Discover - Credit Card Review

I've had a Discover Card for about 7 years now.  You might think this would mean I'm really happy with them and that they've been good to me.  Truthfully, I just don't have the time or energy to switch my credit cards around all that often, and I've stuck with Discover (over, for example, MBNA/Bank of America) due to their balance transfer offers and their cash back program.

Discover's cash back program is multi-faceted.  You get a basic 1% back on all purchases.  This accrues on your statement.  Once you reach $20 accrued, you can redeem.  You can request a check, apply the cash to your Discover Card balance, or you can increase your reward by as much as double by requesting a gift certificate to one of Discover's partners (i.e. Borders, Friday's, Toys R Us etc).  Each quarter, they also increase the cash back percentage to 5% on certain types of purchases.  For example, the first quarter of this year was auto and travel, meaning you'd get 5% back on airline tickets, or car rentals.  Currently, you get 5% back on purchases for the home, meaning stores like Linens N Things would earn you that.  It's a nice perk, and came in handy at Christmas time this past year, when "entertainment" was the category, meaning all sorts of merchants became eligible (i.e. Amazon, Barnes and Noble, Best Buy etc).

Discover's purchase APR is rather high (it's at 24.99% now, good thing I pay it in full every month), but they do offer good deals on balance transfers, sometimes as low as 1.5%.  I've taken advantage of the balance transfers before, and it has worked out well.  They make it simple for you as well, as you can request it online or via phone.  I've done both, and the phone works out even better than the internet.  The customer service reps I've had have been helpful, courteous, and friendly. 

They've also always been very communicative and quick to respond anytime I have a billing dispute.  They took my concerns seriously, and made the process as easy as possible on me.  There's nothing worse than a credit card company that seemingly doesn't care about it's customers.  I've never felt that way about Discover.

Ultimately, Discover's cash back program is their biggest selling point, augmented by a ready, willing and able customer service department, and solid balance transfer offers.  You could do a lot worse in looking for a credit card.