt card actually gives you 2% cashback on all purchases and 10% cashback on rotating categories. Getting 10% back on something like gas or groceries is massive. But what about Amazon? You can pretty much buy anything on Amazon. And Discover is extremely smart. Guess when their 5% cashback on Amazon is? Right in time for the winter holidays when everyone will be buying gifts.
Double Cashback + Discover Deals
I mentioned that there is a program called Discover Deals where retailers give additional benefits. These benefits are also part of the double cashback deal (if they offer cashback rewards, some of them provide other perks). Most of these Discover deals will give you between 5% and 10% cashback. But this means you’re really getting 10% to 20% cashback. Getting 10% to 20% off a product that you are already going to buy is a huge win.
These rewards are added to your regular cashback rewards. So you will get the normal 1% cashback plus your 10% Discover Deals cashback, and then at the end of the 1 year program, you’ll get an additional 11% (10% + 1%) cashback for a grand total of 22%. Their deals program has hundreds of participants. You can save money on cruises, apparel, even Walmart.
42% Cashback with DiscoverIt
The most cashback that I’ve gotten was 42%. I got this by finding a Discover Deal that gave 20% cashback, getting my normal 1% cashback bonus, and then getting an additional 21% cashback for a grand total of 42%.
I really needed compression shorts. Like seriously, I’ve gained some weight and my old ones didn’t fit, plus they were a few years old and falling apart. I was going to buy compression shorts, but I had to decide where. I went to the Nike store and found a few pairs for $25 each. I was going to buy 4 pairs, but decided against it. $100 was a lot of money at that time.
Then I checked my DiscoverIt deals and noticed that Sports Authority was running a 20% cashback promotion. I knew my size, so I bought 4 pairs of compression shorts online for $100. I got my first round of cashback ($21), and a year later I got another $21 for a total savings of $42.
Bonus! Get 15% Off At Walmart
Right now, Walmart is running a 5% cashback promotion in Discover Deals. If you activate double cashback rewards, you will end up getting 12% cashback (5% deal + 1% normal spending, and double cashback reward). You can also combine this with with EvoShare and get an additional 3% cashback deposited into your retirement account, for a total savings of 15%. You can even buy gift cards for other stores at Walmart, and you’ll get 15% cashback on all of them. This strategy will let you buy whatever you want with a 15% discount.
Millions of people shop at Walmart every year. Many families buy groceries, electronics, and household goods there. A family may end up spending $500 there each month. If you take advantage of this awesome deal, you’ll end up saving more than $900 per year on purchases that you would make regardless. What can you do with an extra $900 per year? That’ll pay for 9 nights at an all-inclusive resort in the Dominican Republic through Groupon. Or you can invest that $900 per year. After 42 years, you will have an extra $200,000.
So what are you waiting for? If you sign up for the DiscoverIt credit card using my referral link, both of us will get $50! You can activate your double cashback rewards and starting saving 2%/10% on regular purchases and rotating categories, and even hit 22%+ on Discover Deals. Combine this with EvoShare to get additional cashback deposited directly into your retirement accounts or student loans.
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