Discover® Open Road Card Review

The Discover® Open Road card pays double cashback rewards on gas and restaurant purchases and up to 1% unlimited cashback on all other purchases you make throughout the year. The card has no annual fee and features a 0% introductory rate on purchases and balance transfers for 15 months. Perhaps best of all, you can earn a $150 Restaurant.com gift card if you use your card with in 6 months of approval.

Reward Program

Here’s how the rewards program works:

Each month you earn 2% cashback on your first $250 in gas and restaurant purchases. That’s a chance to earn $5 cashback each month on purchases you would have earned anyway – $60 per year.

Your other purchases can earn up to 1% unlimited cashback rewards after you’ve made $3,000 in qualifying purchases during the year. Purchases under the annual $3,000 threshold earn .25%. Warehouse purchases always earn .25%.

Your purchases earn between 5% and 20% cashback rewards when you make purchases through ShopDiscover, Discover’s online mall. Some of the top cashback bonus retailers are Barnes & Noble – 15%, GAP – 10%, Groupon – 15%, Kohl’s – 10%, Magazines.com – 20%, and Shoes.com – 15%. Some retailers offer free shipping with a minimum purchase amount. (Note that cashback bonuses are subject to change.)

0% introductory rate on purchases and balance transfers for 15 months. Balance transfers must post to your account by November 15, 2011 to get the balance transfer promotional rate.

Redeem your rewards for a Discover gift card, a donation to charity, a gift card from Discover partners, an electronic transfer to your bank account, or credit to your Discover account. You can redeem gift cards and donations in increments of $20, while electronic transfers and account credits must be redeemed in $50 increments.

Make sure you pay your bill on time every month to keep your rewards. Your account must be in good standing to redeem your rewards. You forfeit your rewards if your account is closed, inactive for 18 months, or you miss two consecutive minimum payments.

Interest Rates and Fees

Discover Open Road credit card has a 0% introductory rate on purchases and balance transfers for 15 months. After that, the regular APR is 11.99% to 19.99% variable, depending on your credit history. Applicants with better credit scores typically get a lower interest rate. The balance transfer fee is 3% with the 0% introductory offer and after that, either $10 or 5%, whichever is greater.

The cash advance APR is 23.99% and cash advance fee is $10 or 5%, whichever is greater.

Penalty APR, typically charged when your paycheck is returned or you’re 60 days late on your minimum payment is between 16.99% and 24.99% variable depending on your credit history.

There is no annual fee for the Discover Open Road credit card. The foreign currency fee is 2% of the purchase.

Biggest Benefit

• $150 Restaurant.com bonus gift card
• 0% introductory rate on purchases and balance transfers

Drawbacks

• Monthly limit on the double cashback bonus