Discover It Cash Back Credit Limit: Maximize Your Rewards

The Discover it Cash Back Card is a highly popular rewards credit card on the market, offering generous benefits and flexibility. However, your credit limit is a crucial aspect to be aware of when using this card.

The credit limit is the maximum amount you can borrow before needing to repay some or all of it to avoid interest charges or penalties. So, let’s explore the Discover it Cash Back credit limit and other key details.

Basic Things to Know About Credit Limits

Credit limits vary depending on the card issuer and even the types of credit cards issued by the same organization. For the Discover it Cash Back Card, the credit limit isn’t set arbitrarily—it’s determined by carefully evaluating your financial profile. When considering your application, to set the Discover Cash Back Credit Card limit for you, the bank takes into account the following factors:

• Your current credit score;
• Level and stability of your income;
• Debt-to-income-ratio (DTI);
• Payment history.

Knowing your limit is essential for understanding the threshold for your expenses to avoid overspending, which can negatively impact your credit utilization ratio.

Discover it Cash Back Card Features and Benefits

Before we explain the credit limit for the Discover it Cash Back Card, it’s worth highlighting the key features that make this card stand out among others.

Compelling Cash Back Rewards

Distinguished by its unique rewards structure, the Discover it Cashback Card is a popular choice for those seeking to earn rewards on everyday purchases.

• 5% Cashback on rotating categories: Every quarter, Discover introduces new spending categories like gas stations, grocery stores, restaurants, or online shopping, where you can earn an impressive 5% cash back.
• 1% Cashback on all other purchases: Any spending outside these categories still earns you 1% in cashback.
• First-year cashback match: At the end of your first year as a cardholder, Discover will automatically match all the cash back you’ve earned, effectively doubling your rewards without any extra effort.
• Flexible redemption options: The Discover it plastic card comes with plenty of flexible redemption methods. You can cash them out through statement credits, direct deposits, gift cards, or use them seamlessly when you check out at Amazon or PayPal. On top of that, your rewards won’t run out, and there are no redemption thresholds to hit before you can redeem them.

No Annual Fee

Unlike other similar cashback cards that make you pay annual fees by default, Discover allows you to enjoy all the perks and benefits without tacking on extra yearly costs to keep the card active.

0% Intro APR

The Discover it Cashback Card gives you a 0% intro APR for the first 15 months on both purchases and balance transfers, which is perfect if you need to spread out payments on a big expense or roll over some debt.

Freeze It Option

If you lose your card or just can’t find it for a while, you can easily lock it down through the Discover app or website to prevent unauthorized use, charges, or costs. Once it turns up, you can quickly unfreeze it and get back to using it as usual.

Discover it Card Initial Credit Limit

When you look into the card terms and conditions available on the Discover website, you won’t come across a specific credit limit right away. The initial limit for this card is set at $500. So, if your card issue is approved and your application goes through, you’ll be working with at least $500, which is a good starting point.

With no fixed top limit in place officially, the average Discover it credit limit falls between $500 and $2,000. At the same time, some cardholders report landing the limit as high as $11,000.

Before you jump into the formal application process, you can estimate your chances for approval by passing a pre-approval check performed beyond hard credit inquiries that will impact your final score in the end. However, your exact credit limit will only come up after your application has been fully approved.

Anyway, when deciding how much credit you can handle, Discover will base the final limit on things like your creditworthiness, income, and debt-to-income ratio (DTI).

Asking for a Credit Limit Increase

According to client reports, the Discover it average credit limit is typically set above the $500 minimum. So, over time, you can put in a request for the limit increase if you need more spending power, want to bring down your credit utilization ratio, seek to rack up your rewards, or simply feel like your financial situation has improved, and you can take on more credit.

You can go ahead and submit a limit request online by submitting a digital form through the Discover website or mobile app. You can also ring up customer service directly. In either case, make sure you’re ready to give additional financial details such as your current income, employment status, monthly housing costs, etc. You might get an instant decision, or the bank could take a little more time to work through your application.

How a Credit Limit Impacts Your Credit Score

When you're thinking about asking for a higher credit line, it’s important to figure out how it will affect your credit utilization ratio and shape your score, as these two are closely connected.

If you’re working with a lower credit limit and you often carry a balance, your credit utilization ratio can go up, potentially pushing past 30%—a level that might hurt your score. By raising your credit limit, you open up more available credit, which, if your spending habits remain consistent, can help you bring down your utilization ratio and boost your score.

Keeping your utilization low shows lenders that you know how to handle your credit responsibly and don’t rely too heavily on it. Credit bureaus like FICO and VantageScore reward consumers who keep their utilization ratio below 30%.