BEST CREDIT CARDSBEST CREDIT CARDSDISCOVER IT MILES REVIEW: TRAVEL REWARDS WITH A CASH-BACK TWIST

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

You get 1.5 miles per dollar spent on everything. Miles can be redeemed for travel or converted to cash back at the same penny-per-mile rate. Annual fee: $0.
Claire Tsosie Author AvatarSara Rathner Author Avatar
Feb 23, 2024 11:35 a.m. PST
Edited by
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3.8

NerdWallet rating
The bottom line:

Frequent travelers or bigger spenders would probably get more value from a card with a higher rewards rate and more perks (and an annual fee), but this is a solid choice for budget-minded occasional travelers.

Pros
  • No annual fee
  • Intro APR period
  • Flexible rewards redemption
Cons
  • Requires good/excellent credit
  • No luxury perks
  • Lower acceptance abroad
Discover it® Miles Image
Discover it® Miles
Annual Fee

$0

Regular APR

17.24%-28.24% Variable APR

Intro APR

0% intro APR for 15 months on purchases and balance transfers

Rec. credit score


Annual Fee

$0

Regular APR

17.24%-28.24% Variable APR

  • Annual fee

    $0

  • Rewards rate

    1.5x

  • Bonus offer

    UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of 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.

  • Intro APR

    0% intro APR for 15 months on purchases and balance transfers

  • Ongoing APR

    APR: 17.24%-28.24% Variable APR

    Cash Advance APR: 29.99%, Variable

  • Balance transfer fee

    3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

  • Foreign transaction fee

    0%

More details from Discover
View Rates and Fees
  • UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of 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.
  • Automatically earn unlimited 1.5x Miles on every dollar of every purchase
  • No annual fee
  • Turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more.
  • 0% intro APR for 15 months on purchases. Then 17.24% - 28.24% Standard Variable Purchase APR will apply.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • Terms and conditions apply.

Compare to Other Cards

ANNUAL FEE
$0
REGULAR APR
17.24%-28.24% Variable APR
Rates & Fees
INTRO APR
0% intro APR for 15 months on purchases and balance transfers
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$95
REGULAR APR
21.49%-28.49% Variable APR
INTRO APR
N/A
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$0
REGULAR APR
18.24%-28.24% Variable APR
INTRO APR
0% intro APR on Purchases for 15 billing cycles and 0% intro APR on Balance Transfers for 15 billing cycles for any balance transfers made in the first 60 days
RECOMMENDED CREDIT SCORE
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Detailed review: Discover it® Miles

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: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of 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 17.24%-28.24% Variable APR.

Foreign transaction fee: None.

Other benefits:

Benefits and perks

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: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of 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 17.24%-28.24% 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.

Drawbacks and considerations

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.

Also see the NerdWallet best credit cards roundup for options across credit card types.

Alternate Pick: High-value points + transfers
2X on travel and dining

This card earns bonus rewards in a variety of popular spending categories, including dining and travel. Points are worth 1.25 cents apiece when redeemed for travel booked through Chase, or you can transfer them to more than a dozen hotel and airline programs. There's a fantastic sign-up bonus, too — but also an annual fee.

How to decide if it's right for you

Among no-fee travel cards, the Discover it® Miles stands out for its versatility, thanks to the ability to redeem for travel and cash back at equal value. It’s not the best option for travelers who spend more time in hotels and planes than at home. But for vacationers looking for a low-maintenance card with flexible rewards, it’s worth consideration.

Methodology

NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.

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