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Chase Freedom vs Discover It Credit Card Comparison

Chase Freedom vs Discover It Credit Card Comparison

In the economic environment of today, having a good credit card is beyond a privilege, it is a necessity. Not only does it position you as a fiscally responsible person, but it also enables you to take advantage of a number of incentives, cash backs, and bonuses. In general, there are many credit card vendors available today that offer different types of cards. However, the two most popular are: Chase Freedom and Discover IT. But, which one is the best credit card for you? Well, see these two most popular reward credit cards going head to head in this card comparison review below to find out:

Quick Card Overview

Key Features Discover It® Chase Freedom®
Card Annual Fees $0 $0
Foreign Transaction Fee 0% 3%
Card Rewards Program Cash back Cash back
Signup Bonus with Card Holders get a 5% cash back when signing up in categories that change each quarter up to the quarterly maximum Earn a $150 Bonus after spending $500 on purchases in your first 3 months of account opening
Who Would Want Each Card?
Bad For: ·         Someone who wants a signup bonus ·         Someone who travels overseas regularly
Good For: ·         Individuals who want free access to their FICO score

·         Individuals who spend in line with the 5% cash back categories

·         Individuals who shop cool tees online regularly, especially around holidays

·         Individuals who need a signup bonus of at least $100

·         Individuals who already have a Chase Sapphire preferred card

·         Individuals who want an unlimited 1% cash back on every purchase

The Rewards of a Discover It® Card

With a Discover It card, you will get:

  • Access to the Discover Deals marketplace. Here you can find dozens of retailers who offer special discounts and point deals for buying from them.
  • After your first year of card membership with Discover, holders can get a DOUBLE CASH BACK (this offer stands for new cardholders only).
  • Card holders get 1% cash back on all purchases they make.
  • Holders can get 5% cash backs in the categories listed below, which make up to $1,500 purchases in every quarter.
Quarter 5% CASH BACK CATEGORY
January – March Ground Transportation and Gas Stations
April – June Movies and Restaurants
July – September Department and Home Improvement Stores
October – December Clothing Stores, Amazon.Com, and Department Stores

However, before you can start earning points with your Discover It credit card, you will need to go online and activate your 5% reward category. If by any chance, you forget to activate the rewards, you can simply contact customer service. They will help you get your rewards added retroactively to your past purchases. Once done, you can redeem your cash back whenever you want for any amount. You also have the option to use your rewards directly for purchasing items for Amazon.com.

The Rewards of a Chase Freedom® Card

With a Chase Freedom card, you will get.

  • Access to the Chase Ultimate Rewards marketplace. Similar to Discover Deal, you can find numerous special deals from participating retailers here.
  • A $25 signup bonus for making your first purchase in the first 3 months or by adding an authorized user.
  • $100 signup bonus for spending approximately $500 in the first 3 months.
  • 1% cash back on all purchases made.
  • 5% cash back in the categories listed below:
Quarter 5% CASH BACK CATEGORY
January – March Starbucks® Stores, Movie Theaters, and Grocery Stores
April – June Overstock.com®, H&M®, Bed Bath & Beyond®, and Restaurants
October – December Kohl’s® and Gas Stations
July – September Amazon.com

Like the Discover It card above, you will need to go online and activate your 5% rewards category in order to start earning points. However, if you forget, you can always call up customer service and have the retroactive rewards added to your purchases.

The Benefits of a Discover It® Card

Travel

  • Auto Rental Collision Damage Waiver – This incentive enables card holders to receive coverage against collision damage on rental vehicles.
  • Flight Accident Insurance – Card holders and eligible dependents (children, spouse, or domestic partner) are covered against accidental death when flying. This can be up to $500,000.

