Review of the Discover Miles Card





The Discover Miles Card was last reviewed on 8th March 2006



discover miles card
Summary - The Discover Miles Card is a travel credit card which allows cardholders to earn points which can be redeemed for travel rewards. With this card, you earn one mile for every dollar you spend on the card. Is this the best travel credit card? Let explore this card in greater detail.

Miles Formula - The Discover Miles Card allows the cardholder to earn one miles for every dollar spent on the card. You can earn up to 60,000 miles in one calender year. As a bonus, new cardholders will get 5,000 bonus miles. Miles are valid for 36 months (3 years) but do not expire as long as you continue to use the card.

Are the rewards good? - How good is the travel rewards from the Miles Cards? First, let us look at the airline ticket rewards. For 10,000 miles, you can get a $100 travel credit which you can use to reduce your airfare by $100.00. This feature is very important because if you are going to purchase a ticket that cost less than $200.00, then using 25,000 points (the standard number of miles) to redeem to a ticket would not be the best use of your miles. Hence, this is a good feature.

On their page where they put their sample rewards, the Discover Miles Card requires 30,000 miles for a free roundtrip, economy ticket with Continental US. This is higher than the 25,000 miles requirement for most reward program.

The number of miles required to redeem gift certificates is not impressive. The website gave three sample rewards. 7,100 miles gets you a $50 gift card for Olive Gardens, 14,400 miles gets you a $100 Home Depot Certificate and 14,400 miles gets you a $100 Toys R Us gift card. This means that the reward payout ratio is less than 1%. I would expect to use only 10,000 miles in exchange for a $100 gift card!

Cost and Fees - The Discover Miles Card has no annual fee. You get a 0% apr for 12 months for balance transfers. The apr is between prime rate plus 3.49% and 10.49%. The 2-cycle average daily balance method is used to calculate monthly balances.

Verdict - I am not too impressed by the The Miles Card from Discover® Card because of two reasons. Firstly, you need 30,000 miles to get a free airline ticket within the Continental US. Secondly, the number of points required for gift cards is too high (cardholders essentially get less than 1% in "rebates").

If you are looking for a travel reward credit card to get free airline tickets, we recommend the Citi Diamond Preferred Rewards Card. It requires 25,000 points for a free airline ticket. But more importantly, you can earn 5 points for every dollar you spend on "everyday purchases", which is defined as purchases from standalone supermarkets, gas stations and drugstore. If you spend around $500 a month on groceries (equals $6,000 a year), you can earn 30,000 points. This is more than enough to get a free airline ticket. In the contrast, the Discover Miles Card requires that you spend $30,000 a year on the card.


Positives
  • No annual fee
  • Travel discount certificates in reward program


Negatives
  • Requires 30,000 miles for one free airline ticket
  • High requirements for gift cards



Discover Miles Card
Reward Benefits
Point Accumulation Earn 1 mile for every dollar you spend
Cost/Fees/Interest rates
Introductory rate 0% on balance transfer for 12 months
Annual Fee No annual fee
Purchase APR Prime Rate plus 3.49% to 10.49%
Cash Advance APR 20.99% or 22.99%
Penalty/Default Rate APR Prime Rate plus 10.99%, 15.99% or 19.99%
Min Finance Charge $0.50
Grace Period 25 days
Balance Calculation Method Average Daily Balance (including new purchases)
Balance Transfer Fee No balance transfer fee during introductory offer
Cash Advance fee 3%, min $5.00
Over-the-credit-limit fee $35.00
Late Payment fee $15.00 - less than $100
$29.00 - between $100.00 to $1000.00
$35.00 - greater than $1000.00



Apply for the The Miles Card from Discover® Card

If you already have the Discover Miles Card, we would appreciate if you can spend some time commenting on this card as this will help our readers in making better informed credit card decisions and choices. You can post your review here.








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