Discover it® Miles
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Bankrate Score
An excellent choice as a cash-back card. Skip the miles and take the cash!
The Discover it® Miles card is a niche card that allows users to earn rewards that they can apply to travel purchases or redeem as cash back. This card really shines in its first 12 months, as Discover will match all of the rewards points that you earned in the 1st year of card ownership. The Discover it® Miles offers a rate of 1.5% back for every $1 spent. And, since it’s a Discover card, they’ll match your rewards at the end of the first year, effectively turning that 1.5% into a whopping 3% Year 1 rewards rate. That means that if you earned 25,000 points through purchases, you get another 25,000 points stacked on top of that as a bonus. If you are looking for a straightforward card with no annual fee that offers an incredible amount of flexibility in how you redeem your rewards, this card is for you.
All of that being said, if you are looking for the credit card that will give you the highest rate of return for travel purchases and travel rewards, there are other cards on the market that will be better for you.
Review
On top of the excellent year 1 rewards value that comes with the Discover it® Miles card, you will also get an introductory interest-free period of 14 months on purchases, after that the variable APR of 14.24% – 25.24% will apply. If you have plans to splurge on a trip that includes pricey airline tickets, this card could save you some money. Discover it® Miles charges no foreign transaction fees, so it could be a good choice to use if heading abroad.
As a stand-alone card that charges no annual fee, the 1.5% rewards rate on all purchases is about average. The end-of-year match makes it a solid choice among rewards cards – at least during your first year of ownership. The only other card that pays 3% back the first year is the Alliant Cashback Visa Signature Credit Card, but that has a $59 annual fee (waived the first year) and you have to be a member of Alliant Credit Union to be eligible.
Travelers who are big spenders and road warriors might be better off with a card that pays bigger rewards on travel. There are cards that pay as much as 3% to 5% back on travel purchases and come with other plush perks like hotel upgrades.
Who should own this card
Ignore the fact that this card has “miles” in its title, Discover it® Miles performs best as a cash-back card. If you’re looking for a high return without having to pay an annual fee, you should consider this card.
Advantages
- Cardholders receive unlimited 1.5% rewards back on every purchase.
- At the end of the first year your account is open, Discover will automatically match all the miles earned, earning you 3x miles or cash back in total.
- There’s a 0% introductory APR offer for 14 months on purchases.
- Redeem rewards in any amount for cash-back or airline miles.
Disadvantages
- As a travel card, there are other cards that offer better rewards.
- You can transfer balances and pay a lower rate than your purchase APR, but many cards offer a 0% introductory balance transfer rate.
- There’s a 3% balance transfer fee.
Fees and APR
- This card charges no annual fee.
- There are no foreign transaction fees on purchases made outside the United States.
- On balance transfers, you’ll pay 10.99% APR for 14 months from the date of the first transfer. After the intro APR expires, you’ll pay a variable 14.24% – 25.24%, based on your creditworthiness.
- On purchases, you’ll pay a 0% intro APR for 14 months from the date of account opening. After the intro APR expires, you’ll pay a variable 14.24% – 25.24%, based on your creditworthiness.
- See Rates & Fees
Extras, perks and using rewards
There is no minimum amount required for redemption, and there’s no fee to redeem points for cash or airline miles.
Miles redeemed for cash can be electronically deposited into a bank account of your choice, starting at one mile. Miles redeemed for cash are paid at the same rate as they are when you redeem them to reimburse travel purchases.
Redemption is available for travel purchases only if the purchase was made within the last 180 days.
Discover warns that purchases made using mobile wallets, like Apple Pay, may not be eligible for reimbursement.
How this card compares
Excellent/Good 17.24% - 25.24% Variable APR on purchases and balance transfers $0 0% Introductory APR on purchases for 12 billing cycles N/ABank of America® Travel Rewards credit card
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The Bank of America Travel Rewards credit card includes some intriguing perks available to cardholders who have a banking relationship with Bank of America, but those extra goodies aren’t enough to make this a first-tier travel rewards credit card.
On the other hand, this is a good pick for any travel fan who wants to earn points, but doesn’t want to pay for the privilege.
This card offer is currently unavailable on Bankrate. To see more cards in this category, please visit our 0% apr category page. Excellent 10.74% to 23.74% based on your creditworthiness. This APR will vary with the
market based on the Prime Rate. $59, waived for the first yearAlliant Cashback Visa® Signature Credit Card
Credit Needed
Regular APR
Annual Fee
Balance Transfers Intro APR
The Alliant Cashback Visa Signature Credit Card pays 3% back during the first year of card ownership, then 2.5% thereafter. You have to be a credit union member to be eligible for the card.
Excellent, Good 15.74% - 25.74%* (Variable) $0* N/A 0% 18 months on Balance Transfers* until 01/2019Citi® Double Cash Card
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When it comes to rewards value, the Citi Double Cash Card ranks among the very best cash-back credit cards that charge no annual fee.
The card earns an unlimited 1% cash back when you make a purchase and another 1% back when you pay for those purchases. Big spenders may find this nets more cash-back overall as there’s no ceiling on what you can earn back.
Excellent/Good 16.99% - 25.74% Variable $0 0% Intro APR on Purchases for 15 months 0% Intro APR on Balance Transfers for 15 monthsChase Freedom Unlimited®
Credit Needed
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Purchase Intro APR
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Chase Freedom Unlimited is a solid, straightforward cash-back rewards card that’s ideal for cardholders who just don’t have the time or energy to track spending categories. It ranks among the very best cash-back credit cards we track.
There are other cards that offer better rewards, but the Chase Freedom Unlimited’s 1.5% cash-back on everything is an excellent reward coming from a no-annual-fee credit card.
EDITORIAL NOTE
Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines, or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.