Discover it^® Chrome Review: An Underrated Balance Transfer Credit Card

The Discover it^® Chrome has its appeal if you want to earn cash back on gas and dining, or if you need to transfer high-interest credit card debt. With a $0 annual fee, elevated cash back at gas stations and restaurants and a welcome offer that matches the cash back new card members earn at the end of their first year, it’s a strong option for occasional rewards chasers. It also offer a long period of time to pay off transferred debt without interest piling up.

However, the card’s limitations may leave some wanting more. The higher rewards rate is capped at just $20 per quarter, the general rewards rate is only 1% and the welcome offer requires waiting a full year to reap its benefits. Add in the balance transfer fee and short intro APR on purchases, and its long-term value may diminish when compared to other rewards cards.

That said, for simple spending on gas and dining, the Discover it^® Chrome gets the job done — but bigger rewards are out there if you’re open to looking.

• Annual fee: $0
• Welcome offer: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
• Rewards: Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically.
• APR on purchases: 0% Intro APR for 6 months, then an 18.24% - 27.24% Variable APR applies
• APR on balance transfers: 0% Intro APR for 18 months, then an 18.24% - 27.24% Variable APR applies
• Balance transfer fee: 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
• Foreign transaction fees: None
• Other benefits:
  • Free FICO Score
  • Freeze and unfreeze your card online or in the mobile app
  • Access to 24/7 customer service based in the U.S.
• Credit needed: Good / Excellent

• Potentially high-value welcome offer

  This card comes with a unique welcome offer:

  Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.

  This means if you earn $300 in cash back during your first year, your welcome offer gives you another $300, which is more than you get with comparable no-annual-fee cash back credit cards.

  After you add in your other spending, you could easily make this welcome offer more valuable than ones that offer a set dollar amount, like the Citi Double Cash^® Card.

• Elevated gas and restaurant rewards

  You’ll earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. Purchases made at merchants classified as gas stations and full-service restaurants, cafes, cafeterias and fast-food locations qualify for the higher rewards rate, while those made at warehouse clubs, wholesale distributors and discount stores do not.

  If you max out the $1,000 spending limit each quarter on gas station and restaurant purchases, you’ll earn $80 cash back at the end of the year. Once you factor in the cash back match bonus at the end of the first year, that amount jumps to $160.

  Just know, there are rewards credit cards available that have higher cash back rates on a wider range of purchases. For example, the Citi Double Cash^® Card and Wells Fargo Active Cash^® Card both offer elevated rewards with no cap on how much you can earn. Also, if gas is one of your largest expenses, consider the Blue Cash Preferred^® Card from American Express, as it has an even higher rewards rate at U.S. gas stations.

• Long intro APR period on balance transfers

  If you have a large amount of high-interest credit card debt, the Discover it^® Chrome has one of the longer balance transfer offers currently available. You’ll get a 0% Intro APR for 18 months on balance transfers, after which an 18.24% - 27.24% Variable APR applies.

  But if you want an even longer balance transfer offer, you may want to consider the Citi^® Diamond Preferred^® Card.

• Few fees

  The Discover it^® Chrome is light on fees:

  • Annual fee:$0
  • Foreign transaction fees: None
  • Late fees: None the first time you pay late. After that, up to $41.

  → Learn more about common credit card fees.

• Spending cap and low general rewards rate

  With the Discover it^® Chrome, you’re limited to earning the higher rewards rate on the first $1,000 in combined gas station and restaurant purchases each quarter. All other purchases will only earn 1% cash back.

  If you generally spend more than $333 in gas and dining purchases each month, you’ll be better off with a card that offers elevated cash back on every purchase with no spending caps, like the Citi Double Cash^® Card.

  → See the best gas credit cards and best dining credit cards.

• Balance transfer fee

  Like many credit cards, the Discover it^® Chrome charges a balance transfer fee. You’ll pay a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*.

  It’s worth noting that a 3% fee is pretty standard on balance transfer cards. But there are cards available that don’t charge balance transfer fees — however, those will likely offer shorter intro APR periods and may require credit union membership.

