Posted by Chuck on September 10, 2015
Credit Cards

Published on September 10th, 2015 | by Chuck

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Discover Extends Double Cashback Offer for New Cardmembers, Should We Bite?

Discover offers to double all the cashback earned on the Discover IT card at years end. This means that your 1% cashback is effectively 2% and any cashback earned from the Discover Deals shopping portal or from quarterly categories or from any other promotional offer will be doubled.

End Date of Offer

The offer was initially being reported as being valid until the end of July and then to the end of September. We’ve now gotten confirmation from Discover that the offer will be around until the end of the year.

Most likely, this double cashback offer will go on indefinitely as an added signup bonus, similar to the double miles offer on Discover IT Miles which seems to have the doubling as a standard signup bonus offer.

Should We Bite?

We’ve had a slew of posts on Discover recently:

The excitement here is the new offer to get up to $1,000 cashback on Discover when using Apple Pay, for a total of $2,200 at years end on the Discover cashback card or $2,300 at years end on the Discover IT Miles card.

Each person can have two Discover cards; you can sign up for a second so long as you didn’t get the first one within a year. And you can even have two of the same type; for example, you can have two Discover cashback cards.

With this amazing promotion going on, many of us (myself included) are contemplating getting a second Discover card. This will allow us to get $4,400 in cashback instead of $2,200. If you opt for the Discover IT Miles card, the total would be $4,500.

That’s a lot of money.

My initial plan had been to signup for a second Discover card after my year of double cashback finishes (July 2016 for me). Of course, there’s no guarantee that the offer will still be around – we only have confirmation through the end of the year – but I was going to risk it. The calculation here is that the double cashback offer is extremely valuable due to the fact that the Discover Deals portal will be doubled as well. Only the Discover cahsback card has the Deals portal, so I was planning on going for that one.

Now…all bets are off. With this new Apple Pay promo, it could make more sense to get the second Discover card now and take advantage of the extra $2,000 cashback offer. This depends on how much you value the doubling of the Discover portal (and referrals). For most people, the Apple Pay promo is probably better, especially given the fact that we don’t have a guarantee that the double cashback offer will even be around coming mid next year.

Timing your Application

Although for many of us the smartest thing is probably to get a second Discover card now, let’s talk about timing…

Instead of applying for the Discover card now, it seems logical to push off the application for a month or two. Remember that the Apple Pay offer is up until year’s end. We’ll obviously need to give some time to be able to manufacture $10,000 in spend, depending on your credit limit and your spend tolerance, but it makes sense to push it off as long as your tolerance allows. This will give you an extra month or two of doubling the Deals portal next year.

For some, it would make more sense to apply for the Discover card at the end of November. Personally, I won’t push it off that far as I don’t know what my Discover credit limit will be and I like doing things a little slower.

Tips and Order

Tip: You should be able to transfer over some of your credit limit from one card to the other. In the post, Rules For Reallocating Your Credit Limit With Each Credit Card Issuer we wrote that it’s possible to move over some of your credit to a new Discover card.

Best Practice:

  • Spend $10,000 using Apple Pay starting immediately on September 16 when the promo starts
  • After finishing the $10k, apply for a second Discover cashback card as close to the end of the year as you are comfortable with
  • Transfer over a chunk of you credit line onto the new card to simplify the $10K on the second card

Advantages of this method:

  • You’ll have your full credit line on card #1 to do the first $10k
  • You’ll extend the length of your double cashback offer since card #2 was gotten at a later date (this will extend your ability to double the Deals portal)
  • You’ll have a higher credit limit to use on the second card

If the Deals portal isn’t important to you, then you’d do the same approach but you’ll apply for the Discover IT Miles as your second card instead of Discover cashback. This way, you’ll get an extra 1% cashback on all your spend. The 1% is in fact significant and will amount to at least $100 when doing the $10k spend. And you’ll have a 3% card for the whole year. After year’s end, you should be able to convert the Miles card into a cashback card to take advantage of quarterly categories.



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The Value Traveler (@ValueTravelerOz)

Sir Chuck….so (if Im reading all this Discover hub bub correctly)…anyone with an EXISTING card can participate with the ApplePay promo, but we wont be getting the 2x cash back? Then only 10% will be given to existing members?

Matt
Matt

Heavily considering this. Are you able to purchase VGC at CVS/Walgreens (Duane reade in NYC) through apply pay without issue? I feel like that’s the deciding factor.

Josh M
Josh M

I PCed a discover more to the IT back in May or June would I be eligible for another discover card in November or would I have to wait until 1 year from my PC?

