Discover It Miles

[cjesser15]

Hello, I'm a longtime lurker and I want to start off by saying thanks.  I think I've put together a pretty solid portfolio of cards over the last few years, largely through the advice and insights provided by this board.

I finally decided to register and post today to get an answer to a question that has been nagging at me for a long time.  Why doesn't the Discover It Miles card get more love?  Essentially 3% cashback for a year, 1.5% cashback after that, no annual fee.

I've searched through some previous threads and I've seen at least one criticism that appears to be either false or outdated.  Some have mentioned in the past that this card does not have access to Discover Deals.  I most certainly have access to Discover Deals, although I don't use it nearly as often as i should.  

I also want to note, even though it only relates to myself, that they gave me a $12K limit which was by far my highest limit at the time.  And just a couple days ago I received an auto CLI to $14K.

So what am I missing?  This card seems to be mostly an afterthought both here and on other boards and blogs.  I'm genuinely curious if there is a major flaw in this card that I have yet to come across.  It seems as good as or better than many more popular cards including the Quicksilver to me.  

I appreciate any insight.  

Since it seems customary to include this, here is my current card lineup:

Discover It Miles   $14K

Amex PRG

Amex Everyday   $9.5K

Chase Freedom     $12K

Chase IHG Rewards Club     $7.5K

Chase Southwest Rapid Rewards     $9K

Citi Double Cash       $4.5K

Wells Fargo Cashback    $7K

Wells Fargo Propel (No annual fee version)    $7K

Recently Closed:  Citi Thankyou Premier and Barclaycard Arrival Plus

[CH-7-Mission-Accomplished]

It is a 1.5% cash back card that can only be used for travel category.

Cap 1 Quicksilver is 1.5% cash back with no category restrictions.

After the 3% period is gone, it's meh.

And if you want a travel "miles" (cash back) card and do a lot of spend, the Venture pays 2% cash back with a $59 annual fee (fee waived first year -- $400 bonus when you spend 3K in 3 months).

[cjesser15]

Thank you for the response and you raise a good point.  However, it also offers a direct deposit option.  So if you want to use it to "erase" purchases it is limited to travel categories.  But I'm not sure why anyone would do that.....

The Venture card is great but I guess in my mind the more appropriate comparison is the Quicksilver since they both have a base 1.5% and as mentioned above can be redeemed as straight cash.  Maybe I just have a wrong perspective on what this card offers.....

[Anonymous]

 I dont think the discover IT miles is restricted to travel whatsoever.

[Anonymous]

Totally with you on this one; this has been my main spender since I got it last spring.  The only rest its gotten is when I've been meeting a spending requirement on another card, or for category spending (especially 5% doubled to 10% on my Discover it).

The detractors will have to speak for themselves, but arguments I've heard are:

1. Acceptance.  Some people indicate that they run into places the don't take Discover.  That hasn't been my experience; I very rarely encounter a place that doesn't take Discover.

2. Lack of startup bonus.  Discover doesn't offer a $tartup bonus, though I'd argue that 3% for the first year and 12 months 0% interest makes up for a lot in terms of startup bonus.

3. Limited ShopDiscover choices compared to More/it and no 5% bonus categories.  True, but I just pull out one of our it cards for those purchases, and use the it Miles for 3% off everything else.

All that said, though, past the first year I don't see this card getting much use from me.  If the double-cashback deal is still available when my year runs out in a few months, I'll sign my wife up for an it Miles for another year of 3%.  But after that, I'm likely to use my Fido (AmEx now, presumably replaced by a Visa sometime this year) for 2%, instead of the 1.5% from the it Miles.  But for the first year, it's a clear winner.

Chris.

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

It is a 1.5% cash back card that can only be used for travel category.

Cap 1 Quicksilver is 1.5% cash back with no category restrictions.

After the 3% period is gone, it's meh.

And if you want a travel "miles" (cash back) card and do a lot of spend, the Venture pays 2% cash back with a $59 annual fee (fee waived first year -- $400 bonus when you spend 3K in 3 months).

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What restrictions?  The miles offers 3% on everything, redeemable for cash, totally blowing away Venture's 2% that can only be redeemed against travel expenses, and twice as good as QS's 1.5%.

True, that 3% is only good for the first year, but in the six months or so I've had the card, I've done a pretty good deal of damage with that 3% (and 0% APR).

'Course, there's no reason you can't do both.  I exploited the Venture first, then as soon as I finished my $3,000 spending on that, signed up for the Discover it Miles.

Chris.

[cjesser15]

Regarding point #1, I also don't have issues with acceptance.  In my area I have more issues with acceptance on my Amex cards than the Discover.

Regarding point #2, I totally agree.  I'm going to get as much as more than most startup bonuses anyway.  It does suck to have to wait a year to get it though.  

Regarding point #3, that is news to me.  I did not realize there was more ShopDiscover options for the More/It.  I can see how some people probably get less value because of that.  My own personal New Year's credit resolution is to take better advantage the online shopping portals so that's very good to know.

It certainly does lose a lot of value after the first year.  But it still seems great for non-category spending even when it goes to 1.5%.  

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

 I dont think the discover IT miles is restricted to travel whatsoever.

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"

1. Redeem Miles: Starting at 1 Mile, you can redeem for cash as a electronic deposit to your bank account or for a credit for Travel Purchases on your statement made within in last 180 days. Travel Purchases include airline tickets, hotel rooms, car rentals, travel agents, online travel sites and commuter transportation. Redemption may not be available for approximately 24-48 hours if your card is reported lost or stolen. See Miles Terms and Conditions for details.
   Miles Never Expire: we will credit your account with your rewards balance if your account is closed or has not been used in 18 months. See Miles rewards terms and conditions."

[cjesser15]

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

 I dont think the discover IT miles is restricted to travel whatsoever.

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"

1. Redeem Miles: Starting at 1 Mile, you can redeem for cash as a electronic deposit to your bank account or for a credit for Travel Purchases on your statement made within in last 180 days. Travel Purchases include airline tickets, hotel rooms, car rentals, travel agents, online travel sites and commuter transportation. Redemption may not be available for approximately 24-48 hours if your card is reported lost or stolen. See Miles Terms and Conditions for details.
   Miles Never Expire: we will credit your account with your rewards balance if your account is closed or has not been used in 18 months. See Miles rewards terms and conditions."

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I think that's a little misleading.  I've always direct deposited my redemptions and it lets me do the full amount, regardless of whether it was travel spending or not. 

[CH-7-Mission-Accomplished]

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@cjesser15 wrote:

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

 I dont think the discover IT miles is restricted to travel whatsoever.

---

"

1. Redeem Miles: Starting at 1 Mile, you can redeem for cash as a electronic deposit to your bank account or for a credit for Travel Purchases on your statement made within in last 180 days. Travel Purchases include airline tickets, hotel rooms, car rentals, travel agents, online travel sites and commuter transportation. Redemption may not be available for approximately 24-48 hours if your card is reported lost or stolen. See Miles Terms and Conditions for details.
   Miles Never Expire: we will credit your account with your rewards balance if your account is closed or has not been used in 18 months. See Miles rewards terms and conditions."

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I think that's a little misleading.  I've always direct deposited my redemptions and it lets me do the full amount, regardless of whether it was travel spending or not. 

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Well the terms seem clear enough, but I don't have the card.  

https://www.discover.com/credit-cards/travel/miles-card.html