Miles by Discover® Card Review

Miles by Discover® is a great travel rewards credit card. The card features a 0% introductory APR on both purchases and balance transfers for the first six months. After that, the regular APR for purchases is between 10.99% and 15.99% based on your credit history.

Perks

There’s no annual fee, which is rare for a rewards card. You can earn up to 12,000 bonus Miles in the first year just by using your credit card for one purchase each of the first 12 months you have your card. You’ll earn 1,000 each of those months and 12,000 if you make a purchase all 12 months. You get a $100 travel credit to your account when you redeem 10,000 Miles for a travel purchase as long as you redeem the Miles to your account within 90 days.

Reward Program

Earn double Miles on your first $3,000 of travel and restaurant purchases each year and double Miles on purchases in Discover’s online shopping mall. All other purchases earn 1 Mile for every $1.

Miles by Discover gives you various reward redemption options: travel, gift cards and even cash. There’s no cap on the miles you can earn and miles never expire as long as your account is active and in good standing. Make sure you pay your bill on time each month because you could forfeit your miles if you fall behind by two consecutive billing cycles. Discover says there are no restrictions on how you can use your rewards and there are no blackout dates.

There are minimum redemption amounts. For example, you can redeem a minimum of 1,000 Miles for a partner gift card or 5,000 Miles for a Discover gift card or cash. Your account must be current to redeem Miles.

While you can use your Miles to purchase tickets on any airline or flight (as long as you book with your Discover), you can’t transfer miles from any other frequent flier program nor can you transfer your Discover Miles to another account. However, if you’re given a new account because your old card was lost or stolen, your Miles will transfer to the new account.

Other Fees and Interest

The cash advance APR is 23.99% variable based on the Prime Rate and the cash advance fee is $10 or 5% whichever is greater. The penalty rate, charged when you’re more than 60 days late on your payment, is between 15.99% and 20.999% variable.

This card charges a 3% balance transfer fee while the 0% introductory APR is in effect and $10 or 5% fee after the first six months.

The foreign transaction fee is 2% charged whenever you make a purchase in a foreign currency.

Biggest Benefit

• 12,000 bonus Miles earned in the first year
• 0% introductory APR on purchases and balance transfers

Drawback

• You can’t convert Miles to other programs nor can you combine other frequent flier miles to with your Discover Miles