Chase Freedom Unlimited®
Chase Freedom Unlimited®
Earn an additional 1.5% cash back on up to $20,000 spent in the first year, after that 5% cash back on travel purchased through Chase Travel, 3% on dining and drugstores and 1.5% on all other purchases.
Welcome Bonus
Up to $300 cash back
Annual Fee
$0
Credit Score
Excellent, Good
Regular APR
20.49% - 29.24% Variable
Discover it® Cash Back
Discover it® Cash Back
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.
Welcome Bonus
Cashback Match™
Annual Fee
$0
Credit Score
Excellent/Good
Regular APR
18.24% - 28.24% Variable APR
The fight between rewards cards with set bonus categories and those with rotating categories is fierce, but the type of card that ultimately offers more value will depend on your spending habits and willingness to carry multiple cards for different types of spending. Both Chase Freedom Unlimited® and Discover it® Cash Back cards are on opposite sides, so it’s important to consider which reward structure is right for you when choosing between them.
Chase Freedom Unlimited vs. Discover it Cash Back Overview
| Account Features | Chase Freedom Unlimited® | Discover it® Cash Back |
|---|---|---|
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Annual Fee
|
$0
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$0
|
|
Welcome Bonus
|
Earn an additional 1.5% cash back on up to $20,000 spent in the first year, worth up to $300 cash back
|
Discover will automatically match all the cash back earned at the end of the first year as a cardmember. There's no minimum spending or maximum rewards
|
|
Earning Rates
|
5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year
|
5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically
|
|
Introductory APR
|
0% introductory APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. An intro transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, applies in the first 60 days of account opening. After that, a fee of either $5 or 5% of the amount of each transfer applies
|
0% introductory APR for 15 months on purchases and eligible balance transfers. Then, a standard rate of 18.24% - 28.24% variable applies. A balance transfer fee of up to 5% of the amount transferred applies
|
|
Regular APR
|
20.49% - 29.24% Variable
|
18.24% - 28.24% Variable APR
|
|
Perks
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Redeem your rewards at a higher value when you also have certain premium Chase cards.
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Online privacy protection and free Social Security number alerts.
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Welcome Bonus
Comparing the welcome bonus of these cards is tricky because they’re a bit different from the typical bonus. Both augment your earnings in the first year you have the card rather than offering a lump sum reward.
The Chase Freedom Unlimited® offers an additional 1.5% cash back on up to $20,000 spent in the first year, worth up to $300 cash back. That means you can earn a maximum of $300 from this bonus.
Discover will automatically match all the cash back earned at the end of the first year as a cardmember. There's no minimum spending or maximum rewards. You’ll also earn 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically. If you max out each quarter’s 5% category by spending $1,500, that will net you a match of $300. It also doubles your earnings on everyday spending from 1% to 2% for the first year that you have the card.
While in theory there’s no limit to the bonus Discover offers, maxing out the 5% bonus categories would be difficult.
Based on data from various government agencies, Forbes Advisor estimates that the average household spends as much as $39,337 on their card in a year. If you use half of the bonus category space for the Discover card, spending $750 each quarter, that means you’ll earn a $150 match on the bonus category and a $363 match on the other spending for a total of $513, beating out Chase’s offer.
There are ways to boost Chase’s reward values by as much as 50% or more, but Discover still offers the larger bonus, making the competition closer.
Earning Rewards
Both cards offer a flat rate of cash back for most purchases, with an elevated rate in specific categories.
With Chase, you’ll earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year.
Discover offers a lower rate of 1% cash back on most purchases, but the earning rate on bonus categories goes up to 5%: 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically. That limits you to $75 in cash back per quarter or $300 per year, at the higher 5% rate.
While Discover will double that cash back for the first year, maximizing categories can be hard, so the Chase Freedom Unlimited® offers the better long-term rewards structure.
Chase Freedom Unlimited®
A good overall spending card that allows you to hold a balance on new purchases with a low introductory APR, pay no annual fee, and still earn at least 1.5% cashback on all purchases
The secret advantage of the Chase Freedom Unlimited is that it earns rewards that can be moved to other Chase credit cards instead of being redeemed for cash back. That means when you pair it with one of Chase’s cards that can transfer points to the bank’s airline and hotel partners, you’re effectively earning rewards that are even more valuable than advertised.
- Generous welcome offer for a no annual fee card
- Unlimited 1.5% minimum earn rate for cash-back rewards
- No minimum redemption amount
- Foreign transaction fee
- Ongoing balance transfer fee is high
- Requires a companion card to transfer points to travel partners
- 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
Benefits
In terms of benefits, neither card offers exciting perks like airport lounge access or automatic hotel status.
The Discover it® Cash Back card comes with relatively standard offerings, including fraud protection tools and free access to your credit score. It does go a bit beyond the norm when it comes to privacy protection, offering Social Security number alerts and online privacy protection.
The Chase Freedom Unlimited® offers a few free trials, including three months of DoorDash’s DashPass if activated by 12/31/2024 and Instacart+ if activated by 7/31/2024. For a limited time, cardholders can earn 5% cash back on Lyft rides through March 31, 2025. It also has some other shopping perks like purchase protections, extended warranty protection, auto rental collision coverage and trip cancellation/interruption insurance.
