Chase Freedom vs. Discover it Cash Back Comparison
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Please note: Chase Freedom® may no longer be available to new applicants.
The Verdict: Chase Freedom® and Discover it® Cash Back are two of the most popular cash rewards cards for people with above-average credit. Both Chase Freedom and Discover it Cash Back have $0 annual fees and give 5% cash back on up to $1,500 spent per quarter in rotating bonus categories (that require activation), plus 1% back on all other purchases. Freedom is best for people who want a sign-up bonus after three months, instead of 12 months, and those interested in 0% financing. Discover it Cash Back is best for double rewards the first year and no foreign transaction fee.
Specifically, one of the biggest differences between the two cards is how they award their bonuses. Freedom offers $200 for spending at least $500 within 3 months of opening an account. Plus, cardholders have more bonus rewards waiting for them the first year, as Freedom now gives 5% cash back on the first $12,000 you spend on groceries in the first 12 months your account is open. Discover, on the other hand, doubles all the rewards you earn the first year.
Similarly, both Chase Freedom and Discover it Cash Back offer 0% purchases. But Freedom has a slightly longer interest-free period on purchases. However, Chase Freedom has a foreign transaction fee of 3% of each transaction in U.S. dollars and doesn’t offer an intro on balance transfers, while all Discover cards have no foreign fee.
You can learn more about how Chase Freedom and Discover it Cash Back compare below.
SIDE BY SIDE COMPARISON
General
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Network | VISA | Discover |
Credit Card Company | Chase | Discover |
Min Credit Required | Excellent or Good | Excellent or Good |
Annual Fee | $0 | $0 |
Purchases
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Intro APR | 0% | 0% |
Intro APR Period | 15 months | 14 months |
Regular APR | 14.99% - 23.74% (V) | 11.99% - 22.99% (V) |
Transfers
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Intro APR | N/A | 0% |
Intro APR Period | N/A | 14 months |
Regular APR | 14.99% - 23.74% (V) | 11.99% - 22.99% (V) |
Transfer Fee | 5% (min $5) | 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* |
Rewards
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Reward Type | Cash Back | Cash Back |
Reward Bonus | $200 | N/A |
Reward Cap | No | No |
Reward Details |
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Penalties
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Max Late Fee | See Terms | $40 |
Max Overlimit Fee | See Terms | None |
Max Default APR | None | None |
Cash
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Cash APR | 24.99% (V) | 24.99% (V) |
Cash Advance Fee | Either $10 or 5% of the amount of each transaction, whichever is greater. | 5% (min $10) |
Other
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Additional Info |
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One-time Setup Fees | None | None |
Foreign Transaction Fee | 3% of each transaction in U.S. dollars | 0% |
Grace Period | See Terms | 23 days |
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Chase Freedom vs. Discover it Cash Back: Initial Bonus
Chase Freedom’s initial bonus is worth $0.40 per $1 spent ($200 for $500 spent). Plus, you will get 5% cash back on up to $12,000 spent on groceries in the first year. Discover it Cash Back’s first-year doubling, on the other hand, would yield only as much as $50 per $500 spent, or $0.10 per $1, given the card’s maximum earning rate.
Freedom’s bonus is therefore more efficient, but it’s also limited. And $200 certainly can’t compete with the roughly $525 the average person who spends $32,010 annually would glean in one year from Discover it Cash Back’s bonus offer, according to our calculations.
Category Winner: Discover it Cash Back
Chase Freedom vs. Discover it Cash Back: Ongoing Rewards
Both of these cards, as you can see above, provide 5% cash back (up to a maximum) spent quarterly in rotating categories, which has obvious pros and cons. Although 5% cash back clearly trounces the 1.06% average rewards earning rate on the market, cardholders are required to sign up for this higher rate each quarter. Not only is this an extra burden for consumers, but there is no guarantee that the bonus categories will complement your spending habits. You can only spend so much at movie theaters in three months, for instance.
Both cards also allow you to redeem in a number of different ways, including statement credits and gift cards. While there is no real differentiator between the cards in this regard, one advantage of Chase Freedom is the ability to transfer earned rewards into the loyalty programs of 11 different corporate partners, including a number of airlines and hotel chains. And that is why we gave Freedom the nod in this category.
Category Winner: Chase Freedom
Chase Freedom vs. Discover it Cash Back: Interest Rates
Both Chase Freedom and Discover it Cash Back offer pretty good rates – at least to start. The Freedom Card provides 0% on purchases for the first 15 months and has a regular APR of 14.99% to 23.74% (V). Discover it Cash Back, on the other hand, provides 0% intro rates on purchases and balance transfers for 14 months and charges a 3% intro (5% after) balance-transfer fee. Its regular APR varies from 11.99% to 22.99% (V).
Category Winner: Discover it Cash Back
Chase Freedom vs. Discover it Cash Back: Fees
Neither Chase Freedom nor Discover it Cash Back charges an annual fee, which is the biggest potential cost that a rewards-card user must look out for. Discover it Cash Back also waives your first late fee, which is nice but should not be relied upon.
The only other fee to mention is the foreign-transaction fee. The Chase Freedom Card charges 3% for foreign transactions, whereas the Discover it Cash Back card does not charge for foreign transactions.
In other words, one of the things that you’ll discover today is that the “free” in Chase Freedom shouldn’t be taken too literally.
Category Winner: Discover it Cash Back
Chase Freedom vs. Discover it Cash Back: Consumer Reviews
Discover it Cash Back gets the nod from WalletHub’s editors, receiving a score of 3.3 out of 5 stars in its full-length review, compared to 3.2 for Chase Freedom. And the same holds true if you ask WalletHub users, with Discover it Cash Back getting an average rating of 4 out of 5 and Chase Freedom receiving 3.8.
Category Winner: Discover it Cash Back
Still Not Sure?
In case you want more information before choosing a credit card, or just a chance to organize your thoughts, we’ve got you covered with a quick recap are some relevant reviews that should help.
Overview: Chase Freedom vs Discover it Cash Back
Category | Chase Freedom® | Discover it® Cash Back |
Annual Fee | $0 | $0 |
Initial Bonus | $200 | N/A |
Purchase Intro APR | 0% for 15 months | 0% for 14 months |
Rewards Rate | 1 - 5% Cash Back | 1 - 5% Cash Back |
Regular APR | 14.99% - 23.74% (V) | 11.99% - 22.99% (V) |
Recommended Credit Rating | Good | Good |
Additional Resources: