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Discover “it” & the Radical Reshaping of a Product Line

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The automobile world was captivated recently when Chevrolet introduced its remodeled Corvette Stingray at the North American International Auto Show. Around the same time, the people at Discover made a few waves of their own when they introduced the Discover “it” card. And while most people will not find a new credit card to be nearly as exciting as a new sports car, Discover also did do something radical that Chevy did not do: they simultaneously ceased production of its other products.

What Is “it”

The Discover “it” is a small but significant improvement on the Discover More card. Like the More card, as well as the Chase Freedom and Citi Dividend Platinum Select, Discover “it” offers 1 percent cash back on all purchases, and 5 percent cash back at eligible merchant categories that change each quarter.

Whereas the old Discover cash-back cards only returned 0.25 percent cash back on cardholders’ first $3,000 of purchases each year, the new Discover “it” card has no such limitation. In addition, the old Discover cash-back program excluded warehouse and discount stores, but the new Discover “it” card does not.

There is no annual fee for this card, and no foreign transaction fees. That said, the Discover card does not have as many foreign merchants in its network as Visa, MasterCard or American Express. In addition, cardholders will be forgiven their first late fee, and there is no penalty APR that is applied when a late payment is made. Finally, the Discover “it” card is being offered with multiple 0 percent APR promotional financing plans, but there is a 3 percent balance transfer fee.

There is also a version of the Discover “it” card for students that features slightly different interest rates and financing offers.

What To Do If You Hold a Discover Card That Is Not “it”

The Discover card enjoys a loyal following of cardholders who rave about its excellent customer service. And just because Discover is no longer accepting new applications for most of its products, existing cardholders should not be concerned. Discover has already committed to supporting those who hold the Discover More, Miles by Discover, Discover Open Road and all other products.

But at the same time, holders of those cards should consider upgrading to the Discover “it” card. This new product offers most existing cardholders the ability to earn more cash back than they would have with the other cards that Discover had once offered.

While new credit cards come and go, it is not every day that a major credit card issuer scraps their entire product line and replaces it with a single card. By understanding the features and benefits of this new product, new applicants and existing Discover cardholders can make the best decision about “it”.

Image: Discover

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