Hot! New Discover It Miles Card With Effectively 3% Back on Everything (No Limit!) for the 1st Year

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Discover just launched a new card called Discover It Miles that earns 1.5 miles (or 1.5% back) on everything!  And there is no limit to the number of miles you can earn.

But the great thing about this card is that they’ll double the miles you’ve earned after the 1st 12 months.  So for the 1st year, this is effectively a 3% back card!

Hot New Discover It Miles Card With 3 Cash Back On Everything No Limit For The 1st Year

New Discover It Miles – Unlimited 3% Back on Everything for the 1st Year

You can redeem miles for statement credits toward travel expenses, or for cash deposited to your bank account.

What’s the Deal?

Link:   Discover It Miles

There’s no sign-up bonus for the Discover It Miles card, but you will get a bonus of double miles after the 1st 12 months you have the card.

With this card, you’ll get:

  • Unlimited 1.5 miles per $1 you spend on all purchases
  • DOUBLE the miles you’ve earned at the end of the 1st year
  • NO limit to the number of miles you can earn
  • Up to $30 credit per card anniversary year for in-flight Wi-Fi purchases made with your card
  • Access to free FICO credit score online
  • No foreign transaction fees
  • No annual fee
Hot New Discover It Miles Card With 3 Cash Back On Everything No Limit For The 1st Year

This Is a Very Good Travel Card, Especially for the 1st Year!

While other cards, like the Chase Freedom, offer 5% back in rotating categories, those bonuses are capped at $1,500 in spending per quarter.

And other cards like the SimplyCash let you pick ONE category to earn 3% back (like gas stations or restaurants), but there’s a limit too.

I can’t think of another card that earns 3% on everything – with NO limit!

This is a very good deal!

Do You Have to Redeem Your Miles for Travel?

No!

You can redeem miles (worth 1 cent per mile) for statement credits toward travel expenses made within the past 180 days.  These include:

  • Airline tickets
  • Hotel rooms
  • Car rentals
  • Travel agents
  • Online travel sites
  • Commuter transportation
Hot New Discover It Miles Card With 3 Cash Back On Everything No Limit For The 1st Year

Is She Smiling Because She’s Getting 3% Back on Her Commuter Train Ticket?

But if you prefer to get cash, you can redeem miles at the same rate for a direct deposit into your bank account.  The terms and conditions say:

Starting at 1 Mile, you can redeem for cash as an electronic deposit to your bank account or for a credit for travel purchases on your statement made within in last 180 days

So while they’re calling this a travel rewards card, it’s really a 1.5% back card (or 3% in the 1st year).

Because there’s no annual fee, you don’t have to cancel the card after the 1st 12 months.  You’ll just earn 1.5% back with no bonus.

And keeping cards with no annual fee for a long time builds your relationship with the bank and could help improve your credit score!

Most folks don’t have a lot of Discover cards, so this could be a good card to get if you’ve already applied for lots of cards from other banks.

I still prefer earning miles and points for travel instead of cash, but this card will be very interesting to some!

Will Discover It Miles or Capital One Quicksilver Earn You More?

Link:   Quicksilver from Capital One

An alternative to Discover It Miles is Quicksilver from Capital One.  Quicksilver also gives you an unlimited 1.5% back on every purchase with no annual fee.

And like Discover It Miles, there is no foreign transaction fee.  So when abroad, it might be easier to find places that accept the Quicksilver card because it’s a Visa, rather than a Discover card.

I also like that the Quicksilver has a $100 sign-up bonus when you spend $500 on purchases within the 1st 3 months of opening your account.  But I don’t like that Capital One usually pulls your credit from 3 bureaus

But for the 1st year of card membership, Discover It Miles is the clear winner, if you spend at least $6,750 on the card.  That’s because 3% of $6,750 is ~$203.

With the Quicksilver, 1.5% of $6,750 is ~$102, but you also get a $100 sign-up bonus so your net gain is ~$202 (~$102 from spending + $100 sign-up bonus).

