Category Archives: Invest

How-to Get $50 from Discover ($DFS)

I’m not sure how long this offer will last but it’s too good to not share.

Right to the point, there’s $50 in it for me. And there’s $50 in it for you.

All you have to do is sign up here https://refer.discover.com/s/PETER611

Official message from Discover:

Become a Discover Cardmember and get a $50 Statement Credit when you make your first purchase within three months. Then, earn rewards with every purchase after that.

This is my first Discover card. In total, I have 11 cards and my Discover card is currently the go-to card I carry in my wallet. I also have my eye on the Discover it® Cash Back Card, I plan to sign up for that soon. Either that or I might apply for the Discover it® Business Credit Card, because I want to build my business credit.

As far as I know, correct me if I’m wrong, the Discover Business card reports payments to Equifax, Experian, Dun & Bradstreet, and consumer credit bureaus. Negative accounts (like if your business fails) report to consumer credit only. That’s not necessarily ideal if you want to keep your personal and business credit completely separate, but it sounds good to me.

1. This would increase my total personal credit limit, which will keep my utilization percentage low. Discover cards supposedly have higher-than-average credit limits compared to other cards. So far I’m getting higher limits from Citi and Chase but we’ll see how it goes.

2. This would help me get a Paydex score with Dun & Bradstreet. I don’t have a Paydex score yet because by LLC is new and I don’t have enough data reporting there yet. This would help me reach my goal of getting a good Paydex score for my business.

3. Like #2, I don’t have an Equifax score reporting yet either. I need more data reporting there, according to Nav.

Aside from the “business credit” reporting, which I don’t have yet, what do I think about Discover so far?

– It seems to be accepted everywhere. Maybe I’m old, but I don’t remember Discover being accepted everywhere.

– The limit they initially gave me was low and that was surprising because Discover is known for higher limits. Not really complaining because this is my first Discover card and at least I didn’t get rejected, right? In fact, this is the main reason I applied for Discover, I’m specifically targeting high-limit cards like the oh-so-heavy Chase Sapphire Preferred card. But I did get a small increase (without asking) after ~4 months. My personal score just went up again, about 40 points, so we’ll see if I can get a better limit with Discover.

– The initial 0% interest period was not very generous compared to Citi or Capital One.

– I’m not sure about the interest rate yet, we’ll see how that goes.

– The website UI is good, which is important to me. It’s also very easy to redeem “cash back” as a statement credit. Unlike Citi, they don’t make you wait and wait to get your cash back credited.

– I don’t like the Discover “app” because it doesn’t remember my password. And there’s no way I’m giving Big Tech my fingerprint to login faster! The only good thing about the app is it gives you purchase notifications and no login is required to get those notifications. That’s a nice assurance to know a sketchy gas station charged me the correct amount, for example. I don’t trust gas station milk either ;-)

– I heard someone say American Express tends to copy your Discover credit limit. I don’t know if that’s true, but for that reason, I would like to build up my Discover credit limit before applying for an American Express business card. I actually have an Amex Macy’s card with a limit that’s 2x my Discover limit, so maybe it doesn’t really matter.

– This isn’t that important, but I do like the Discover branding and the card looks nice.

– Full disclosure, I started buying some Discover stock recently, $DFS. Historically, Discover seems to be growing at a steady rate, more steady than its competitors. I also think the stock is unusually low right now, mostly due to fake virus data that misrepresented the severity of the Covid19 threat. Initial fears about Chinese people falling over dead, those reports were totally exaggerated. Apparently Wuhan had (or still has) a terrible pollution problem, which more likely explains the leaked videos of Chinese people passing out in public. A newsworthy pollution protest happened in Wuhan just days before the Covid19 outbreak. Coincidence? In any case, when hard times come knocking, that’s exactly when you need to use your credit, which is how these cards make money, right? It’s a safety net for unexpected events. I think it would look bad in terms of public relations if credit card stocks shot up too high, given the number of people experiencing hardship. But speaking from personal experience, when money is tight, credit cards helped me, and I’m happy to pay them accordingly for helping me through those hard times. I don’t have a crystal ball, but most reports indicate the Covid19 virus is not that dangerous. We overreacted. From the start I was very cautious, but the more I followed all the information, the more I saw it was really about money, power and politics, to say the least. Back to my original point though, credit cards are essential to keep our economy going and I can’t imagine these stocks not fully recovering. I’ll write a whole separate blog post about why I think the credit card industry will continue to prosper in the years ahead.