Providing monetary incentives for students to get good grades is no longer the sole province of parents. Discover’s new student credit card now comes with a $20 cashback bonus for students who achieve a 3.0 or higher GPA each year that they are enrolled in school.
“This best in class program for new Discover cardmembers gives students an opportunity to earn a bonus for hard work in their classes,” said Ryan Scully, a marketing vice president at Discover. “It is also a good way for students to experience the benefits that come with being a Discover cardmember.”
In addition to the cashback bonus, the card comes with standard Discover benefits and rewards including free access to students’ credit scores, the ability to instantly freeze the card in the event that it si lost or stolen, and additional cashback rewards for purchases in select merchant categories (ideally bars and laundromats).
Jokes aside, Discover is smart to invest their product and marketing dollars in younger consumers opening their first credit card accounts. Incentivizing these consumers to start building healthy habits in school will pay dividends if they grow into responsible users of credit down the road.
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service, Mercator Advisory Group
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