Q: I’ve been earning a lot of rewards with my Discover card lately. Is there a limit on how much I can earn?
A: Discover cards offer cash back rewards or airline miles for making purchases. In most cases, there is no cap on the amount of reward you can earn, and the rewards do not expire.
However, there is a limit on spending that goes towards the cashback bonus categories in any calendar quarter.
The Discover it and Discover it for Students cards pay cash back at a rate of 1%, and there is no limit on this reward.
Throughout the year, Discover highlights a particular spending category, like groceries or travel, that is eligible for 5% reward credit. With each category, Discover will pay 5% up to a specific dollar amount, and amounts over this cap earn only 1%.
The cap varies from time to time, but is usually $1,500. You will need to check the Discover website for the current category and cap.
We think a $1,500 cap on quarterly spending in the bonus categories us fairly generous. However, it does limit Discover’s exposure to 5% rewards.
The Discover it Miles card offers credits toward travel-related expenses, gift cards or cash. In this case, rewards are not capped and do not expire if you keep the card active.
Also, right now, Discover is offering to double all first year rewards for new cardmembers. So, if you don’t already have a Discover card, this may be worth looking into.
Please be aware that you will forfeit your rewards with Discover if you miss a payment.
