Cash-back credit cards offer a chance to get value every time you make a purchase, but with so many options available, it can be difficult to know which one is right for you.

If you don't spend a lot in any one area of your budget, or you want to maximize your rewards on a variety of spending categories throughout the year, the Discover it® Cash Back can be an excellent choice. While it requires a little more legwork than other cash-back cards, this no-annual-fee card can make it worth your while.

Discover it® Cash Back

• Annual fee
  $0
• Welcome offer
  Discover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap
• Card type(s)
  Cash-back
• Purchase APR
  18.24% - 28.24% variable
• Introductory APR
  0% intro APR on purchases and balance transfers for the first 15 months (18.24% to 28.24% variable APR after that; 3% intro balance transfer fee until until Dec. 10, 2024, then up to 5%)
• Recommended credit score
  Good to Excellent

• Rewards rate
  • 5% cash back on everyday purchases at different places each quarter — including grocery stores, restaurants, gas stations, and more — up to the quarterly maximum
  • 1% unlimited cash back on all other purchases

• Benefits
  • Redeem your rewards for cash at any time
  • Generous intro APR for purchases and balance transfers

Learn more

Additional benefits

The Discover it Cash Back credit card doesn't offer any insurance protections, but you will get some valuable benefits to help protect your identity:

• Social Security number alerts: Discover regularly scans thousands of Dark Web sites used by identity thieves and notify you if it finds your Social Security number on any of them.

• Online privacy protection: The card issuer will help you remove your personal information from select people-search websites that could sell your data. You can activate this service within your Discover mobile app.

Free FICO score access: You can check your credit score anytime, along with factors that are impacting your score.

How to earn rewards

The Discover it Cash Back is one of two rewards credit cards that offer rotating cash-back rewards — Chase Freedom Flex® is the other.

Each quarter, the Discover it Cash Back card will offer 5% cash back on different spending categories — in the first quarter of 2024, for instance, it was restaurants and drugstores.

Discover announces upcoming 5% cash-back categories a few weeks before the new quarter begins, and you can activate them by logging in to your online account or mobile app, or by clicking on the link in the announcement email you receive.

Once activated, you'll earn the 5% rewards rate on up to $1,500 in combined purchases in the quarter's bonus categories. All other purchases will net you just 1% back. Remember, you won’t earn 5% rewards until you activate that quarter’s categories (rewards don’t apply retroactively to eligible spending) so make sure you remember to activate early each quarter.

How to redeem rewards

When it comes to redeeming your rewards, Discover offers a few different options:

• Cash deposit: You can request a deposit to your linked bank account. There's no minimum redemption amount, and it'll typically take a few days to show up.

• Statement credit: Apply as little as $0.01 toward your card balance. You can even apply it toward your minimum payment requirement.

• Gift cards: You can buy gift cards from major restaurant chains and retailers for as little as $5. What's more, you can get between 5% and 20% extra value with each gift card (depending on the retailer) — for example, a $25 gift card may only cost you between $20 and $23.75 in rewards.

• Shop online: You can use your cash back to make purchases on Amazon.com and through PayPal with no minimum redemption amount. And unlike some other rewards cards that offer this redemption option, you won't get a reduced redemption value.

• Charitable donations: You can donate your cash-back rewards to a handful of select charities. Some of the more well-known organizations include the American Red Cross, the American Cancer Society, Children's Miracle Network Hospitals, Make-a-Wish Foundation, and World Wildlife Fund.

Note that your rewards will never expire as long as your account remains open and in good standing.

Explore more Discover it card options:

• Discover it® Student Cash Back Credit Card

• Discover it® Secured Cash Back Credit Card

Additional benefits

The Discover it Cash Back credit card doesn't offer any insurance protections, but you will get some valuable benefits to help protect your identity:

• Social Security number alerts: Discover regularly scans thousands of Dark Web sites used by identity thieves and notify you if it finds your Social Security number on any of them.

• Online privacy protection: The card issuer will help you remove your personal information from select people-search websites that could sell your data. You can activate this service within your Discover mobile app.

• Free FICO score access: You can check your credit score anytime, along with factors that are impacting your score.

Who is the Discover it® Cash Back best for?

Consider the Discover it Cash Back credit card if you like the idea of maximizing your rewards on a variety of everyday spending categories and you don't mind taking a little extra effort to do it.

That said, because the card's base rewards rate is a measly 1% — and that's likely what you'll earn on most of your purchases—it can be best to use the card in tandem with another rewards credit card that offers a higher base rewards rate.

For example, the Wells Fargo Active Cash® Card and the Citi Double Cash® Card both offer 2% cash back on every purchase. Using the Discover it Cash Back for its 5% bonus categories and a 2% card for everything else can help you maximize your rewards even further.

That said, if you prefer the simplicity of a flat-rate rewards card and don't want to keep track of different bonus categories or activation requirements, you may be better off with a card with a simpler rewards structure.

Learn more about the different types of cash-back rewards and how to choose the right one for you: Our list of best cash-back credit cards for 2024.

Discover it® Cash Back benefits

• Great rewards potential: If you can stay on top of the rotating categories, you can earn an excellent rewards rate on a long list of everyday spending throughout the year.

• Unique welcome offer: Discover's cashback match offer creates a lot of potential, especially for bigger spenders.

• Introductory 0% APR promotion: If you need some time to pay off some purchases or you want to pay down high-interest debt from another card, the Discover it credit card's 0% APR promotion offers a solid amount of time to do so interest-free.

