Charles H. Miller
Like any major bank and American Express, Discover too has a card that is especially made for travelers. Called Discover it® Miles, it promises “simple and flexible” travel rewards, and includes no annual fee to pay upfront. Also, there are no foreign transaction fees, but there are a few perks you’ll want to use while traveling to other countries.
Highlights
- Discover will match all the miles earned at the end of the first year
- 0% intro APR for 12 months on purchases and 10.99% on balance transfers. After that, APR goes to 11.24% – 23.24%.
- No foreign transaction fees
- No annual fee
How It Works
Points: Earn 1.5x miles for each dollar spent on all purchases with no caps on the number of miles you can earn. Also, your miles do not expire… Each mile is worth approximately one cent and can be redeemed toward travel purchases such as airline tickets, hotel rooms, car rentals, or vacation packages, that are made within the last 180 days. Alternatively, you can redeem miles as cash through an electronic deposit into an account you designate.
Sign-up offer: For new cardmembers, Discover will match all the miles they’ve earned at the end of their first year as a cardholder. For example if you make a $100 purchase with the Discover it® Miles card, you will first receive 150 miles, and after your first year as a cardholder, Discover will match those miles and you earn an additional 150 miles. As a result, you get 300 miles for your $100 purchase.
Credit with purchase of in-flight WiFi: Up to a maximum of $30 each anniversary year. The credit is applied to your statement within seven business days.
APR: 0% introductory APR for 12 months on purchases and 10.99% introductory APR for 12 months on balance transfers. After that, APR goes somewhere in the 11.24% – 23.24% range, based on your creditworthiness.
No fees: No annual fee, no foreign transaction fees, and no late fee on first late payment. Paying late also does not increase your APR.
Discover perks: Freeze It, which allows you to freeze the activity on your account; and Free FICO score, which is the rating system most commonly used by lenders and often costs as much as $24.95 per month.
Costs
- $0 Annual Fee
- 0% intro APR for 12 months on purchases and 10.99% on balance transfers. After that, APR goes to 11.24% – 23.24%.
- 3% Balance Transfer Fee
- $0 Foreign Transaction Fee
Pros
- Double miles in the first year – with Discover’s current promotion, you earn 1.5 miles for each dollar spent on all purchases and at the end of the year, those miles are matched (doubled).
- Flexible miles redemption – there are no blackout dates on travel purchases, meaning you can book and travel when you like, and then redeem the miles earned toward those purchases.
- No foreign transaction fee means you will want to carry this card when travel abroad.
Cons
- Discover acceptance – nothing beats Visa and MasterCard, though the number of places accepting Discover is growing every day.
- You have to wait for the bonus – the sign-up bonus is received only after a year when Discover will be matching your miles.
Is This The Card For You?
When it comes to travel, we think it is best to use more than a single card. Aside from your Visa and/or MasterCard, you could also carry a Discover card with you. The Discover it® Miles card is especially rewarding to use in the first year, after which you’ll see your miles being matched (doubled). Also, by using it outside of the U.S. you won’t be paying any foreign transaction fees. The card doesn’t include annual fees, and you get to benefit from a few Discover perks such as the free FICO credit score, which can always come in handy.
