Discover - Miles Review

Discover - Miles

I recently applied for this card.  I was drawn to it for 6mth 0% APR and an 12000 point sign-up bonus - 1000 points per month for each of the first 12 months that you make a purchase.  Credit line was very generous.

Their online interface is extremely easy to use.  Getting balances, redeeming rewards and paying your bill is extremely user friendly. 

As for the rewards, this is the only reason I cannot give this card a full 5 stars.  1% does not set the world on fire.  However, I would note that they have rotating categories of items with more-than-one% back.  This in June 09 it is gas at 2% for example.  Year round you get 2% for the first $3000 you spend on restaurants and hotels.  You only get the full 1% if you use your points for hotels/cruises/airfare.  They have partners that let you exchange points for gift cards, but you will be taking a 20%-40% discount to do so.  If you want to exchange points for cash - that will cost you 50%. 

Summary - definitely apply for the sign-up bonus and the teaser rate.  Definitely worth pursuing for those reasons.  But after 6mths you should be using this for gas/hotels or the rotating categories unless you have not other options or to get 1 monthly purchase for the first 12 months.