Cash back is such a great form of charge card rewards - it"s hard to fail with money. After all, it"s a terrific feeling to know that you are getting a little money back on your spending.
Two of the more popular money back charge card are the Chase Freedom and Discover it ® cards. Their cash money back programs are so comparable that consumers like you can be at a loss when it pertains to picking the better one.
Do not concern. I"ll provide some detailed analysis to assist you make that decision.
These are the criteria that I utilized to breakdown Chase Freedom vs. Discover it ®:
- Cash back program
- Online shopping portal
- Annual fee
- Interest rate
- Card coverages
- Customer service
The card with the most gaining categories is named the better cash back charge card.
Note: Chase Freedom can be found in Visa Platinum and Visa Signature variations. You don"t get to pick the variation you desire - it depends upon your initial credit limit. If you"ve a credit limit of $5,000 or less, you get the Visa Platinum, more than $5,000, you get the Visa Trademark. Where applicable, I account for their differences.
CASH BACK PROGRAM
Chase Freedom: 5 % cash money back in classifications that change every 3 months on approximately $1,500 in combined purchases in these categories, 1 % cash back on all other purchases
Discover it®: 5 % cash money back in classifications that change every 3 months on up to a restriction in combined purchases in these categories (typically $1,500 in combined purchases), 1 % cash back on all other purchases
From year to year, I"ve actually seen the classifications change on these 2 money back cards. There"s no assurance that the exact very same 5 % cash money back classifications will certainly show up every year.
However, these classifications do have the tendency to repeat from year over year. To make things even much better, the 5 % cash back classifications are actually very practical for their particular quarters (e.g., home enhancement throughout late spring/early summer months). They don"t attempt to get slick by publishing unsuitable 5 % cash back classifications for the season (such as "get 5 % cash money back at amusement parks from October through December") to reduce the perk cash money back that they "d have to distribute.
Just take a look at the 2014 calendars for the 5 % cash back categories on both cards:
As you can see, Chase Freedom and Discover it ® have incredibly similar 5 % cash back calendars.
The cash money back restricts is likewise an issue. Both cards will cap how much reward cash money back you can make in a specific quarter. For Chase Liberty, it"s actually constantly been $1,500 in consolidated spending on those 5 % money back classifications (1 % thereafter). For Discover it ®, I"ve actually seen the quarterly limits change, but it"s remained steadily at $1,500 in combined spending on the reward cash back classifications (1 % thereafter) in the past year, much like Chase Liberty.
Since the cash back programs of the two cards are so comparable without any clear edge from either card, I am calling it a tie.
(Chase Liberty would"ve installed a stronger fight if Chase did not announce some adverse changes that influence how you "d make Ultimate Benefits points.)
ONLINE SHOPPING PORTAL
Chase Freedom: Ultimate Gifts provides to 25 % additional cash back through partnered online retailers
Discover it®: ShopDiscover provides 5-20 % extra cash money back at partnered online retailers
In addition to each card"s cash money back program, you should earn additional money back by utilizing their respective online shopping websites - something certainly worth thinking about before choosing a card. If you make a purchase through these portals, you can get a good quantity of cash back on top of the card"s regular money back program. Listen, you are going to make that purchase anyhow, why not shop throughout the portal and pocket more cash money?
Because Chase Flexibility and Discover it ® partner with an excellent mix of various online retailers, it"s difficult to merely state which offers the much better online shopping portal. Something I saw was that ShopDiscover offers either 5 %, 10 %, 15 % or 20 % extra cash back. On the other hand, the seller partners with Ultimate Rewards will certainly provide extra cash back that varies from 1 % to to 25 %.
To offer a much better picture of the 2 online shopping websites, I compare the additional money back that you can make at some major online sellers:
|Online retailer||Ultimate Gifts (Chase Freedom)||ShopDiscover (Discover it®)|
|Apple||2% bonus cash back||5% bonus cash back|
|Best Buy||2% bonus cash back||5% bonus cash back|
|Macy"s||5% bonus cash back||5% bonus cash back|
|Walmart.com||2% bonus cash back||5% bonus cash back|
Generally, ShopDiscover will offer more bonus cash money back with its online shopping portal - Discover it ® takes this category.
Chase Freedom: No annual fee
Discover it®: No annual fee
These two cards are quite concentrated on cash back. There"s no crazy travel advantages that"d call for a yearly charge. Really, it would seem rather counterintuitive to need to pay a yearly charge if it would simply negate your money back revenues (unless that cash back program was so excellent that you could easily recoup the annual cost plus more).
Nonetheless, it"s a good idea that neither cards have a yearly fee - so they"re in this classification.
Chase Freedom: 13.99 % - 22.99 % variable APR (0 % intro APR for 15 months on purchases and balance transfers)
Discover it®: 10.99 % - 22.99 % variable APR (0 % intro APR for 14 months on purchases and balance transfers)
Let us be blunt right here. If you"re getting a cash money back credit card, I strongly advise against lugging a balance - you need to settle the entire card balance on a monthly basis. Otherwise, those interest charges are cutting into your money back earnings.
If you are doing it right, you will not even care what the rate of interest is on your card. But, it does not harmed to get the lowest APR possible.