PDXDealsGuy

quick edit for you … think you meant “Timing YOUR Application” (in sub-header)

Do you know if AU cards count against the 2 card limit or the 12-month clock? I got an IT late last year (would have to check the date) and my wife got an IT recently, and both of us are AU’s on each others cards. I’d love to get a Miles card late this year, per the details of your post. If me being an AU on my wife’s card is a problem in this plan, wonder if removing myself as the AU on her account would take care of it or not …

Rick
Rick

DoEs Discover combine pulls if you apply for the It and the Miles card on the same day?

Raj
Raj

I am totally confused. If we got our first card within the last year, are we eligible to apply for a second one as well or do you have to wait until the 12-month mark?

Carl
Carl

Silly question, Chuck, but can we refer ourselves for the second card?

Arjun
Arjun

Not silly at all. I was wondering about the same !!

Vince
Vince

I signed up for a second Discover it card for the double cash back offer (just after the double cash back offer was no longer available for existing cardholders–I was trying to time applying for the offer and waited too long–note to self: Stock market saying about bulls, bears and ends in “But pigs get slaughtered” applies to credit card offers.)

I recently received my second statement and it had a Cashback Bonus of:
Discover Deals and Promotional + $ 50.00 in addition to 1% of purchases
which had me scratching my head because there wasn’t anything that I purchased on the card that I thought would generate $50 cash back.

So I logged into the Discover website and saw this under Account Activity, Detailed Rewards Activity:
Discover Deals & Promotional
$50 CASHBACK BONUS W/ 1ST PUR + $50.00

I don’t remember seeing this offer in addition to the double cash back offer for the Discover it card when I applied for the card. (I did call in to complete the application I started online, so maybe the CSR added it to the card when activating the double cash back offer and the 5% categories.)

So you may not need a referral to get an additional bonus. I wonder if the $50 first purchase bonus will be doubled at the end of the double cash back offer?

steven
steven

I actually did this last night..(Un)fortunately I got 3 amex’s in the last month or so. My app for the discover IT card went to pending and I have to call…I will report back if it goes through and I get the referral for both.

Anyone have any data about pending app with discover? Is it like the Chase Ink where I am better not calling? Thanks.

Jeff
Jeff

Quick question about the 12-month rule. I changed my DIscover Platinum (old holdover form before getting into milage) into a Discover IT for the promotion a few months ago. Does this count as getting a new card with respect to the 12-month limit?

W D
W D

Doesn’t the doublecash promotion begin starting the quarter after you sign-up? In other words, if someone were to sign up before October, the last quarter would be doubled, but after October they’d have to wait until January for doublecash to kick in? I thought I remembered the rep telling me that back in June, that double cashback wouldn’t begin until July for this reason.

..If that is true, that might mean new members have only until September 30th to get approved, get your card in the mail, and activate doublecash before the last quarter starts..

PDXDealsGuy

I believe the promotion starts right away for new cardholders, but worst case (at least I’m 99% sure) it will start at the beginning of the first period (month) after your first statement cuts. For people who were already Discover cardholders, until recently you could request being added to the promotion (reports are they no longer allow that), and the promotion got “turned on” on at the next statement cut date. Regardless, it might be wise to secure-mail Discover and confirm the timing of the deal for one’s own account … to get it in writing.

Calvin
Calvin

I’m seeing conflicting reports that new cardmembers are getting double CB only after the first statement cycle. Chuck, do you know what the actual stance is on this is? If true, the lost month of double cashback can change things significantly.

alen
alen

I changed my “old” discover card to DISCOVER IT in July of this year. does that disqualify me from applying for the 2nd discover card before July 2016?????

Arjun
Arjun

Isnt the deals portal linked to your user id. So how will the cash back on deals portal be split between the cards(Given that we can use any card to get the portal cashback). So wouldnt the deals portal be available even for

Prashanth
Prashanth

Hi. thanks and I got approved. Its a hard hit though. My question is can I apply for any other credit card (different issuer) and still have my hard hit consolidated into one? Please clarify.

Long back I remember u saying to apply for multiple in 20 or 30 day duration to get them consolidated?

alen
alen

that only works SOMETIMES when applying from the SAME CARD ISSUER on the SAME DAY.

Sam
Sam

sorry I am a newbie..dont have any discover cards..but would like to jump in on this deal..are the gift cards purchased at DUane Reade good for redbird loads?

Shirley
Shirley

If we apply for the 2nd card, would we be able to use it for Apple Pay immediately or would we have to wait at least one billing cycle?

RandY
RandY

Maybe I just missed it but I haven’t seen anything about Apple Pay on an Ipad. Seems like that should work for the Apple Pay angle right?

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