Chase Freedom vs Discover More

Update: The Discover More has been replaced by the Discover it card.

Right now these are the two of the better cash back credit cards in the 5% rotating category space, but how do they compare? Here’s a straightforward Chase Freedom vs Discover More comparison to show your the pros and cons on each…

Chase Freedom

The rewards program on this card has been changed up a few times over the years and here’s what you need to know about the current version.

Pros:

  • 5% cash back in categories which rotate every quarter (usually 2 or 3 categories during a given quarter). Please note that enrollment is required each quarter to earn the 5%.
  • Straight 1% cash back on all other purchases
  • No annual fee

Cons:

  • The amount of 5% you can earn is capped – at the time of writing it was a max of $1,500 of category spending during a quarter (so a max of $6,000 in spending per year would be eligible for the 5%)

discover moreDiscover More Card

Note: This card has been replaced by the Discover it card.
This card has been a solid rewards card for several years now and was the first to offer the 5% in rotating categories.

Pros:

  • 5% cashback bonus in rotating categories – they typically rotate every quarter, but once in a while there will be extra bonus categories only featured for a month. Examples include restaurants, grocery stores, department stores, clothing stores, home improvement stores, gas stations, cruises, hotels, airlines, movie theatres, movie rentals
  • Get up to a double cashback bonus when you redeem your rewards for gift cards instead of cash – for example, every $20 in rewards will buy you $40 in gift cards to use for a Sandals Resort vacation. There are around 140 different gift card partners participating with varying levels of rewards boosting.
  • Up to 1% cashback bonus on all other purchases
  • No annual fee

Cons:

  • Like the Chase Freedom, the Discover More caps the amount of 5% you can get, however it’s not a set cap (it differs by quarter). For example, During the winter months it might be 5% on travel purchases (airlines/hotels/cruises/car rentals) up to $800 in combined spending.
  • The 1% on other purchases is given after account spending exceeds $3,000 during a calender year. Before that it is 0.25% and the 5% categories don’t count towards reaching that $3k threshold.


Who Wins?
It really depends on your spending. For those that want one card for everything, the Freedom is probably best since it gives a straight 1% on other purchases too. However the Discover is very lucrative because it allows you to bolster your rewards by redeeming them for gift cards instead of cash.

So who’s the winner of the Chase Freedom vs Discover More matchup? Well they both are. What I actually do is use both – that way when I max out the 5% on one card, I switch to the other. Their 5% categories are usually different too, so it’s nice having both available.

 
Comments
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Discover = American company. Chase = outsourced trash.

Discover stomps on chase.

I’ve had some problems recently with the Discover card not honoring cash-back eligible purchases. I did the math and things weren’t adding up. I called to get a breakdown for the month, and found the many of the purchases that I thought were eligible were not. For instance, did you know that Burger King is a “gift shop”, not a restaurant? Who knew!

JPMorgan Chase CEO Jamie Dimon has directed Chase Card Services to conduct ongoing research and take the necessary actions to ensure that the Chase Freedom Card is always the best card in the market. What that means is that no matter what Discover or any there company does to improve their card…..Chase will always “one up” them.

JPMorgan Chase is the big boy on the block and Jamie Dimon intends to keep it that way. Discover has to be careful because if they get into an “offer war” with Chase they could hurt their own company.

I personally carry both cards, but I use Discover as my backup card. I am not a fan of Chase, but the indispensable Jamie Dimon has decided that his company will take any necessary steps to ensure their card will always be the best and with that in mind the best choice for me as a consumer is a simple one.

I use both, BUT. Assuming you spend enough to get over the $3k “hump” relatively quickly (say by spending $3k in the first month or three), the Discover card is the better deal.

As others have stated, the gift card program alone makes it the better choice. Although there are some that give you 2for1 ($40 gift card for $20 in Disco cash), most of them are $25 card for $20 Disco. Still, that’s an additional 25% in rewards over the Chase Freedom.

The part I wanted to add is the shopdiscover.com aspect. There are A LOT of retailers (pretty much all the major ones), that if you shop online using your discover card through this site, you automatically get 5% cash back. Now you’ll have to weigh that against shipping charges and such, but I used it for some appliances this year, and it worked out quite well for me.

Of course, the downside is not everyone takes Discover. So, I use my Chase Freedom Visa wherever Discover is not honored, and whenever I start, or think I start, getting to the rewards cap for the quarter.

HTH

Hello. I saw that you used both Discover more and the Chase Freedom card. I am scared about getting the Chase Freedom card because of everything I’ve heard about it. Examples include

1. People who have reported their cards as lost or stolen and get charges on those cards, I’ve heard that Chase would refuse to give people money back.

2. Chase would cut people’s credit limit without their consent.

3. I’ve also heard that Chase is not very good at what it does. It has non english speakers for customer service, It’s website is not done very well. They change everythig whenever they want.

I haven’t really heart a lot of complaints about the Discover More card though. Do you have any problems with Chase or do you think that they are okay?

Chase’s commercials are very deceiving because they don’t state that you have to spend $3000 before gaining the better reward potential. I have no problem with this because during the first month of our calendar year, we spend $3000 because we use discover on 75% of all purchases we make every month. The partner gift cards that discover offers blows away any rewards that chase offers. Discover also has merchandise that you can use rewards for… Not to mention amazon offers a $1 to $1 redemption rate for discover rewards dollars (i.e. you can buy stuff on Amazon using your discover rewards dollars!). I am surprised that Discover doesn’t counter those deceiving commercials with all of the added perks to using discover over Chase.

You must be confusing the two. It’s Discover who has the $3k annual spending requirement before you get the 1% on non-category purchases (below that amount, non-category purchases earn 1/4%).

https://www.discover.com/credit-cards/member-benefits/?ICMPGN=TNV_MEMBEN_TXT

What about the benefits from Discover card? i.e. insurance on travel etc. Does Chase have that?!

good article!

Thanks

Got the Chase card with 600 credit score 😛

Nevermind, I think figured it out. 5% cash back on $100 = 500 points because the cash back amount is then converted to point equivalent.

How does the fact that Chase Freedom’s rewards system is based on point compares to Discover’s which is $-based? Generally it seems that for Chase Freedom, 100 points = $1, so in a straight cash back scenario, wouldn’t $100 in qualifying purchases with Discover yield $5 cash back, while Chase Freedom yields $0.05. Or am I completely misunderstanding how Chase Freedom 5% rewards translates into points?

Applied for Discover More Card was approved in 2 days with 1500 credit limit. Have 736 Experian. 695 Equifax. Chase in 6 days denied stating not enough accounts with credit and too short of time with history. Had Visa for 2 1/2 years.