Update: Well it had a long run but the jig is up. At the start of 2013 Discover made a rather shocking announcement that they were ending all of their credit cards (including the Motiva) and replacing them with a new single product… the Discover It card. You can’t apply for the Motiva anymore but I’ll leave the old review (below) up for reference.
You and I both know it’s not a good idea to carry credit card debt, but when we have to do it… we might as well use a card that is geared towards carrying a balance, right? Well, that is exactly what the Discover Motiva card is. Let’s take a look at its pros and cons.Are you the type of person that pays your bills on time? If so, then this credit card is right up your alley…
Get rewarded for paying on time
This Discover card rewards you for paying your bill on time. Here’s how it works:
- Simply pay your bill on time 6 months in a row
- Just for doing that you will get a Pay-On-Time Bonus that equals out to be one full month of interest
- Your Pay-On-Time Bonus will be rebated to your cashback balance (which can be redeemed for a check or rewards)
- You will receive the Pay-On-Time Bonus every 6 months in row that you pay on time, so you can potentially earn 2 free months of interest per year!
Some people criticize the Motiva credit card, saying it encourages debt by rewarding it. To be honest, I don’t think that’s what Discover is doing. During The Great Recession a lot of people defaulted on their credit card bills, so what’s wrong with discouraging that and giving us an extra incentive to pay?
Plus you will earn rewards on spending
Get up to an unlimited 1% cash back. Each year you will earn 0.25% on up to $1,500 in purchases, 0.5% on $1,500 to $3,000 in purchases, and 1% on purchases beyond $3,000. Sure, this may not be the best credit card rewards program out there, but you have to remember you will also be earning rewards for paying on time, which is a completely unique benefit.
Get up to double value for your cashback bonus
Only Discover credit cards give you ability to get up to double value for your accumulated cashback. How? Well if you redeem if for a check or statement credit, it will be at face value ($1 per $1 in accumulated rewards). However if you choose to redeem your cash back for partner gift cards, you get more bang for your buck… all the way up to double value for some gift cards.
There are around a hundred different gift cards to choose from, so this unique perk definitely makes the Discover Motiva credit card rewards more lucrative.
And you will get all these other benefits
- Up to $500,000 in free travel accident insurance on eligible travel purchased with your Discover Motiva
- Earn 5% to 20% cashback for online purchases at over a hundred popular retailers
- Free insurance coverage services for eligible auto rentals
- Great award-winning customer service from Americans instead of foreign call centers
- Customizable payment due dates
Should you apply for Discover Motiva card?
Debt is never a good idea but if you have no choice, the Discover Motiva offers some great perks.
Update: Here is their new card which replaced the Motiva and all their other cards for 2013: