|by Mr Credit Card|
Update – The cards from Discover analyzed here (Miles and Escape) are no longer offered by Discover.
Here is a recent reader question.
I haven’t seen many or any comparison between these three cards.
I currently have a Chase Freedom card through Visa but am looking to get a second card, probably one with a nice return. Here is how I assessed the three:
(1) American Express Blue Sky: Like it because of the absence of an annual fee, the 1.33% return and the consumer protections offered by Amex.
(2) Discover Escape: I also am really attracted to this card for it’s 2% reward (one of the best in the business) but am unsure about the $60 annual fee.
(3) Discover Miles: I didn’t really consider the card until I factored in the $3,000 double miles bonus every year and the fact that it has no annual fee.
Can you provide any other pros/cons and recommendations based on these cards? Right now I am leaning towards Discover Escape but I wasn’t sure how much I would need to spend to really make the annual fee worth the investment.
Answer – Seth, I think you have clearly spelled out the pros and cons of each card. But let me summaries again.
Blue Sky from American Express(R) – Here are the following pros and cons of the Blue Sky.
- No annual fee
- Rebate percentage equal to 1.33%
- Amex Benefits
- But it is an Amex and not accepted everywhere
Escape by Discover® Card – Here is what I like and dislike about this card.
- You can earn double miles
- You can earn extra miles by shopping online (through your account) at Discover’s partners’ website
- You can redeem miles for gift cards
- But there is a $60 annual fee
- Discover is not well accepted internationally
Blue Sky(SM) Preferred from American Express. This card allows you to earn double points for dining, hotel, and car rental purchases. You are also given a $100 allowance for airline baggages! The annual fee is $75. Once again, you can breakdown your spending and figure if this card is better than either the regular Blue Sky or the 2 Discover Cards.
The following is the equation I would use for the Blue Sky Preferred Version to determine if it is better than any of the other cards.
(X minus Hotel + Dining + Car Rental) + (2*(Hotel Spending + Dining + Car Rental)) – (7500 = annual fee equivalent) + (10,000 = $100 baggage allowance).
I hope this will help your decision. The most important factor is how much you spend on the card.