Discover® Student Monogram Card

• Earn more cash in more ways than anyone else^SM*
• Unlimited cash rewards, automatically
• Up to 20% Cashback Bonus® when you shop online*
• Double rewards with more than 100 Cashback Bonus Partners*
• Customer Service in less than a minute, anytime you want

Issuer:  Discover

APR:  0.00%

Introductory Period: Six months

APR After Introductory Period:  16.99% variable on purchases and 20.99% fixed on cash advances.

Annual Fee: $0

Credit Line Possible: The maximum if $50,000 and the minimum is $5,000.

Insurance included:  You get up to $500,000 in travel accident insurance, auto rental insurance, and various fraud and security protection services.

Financing Configuration -Finance charges for the Discover® Student MonogramCard are calculated using the "Two Cycles Average Daily Balance" method, which is a more costly method if you plan carry a balance compared to the "Average Daily Balance" method used by most card issuers.

Grace Period - You have twenty days during which you do not have to pay interest on purchases.

The Best Thing About It - Through the reward program, cardholders earn a 5% rebate for purchases made in popular categories

The Worst Thing About It - The interest is calculated in the expensive "Two Cycles Average Daily Balance" manner and the APR is quite high.

Credit Rating Needed For Acceptance - Excellent.

Who Is It For?

The Discover® Student MonogramCard is for those who like the security and prestige of carrying a card with one's initials on it. It also suits students want to earn cash rewards for educational and every day purchases and that desire a card with generous fraud protection.

The Benefits

The unlimited cash rewards are generous and never expire. Through the reward program, cardholders earn a 5% rebate for purchases made in popular categories that change four times a year like home, apparel, and more. Plus, cardholders earn up to 1% for general purchases.

You can also receive a direct rebate. Those who spend up to $1,500 on general purchases will receive a .25% rebate, between $1,500 and $3,000 will receive a .5% rebate, and over $3,000 will receive a full 1% rebate.

There is also the added bonus of a double rebate program. If you buy from Discover's online partners you can earn up to a double Cashback Bonus® for redeeming their rebates.

There is no yearly limit on the amount of rebates that can be earned. Rebates do not expire as long as the account is active within a 36-month period.

You can personalize this card. Aside from the reward program, the unique feature of this card is that cardholders can choose from three card designs that will display either their first initial or their first and last initials on the front of the card.

There are no fees on balance transfers.  There are a lot of fees associated with this card but none for balance transfers.

The card can suit your personal taste. You can select from several card designs that are offered.

The Drawbacks

There is a hitch when it comes to the rebates: The highest rebate offered will not apply to all purchases made with the credit card. In this case, 1% will only be applied to those purchases made after the cardholder spends over $3,000 in one year, so the overall cash rebate earned will be less than 1%, depending on the amount spent. For instance, if the cardholder were to spend $4,000, only $1,000 of this amount would be applied towards the 1% rebate.

There is a high interest rate for taking out cash advances.  There is a charge of 20.99% fixed rate for each cash advance transaction.

Monthly payments are applied to purchases first until they are paid off and then to purchases.  This can get very expensive if you use it to take out cash, as the interest rate is high.

A short grace period. Many credit cards don't collect interest on purchases until thirty days after purchase. The grace period for the Discover® Student MonogramCard is twenty-five days.

The introductory rate is not guaranteed. If you make a late payment on any bill, not just your credit card bill, your introductory rate can be replaced with the prime rate.

There are lots of hidden fees. The fees for this card can add up and make it seem like you are paying an annual fee anyway. In fact the cash advance fee and balance transfer fees are almost double of what you would pay on another card.

Fees To Watch Out For

Late payment fee:  $15 on balances up to $50; $39 on balances over $500

Over The Limit fee: $15 on balances up to $500; $39 on balances over $500

Cash advance Fee: 3%, $t minimum

Balance Transfer Fee: 3%, $5 minimum, $50 maximum

Balance Transfers: 3%, $10 minimum, $50 maximum (with this introductory offer)

To Summarize -

Discover® Student MonogramCard is a good card for people don't carry a blance. The APR for this card is above average, but there is no annual fee and there is a 0% introductory APR that applies to purchases for six months.