The Discover It Miles is a simple no-fee card which earns 1.5% cash back on all purchases. It doesn’t have any especially interesting features or benefits, but may work for certain people in the short term. The card does earn 3% cash back on all purchases for the first year, without category restrictions, which is nice.
FEATURES AT A GLANCE
- No annual fee
- No foreign transaction fees
- 1.5x points on everything
SIGN UP BONUS
Discover offers the same bonus for both the Miles and Cash Back cards: they double the cash back you earn in the first 12 months of holding the card. Both cards also have 0% APR for 14 months.
If you spend $20,000 in 12 months, you get a total of $600 cash back ($300 sign-up bonus). The downside is that the bonus isn’t as good as it sounds. Many other cards give higher sign-up bonuses with lower spending requirements. If you only want sign-up bonuses, allocating $20,000 of spending to other cards could easily result in $2,000.
You may be able to get an additional cash bonus when applying through a referral link.
OTHER BENEFITS OF THE DISCOVER IT MILES
- No late fee the first time you miss a credit card payment
- View your FICO score at any time
- 100% U.S. based customer service (according to Discover)
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
Although Discover is widely accepted, it doesn’t have the same acceptance rate as Visa or Mastercard, especially overseas. It’s good to have a backup card when traveling.
MAXIMIZING REWARDS WITH DISCOVER
Redeeming points for gift cards (GCs) is the best option. The discounted gift cards effectively raise the value of your cash back. Discover gives up to a 25% discount on gift cards. For example, a $100 GC for $75 equals 1.33 cpp ($0.0133 per point) instead of a normal 1 cpp ($0.01 per point). This effectively makes the Miles card 1.995% cash back instead of 1.5% as advertised. Then a $100 GC for $80 equals 1.25 cpp (making the card 1.875% cash back). However, this isn’t guaranteed with every redemption. Discounts may vary, as will one’s choice of gift card brands.
If you spent $20,000 on the Discover It Miles the first year, for $600 cashback, this could be worth up to $750-800 in gift cards.
Discover may also give limited discounts at Amazon. They have occasional promotions where you can use 1 or more Discover points for discounts. For this reason, never redeem 100% of your Discover points.
Discover also has occasional promotions for current cardmembers, but you have to ask via Live Chat. Promotions include 0% APR for 12 months and bonus earn rates.
ALTERNATIVES TO THE DISCOVER IT MILES CARD
After the first year, any 2% card will earn more cash back. Many cards also have higher sign-up bonuses. People searching for good cash back rates won’t stick with the Miles card beyond a year or two. Then, for specific category spending, it’s better to use options like the Citi Custom Cash Card (CCCC).
CONCLUSION
This card has potential for the first year, but doesn’t hold much long-term value. The best part about the sign-up bonus is that it’s unlimited. People who are very heavy spenders may get decent value from the card. If you need to drop $100,000+ on a credit card every year, unlimited 3% back for 12 months is a nice deal. Alternative cards have limitations and/or lower cash back rates.
The 0% APR for 14 months can also be helpful, but your mileage may vary (YMMV). Overall, this is a basic card that’s outclassed by other options. Anyone interested in a Discover card is more likely to consider the 5% cash back option.
We rate the Discover It Miles card 2 out of 5 stars. ⭐⭐
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Note: This review was last updated in January 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to take advantage of our personalized consulting services!