Feb 26, 2015, 9:30 am
Last edit by: swag
Discover it Miles
current offer as of 9/1/17: https://www.discover.com/credit-cards/miles/index.html
There are two ways to redeem miles:
current offer as of 9/1/17: https://www.discover.com/credit-cards/miles/index.html
- 1.5x miles on all purchases
- Double miles for the first year (3x miles on all purchases)
An annual credit up to $30 for in-flight Wi-Fi charges(ended 3/31/19)- No foreign transaction fees
- No annual fee
- Free FICO Score
- 0% purchase APR for first twelve months
There are two ways to redeem miles:
- Cash back via a deposit into your linked bank account
- A statement credit against a travel purchase made in the past 180 days
Discover it Miles Credit Card Launched, 3x Miles On All Purchases 1st Year
Feb 19, 2015, 9:07 pm
#16
Join Date: Apr 2010
Posts: 26
I had stopped spending my regular discover card that I have had for 15 years. I had been averaging 3k per month and then a year ago discovered miles and churning etc.
They sent me a targeted offer: spend 3k per month for six months and earn $500 bonus to account.
So right now, I’m already MS more than normal for that 3k per month in addition to the sign ups for other cards.
If there are no bonus categories then my calculations go like this:
2 * 500 VGC + 2+4.94 fee +0.70 for WM MO = 11.28 per 1000 of MS on this new Discover card. Initial 1.5% back on card =15.17. Minus the MS costs of 11.28 = Profit of 3.89 per 1 MO.
At the end of the year, add in another 15.17 per MO.
Thus if you do 2 MO per day, 5 days a week 48 weeks a year (a few weeks of bora bora and hawaii travel right?) then when all is said and done you have bought 480 MO:
Initial profit accumulated through the year: 1867.2
At the end of 1 year added as a bonus: 7281.6
Total return = 9148.8
That is assuming you can move 2 MO per day and deposit in your credit union/bank without problems etc.
9k is pretty nice.
They sent me a targeted offer: spend 3k per month for six months and earn $500 bonus to account.
So right now, I’m already MS more than normal for that 3k per month in addition to the sign ups for other cards.
If there are no bonus categories then my calculations go like this:
2 * 500 VGC + 2+4.94 fee +0.70 for WM MO = 11.28 per 1000 of MS on this new Discover card. Initial 1.5% back on card =15.17. Minus the MS costs of 11.28 = Profit of 3.89 per 1 MO.
At the end of the year, add in another 15.17 per MO.
Thus if you do 2 MO per day, 5 days a week 48 weeks a year (a few weeks of bora bora and hawaii travel right?) then when all is said and done you have bought 480 MO:
Initial profit accumulated through the year: 1867.2
At the end of 1 year added as a bonus: 7281.6
Total return = 9148.8
That is assuming you can move 2 MO per day and deposit in your credit union/bank without problems etc.
9k is pretty nice.
I think you added in the 15.17 per MO at the end when it should have been 15.17 per TWO money orders?
Feb 19, 2015, 9:39 pm
#17
Join Date: Nov 2010
Location: Washington, DC
Posts: 393
"After the first 12 consecutive billing periods that your new account is open, we will double all the Miles you've earned and apply them to your account in the next billing cycle. You will not receive Double Miles if your account is closed or is no longer in the Miles reward program as of the award date."
After all the MS, what if Discover close your acct right before the 12th billing statement?
Bait and Switch?
After all the MS, what if Discover close your acct right before the 12th billing statement?
Bait and Switch?
Boom! Mind Blown! Optimism, it what's for dinner......
Feb 19, 2015, 9:41 pm
#18
Join Date: Nov 2011
Posts: 1,944
Feb 19, 2015, 10:18 pm
#19
Join Date: Nov 2014
Location: AZ
Posts: 250
Unfortunately, AGCs still seem to be initially treated as cash advances. (The AGC thread indicates they pend as cash advances, and post as purchases.) I just tried to purchase one with my non-Miles it in excess of my CA limit and was declined.
Discover is notoriously stingy with credit limits and the CA limit seems to be a certain percentage of the limit, but I'm not sure how that's determined. I have some data points: when I had a $3,000 limit, my CA limit was $300 (10%); $3,500 limit, $400 CA (~11.4%); $3,750 limit, $500 CA (~13.4%). This suggests you're going to need a ridiculously large (by Discover standards) limit to do anything realistic with AGCs. For those of us who don't have those/can't get those, Arrival or other 2% cards + AGC cashback is still a better deal.
I'd be interested in other data points on CA limits, as the percentage seems to increase as the total limit increases. I haven't dared trying this and breaking the "don't call" rule but I wonder if it's possible to get them to increase it. (Thinking about it, maybe trying wouldn't be too bad - worst case they close the card for "suspicious credit seeking" or some BS, and no real loss, as it's not like there are many MS opportunities for Discover.)