Thanks to Million Mile Secrets reader Jesse for catching my previous math error!  🙂

Bottom Line

You’ll earn 1.5 miles per $1 you spend (1.5% back) on all purchases with the new Discover It Miles card.  There’s no limit to the number of miles you can earn.

But after the 1st 12 months, they’ll double the miles you’ve earned – so it’s effectively a 3% back card – on everything – for the 1st year.

You’ll also get up to $30 per year in statement credits for in-flight Wi-Fi purchases.

Folks who prefer cash to miles & points will love this card (for the 1st year!).  And there’s no annual fee.

What do you think of the new Discover It Miles card?

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14 responses to “Hot! New Discover It Miles Card With Effectively 3% Back on Everything (No Limit!) for the 1st Year

  1. To me there are so many cards out there whose enrollment bonus is worth hundreds of dollars that for now I don’t have much interest in this. The amount I’d have to spend to make a 3% cashback (and only for one year) worth more than a readily available 2% elsewhere is prohibitive after comparing a $0 enrollment bonus to others I’m interested in.
    It’s always good to know about new products, and this will definitely be of interest to some.

  2. $0 bonus? such a joke.

  3. the fact that there’s no annual fee makes this a no-brainer. For those of us that are already maxed out on signup bonus “churn” this is great. I have the Discover IT card and haven’t really used it that much outside of gas stations. Anyone know if there are retailers that don’t accept Discover? thinking redbird and serve here….

  4. Any idea if Discover will code gift card purchases as a cash advance if purchased at a grocery store? I wouldn’t think so, but…

  5. Note that the Discover It does give you a bonus if you sign up through Amazon ($100 Amazon credit). Nothing for the Miles card at present but if it’s brand new seems possible they might add something similar in time.

  6. Actually, Discover It Miles over the Quicksilver is not the clear winner. If you compare both cards the Discover It Miles earns only 1.5% MORE than the Quicksilver. So, You would need to spend $6,750 on the card to get $101.25 in rewards, when comparing 1.5% (Quicksilver) to 3% (Discover It Miles). Your comparison assumes that Quicksilver does not earn any cash back.

  7. I agree with Jessie. If you only spend $3500 you are better off with quicksilver

  8. doesn’t make sense that travel credit award (like Barclay arrival or cap1 venture) would be the same as statement credit (which is always less rewarding) I think it is just like all other travel cards with a matching annual bonus. If it were a 3% cashback card they would advertise it as such for the first year, not play games with travel points and limited time statement credits for travel credit. Will keep an eye on new promos just in case.

  9. @wise2u, hopefully they plan on offering the ability to transfer the miles to airline partners at some stage.

  10. I applied for this card and was denied because I had been approved for a Discover IT too recently. I asked about a conversion via message, but was not successful. Any ideas? should I try and call? or maybe cancel my IT and re-apply?

  11. I am thinking of getting this card to pay my yearly and quarterly taxes.

    http://www.payUSAtax.com charges 1.87% fee for credit card payments. Since you essentially get 3% back after 12 months, I’d be making 1.13% back on my taxes for doing nothing except signing up and using a website. My quarterly taxes per year are around $60,000- so I’ll basically make close to $700 net for doing nothing except getting a card and using a website.

    I thought about doing the Barclays 2% + 10% miles back = 2.2% offer with 40,000 miles but the math favored Discover.

    Discover= 3% rewards – 1.87% fee = 1.13% x $60,000 = 67,800 miles
    Barclays= 2.2% rewards – 1.87% fee = 0.33% x $60,000 = $198 miles + 40,000 sign on bonus = 40,198 miles

    What are your thoughts on this strategy?

  12. Regarding DocBennett’s strategy of paying taxes with a reward card that earns more than 1.87% (i.e. the fee charged to pay taxes at the site he mentioned), that makes sense to me.

    I haven’t paid taxes using a credit card, but I do regularly make mortgage payments using the Barclaycard Arrival Elite World MasterCard. My bank’s fee for paying mortgage by credit card works out to 1%, so I’m making 1.2% when I do that. Works great!

  13. I wish I had a $1 million income like Doc Bennet…..

  14. Can I pay the taxes with an AMEX GC?