The Discover it Cash Back is a fantastic tool for saving up for your next trip and for saving money while you’re on the road. With its dynamic 5% cash back categories, a game-changing first-year bonus, and, most importantly, no foreign transaction fees, the Discover it Cash Back card can be a traveler’s best friend. Let’s break down how you can use this card to make your travel dreams a reality without breaking the bank.
A Strategic Plan for Funding Your Travels
The real magic of this card is how you can use its rewards structure to actively save for a trip.
- Leverage the 5% Categories for Travel Expenses: Discover’s rotating 5% categories (on up to $1,500 in spending per quarter) often align perfectly with travel planning.
- Gas Stations: Earn 5% back on your road trip fuel.
- Restaurants: Get 5% back on all your dining out while on vacation.
- PayPal: This is a key one. You can use PayPal to book flights, Airbnb stays, and tours on many websites, effectively turning those bookings into a 5% cash back purchase.
- Grocery Stores: Before your trip, buy gift cards for airlines, hotels, or even Disney at a grocery store to lock in the 5% cash back.
- The First-Year “Cashback Match” for a Huge Travel Fund: Discover’s welcome offer is perfect for saving for a big trip. They will match all the cash back you earn in your first year. Let’s create a travel savings plan:
- If you spend $1,500 each quarter in the 5% categories, you’ll earn $300 in cash back for the year.
- If you spend another $5,000 throughout the year on other purchases (at 1%), you’ll earn another $50.
- Your total cash back earned is $350.
- At the end of the year, Discover will match that, giving you another $350.
- Your total first-year travel fund is $700! That’s enough for a round-trip flight to many amazing destinations, just from using your card for a year.
- No foreign transaction fees: The Discover it Cash Back card has no foreign transaction fees. This means you can use it for your international trips—booking hotels, paying for meals, buying souvenirs—and you won’t pay a single extra cent in fees. This feature alone can save you hundreds of dollars on a single trip.
- Direct Deposit: You can have your cash back rewards sent directly to your bank account. This gives you liquid cash that you can use to book any flight on any airline, or any hotel, with no restrictions.
- Statement Credit: You can pay for your travel with your Discover card and then apply your cash back as a statement credit to “erase” the purchase from your bill.
- Hotel and Travel Gift Cards: You can also redeem your cash back for gift cards for hotels, airlines, and other travel companies, often at a discount, which stretches your savings even further.
Who Can Apply
This card is a perfect choice for the U.S.-based traveler who:
- Are at least 18 years old
- Reside in the U.S.
- Have a valid SSN
- Have a consistent income and a credit score in the fair to good range
How to Apply for Your Travel-Funding Tool
- Check for Pre-Approval: Go to the Discover website and use their risk-free tool to see if you’re pre-approved without affecting your credit score.
- Complete the Online Application: The process is quick and easy.
- Get an Instant Decision: You’ll often get an answer in less than a minute.
- Start Planning and Earning: Once approved, don’t forget to activate your first quarter’s 5% categories and start earning towards your next adventure!
A Traveler’s Q&A
- How widely accepted is Discover internationally?
Discover has made great strides in international acceptance. It is widely accepted in many popular tourist destinations in Asia, the Caribbean, and parts of Europe. However, it is less common than Visa or Mastercard in some regions. It is always recommended to carry a Visa or Mastercard as a backup when traveling abroad. - Are there any travel insurance benefits?
The Discover it® Cash Back card does not come with traditional travel insurance benefits like trip cancellation or lost luggage coverage. Its primary travel benefits are the lack of a foreign transaction fee and the ability to earn cash back that can be used for any travel expense. - Can I really use the PayPal category to book travel?
Yes, absolutely. Many online travel agencies, and even some airlines and hotels directly, accept PayPal at checkout. If PayPal is the 5% category for the quarter, any purchase you make through that checkout process will earn the 5% cash back. - Is it better to get cash back or points for travel?
Cash back offers more flexibility. You can use it to book any deal you find on any website. Airline and hotel points can sometimes offer a higher value, but they lock you into a specific program with its own rules and blackout dates. For the budget-conscious traveler, the flexibility of cash back is often the better choice.