Chase is the clear winner for those looking for convenience and security in their day to day.
Redemption Options
Both the Discover it® Cash Back and the Chase Freedom Unlimited® are cash-back cards, which means that redeeming is relatively straightforward. You can turn your earnings into cash by applying them toward purchases as a statement balance or getting a direct deposit.
Both cards also offer a few other ways to redeem. Discover, for example, will let you turn your cash back into gift cards, redeem it for a donation to charity or use it at checkout at Amazon.com or when using PayPal.
Chase will also let you redeem for travel, gift cards or when checking out online with Apple, Amazon.com or through PayPal.
Again, this category is essentially a tie, with both offering plenty of ways to use your rewards.
Transfer Partners
Given that they aren’t travel cards, you wouldn’t expect either to have transfer partners, but this is where the Chase Freedom Unlimited® shows its true value.
Though Chase describes the Freedom Unlimited as a cash-back card, it actually earns Chase Ultimate Rewards points which you can redeem for cash back.
However, if you pair the Freedom Unlimited with a premium Chase card, such as the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®, you can boost the value of your points significantly. When used to book through the Chase Travel portal, you’ll get 25% more value if you have a Sapphire Preferred and 50% more value with a Sapphire Reserve.
With these premium cards, you could also transfer the points you earn from the Chase Freedom Unlimited® to one of Chase’s many travel partners, including United Mileage Plus, World of Hyatt and Southwest Rapid Rewards, as well as many international airlines.
Given that Discover has no way to boost the value of rewards and no transfer partners, Chase clearly wins in this category.
Fees and APR
Neither card has an annual fee and the introductory APR offer is essentially the same, so the competition here comes down to the regular APR.
Discover is the winner here, if you qualify. The lowest rate it offers is lower than Chase’s lowest, and its highest rate is lower than Chase’s highest rate as well. However, no applicant is guaranteed the lowest APR, and if you never carry a balance, the card’s APR won’t be a factor.
Discover it® Cash Back
For moderate spenders who are willing to activate the 5% rotating categories and track the quarterly spending cap, this no-annual-fee card can deliver tidy rewards outside of its ongoing 1% earning rate.
The quarterly categories are the highlight of the Discover it® Cash Back. You’ll often find broad options on its rotating list of categories, such as restaurants, drug stores, gas stations and groceries, which makes it easy for almost any household to take advantage of them. Just don’t get tripped up by forgetting to activate the categories at the start of each quarter, because you can’t do it retroactively to earn bonus cash back on your past purchases.
- 5% cash back on quarterly rotating spending categories throughout the year (activation required)
- Discover will automatically match all the cash back you’ve earned at the end of your first year
- No minimum cash-back redemption
- 5% bonus cash-back rate is limited to $1,500 per quarter in spending
- Bonus categories must be activated quarterly
- Low 1% base reward rate on everything else
- 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.
Consider Neither the Chase Freedom Unlimited nor Discover it For
A Simple Rewards Structure
Both cards have slightly complicated rewards structures. The Discover it® Cash Back is clearly more complicated due to its rotating bonus categories. But even the Chase Freedom Unlimited® has multiple categories to keep track of.
If you want a good card with a straightforward rewards structure, consider something like the Citi Double Cash® Card or Fidelity® Rewards Visa Signature® Credit Card*—both of which offer a flat rate on every purchase.
Luxury Travel
If you want a travel card that offers benefits, like airport lounge access or hotel status, these cards aren’t a great fit. They lack travel perks, and while you can use the cash back you earn to pay for travel, the lack of transfer partners, unless you pair the Freedom Unlimited with another Chase card, make them a poor choice for travelers.
For a low-cost travel card, consider the Chase Sapphire Preferred® Card or a co-branded airline or hotel card.
Bottom Line
Ultimately, the Chase Freedom Unlimited® is likely the better choice for most people. The primary draw of the Discover it® Cash Back is its elevated cash-back categories, but the earnings cap on those categories is low.
Between the extra 0.5% on nonbonus purchases and predictable extra earnings on dining and drugstores with Chase, most people will earn more overall with the Freedom Unlimited.
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Frequently Asked Questions (FAQs)
Is the Chase Freedom Unlimited worth it?
Yes, the Chase Freedom Unlimited® is a good cash-back card, offering a strong 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year. It also has some other useful benefits, such as boosting the value of your rewards when paired with a Chase Sapphire card.
What is the credit score needed for Discover it Cash Back?
Discover doesn’t publicly disclose a minimum credit score requirement for its cards and has no hard rules for minimum score requirements. However, if you’re unsure, you can use the company’s pre-qualification tool to check your odds of qualifying for the Discover it® Cash Back.
What is the starting credit limit for Chase Freedom?
Your starting credit limit if you qualify for the Chase Freedom will depend on factors such as your income, credit score and the balance on any other cards you hold. Chase does not publish the minimum credit limit it will offer but notes that credit limits usually range from a few hundred dollars to tens of thousands of dollars.