Review of Discover Open Road Card for Students

Going off to college can be a big discovery of oneself or a hideous disaster waiting to happen. Finances can really rattle the most conscientious penny pincher as well as new students trying to learn how to budget. Discover has a new card just for students called the Discover Open Road Card.

Before I discuss both the pros and cons of any credit card, you need to be advised that credit card companies are there to make a profit. They are not there to be your friend and give you free money. If you become disabled or unable to pay your bill in any way, they will need to get back the money they loaned you for the purchases you made. Credit cards are ways to make you feel you have more than you do and you are buying items on credit for money you have not made yet. So as always in my reviews, please be aware as you review the credit cards that the deal is good for you as well as for the credit card company. Find the best for you. I will show you the benefits as well as spell out the "fine print" so you will be better informed when you are researching your next credit card.

Pros of the Open Road Card for Students

The Discover™ Open Road Card for Students has several benefits 0% interest on purchases for six month, a full 5% Cashback Bonus on gas and everyday auto maintenance purchases, up to1% Cashback Bonus on all other purchases, no annual fee, $0 fraud liability guarantee, easy online account management tools, and will help you to build your credit history. You can also make purchases at warehouse clubs, discount stores, and their affiliates and earn .25% Cashback Bonus.

You will earn a 1% on all other purchases after your total annual purchases (including gas and auto maintenance) exceed $3,000; other purchases that are part of your first $1,500 earn .25% and other purchases that are part of your second $1,500 earn .50%. Once you exceed the $1,000 Cashback Bonus for gas and auto, then gas and auto maintenance is at the same rate as the other purchases.

Beware of the fine print

Fine print can be a "gotcha" moment whether you are a sophisticated credit card user or if you are a new credit card holder. Please read these carefully.

Interest Rates

The interest rates on the current offer are only good if you get the card and approval by September 15, 2007 when it will then go up to the default rate, currently 16.99%. The current 0% financing rate will last until March 31, 2008, then it will increase to 16.99%.

Fees

The fees for cash advance are 3% for each cash advance with a minimum of $5 and no maximum. Late fees can be substantial. $15 on balances up to $500, and $39 on balances over $500. For billing periods ending after 10/1/07, the amount of your balance will decrease but the fee for that balance will stay the same. It will be $19 on balances under $250 and $39 on balances over $250. Over the limit fee is $15 on balances up to $500 and $39 on balances over $500. Now if you are late making a payment, they may increase your APRs to the Default Rate of up to 28.99% for purchases and 20.99% for cash advances.

Grace Period and Billing Cycles

The grace period for repayment of the balance of the purchase is at least 25 days when you pay your bill in full each month. They also use the Two-cycle average daily balance (including new purchases) for computing balances. However, there is no annual fee and the minimum finance charge is $.50.

Rewards and Stipulations

Rewards can be redeemed in $20 increments but have no expiration date; however if you close your account or are inactive for more than 36 months, you could forfeit all or some of your Cashback Bonus.

For billing periods ending after November 1, 2007, you will forfeit the entire balance if your account is inactive for 18 consecutive months, closed for any reasons, or if you fail to make the minimum payment due by the payment due date for two consecutive billing periods.

Starting October 1, 2007, you can get 5% Cashback Bonus up to $1,200 in gas and auto maintenance purchases each year and on your first $100 in these purchases each month, up to $1200 each year. Gas and automobile maintenance in excess of $100 each month will still earn unlimited Cashback Bonus at the same rate as other purchases.

Now that you have had a chance to sift through all the clutter to come down to the meat and potatoes of having a Discover™ Open Road Card, you need to decide if this is the right credit card for the college bound student.

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