The Discover Student Tropical Beach Card, issued by Morgan Stanley, is designed for those with an average or limited credit history who are looking for a cash reward credit card.

Through the reward program, cardholders earn a full 5% in cash rebates for purchases made at select merchants, up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores.

Those who spend up to $1,500 on general purchases will receive a .25% rebate, between $1,500 and $3,000 will receive a .5% rebate, and over $3,000 will receive a full 1% rebate.*

As an added bonus, cardholders can earn up to a double Cashback Bonus for redeeming their rebates for gift certificates from participating Discover Card Partners. There is no yearly limit on the amount of rebates that can be earned, and rebates do not expire as long as the account is active within a 36 month period.

The APR for this card is average, there is no annual fee, and a 0% introductory rate applies to purchases until the last day of the billing period ending during July 2006.

Finance charges applied use the "Two Cycles Average Daily Balance" method, which is a more costly method in applying finance charges to those who may occasionally carry a balance as compared to the "Average Daily Balance" method used by most card issuers.

Therefore, those who plan to spend over $3,000 a year (to earn the 1% cash rebate), plan to use their Cashback Bonus® award at participating retailers (to earn double cash rebates), and plan to pay in full each month (to avoid costly finance charges) will benefit most from what the Discover® Student Tropical Beach Card has to offer.

Students who plan to carry a large balance should consider a lower interest rate card (one that applies the "Average Daily Balance" method), as any finance charges saved will be more than any cash rebates earned.

It is important to note that like many cash reward cards, the highest rebate offered will not apply to all purchases made with the credit card. In this case, 1% will only be applied to those purchases made after the cardholder spends over $3,000 in one year, so the overall cash rebate earned will be less than 1%, depending on the amount spent. For instance, if the cardholder were to spend $4,000, only $1,000 of this amount would be applied towards the 1% rebate. However, this does not take into account any promotional offers or the 5% Cashback Bonus award.

 
Please be sure to read the issuer's Terms and Conditions