by John Terry |
Last Updated: May 31, 2020 
Even though we write about points and miles, earning 5% cashback can still be valuable. Similar to the Chase Freedom quarterly bonus categories, the Discover IT cashback card is a great way to earn a return. For Q2 2020, the Discover bonus categories are gas stations, Uber, Lyft, wholesale clubs, and Home Depot.
Cardholders of the Discover It Cash Back card can earn a 5% bonus in select categories each quarter. A difference from the Chase Freedom card is that Discover tends to release their 5% bonus calendar before the year starts, while Chase tends to release it throughout the year.
The second quarter bonus is a little bit tough to take advantage of due to the current COVID-19 pandemic. The categories are gas stations, Uber, Lyft, and wholesale clubs. Unfortunately, many people are not driving or traveling making gas stations, Uber, and Lyft unfavorable.
Wholesale clubs could be valuable. However, Costco only allows Visa cards so Sam’s Club is the only popular wholesale club where a Discover card can be used.
However, as of June 1, Discover has added Home Depot has a Discover Cashback bonus category for the second quarter. The rise of home projects has been on the rise since nationwide stay-at-home orders have been passed down, so this could have some value.
2020 Discover Cashback Bonus Categories
Q1: Grocery Stores, Walgreens & CVS
Q2: Gas Stations, Uber, Lyft, Wholesale Clubs & Home Depot (added June 1)
Q3: Restaurants & PayPal
Q4: Amazon.com, Walmart.com & Target.com
Beyond the First Quarter
Specifically, the first quarter bonus of grocery stores is one that can be maximized. Gas stations could prove beneficial for those with long commutes. Restaurant expenses can add up, as well. But, the fourth quarter bonuses at three online retailers right around the holiday season might be the most useful.
Remember, that Discover It cardholders must activate the 5% bonus each quarter before earning the additional cash back. There is also a limit to $75 in cash back each quarter, so be sure to not overspend and potentially miss out on other credit card bonus categories.
Activating Discover Cashback Bonus Categories
Before earning 5% bonus, you must activate the offer with Discover.
- Must activate your card with Discover.
- You will need to log in to your account using the link on this page.
- Click “Activate Now” to start earning 5% cashback
Final Thoughts
As much as I love earning points and miles, there’s real value in earning 5% cashback using the Discover It credit card. My Discover card was actually the first card I ever opened. It doesn’t have an annual fee. and I use it to get a 5% cashback bonus for quarterly categories.
Additionally, I leave it open because it continues to improve my credit score since it’s my oldest credit account.
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