Update: The Escape by Discover card is no longer available. All Discover consumer credit cards have been replaced by the Discover it Credit Card.
While many credit card issuers are canceling cards and restricting credit, Discover bucked the trend by offering a new card called Escape. The Escape by Discover® Card combines a host of benefits including travel rewards, cash rebates, and 0% balance transfer and 0% APR on purchases. Because the card is new and rich in features, we though a review of the Escape card was in order.
Escape Card’s Travel Rewards
Discover is marketing the Escape credit card as a travel rewards card. Perhaps the most interesting feature is that it comes with up to 25,000 bonus miles during the first 25 months you use the card. For each month you make at least one purchase, you’ll receive 1,000 bonus miles per month. Because we love to dig into the fine print on credit cards, here are the details as provided in the Discover credit card agreement:
TERMS OF 25,000 BONUS MILES OFFER: Earn 1,000 Bonus Miles each calendar month you make a purchase for 25 months from the date your account is opened, with a cap of 25,000 Bonus Miles. We are not responsible for merchant delays in processing transactions. This promotional offer is in addition to the Standard Miles earned on purchases. Promotional Miles will be applied within 8 weeks.
And a nice feature of the bonus miles is that they are in addition to the miles you earn from purchases any way. So in addition to the monthly 1,000 miles bonus, cardholders also earn miles based on purchases made with the Escape card. Again, here are the details:
Earn unlimited Miles on all purchases. Earn 2 Miles for each dollar you spend on all purchases. Miles have no expiration date; however, if your Account is closed for any reason or inactive for 18 consecutive months or if you fail to make the Minimum Payment Due by the Payment Due Date for two consecutive billing periods, your Miles will be forfeited. Full terms and conditions, including redemption information, will be sent with your card.
So in addition to the 25,000 bonus miles, cardholders earn 2 miles for each dollar spent using the card.
Balance Transfer Offer
The Escape by Discover® Card also comes with Discover’s standard balance transfer offer. You can transfer high interest balances to the card and pay no interest for 6 months. There is a 3% balance transfer fee that has no cap, so effectively cardholders pay 3% for the balance transfer. If you love reading contracts, here are the details:
The following applies to each balance transfer offer: Please allow up to 4 weeks before payments to your other accounts are made. Accordingly, you should continue to make all required payments until you confirm that the balance transfers were made. Balance transfers may not be used to pay any Discover accounts. Balance transfers do not earn rewards. If you request multiple balance transfers, we will process them in the order in which you entered them. You understand that if your application is approved, your credit limit may be less than the total amount of balance transfers requested, and you authorize us to process any balance transfer for less than the amount requested, up to your available credit. Making additional transactions may cause you to exceed your credit limit. You may only make balance transfers to accounts that list you as an account holder. There is no grace period on balance transfers. If you are late making a payment or if your account is over-limit twice , any introductory/special rates will terminate and the Default Rate will apply. If more than 90% of your new balance consists of special rate balance transfers, we may increase your minimum payment due to a maximum of 4% of the new balance if it would otherwise be less than that. If there is a balance transfer transaction fee for this offer, it is described above.
If there is any negative feature with the card it’s the $60 annual fee. Still, given the travel benefits that the card offers, they can more than make up for the annual fee. If you are interested in signing up for the Escape by Discover® Card, visit any link contained within this post.
Published or updated January 4, 2013.