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Discover® Student Card

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• $0 Fraud Liability Guarantee
• Advanced fraud early warning alerts
• Secure online account numbers
• Fraud specialists dedicated to helping you 24/7

Issuer :  Morgan Stanley

Introductory APR : 0%

Introductory Period :  6 months

APR After Introductory Period:  16.99%.  Not everyone is guaranteed the introductory APR when they apply and you could end up paying a default rate between 21.99% and 28.99% depending on your payment history and credit rating

Cash Advance Rate : 22.99% variable rate

Annual Fee :  No annual fee

Credit Line Possible :  The credit line possible when applying for a Discover Student Platinum card is dependent on an evaluation of your credit rating and personal resources.

Insurance included :  The Discover Student Platinum Card offers platinum type rewards that include auto rental insurance, up to $500,000 in travel accident insurance.

Financing Configuration – Interest is calculated according to a two cycle daily balance, which is more expensive to you than the average daily balance method used, by most credit card issuers.

Grace Period – You have twenty-five days after making a purchase with your Discover Student Platinum Card during which you do not have to pay interest.

The Best Thing About It—Through the reward program, cardholders earn a 5% cash back bonus at bookstores, gas stations and restaurants as well as 1% on all other purchase.

The Worst Thing About It – Taking out cash advances with this card is very expensive because of the high APR.

Credit Rating Needed For Acceptance : Good Credit.

Who Is It For?

The Discover Student Platinum Card offers a flexible and generous cash back rebate program that applies to travel hotels, airlines, gasoline, restaurants and general purchases that rotate every three months in different categories. This card is also intended to help students build credit.

The Benefits

There is a generous rebate program. You earn 5% back in popular categories such as gas stations, restaurants, clothing and a 1% cash back on all other purchases. Rewards are sent to you in $20 increments.

Duplicate cards are free.  There is no fee for issuing duplicate cards.

You can keep track of all of your business expenses in one place.  You are also able to monitor what goes on in your account with full access to an online account report.

No Fraud Liability.  If you claim someone has stolen your card then you do not have to be liable for the usual $50 that is typically deducted as fraud liability. Your are also protected by a Fraud Protection program.

The Drawbacks

 

Monthly payments are applied to purchases before cash advances. The amounts that you pay monthly are not applied to the highest interest activities such as taking out a cash advance. This can make it difficult not to accumulate a lot of debt. 

A short grace period. Many credit cards don’t begin to garner interest on purchases until thirty days after purchase. The  Discover Student Platinum Card only gives you twenty-five days. There is also no grace period on balance transfers.

The APR is not guaranteed. If you make a late payment on any bill, not just your credit card bill, your introductory 0% rate can be replaced with a costly variable default rate

There are lots of hidden fees.  See the Fees to Watch Out For section below.  The fees charged for your every little financial transaction can really add up and make it seem like you are paying an annual fee anyway.

Fees To Watch Out For

 

Late payment fee : $15 on balances up to $500, and $39 on balances over $500.

Over The Limit fee : $15 on balances up to $500, and $39 on balances over $500.

Cash advance Fee : 3% for each cash advance, with a minimum of $5 and no maximum.

Minimum Finance Charge :  Fifty cents.

Balance Transfers : 3%, $5 minimum, $50 maximum (does not apply to introductory offer)

To Summarize –

The Discover Student Platinum Card has a high interest rate but the lack of annual fee make this attractive.  The APR is high so you better plan on being able to pay off the balance after the 6-month introductory period is over or you could find yourself in deep in debt. Any late payment will result in a default APR that is as high as 28.99% being applied to your monthly credit card bill. Please plan your financial life carefully. 

Intro APR	Intro APR Period	Regular APR	Annual Fee	Balance Transfers	Credit Needed
0%	6 Months	16.99%	None	N/A	Good Credit