If you’re looking for a new credit card these days, it’s more than likely that you’ve come across some of the cards that Discover offers. Just a few years back it seemed like American Express was the king of the rewards credit card, however last year the credit crisis completely turned many things in the financial world on their head, and rewards credit cards were no exception.
For 2010, many of the best cards out there are now offered by Discover. If you take a look at our best credit cards 2010 for example, you’ll find that Discover currently dominates the list. The reason for this is that while other card companies have made major cuts in their rewards card programs over the last year, Discover’s rewards program has (for the most part) remained the same.
Let’s take a look at the current line up of Discover credit cards:
| Card Name | Category | Credit Needed | Annual Fee |
| Current by Discover | Debit | No Credit | No | Discover More | Cash Back | Good Credit | No |
| Discover Motiva | Cash Back | Good Credit | No |
| Discover Student | Cash Back | Fair Credit | No |
| Miles by Discover | Travel | Good Credit | No |
| Escape by Discover | Travel | Good Credit | $60 |
| Open Road by Discover | Gas | Good Credit | No |
Discover offers multiple cash back and travel rewards credit cards which can leave some people confused as to which card is right for them. Although at first glance many of the cards may appear to be the same, there are quite a few differences when you take a closer look at the cards rewards structures and benefits.
One of the things you probably noticed from the table above is that the only card Discover offers with an annual fee is Escape by Discover. Although the Miles by Discover, and Escape by Discover are both travel rewards credit cards that appear almost identical there are a few differences that justify the annual fee.
With the Escape by Discover card you earn 2 miles for every dollar you spend, there is no cap on this so you can earn unlimited rewards. With the Miles by Discover Card you only earn double miles on the first $3000 in travel and restaurant purchases that you make every year.
In addition to this, when you first sign up you get 3,000 more bonus miles with Escape by Discover (15,000) then with Miles by Discover (12,000). If you’re planning on using this card daily you’ll probably find that Escape by Discover will pay for itself rather quickly.
Finally, Escape by Discover offers a few additional features that can be extremely beneficial to those who travel frequently:
- Primary Car Rental Insurance
Automatic primary insurance coverage up to $50,000 with no deductible -
Lost or Damaged Luggage Insurance
Reimbursement for lost or damaged baggage up to $2,500 -
Travel Delay Insurance
We’ll cover up to $150 per day of unexpected food and lodging expenses -
Trip Cancellation Insurance
Up to $2,500 to travel another time should you become ill and unable to travel
Although Discover More and Motiva are both technically cash back credit cards, the rewards structure for these two cards differs. With the Discover More Card you can earn up to 5% cash back with money spent in certain categories which rotate from month to month. These categories are:
- January–March: Airlines, Hotels, Car Rentals, Cruises
- April–June: Home, Fashion
- July–September: Gas, Hotels, Movies
- October–December: Restaurants, Fashion
You then earn 1% cash back on all other purchases. You can also earn a 5% – 20% cash back bonus by shopping online through Discovers online mall (ShopDiscover).
With Discover Motiva, you earn 1% cash back on all purchases, however if you carry a balance and pay on time consecutively for 6 months you receive a full month’s interest back as a Pay-On-Time Bonus. You can also get the 5% – 20% ShopDiscover cash back bonus.
If you pay your cards balance off completely each month then the Discover More card is a much better choice than Motiva because of higher % cash back. However if you tend to carry a large balance, you may want to take a closer look at Discover Motiva.
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