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Discover® Business Miles Card

• 0% Intro APR* on Card Purchases and Balance Transfers
• 12,000 Bonus Miles*
• Earn 5 to 20% Cashback Bonus at top retailers through Discover’s exclusive online shopping site
• No annual fee
• Earn Double Miles on travel and gas*

Issuer:  Discover

APR:  0.00%

Introductory Period: Twelve months

APR After Introductory Period:  There is also a 5.99% introductory rate available on balance transfers until the last day of the billing period ending during January 2008. The APR depends on your payment behavior and credit rating but the card company defines their standard rate as being 13.99% variable for purchases and 20.99% on cash advances.

Annual Fee: $0

Credit Line Possible: The maximum if $50,000 and the minimum is $5,000.

Insurance included:  You get up to $500,000 in travel accident insurance, auto rental insurance, and various fraud and security protection services.

Financing Configuration – Finance charges for the Discover® Business Miles Card are calculated using the "Two Cycles Average Daily Balance" method, which is a more costly method if you plan carry a balance compared to the "Average Daily Balance" method used by most card issuers.

Grace Period – You have twenty-five days during which you do not have to pay interest on purchases.

The Best Thing About It – No annual fee and an excellent rewards program.

The Worst Thing About It – The interest is calculated in the expensive “Two Cycles Average Daily Balance” manner and you might not qualify for the lowest rate.

Credit Rating Needed For Acceptance – Excellent.

Who Is It For?

The Discover® Business Miles Card is for those who that desire a card with generous travel related cash back and point rewards and that also has ample travel and emergency insurance.

The Benefits

The unlimited cash rewards are generous and never expire. Through the reward program, cardholders earn double miles on up to $5,000 in travel and gas purchases, and up to one mile for every dollar spent on general purchases. Earned miles can be redeemed for airfare or reduced airfare on most major U.S. based airlines with no blackout dates. Miles can also be redeemed for gift cards from 50 brand-name partners. There is no limit to the amount of points that can be earned and points do not expire.

 

There is no yearly limit on the amount of rebates that can be earned. Rebates do not expire as long as the account is active within a 36-month period.

There are no fees on balance transfers.  There are a lot of fees associated with this card but none for balance transfers.

The Drawbacks

 

Monthly payments are applied to purchases first until they are paid off and then to purchases.  This can get very expensive if you use it to take out cash, as the interest rate is high.

A short grace period. Many credit cards don’t collect interest on purchases until thirty days after purchase. The grace period for the Discover® Business Miles Card is twenty-five days.

The introductory rate is not guaranteed. If you make a late payment on any bill, not just your credit card bill, your introductory rate can be replaced with the prime rate.

There are hidden fees. The fees for this card can add up and make it seem like you are paying an annual fee anyway.

Fees To Watch Out For

 

Late payment fee:  $0 on balances up to $100; $39 on balances over $100

Over The Limit fee: $0 on balances up to $100; $39 on balances over $100

Cash advance Fee: 3%, $5 minimum

Balance Transfer Fee:  None

To Summarize –

The Discover® Business Miles Card is a good card for people that don’t carry a balance. The APR for this card is above average, but there is no annual fee and there is a 0% introductory APR that applies to purchases for six months. There are also no balance transfer or annual fees

Intro APR	Intro APR Period	Regular APR	Annual Fee	Balance Transfers	Credit Needed
0%	12 months	13.99%	None	Yes	Good Credit