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Chase Freedom Unlimited vs. Discover it® Cash Back: Top-Notch Cash Back Rates Give Chase the Win

Review Updated
Lyle Daly
By: Lyle Daly
Lyle Daly
Lyle Daly
Writer

Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.

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Our Credit Cards Expert

Nathan Alderman
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Nathan Alderman
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Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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True to its name, the Chase Freedom Unlimited® started out by offering an unlimited 1.5% on purchases. It still does, but it also went through a serious upgrade with the addition of bonus categories. Chase added multiple categories where the card earns 3% to 5% back.

The Discover it® Cash Back (see rates and fees) is a different story. While it's also a popular cash back card, it has remained largely unchanged. The highlights have always been its rotating bonus categories and its welcome offer. It hasn't quite kept up with the Chase Freedom Unlimited®, but it could still be the right pick for some cardholders.

Chase Freedom Unlimited vs. Discover it® Cash Back overview

As of Jun. 18, 2024
Image for
Image for
Chase Freedom Unlimited® Discover it® Cash Back
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Apply Now for Chase Freedom Unlimited®

On Chase's Secure Website.

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Credit Rating Requirement: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good/Excellent (670-850)

Good/Excellent (670-850)

Credit Rating Requirement: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good/Excellent (670-850)

Good/Excellent (670-850)

Welcome Offer: Circle with letter I in it. Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

Up to $300 cash back

Welcome Offer: Circle with letter I in it. N/A

Discover will match all the cash back you've earned at the end of your first year.

Rewards Program: Circle with letter I in it. Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases

1.5% - 5% cash back

Rewards Program: Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.

1% - 5% Cashback

Intro APR: Circle with letter I in it. 0% Intro APR on Purchases and Balance Transfers for 15 months

Purchases: 0% Intro APR on Purchases, 15 months

Balance Transfers: 0% Intro APR on Balance Transfers, 15 months

Intro APR:

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular APR:

20.49% - 29.24% Variable

Regular APR:

18.24% - 28.24% Variable APR

Annual Fee: Circle with letter I in it. N/A

$0

Annual Fee:

$0

Highlights:

  • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
  • Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
  • After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
  • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
  • No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
  • Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
  • Member FDIC

Highlights:

  • INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
  • Redeem your rewards for cash at any time.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It's free, activate with the mobile app.
  • Get a 0% intro APR for 15 months on purchases. Then 18.24% to 28.24% Standard Variable Purchase APR applies, based on credit worthiness.
  • No annual fee.
  • Terms and conditions apply.
Apply Now for Chase Freedom Unlimited®

On Chase's Secure Website.

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Show More Arrow graphic to expand and collapse content Show Less Arrow graphic to expand and collapse content

Why the Chase Freedom Unlimited might be the ideal choice

If you don't want any surprises from your credit card, you should probably go with the Chase Freedom Unlimited®. It has fixed bonus categories, not rotating bonus categories like the Discover it® Cash Back. You'll always know where you're getting bonus cash back. You never have to worry about getting stuck with bonus categories you won't use.

Most people also spend plenty outside of their credit card's bonus categories. This Chase credit card earns more on those non-bonus purchases at 1.5%, compared to 1% from Discover. I've used it as an everyday credit card for that reason.

Apply for Chase Freedom Unlimited®

When the Discover it® Cash Back could be the better option

You may want to go with the Discover it® Cash Back if your spending changes throughout the year. The rotating bonus categories could come in handy in that situation. And if you plan to spend a large amount during the first year you have the card, its unlimited cashback match could be especially valuable.

If you plan to use your card outside the United States, the Discover it® Cash Back is the clear choice. Like all Discover credit cards, it doesn't charge a fee for international transactions. The Chase Freedom Unlimited® charges a foreign transaction fee of 3% of each transaction in U.S. dollars. Just keep in mind that acceptance of Discover cards is hit or miss in foreign countries.

Apply for Discover it® Cash Back

Chase Freedom Unlimited vs. Discover it® Cash Back comparison

Now, let's take a closer look at how these cards compare in a few important areas.

Chase Freedom Unlimited vs. Discover it® Cash Back: Annual fee

These are both no annual fee cards. You can carry either of them (or both, if you want) without worrying about yearly bills.

Winner: Tie

Chase Freedom Unlimited vs. Discover it® Cash Back: Welcome offer

The welcome offer for the Chase Freedom Unlimited® is as follows: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

With the Discover it® Cash Back, Discover will match all the cash back you've earned at the end of your first year. This is a dollar-for-dollar match of all the cash back you earn over the first year using the card. If you earn $300 in cash back, Discover will add another $300 after the end of the cardholder's first year. Because this is an unlimited match, it can be much more valuable than Chase's welcome offer, especially for big spenders. The welcome bonus is only available to new cardholders.

