Discover it Miles Review: Travel Rewards With a Cash-Back Twist

Some travel credit cards give you the option of redeeming your points or miles for cash back rather than travel, but doing so usually means getting a lower value per point. The Discover it® Miles is a noteworthy exception. Each mile you earn with the card is worth 1 cent, regardless of whether you use it to pay for travel or convert it to cash back.

The Discover it® Miles earns 1.5 miles for every dollar spent — pretty good for a card with a $0 annual fee, but low compared with travel cards that charge an annual fee.

The flexible redemption options and unique sign-up bonus make this a good low-cost alternative for occasional travelers who want an easy-to-use credit card. But frequent fliers may get even more value out of a more robust travel card, especially if they travel overseas often.

Discover it® Miles: Basics

Card type: Travel.

Annual fee: $0.

Sign-up bonus: UNLIMITED BONUS: Only Discover will automatically match all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.

Ongoing rewards: 1.5 miles per dollar spent on all purchases.

Interest rate: 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 16.99%-27.99% Variable APR.

Foreign transaction fee: None.

Other benefits:

Flexible redemption options

One one level, the Discover it® Miles works like a general travel credit card. You earn 1.5 cents per mile, and you can redeem miles at a value of 1 cent apiece for credit on your statement against travel purchases made within the past 180 days. However, you can also convert your miles to cash at the same rate, in the form of a direct deposit. Redeeming for cash gives you more flexibility, and there’s nothing stopping you from later spending that money on travel. But for some, earmarking miles specifically for a big trip might be more enticing.

No minimum redemption amount

Many credit cards require you to accumulate a certain amount in rewards — often $25 or more — before you can redeem. The Discover it® Miles allows redemptions as small as 1 point. Getting a penny back at a time is obviously not going to revolutionize your travel style. But the lack of a minimum redemption amount means you can reimburse yourself for smaller travel expenses, like cab fare.

A bonus offer with no limit

Discover's offer to new cardholders is as lucrative as you want to make it. The issuer describes it this way: "UNLIMITED BONUS: Only Discover will automatically match all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match." This effectively gives you 3 miles per dollar spent on everything in your first 12 months. If you spent $20,000 on the card in the first year, for example, you would earn $300 worth of miles, and the bonus would kick in $300 more. That’s nothing to sneeze at, especially on a card with an annual fee of $0.

A generous 0% APR period

The Discover it® Miles gives you an introductory APR of 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 16.99%-27.99% Variable APR. Most travel credit cards don’t have a 0% period. You can use this perk to pay off a big purchase — say, an upcoming trip — interest-free over time.

No foreign transaction fees

Like all Discover cards, the Discover it® Miles doesn’t charge foreign transaction fees. This benefit could save you money the next time you travel abroad, or make an international purchase online. But bring a backup method of payment, too. Discover isn’t as widely accepted abroad as Visa and Mastercard.

Not good for bigger spenders

The Discover it® Miles is a great card for people who don't plan to spend a whole lot. Because there's no annual fee to eat into your rewards, you come out ahead immediately. But bigger spenders would be better off with a card that charges a fee but offers a higher rewards rate.

For example, if you spend more than $19,000 a year, you'll get more value from the Capital One Venture Rewards Credit Card. That card gives you 2 miles per dollar spent on most purchases, with miles redeemable for travel expenses at a penny apiece. There's a big sign-up bonus but also an annual fee to consider.

Limited international acceptance

For a low-cost travel card that’s widely accepted around the world, check out the Bank of America® Travel Rewards credit card, which operates on the Visa network. Like the Discover it® Miles, it offers 1.5 points per dollar spent, which you can redeem for 1 cent each on travel purchases. Among major issuers, it also has the most inclusive definition of what counts as a travel purchase.

No bonus rewards opportunities

Earning the same rewards rate on every purchase is certainly the simplest way to make your spending count, but it may not be the most lucrative. A card that earns more on specific spending categories can be the answer, although you’ll have to put in a little more effort remembering where to use the card. The Wells Fargo Autograph℠ Card earns 3 points per dollar on a broad range of common spending categories: restaurants, travel, transit, gas stations, popular streaming services and select phone plans. It also has a $0 annual fee.