Expert: Karen McLaughlin - 1/21/2003

Question
I am currently using a VISA for my bills. I do not carry a balance.

I was considering opening a Discover account to get the cash rebate.

Is Discover accepted at as many places as VISA? Do you think this is a good strategy?

Answer
Hi John!

Using a rebate card can work well as long as you use it sensibly. Since you mention you don't carry a balance on your VISA it sounds like you know how to use credit to your advantage. As to how many places accept the Discover card, I don't have any hard stats on this, but from my own personal observation it is accepted in less places than VISA where I live - this could be different for your area though. The best strategy might be to use the Discover card when possible, and also have another no-fee credit card (such as VISA) that you could use if the Discover card is not accepted. It might be worth looking to see if there are any other cards that offer similar rewards that might be accepted more widely too. I use a President's Choice Mastercard which has no fee and earns points towards free groceries (the bonus is that I also have a no-fee bank account with them that earns points when I use my debit card, so the rewards accumulate more quickly). I think President's Choice is only available in Canada, but (if you're not in Canada) there might be another similar type of program in your area.

Hope that helps!

Karen