Discover is notoriously stingy with credit limits and the CA limit seems to be a certain percentage of the limit, but I'm not sure how that's determined. I have some data points: when I had a $3,000 limit, my CA limit was $300 (10%); $3,500 limit, $400 CA (~11.4%); $3,750 limit, $500 CA (~13.4%). This suggests you're going to need a ridiculously large (by Discover standards) limit to do anything realistic with AGCs. For those of us who don't have those/can't get those, Arrival or other 2% cards + AGC cashback is still a better deal.
I'd be interested in other data points on CA limits, as the percentage seems to increase as the total limit increases. I haven't dared trying this and breaking the "don't call" rule but I wonder if it's possible to get them to increase it. (Thinking about it, maybe trying wouldn't be too bad - worst case they close the card for "suspicious credit seeking" or some BS, and no real loss, as it's not like there are many MS opportunities for Discover.)
Feb 20, 2015, 1:54 am
#20
Join Date: Oct 2014
Posts: 62
The lack of a signup bonus. They compare it to the CSP which gives 40,000 points after $4,000 in spending, assuming none of that was dining or travel you spend $4,000 and have 44,000 points (more if you redeem for travel or transfer but that's beside the point).
Redeeming 44,000 points for cash is $440. In order to earn that same $440 on this Discover card you'd have to spend $14,667.
Redeeming 44,000 points for cash is $440. In order to earn that same $440 on this Discover card you'd have to spend $14,667.
There are obviously many other factors, such as CSP acting as a points vehicle for redemption or the fact that this new Discover cc delays the extra 1.5% cb payment until month 13, but I still believe a good strategy would be to have both cards. Again, definitely depends on your situation and lifestyle. Having a mix of cc's for me is important. I personally see this card as complimentary, with little risk other than the initial credit hit.
Feb 20, 2015, 8:09 am
#22
Join Date: Apr 2014
Programs: Hilton - Diamond, IHG - Spire Amb
Posts: 901
not following the math..in big round numbers, you have 250K of MS, for which you ultimately get 3% or $7500 back, minus a fee of about 1% for the money orders, or a net closer to $5k?
I think you added in the 15.17 per MO at the end when it should have been 15.17 per TWO money orders?
I think you added in the 15.17 per MO at the end when it should have been 15.17 per TWO money orders?
(500+4.94)*2= 2 cards
*2 to = 2 MO
*5 = 5 days per week
*48
Thus (500+4.94)*2*2*5*48*0.015 = 7271.14
Feb 20, 2015, 8:29 am
#23
Join Date: Feb 2006
Programs: HH Gold (again), US/UA/DL non-elite, ZE Presidents Circle, WN reluctant no fee convert.
Posts: 1,449
I had stopped spending my regular discover card that I have had for 15 years. I had been averaging 3k per month and then a year ago discovered miles and churning etc.
They sent me a targeted offer: spend 3k per month for six months and earn $500 bonus to account.
So right now, I’m already MS more than normal for that 3k per month in addition to the sign ups for other cards.
If there are no bonus categories then my calculations go like this:
2 * 500 VGC + 2+4.94 fee +0.70 for WM MO = 11.28 per 1000 of MS on this new Discover card. Initial 1.5% back on card =15.17. Minus the MS costs of 11.28 = Profit of 3.89 per 1 MO.
At the end of the year, add in another 15.17 per MO.
Thus if you do 2 MO per day, 5 days a week 48 weeks a year (a few weeks of bora bora and hawaii travel right?) then when all is said and done you have bought 480 MO:
Initial profit accumulated through the year: 1867.2
At the end of 1 year added as a bonus: 7281.6
Total return = $9148.8
They sent me a targeted offer: spend 3k per month for six months and earn $500 bonus to account.
So right now, I’m already MS more than normal for that 3k per month in addition to the sign ups for other cards.
If there are no bonus categories then my calculations go like this:
2 * 500 VGC + 2+4.94 fee +0.70 for WM MO = 11.28 per 1000 of MS on this new Discover card. Initial 1.5% back on card =15.17. Minus the MS costs of 11.28 = Profit of 3.89 per 1 MO.
At the end of the year, add in another 15.17 per MO.
Thus if you do 2 MO per day, 5 days a week 48 weeks a year (a few weeks of bora bora and hawaii travel right?) then when all is said and done you have bought 480 MO:
Initial profit accumulated through the year: 1867.2
At the end of 1 year added as a bonus: 7281.6
Total return = $9148.8
Call them and request a 0% APR for 6 months. You can advise many competitors out there. If you are eligible, your offer will be for 12 months, not 6.
I had the prior promotion: 4months, $300 CB back. Nailed it. Plus, I got the overlap from the gas category which netted me an extra $75 added to the $300.
But, because I earlier had backed over a stand alone pipe (located at each condo close to the driveway) one night, I had to donate $190 of my CB to my pipe fiasco, fixing it. The only good thing about it was the quick response I got from the plumber's dad who lived in the neighborhood while water was thrashing out. Thank goodness for the "Greatest Generation" types, quick and efficient. And, doggone nice for after 8 or 9PM!