Shopping

  • Chip-and-Signature EMV Technology – This technology enables holders to take advantage of more accessibility in foreign countries and better security.
  • Zero Liability Protection – This incentive provides holders with protection against fraudulent charges.
  • Cash at Checkout – You can use your Discover It card like a debt card to get cash back when shopping with participating retailers. This cash will simply fall under the regular purchase APR by being added into your purchase amount. This is a great way yo save money, specially if you also visit websites like Raise in order to get further discounts.
  • Extended Warranty Protection – For eligible purchases on your Discover It card, you can receive up to 1 additional year to a manufacturer’s 36 months or less warranty.
  • Return Guarantee – Discover It can provide holders with up to $500 compensation for eligible items (within 90 days of purchase), if a retailer doesn’t accept your return.
  • Price Protection – If you purchase something, but find it being advertised for a lesser price elsewhere, you can receive a refund from Discover of up to $500 (within 90 days of purchase).
  • Purchase Protection – Eligible purchases from participating retailers are covered against theft or damage up to $500 for 90 days.

Account

  • Spend Analyzer – This tool helps card holders track and understand where exactly their money is going.
  • Free FICO Score – With Discover It, you don’t have to pay to see your FICO score. Just log into your account and you’ll see a FICO scored provided by TransUnion.

The Benefits of a Chase Freedom® Card

The Chase Freedom is basically available in 2 possible service levels: the Premier-Level Visa Signature and Regular Visa. So, which one do you get? Well, this depends on your finances and credit history. The most qualified applications can enjoy the extra perks of Visa Signature and those not eligible can get a regular Visa Service (which is not bad at all either).

Visa Signature Travel

If you qualify for a Visa Signature-level card, you can receive the following travel benefits:

  • Travel Accident Insurance – This incentive provides card holders with up to $250,000 in coverage for accidental dismemberment and death, when you pay for cruise, air, or bus transportation with your card.
  • Trip Interruption/Trip Cancellation Insurance – In circumstances where your trip is interrupted or cancelled for eligible reasons like severe weather or sickness, Chase Freedom Visa Signature provides up to $5,000 in reimbursement for non-refundable expenses.
  • Lost Luggage Reimbursement – If by any chance you or your family members’ carry-on or checked bags are damaged or lost, you can receive a reimbursement of up to $3,000.

Shopping

  • Chip-and-Signature Technology – For better accessibility in foreign countries and increased security, the Chase Freedom features the latest EMV-enabled chip-and-signature technology.
  • Zero Liability Protection Card holders will not be held liable for any unauthorized or fraudulent charges.
  • Extended Warranty Protection – This incentive extends an original manufacturer’s warranty by up to 1 year and for eligible warranties 3 years or less.
  • Return Protection – If a retailer doesn’t take back an item, you can be reimbursed up to $250 per item (within 30 days of purchase).
  • Price Protection – If you purchase an item and later find it being advertised for a lesser price, you can be reimbursed up to $500 per item (within 90 days).
  • Purchase Protection – Covers new purchases against theft and damage for $50,000 per account, 120 days, and up to $500 per claim.

Travel

  • Auto Rental Collision Damage Waiver – In circumstances of theft or damage to rental vehicle, you can receive coverage from Chase Freedom.
  • Travel and Emergency Assistance Services – Provides help when away from home. This includes legal referrals and medical.
  • Roadside Assistance (for MasterCard cards)/Roadside Dispatch (for Visa cards) – For Visa card, you can call 1-800-VISA-TOW for any kind of help on the road. For MasterCard, you can call the customer service number at the back of the card.

Which Card Should You Get?

Chase Freedom or Discover It?

As you can see, each credit card has its own pros and cons. So, choosing the perfect card ultimately depends on your preferences. Regardless, here are some ways to compare these two credit cards to help make the decision-making process easier:

  • For cardholders who want a simpler credit card or often miss payments, the Discover It card may prove useful. This is because this card offers less punitive terms, such as no waived first late-payment fee, penalty interest rate, or foreign transaction fees.
  • If you don’t want to pay interest on new purchases, Chase Freedom’s might be a good option. The card comes with 15 months of 0% interest, trumping Discover’s offers. Not to mention, you also get a generous sign-up bonus.
  • If you are looking to maximize cash back, Discover It may be appropriate as it enables holders to receive double cash back for the first year.
  • If you aren’t quite in the “excellent” credit rating category yet, it may be difficult to quality for a Discover It card. So, it might be a better option to go for a Chase Freedom card.