Most Underrated Credit Cards?

[Brian_Earl_Spilner]

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@Anonymous wrote:
Although I am not one of the chosen ones that can speak from experience, from what I have heard the US Bank Altitude Reserve is underrated in the travel card world, especially given the mobile payments category.

Definitely on my list.

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Yeah, if you have Samsung pay it's pretty killer. It's also not easy to get which is probably why you don't hear much about it.

[Anonymous]

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@Anonymous wrote:

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@KLEXH25 wrote:
*Added*
Also, what exactly is Discover Miles? Is it cash back or is it a travel card? Where do the “miles” come in to play?

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https://www.discover.com/credit-cards/travel/

Basically it's a cashback card with the name "Miles" with each mile being worth a flat $.01 per mile.  So it's 1.5% cashback card that in it's first year Discover does cashback match.  What really makes this card awesome is in the first year if you have a lot of spend you need to do like say you bought a new house that was cheap because it's a fixer upper you could use the Discover It miles card for the purchases you make like say $300 for paint, $4,000 for new flooring, $2,500 for landscaping, etc.  This card is great if you have a lot big purchases you need to make during the first year.  If your going to drop 10k plus on big expenses in a year then this card is really awesome for that.    

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My wife and I each had the Discover Miles for a year (separate years) but IMO it's not really underrated as it's valuable only for fairly niche use.   (I did a fair amount of MS).     They also recently removed the other feature that could justify keeping it, the credit for inflight Wifi

And here lies the whole subjective nature:   the Discover Miles gives ONLY 1% more than a standard 2% card (and only for a year, and only at the end of the year, giving 0.5% less throughout the year) whereas OP discounted the "only 1%" between dining on Uber and Sams as being relatively unimportant!

Note even the $10K example, the card earns just $100 a more at the end of the year than a 2% card.   A card with a better SUB would earn more and potentially be useful long term.

[wasCB14]

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@Anonymous wrote:

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And here lies the whole subjective nature:   the Discover Miles gives ONLY 1% more than a standard 2% card (and only for a year, and only at the end of the year, giving 0.5% less throughout the year) whereas OP discounted the "only 1%" between dining on Uber and Sams as being relatively unimportant!

Note even the $10K example, the card earns just $100 a more at the end of the year than a 2% card.   A card with a better SUB would earn more and potentially be useful long term.

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Why I wouldn't get a Discover Miles if I went for cash back over travel:

1. Set up a Merrill Edge account, transfer shares/cash, and get Platinum Honors.

2. Apply for a Premium Rewards card.

Let 3% * 1st Year Spend = $500 bonus + $100 airfare extras credit - $95 AF + (2.625% * 1st Year Spend)

Then 0.375% * 1st Year Spend = $505

I'd need ~$135k of off-category spend (that would earn less than 3% on another card) in the first year for Discover to come out ahead. And after the first year, it's just a 1.5% card vs. a 2.625% card.

[Anonymous]

I think the AR is actually a pretty underrated card; the next couple I’ll probably pursue are likely the SW performance and priority and delta reserve but it’s on the short list.

[kdm31091]

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@Anonymous wrote:

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@Anonymous wrote:

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@KLEXH25 wrote:
*Added*
Also, what exactly is Discover Miles? Is it cash back or is it a travel card? Where do the “miles” come in to play?

---

https://www.discover.com/credit-cards/travel/

Basically it's a cashback card with the name "Miles" with each mile being worth a flat $.01 per mile.  So it's 1.5% cashback card that in it's first year Discover does cashback match.  What really makes this card awesome is in the first year if you have a lot of spend you need to do like say you bought a new house that was cheap because it's a fixer upper you could use the Discover It miles card for the purchases you make like say $300 for paint, $4,000 for new flooring, $2,500 for landscaping, etc.  This card is great if you have a lot big purchases you need to make during the first year.  If your going to drop 10k plus on big expenses in a year then this card is really awesome for that.    

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My wife and I each had the Discover Miles for a year (separate years) but IMO it's not really underrated as it's valuable only for fairly niche use.   (I did a fair amount of MS).     They also recently removed the other feature that could justify keeping it, the credit for inflight Wifi

And here lies the whole subjective nature:   the Discover Miles gives ONLY 1% more than a standard 2% card (and only for a year, and only at the end of the year, giving 0.5% less throughout the year) whereas OP discounted the "only 1%" between dining on Uber and Sams as being relatively unimportant!

Note even the $10K example, the card earns just $100 a more at the end of the year than a 2% card.   A card with a better SUB would earn more and potentially be useful long term.