Last edited by jan_believes; Feb 23, 2015 at 8:57 pm
Feb 20, 2015, 8:33 am
#24
Join Date: Feb 2006
Programs: HH Gold (again), US/UA/DL non-elite, ZE Presidents Circle, WN reluctant no fee convert.
Posts: 1,449
Discover has launched a new credit card called Discover it Miles: https://www.discover.com/credit-cards/miles/index.html
Double miles are paid out at the end of card member year. Discuss.
- 1.5x miles on all purchases
- Double miles for the first year (3x miles on all purchases)
- An annual credit up to $30 for in-flight Wi-Fi charges
- No foreign transaction fees
- No annual fee
- Free FICO Score
- 0% purchase APR for first twelve months
Double miles are paid out at the end of card member year. Discuss.
Been a DS customer for years. This would actually would be a better return than my present DS. Too bad I would waste a HP to have this. Pass for now. My DH wants to buy another house.
Wonder if I could "adjust" over to this one without closing the old one, as it is the elder statesman of my credit history.
Feb 20, 2015, 8:57 am
#25
Join Date: Apr 2014
Programs: Hilton - Diamond, IHG - Spire Amb
Posts: 901
cost discover end year
500 4.94 504.94
500 4.94 504.94 9.88
1009.88 10.58 15.1482 15.1482
2 5078.4 7271.136 7271.136
5
48 2192.736 7271.136 9463.872
Assuming 2 cards = 1 Mo, 2 Mo per day (4 cards), 5 days per week, 48 weeks per year
Assuming 4.94 fee per card.
Assuming 0.70 per MO
Then 2 cards cost 1009.88 for which 1.5 % initial and 1.5% end of year gets figured from.
Out of pocket costs of 9.88 + 0.70 = 10.58 cost per 1 MO.
For 480 MO per year, $5078.4 cost
Initial 1.5% return of (480* 15.1482) = 7271.136
For initial net of 2192.736
End of Year and additional 7271.136 is added for a net total of
9463.872
More of less ;-)
Feb 20, 2015, 8:59 am
#26
Join Date: Apr 2014
Programs: Hilton - Diamond, IHG - Spire Amb
Posts: 901
Re ran the numbers and a bit of tweaking =
cost discover end year
500 4.94 504.94
500 4.94 504.94 9.88
1009.88 10.58 15.1482 15.1482
2 5078.4 7271.136 7271.136
5
48 2192.736 7271.136 9463.872
Assuming 2 cards = 1 Mo, 2 Mo per day (4 cards), 5 days per week, 48 weeks per year
Assuming 4.94 fee per card.
Assuming 0.70 per MO
Then 2 cards cost 1009.88 for which 1.5 % initial and 1.5% end of year gets figured from.
Out of pocket costs of 9.88 + 0.70 = 10.58 cost per 1 MO.
For 480 MO per year, $5078.4 cost
Initial 1.5% return of (480* 15.1482) = 7271.136
For initial net of 2192.736
End of Year and additional 7271.136 is added for a net total of
9463.872
More of less ;-)
cost discover end year
500 4.94 504.94
500 4.94 504.94 9.88
1009.88 10.58 15.1482 15.1482
2 5078.4 7271.136 7271.136
5
48 2192.736 7271.136 9463.872
Assuming 2 cards = 1 Mo, 2 Mo per day (4 cards), 5 days per week, 48 weeks per year
Assuming 4.94 fee per card.
Assuming 0.70 per MO
Then 2 cards cost 1009.88 for which 1.5 % initial and 1.5% end of year gets figured from.
Out of pocket costs of 9.88 + 0.70 = 10.58 cost per 1 MO.
For 480 MO per year, $5078.4 cost
Initial 1.5% return of (480* 15.1482) = 7271.136
For initial net of 2192.736
End of Year and additional 7271.136 is added for a net total of
9463.872
More of less ;-)
Feb 21, 2015, 9:58 pm
#27
Join Date: Apr 2013
Location: Lehigh Valley, Pennsylvania
Programs: Milege+, SkyMiles, AAdvantage, HHonors Diamond, Marriott Gold
Posts: 1,685
Applied upon seeing this thread. To my amazement instantly approved. I figured they would give me a hard time since I already have their Motiva card which I only use for the 0% checks. I thought they would want me to close it or transfer some of the CL. Of course, I won't know CL until I receive the card. I wonder, if the CL is not a lot, will they allow me to move some from Motiva.
Feb 22, 2015, 8:50 pm
#30
Join Date: Apr 2013
Location: Lehigh Valley, Pennsylvania
Programs: Milege+, SkyMiles, AAdvantage, HHonors Diamond, Marriott Gold
Posts: 1,685
It just started to sink in: 3% on everything you buy with the Discover It Miles card, not just travel. This means I have to determine if what I spend on all my other cards is saving me at least 3%. Where I fall short, then that spend should go to this new card.