The Discover Student Tropical Beach credit card is designed specifically for students, who tend not to have much credit history. It offers a cash back rewards program that caters to the interests of students, and is available in several different card designs. However, like many cards meant for those with average credit or a lack of credit, rates on this card can be somewhat higher than usual.
Applicants with some credit history, and especially good credit, will do well because they will receive the lower end of this card's somewhat higher rates. The card does offer a 0% APR for the first six months, but after those six months the APR will increase to somewhere around 15%, with the rate on cash advances even higher. This is due to the credit risk involved with new cardholders, who should learn good habits of paying their card down each month to prevent finance charges from accumulating. This card has no annual fee.
Through the rewards program, the Discover Student Tropical Beach card offers cash back on a percentage rate. The first $1,500 in purchases earns .25% back in cash rewards; the second $1,500 in purchases earns .50%. After the first $3,000, each purchase earns 1% in cash back. Purchases made at participating merchants, including some warehouse clubs, discount stores, and their affiliates, will earn .25% of the purchase in cash back. A new feature of this card recently added by Discover is a chance to receive a cash back rebate of up to 5% on purchases made at participating amusement parks and zoos. There is no cap on cash back rewards, which are redeemable in $20 increments.
It's important to note that this card operates on a Two-Cycle Average Daily Balance method for calculating finance charges, which results in higher finance charges than cards that operate on a single cycle. This encourages paying the balance due each month to keep finance charges low.
The Discover Student Tropical Beach is a good beginner's card for those who do not plan to carry a large balance for a longer period of time. If an applicant is planning on carrying a balance, they would be better served by finding a card with a lower interest rate. This card does have the benefit of being specifically designed for students, in that it offers a 0% introductory rating and has no annual fee. Also, the rewards program is centered around merchants and activities that appeal to students, so they have a better chance of spending the amount required to redeem their cash back. Those who do not plan to carry a large balance for months, and who plan to participate in the cash back program, will be able to use this card to its best advantage.
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