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The Discover Student Card offers students enrolled in full time classes to enjoy the benefits of a credit card although they will likely have no credit history and no major source of income available to them. The card allows students to gain cashback rewards on their purchases when they participate in the Get More program offered through the company and also boasts a relatively low APR that will continue indefinitely over the course of the account being held. There is no annual fee for the Discover Student Card, however there are other fees that must be taken into consideration before the account is opened or used. Firstly, late fees and overlimit fees apply to the account so if you are late in making a payment or if you spend more than your credit limit you will be paying even more on top of the original debt and APR: late fees are $15 on any amount up to $500 and $39 on any amount that exceeds this. After the initial special offer period ends on December 1st, 2007, however, this fee will rise to $19 on amounts of up to $250 and $39 on anything above that. Overlimit fees are $15 on anything up to $500 and $39 for any amount over $500. The annual cash advance fee is 23.99% and the cash advance transaction fee (chargeable at each transaction) is 3% with a $5 minimum. The cashback rewards program works through the Get More initiative; essentially you need to stay aware of the different offers coming out from Discover if you want to keep track of any chances to earn yourself rewards. You will be able to earn 5% cashback on purchase and a further 1% on purchases when exceeding $3000. These rewards are redeemable in batches of $20. When you make regular monthly payments on the account and clear the debt each time, you will retain your grace period of 25 days; this means that your debts will not be subject to APR for a full 25 days so if you pay off the amount quickly you will not have to pay so much in interest as if you waited the full month. The advantages of this card are that it is available for students, its interest rate is relatively low and you have the opportunity to gain rewards back on purchases. The drawbacks are its plethora of fees, however if great care is taken with the account there may be no need for concern. |
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