• Welcome offer isn't earned quickly

  While this card’s welcome offer is unique and can be more valuable than other cards, you won’t see your cash back bonus until after a year of having the card.

  By contrast, credit cards with sign-up bonuses typically allow you to earn the welcome bonus after just three to six months.

• Short intro offer on purchases

  While any intro offer is better than none, note that the Discover it^® Chrome‘s intro APR period on purchases is quite short. It only offers a 0% Intro APR for 6 months on purchases, after which you’ll be subject to an 18.24% - 27.24% Variable APR.

  If you do want to use a credit card to finance a large purchase, consider a credit card with a much longer 0% intro APR period.

Discover it^® Chrome vs. Discover it^® Cash Back

If you like most of what the Discover it^® Chrome has to offer but want the opportunity to earn a higher cash back rate in a variety of spending categories, the Discover it^® Cash Back could be a better choice. It has a $0 annual fee, an intro APR on purchases and balance transfers and the same welcome offer.

The main difference between the cards is that the Discover it^® Cash Back offers cash back in popular categories that rotate quarterly. You’ll earn 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically. However, the rotating categories require activation, which is simple to do — but if you forget, you won’t earn the higher rate of cash back until you click the activation button in your account portal.

You have the potential to earn much more cash back with the Discover it^® Cash Back each year if you max out the card’s bonus spending limit. The quarterly maximum is $1,500, allowing you to earn up to $75 cash back in the bonus categories each quarter. If you’re able to meet the spending limit, you’ll earn $300 each year just from the rotating categories.

Discover it^® Chrome vs. Blue Cash Preferred^® Card from American Express

If you spend a lot on groceries each month, the Blue Cash Preferred^® Card from American Express is a better pick. That’s because you can earn $360 cash back* just from maxing out the annual spending cap at U.S. supermarkets. This is considerably more than the $80 you can get from reaching the elevated rewards cap with the Discover it^® Chrome.

Blue Cash Preferred^® Card from American Express cardholders earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

There’s also a welcome offer that lets you earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. Plus, you can get a Disney Bundle credit of up to $84 (enrollment required, subject to auto-renewal), which can help cover part of the annual fee (see rates & fees).

Finally, the card has a year-long intro APR offer on both purchases and balance transfers.

Discover it^® Chrome vs. Citi Double Cash^® Card

If you want a $0-annual-fee card that offers elevated cash back rewards without spending caps, the Citi Double Cash^® Card is a great option. The card lets you earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.

It also includes an easy-to-earn welcome offer: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Like the Discover it^® Chrome, the Citi Double Cash^® Card offers a long intro APR on balance transfers: 0% intro APR for 18 months on Balance Transfers; then an 18.24% - 28.24% (Variable) APR applies. Note that the Citi Double Cash^® Card doesn’t include an intro offer on new purchases.

If you want to earn a solid cash back rate on gas and dining or transfer high-interest debt from a different card, you can’t go wrong with the Discover it^® Chrome.

But if you want the opportunity to earn a higher rate, or if you need to finance a large purchase, the Discover it^® Cash Back or Blue Cash Preferred^® Card from American Express may be a better choice.

Still — if you prefer simplicity and want elevated rewards on all purchases, the Citi Double Cash^® Card shouldn’t be overlooked. It even tops our list of the best balance transfer credit cards.

We use an objective rating and ranking system that compares features across a large set of credit cards (over 200 of them, from over 50 issuers). We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor Statistics data.

We rank cards based on the following criteria:

• Average value over two years (50% of rating): We calculate the cash back earned for the average cardholder using Bureau of Labor Statistics data and an annual spend of $20,000, minus the annual fee. This value includes sign-up and annual bonuses. We look at the average rewards earned over two years to balance out a card’s ongoing value with its first-year value.
• Flexibility of rewards (30% of rating): We consider how easy the rewards are to use, looking at factors like expiration dates and minimum thresholds to redeem.
• Other features (20% of rating): We also compare a card’s benefits, such as purchase and travel protections, against benefits from other cards.

Note that our ratings are only a starting point for comparing and choosing the best cash back credit card. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories, as well as which benefits you value to choose the best card for you.