Discover it® Cash Back potential drawbacks

• Bonus rewards are complicated: You have to be willing to put in some work to maximize this card's rotating bonus categories. What's more, the 5% rewards rate is capped, limiting how much you can earn.

• Low base rewards rate: While the card's bonus rewards rate is impressive, you'll likely earn just 1% back on most of your spending, which is nothing to get excited about.

• No insurance protections: Unlike some other rewards cards, you won't be able to take advantage of perks like rental car insurance, purchase protection, or extended warranty coverage.

Where can you use Discover it® Cash Back?

Within the U.S., you can expect to use your Discover credit card just about anywhere — the card issuer reports a 99% acceptance rate nationwide.

International acceptance varies by country, but in general, Discover isn't widely accepted abroad. If you're planning a trip to another country, it may be best to bring a Visa or Mastercard credit card with you.

How to make a Discover it® Cash Back payment

You can pay your Discover credit card online, by phone or via mail:

• Online: Log in to your online account or the Discover mobile app. Select your payment amount and the bank account you want to use, then submit your payment. You can also set up automatic payments online to make sure you don’t miss a payment in the future.

• Phone: Call 800-347-2683 anytime and make your desired payment amount using your linked bank account.

• Mail: Send payment along with the payment coupon attached to your monthly statement to the address provided — the correct address will depend on where you live. The card issuer accepts checks only— no cash or money orders allowed.

Discover it® Cash Back customer service info

• Customer service availability: U.S.-based customer service is available 24/7 by phone; live chat is also available once you log in to your account.

• Phone number: 800-347-2683

• Customer service email: Discover does not offer email support to ensure your privacy and security, but you can send a secure message through your online account.

• Discover it Cash Back login page

Alternative cards to consider

If you're not sure whether the Discover it credit card is the right fit for you, here are some alternatives to consider.

Capital One Savor Cash Rewards Credit Card

• Annual fee
  $0
• Welcome offer
  Earn $250 cash back after spending $500 on purchases in the first 3 months
• Card type(s)
  Cash-back, Rewards
• Introductory APR
  0% intro APR on purchases and balance transfers for 15 months, then variable 19.74% - 29.74% APR
• Purchase APR
  19.74% - 29.74% variable
• Recommended credit score
  Good, Excellent

• Rewards rate
  • 8% cash back on Capital One Entertainment purchases
  • 5% cash back on hotels and rental cars booked through Capital One Travel
  • 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)
  • 1% cash back on all other purchases

• Benefits
  • Get a 0% APR on purchases and balance transfers for the first 15 months
  • No foreign transaction fees

Learn more

Why we like it: The Capital One Savor Cash Rewards Credit Card can be a good fit for people who spend a lot on food and entertainment. The card offers 8% cash back on Capital One Entertainment purchases; 5% back on hotels and rental cars booked through Capital One Travel; 3% back on dining, other entertainment, popular streaming services, and grocery store purchases (not including Walmart or Target); and 1% back on everything else. Additionally, you'll earn 10% cash back on Uber and Uber Eats purchases through Nov. 14, 2024.

Read our full review of the Capital One Savor Cash Rewards Credit Card

Capital One Quicksilver Cash Rewards Credit Card

• Annual fee
  $0
• Welcome offer
  Earn a $200 cash bonus after spending $500 within the first 3 months
• Card type(s)
  Cash-back
• Introductory APR
  0% intro APR on purchases and balance transfers for 15 months, then variable 19.74% - 29.74% APR
• Purchase APR
  19.74% - 29.74% variable
• Recommended credit score
  Good, Excellent

• Rewards rate
  • 5% cash back on hotels and rental cars booked through Capital One Travel
  • 1.5% cash back on all other purchases

• Benefits
  • 0% intro APR on purchases and balance transfers for the first 15 months
  • No foreign transaction fees

Learn more

Why we like it: If you're looking for simplicity, you can't go wrong with the Capital One Quicksilver Cash Rewards Credit Card, which offers a flat 1.5% cash back on every purchase you make. You'll also get a $200 bonus when you spend $500 in the first three months, plus a generous intro APR promotion on purchases and balance transfers for 15 months. The Quicksilver card has no annual fee.

Read our full review of the Capital One Quicksilver Cash Rewards Credit Card

Blue Cash Preferred® Card from American Express

Rates & fees, terms apply

• Annual fee
  $0 intro annual fee for the first year, then $95.
• Welcome offer
  Earn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 months
• Card type(s)
  Cash-back, Rewards
• Introductory Purchases APR
  0% on purchases for 12 months
• Ongoing Purchases APR
  18.74%-29.74% Variable
• Introductory Balance Transfer APR
  0% on balance transfers for 12 months
• Ongoing Balance Transfer APR
  18.74%-29.74% Variable
• Recommended credit score
  Excellent,Good

• Rewards rate
  • 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% cash back on transit and U.S. gas stations
  • 1% cash back on all other purchases
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout

• Benefits
  • Get a 0% APR on purchases and balance transfers for the first 12 months
  • Receive a monthly statement credit of $7 when you spend $9.99 or more each month on an auto-renewing Disney Bundle subscription (valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.)
  • Get a $0 annual fee for the first year, then $95 annually after that

Learn more

Why we like it: If you can stomach a modest annual fee ($0 intro fee for the first year, then $95; see rates & fees) and you spend a lot on groceries, the Blue Cash Preferred Card can be a good fit. The card offers 6% cash back on select U.S. streaming subscriptions and on up to $6,000 spent at U.S. supermarkets each year (then 1%), 3% cash back on transit and at U.S. gas stations and 1% back on everything else. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.