At a Glance

Credit cards have become a fundamental part of our financial lives, offering convenience, rewards, and security. If you’re on the hunt for a new credit card, two popular ones you may come across are the Chase Freedom Unlimited and the Discover it cards. Both have their unique features and benefits, making it essential to understand the key differences and similarities between them.

In this article, you’ll learn:

Difference between Chase Freedom Unlimited and Discover it Card

To kick things off, let’s take a closer look at the main differences between the Chase Freedom Unlimited and Discover it cards:

Discover it® Miles

Reward rate1.50%
Reward details1.5X Miles on every dollar of every purchase
Intro Bonus:Equal to the cashback you earn in first year Annual fee$0
Regular APR16.24% - 27.24%
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Chase Freedom Unlimited®

Reward rate1.5% - 5%
Reward detailsEarn unlimited 1.5% cash back or more on all purchases, like 3% on dining and drugstores and 5% on travel purchased through Chase.
Intro Bonus:$200 Annual fee$0
Regular APR20.24% - 28.99%
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Things to Know about Discover it Card

Pros

  • Generous Cash Back: Discover it offers an impressive 5% cash back on rotating categories, making it a top choice for those who enjoy maximizing their rewards.
  • Late Payment Forgiveness: If you miss a payment, Discover it is forgiving. They won’t charge a late fee on your first late payment.
  • No Foreign Transaction Fees: This card is ideal for international travelers, as it doesn’t impose foreign transaction fees.
  • FICO Score: Discover provides you with your FICO credit score on your monthly statement for free.

Cons

  • Rotating Categories: While the 5% cash back on rotating categories is an advantage, it can be a drawback if you prefer simplicity and consistency in your rewards.
  • Acceptance: Discover may not be as widely accepted as Visa or Mastercard, especially outside the United States.

Reasons to Get the Discover it Card

1. Earning High Cash Back

The 5% cash back on rotating categories can help you save significantly on everyday purchases, especially if they align with your spending habits.

2. Card Security

With its robust security features and the option to freeze your card instantly through the mobile app, Discover it takes your financial security seriously.

3. Late Payment Forgiveness

The first late payment forgiveness feature can be a lifesaver if you occasionally miss a due date.

4. Good for Foreign Travel

If you frequently travel abroad, Discover it is an excellent choice due to its lack of foreign transaction fees.

Things to Know about Chase Freedom Unlimited Card

Pros

  • Simplified Cash Back: Chase Freedom Unlimited provides a flat 1.5% cash back on all purchases, making it easy to understand and use.
  • Sign-Up Bonus: The card offers a solid sign-up bonus, which can be a great way to jumpstart your rewards.
  • No Rotating Categories: Unlike Discover it, Chase Freedom Unlimited doesn’t have rotating categories, ensuring you earn a consistent, simplified cash back rate.
  • Authorized User Cardholder Benefit: You can add authorized users to your account, and their purchases will also earn cash back.

Cons

  • Foreign Transaction Fee: If you frequently travel abroad, the foreign transaction fee might not be in your favor.
  • Lower Cash Back Rate: While it’s a straightforward card, the 1.5% cash back rate may not be as high as what you can earn with Discover it.

Reasons to Take the Chase Freedom Unlimited Credit Card

1. No Rotating Category Hassle

If you prefer not to track changing categories and want a steady cash back rate, Chase Freedom Unlimited offers simplicity and ease of use.

2. No Waiting Time for Cashback Bonus

Chase Freedom Unlimited allows you to redeem your cash back rewards at any time, with no waiting period.

3. Authorized User Cardholder Benefit

If you want to share the benefits of your credit card with family members or friends, this card provides an extra layer of value.

How are Discover it and Chase Freedom Unlimited Similar?

Both cards have similarities worth noting. Both:

  • Cater to individuals with good to excellent credit scores.
  • Offer no annual fees.
  • Provide a sign-up bonus.
  • Feature robust mobile apps for account management and offer free credit score monitoring.

Additionally, both offer cash back rewards, though the structure differs – Discover it with rotating categories and Chase Freedom Unlimited with a consistent 1.5% cash back rate.

Is Chase Freedom Unlimited Better than Discover it?

The answer to this question depends on your personal financial habits and preferences. If you appreciate a straightforward and consistent cash back rate, then Chase Freedom Unlimited might be the better choice for you. On the other hand, if you’re willing to put in a bit more effort for higher rewards and value late payment forgiveness and no foreign transaction fees, then the Discover it card could be the superior option.

Which Card to Pick?

Ultimately, your choice between the Chase Freedom Unlimited and Discover it cards should align with your financial goals and spending habits. Consider your spending patterns, whether you travel internationally frequently, and how you prefer to earn cash back. It’s also important to factor in any additional features, like authorized user benefits or rewards redemption flexibility. Take your time to review the details and decide which card is the best fit for your needs.

FAQs

The credit limit for Chase Freedom Unlimited can vary depending on your creditworthiness, but it generally falls in the range of $500 to $15,000.

Discover Bank is often considered better than Chase due to its more extensive network of ATMs and lack of foreign transaction fees. Discover offers access to over 60,000 no-fee ATMs, while Chase has a network of over 15,000 ATMs.

Chase Freedom Unlimited is generally not difficult to get if you have a credit score of 670 or higher. However, approval depends on various factors, including your credit history, income, and other financial details.

Yes, the Discover it card can be an excellent choice for building credit. It is accessible to individuals with good to excellent credit, and responsible use of the card can help you establish and improve your credit history over time.