Discover it ® has the lower APR variety while Chase Liberty carries a slight advantage on the 0 % initial period. However, I "d value that additional month from the initial period from Chase Liberty less than a lower regular APR from Discover it ®, which might last the life of your account.
Every charge card out there offers different kinds of defense, insurance coverage and waivers. The exact same applies to the Chase Liberty and Discover it ® cards. Since it"s such a long list, I have set out the card coverages in a table for simple digestion.
(Note: Chase Liberty comes in Visa Platinum and Visa Trademark variations. Some coverages are readily available just on Chase Freedom Visa Signature, which is usually offered to cardmembers with credit line of more than $5,000.)
|Card||Chase Freedom||Discover it ®|
|$0 liability fraud protection||Yes||Yes|
|Purchase protection||120 days after the purchase, $500 restriction per claim ($50,000 max. per account)||90 days after the purchase, $500 limit per claim|
|Price protection||90 days after the purchase, $500 restriction per product ($2,500 annually)||90 days after the purchase, $500 limit per item|
|Return protection||90 days after the purchase, $250 limitation per item ($1,000 annually)||90 days after the purchase, $500 limit per item|
|Extended warranty||One (1) added year on eligible guarantees of three (3) years or less||One (1) added year on qualified service warranties of 3 (3) years or less|
|Travel & emergency assistance||Yes||Yes|
|Auto rental insurance||Yes||Yes|
|Travel accident insurance||Yes (Visa Signature only)||Yes (only on air travel)|
|Trip cancellation/interruption coverage||Up to $5,000 per covered ride (Visa Trademark just)||No|
|Trip delay reimbursement||Up to $500 per covered ticket if trip is delayed even more than 12 hours or requires over night stay (Visa Trademark only)||No|
|Lost luggage reimbursement||Up to $3,000 per individual or $500 per individual for fashion jewelry and electronic devices (Visa Trademark only)||No|
|Baggage delay insurance||No||Up to $500 if baggage is delayed at least three (3) hours|
Both cards provide an excellent mix of card protections and protections, numerous which are comparable. However, I am going to provide this classification to Chase Liberty.
Just take a look at the table above: Chase Flexibility Visa Platinum is basically able to match the coverages readily available through Discover it ®.
It may not sound like much, but the extra 1 Month provided by Chase Flexibility"s purchase security policy provides more comfort for the precious purchases that you do not wish to see damaged or lost.
Meanwhile, if you are able to get the Visa Trademark version of Chase Liberty, you"ve the ability to get a department of convenient travel coverages.
Chase Freedom: No pre-set spending limit and travel upgrades and discount rates (Visa Signature only)
Discover it®: No penalty APR, no late payment cost for the first late payment, no foreign deal fees, and a free FICO credit score every month
Perks ought to be a huge factor in your decision process. However, see to it you"ll in fact utilize the card perks, due to the fact that there"s no point in choosing a card with benefits that you do not make the most of.
Frankly, the Visa Platinum version of the Chase Liberty card doesn"t provide anything in terms of perks-the basic card securities are the most that you are going to get. With the Visa Signature card, nevertheless, you"ll get travel benefits like complimentary hotel stays, late-checkout benefits and vehicle rental discount rates and even more. The no pre-set spending limitation suggests you can spend even more than your reported line of credit( yes, Chase will still have a credit limit on file)-the allowed excess spending relies on your accounts history.
Discover it ® has a variety of perks that downplays the repercussions of make late payments. The no foreign transaction charges are excellent for international travel. The best perk is most likely the totally free FICO credit score that"ll assist you track your credit profile and its enhancement, if any. Generally, you "d have to pay around$20 to get a FICO credit score.
Discover it ® absolutely has the upper edge in this classification due to the fact that the advantages are much more practical. Chase Flexibility, on the other hand, doesn"t have major benefits for its Visa Platinum cards while the Visa Trademark perks cater more to travel. If you really appreciated travel benefits, you would"ve went with a devoted travel charge card.
Chase Freedom: Regular 24/7 customer care( Visa Platinum), while 24/7 individual concierge is likewise offered with Visa Signature
Discover it®: 100 % U.S.-based customer service offered any time
When Discover it ® touts U.S.-based customer service, it"s attempting to inform you that you"ll be speaking to a proficient English-speaking customer support agent. It could be a step up from Chase Freedom"s routine customer service, which could be contracted out.
But, the addition of personal concierge through Visa Trademark makes a much better case for Chase Freedom. The service will assist with dining suggestions, travel reservations, shopping and far more. Individual concierge, even if it"s not readily available on all Chase Flexibility cards, is the nudge that puts Chase Flexibility above Discover it ® on customer support.
Verdict: Discover it®
Since these 2 cards are direct competitors, it"s not a surprise that this was a close match. In the end, Discover it ® won in 3 categories versus Chase Liberty"s 2.
Sure, Chase Freedom has better insurances and it even offers free personal concierge(Visa Signature just). But, Discover it ® eeks out ahead as the much better money back credit card with its much better online shopping website, lower APRs and friendlier advantages-these are the card features that I think will certainly have a greater impact throughout your cardmembership anyway.
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Chase Freedom vs. Discover it®: Finding the Better Cash Back Credit Card
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