Discover Miles Card Now Offering 12,000 Bonus Miles
I’ve mentioned the Discover Miles Card before, but the bonus has now been increased from 5,000 miles after the first purchase to 12,000 miles (1,000 for each month with a purchase). It still offers 0% APR for 12 months on both purchases and balance transfers, which means you can get the 12,000 mile bonus and earn interest on borrowed money without worrying about getting charged interest.
I got this card already, and outlined exactly step-by-step how I got my money from Discover. The deal is hotter now as you can get 7,000 more miles, and interest rates are higher than before. Assuming I got another $10,000 balance transfer, this deal would be worth about $500. Here’s how I got that number:
$10,000 x 4.75% x ~11 months of interest (to be conservative) = $435
12,000 miles can be used for:
10,000 miles = $50 cash
9,800 miles = $75 Gift Card to Gap, Banana Republic, J. Crew, Foot Locker, Macy’s, and similar
12,700 miles = $100 Gift Card to Eddie Bauer, Morton’s Steakhouse, and others
So if you estimate that 12,000 miles is worth about $65, then 435 + 65 = $500. This is an example of a deal that takes more work than an upfront bonus, but also has a higher reward.
Also don’t miss my Tips and Tools for 0% APR Balance Transfers.
Find more in Deals & Offers | 6/9/06, 3:12am | Trackback
June 9th, 2006 at 9:07 am
Looks like they changed 0 BT fee to 3% (no max)? Did I get it wrong or is it hidden somewhere in the small prints?
June 9th, 2006 at 9:43 am
Jonathan,
Nowadays many credit card companies offer BILL PAY……Do you know if we can use Bill-Pay to pay ’someone’? This could avoid balance transfer fee for cards that do have them….
If you dont know, I will try calling the CC company to find out.
June 9th, 2006 at 9:58 am
If you do the 0% apr, and also purchase once a month, do you know is the purchase also 0% apr for the first 12 months.
thanks.
-luu
June 9th, 2006 at 10:21 am
I’ve been reading up on your 0% balance transfer game, and I am new to the personal finance blogs. I’m trying to get my financial life in order and your website is very helpful. I am a fan of your site and visit most every day. I do have one question about the balance transfer game though. I’m assuming that on the application for the card, I immediately transfer the entire balance to my high interest (EmigrantDirect) savings account. But, when I get my first bill, am I paying with the savings money? Or am I paying the bill out-of-pocket? I would assume out-of-pocket, but I guess I’m just clarifying.
Thanks,
Matt
June 13th, 2006 at 7:52 am
Jim - There is a cash advance fee of 3%, but no balance transfer fee. The terms read the same as before as when I did it, and I was not charged any fees.
Sri - That’s a good idea, but I don’t know of any credit card that would let you billpay anyone. Usually someone (like your cell phone company) has to pay the transaction fees to accept credit cards.
Luu - Both are at 0% for 12 months, see the first line of the terms and conditions.
Matt - You can just pay the credit card via Emigrant Direct by giving them the acct # and routing #. Or you can pay out of pocket if you’d like.