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This exactly. When you run the numbers, the extra  1% for a year on the Miles may or may not be significant. At only an extra $100 a year, you may be better off getting something with a bigger SUB, since most cash SUBs are $100 bare minimum. The 1% bump for non category spend may not be as significant as you first think.

I don't think the Miles is underrated, I think it has a place. 3% for a year is certainly a good offer, but it's important to compare it to other offers out there.  I also think after a year it's pretty meh, although your average consumer will probably be fine with it. I like Discover, but they need to innovate something to make the Miles stand out.

[Anonymous]

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@wasCB14 wrote:

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Why I wouldn't get a Discover Miles if I went for cash back over travel:

1. Set up a Merrill Edge account, transfer shares/cash, and get Platinum Honors.

2. Apply for a Premium Rewards card.

Let 3% * 1st Year Spend = $500 bonus + $100 airfare extras credit - $95 AF + (2.625% * 1st Year Spend)

Then 0.375% * 1st Year Spend = $505

I'd need ~$135k of off-category spend (that would earn less than 3% on another card) in the first year for Discover to come out ahead. And after the first year, it's just a 1.5% card vs. a 2.625% card.

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I would keep 100k in a dfs saving acc with 2.1% interest, lol.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@KLEXH25 wrote:
*Added*
Also, what exactly is Discover Miles? Is it cash back or is it a travel card? Where do the “miles” come in to play?

---

https://www.discover.com/credit-cards/travel/

Basically it's a cashback card with the name "Miles" with each mile being worth a flat $.01 per mile.  So it's 1.5% cashback card that in it's first year Discover does cashback match.  What really makes this card awesome is in the first year if you have a lot of spend you need to do like say you bought a new house that was cheap because it's a fixer upper you could use the Discover It miles card for the purchases you make like say $300 for paint, $4,000 for new flooring, $2,500 for landscaping, etc.  This card is great if you have a lot big purchases you need to make during the first year.  If your going to drop 10k plus on big expenses in a year then this card is really awesome for that.    

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My wife and I each had the Discover Miles for a year (separate years) but IMO it's not really underrated as it's valuable only for fairly niche use.   (I did a fair amount of MS).     They also recently removed the other feature that could justify keeping it, the credit for inflight Wifi

And here lies the whole subjective nature:   the Discover Miles gives ONLY 1% more than a standard 2% card (and only for a year, and only at the end of the year, giving 0.5% less throughout the year) whereas OP discounted the "only 1%" between dining on Uber and Sams as being relatively unimportant!

Note even the $10K example, the card earns just $100 a more at the end of the year than a 2% card.   A card with a better SUB would earn more and potentially be useful long term.

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Your telling me your going to drop 20k or more a year in dining?  That's when you would would get a $200 difference between 4% and 3% card.  I think the answer for around 99% of people reading this is probably not and if they do spend that much in dining then something like the gold card or CSR would probably make a lot more sense.  Now could a lot of people spend 20k or more in general spend a year?  Yes.  A large home remodel can get you there alone.  

I seriously don't get the anger for me stating that their are cards better the uber visa.  People on here are acting like insulted their child or something.  

[Batsamandrobin]

@CWA1984 The nature of this thread is subjective—you shared your insights and others responded with their own.

Since you shared your opinion, based on your own spend and experiences, I’m not sure why you’re getting so defensive over the fact that other members of the forum have chosen to respond with a different opinion, based on their own opinions/experience.

It seems you’re taking others discussion points as argumentative. No one is angry with you regarding your opinion on the Uber card.

[wasCB14]

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@Anonymous wrote:

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@wasCB14 wrote:

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Why I wouldn't get a Discover Miles if I went for cash back over travel:

1. Set up a Merrill Edge account, transfer shares/cash, and get Platinum Honors.

2. Apply for a Premium Rewards card.

Let 3% * 1st Year Spend = $500 bonus + $100 airfare extras credit - $95 AF + (2.625% * 1st Year Spend)

Then 0.375% * 1st Year Spend = $505

I'd need ~$135k of off-category spend (that would earn less than 3% on another card) in the first year for Discover to come out ahead. And after the first year, it's just a 1.5% card vs. a 2.625% card.

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I would keep 100k in a dfs saving acc with 2.1% interest, lol.

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To clarify, I wasn't suggesting moving $100k cash to a checking/savings account at BofA for a very low return and just letting it sit there. I agree with your implication that it would give a poor return.

Rather, I could move some low-tax-basis shares I'd be reluctant to sell and let them sit.

Or I could move cash and sell equity puts opportunistically.

[FinStar]

Letting this ride for a bit, but I would like to remind everyone of the forum rules for posting.   There certainly can be disagreements, but all posts must conform to the Friendly, Supportive and Respectful guidelines.  Thank you for youruunderstanding and cooperation.