Winner: Discover it® Cash Back

Chase Freedom Unlimited vs. Discover it® Cash Back: Intro APR

The Chase Freedom Unlimited® has a 0% intro APR for 15 months on purchases and balance transfers. After the intro period ends, a 20.49% - 29.24% Variable APR applies going forward. It has an intro balance transfer fee of 3% ($5 minimum) for transfers made within 60 days of account opening and Either $5 or 5% of the amount of each transfer, whichever is greater. after that.

The Discover it® Cash Back matches those intro rates. It also has a 0% intro APR for 15 months on purchases and balance transfers. After the intro period ends, a 18.24% - 28.24% Variable APR applies. It charges a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*.

Winner: Tie

Chase Freedom Unlimited vs. Discover it® Cash Back: Rewards

One of the best things about the Chase Freedom Unlimited® is that it earns an unlimited 1.5% on purchases, and it also offers bonus categories. Most rewards cards with bonus categories earn 1% on non-bonus purchases. This Chase card earns:

  • 5% on travel purchased through Chase Travel
  • 5% on Lyft rides through March 31, 2025
  • 3% on dining at restaurants, including takeout and eligible delivery services
  • 3% at drugstores
  • 1.5% on other purchases

The Discover it® Cash Back is known for having rotating bonus categories. These change every quarter, and you need to activate them to earn the bonus rate. It earns 5% in these bonus categories when you activate them, up to the quarterly spending cap of $1,500. It earns 1% on other purchases.

The Chase Freedom Unlimited® has a big edge here. Fixed bonus categories are much easier to manage, especially because you don't need to activate them. There may be quarters where Discover's rotating categories don't work well for you. Chase also doesn't put a spending cap on its bonus categories. And the Chase Freedom Unlimited® offers a higher rate for non-bonus spending: 1.5% vs. 1%.

Winner: Chase Freedom Unlimited®

Final take

These credit cards are similar, but when it comes to earning cash back, the Chase Freedom Unlimited® will be better for most cardholders. It has more bonus categories, without any spending caps, and a higher non-bonus rate. While I have both of these cards, I find myself using my Chase card a lot more.

The Discover it® Cash Back has a couple of potential advantages. The welcome offer can be worth much more, depending on how much you spend. Rotating bonus categories can also be valuable, at least in the quarters when they match up with your spending habits. But it'd be nice to see Discover make some upgrades, such as fixed bonus categories. That could give it more stable value and help it keep up with the top credit cards.

Ratings Methodology

Chase Freedom Unlimited®

Apply Now for Chase Freedom Unlimited®

On Chase's Secure Website.

Chase Freedom Unlimited®
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Apply Now for Chase Freedom Unlimited®

On Chase's Secure Website.

Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Good/Excellent (670-850)

Intro APR Circle with letter I in it. 0% Intro APR on Purchases and Balance Transfers for 15 months

Purchases: 0% Intro APR on Purchases, 15 months

Balance Transfers: 0% Intro APR on Balance Transfers, 15 months

Regular APR

20.49% - 29.24% Variable

Rewards Circle with letter I in it. Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases

1.5% - 5% cash back

Annual Fee Circle with letter I in it. N/A

$0

Welcome Offer Circle with letter I in it. Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

Up to $300 cash back

  • A cash back card that has it all with unlimited 1.5% - 5% cash back rates and an excellent 0% intro APR offer. There's also an innovative sign-up bonus worth up to $300 cash back. With the bonus, you’ll earn 4.5% cash back on dining and drugstores, 6.5% on travel booked through Chase Travel, and 3% on all other purchases (on up to $20,000 spent in the first year). After the bonus, you’ll still earn the regular cash back rates on every purchase. Read Full Review

    • Innovative sign-up bonus
    • Purchase and travel protections
    • Robust rewards program
    • Great intro APR
    • No annual fee
    • Limited bonus opportunities on everyday spending
    • Foreign transaction fee
    • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
    • Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
    • After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
    • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
    • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
    • No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
    • Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
    • Member FDIC
Award Icon 2024 Award Winner

Discover it® Cash Back

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Discover it® Cash Back
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Good/Excellent (670-850)

Intro APR

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular APR

18.24% - 28.24% Variable APR

Rewards Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.

1% - 5% Cashback

Annual Fee

$0

Welcome Offer Circle with letter I in it. N/A

Discover will match all the cash back you've earned at the end of your first year.

  • We think this card has among the highest cash back potential for cards with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches all the cash back new cardholders have earned at the end of the first year. That cash back can seriously add up when you earn 5% cash back on rotating bonus categories (when you activate them, up to the quarterly maximum) and 1% on other purchases. Read Full Review

    • Rotating bonus categories
    • Sign-up bonus offer
    • Great intro APR offer
    • No annual fee
    • No foreign transaction fee
    • No fixed bonus categories
    • INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
    • Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
    • Redeem your rewards for cash at any time.
    • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It's free, activate with the mobile app.
    • Get a 0% intro APR for 15 months on purchases. Then 18.24% to 28.24% Standard Variable Purchase APR applies, based on credit worthiness.
    • No annual fee.
    • Terms and conditions apply.