Chase Freedom Unlimited^® vs. Discover it^® Cash Back 2024: Which Is the Best No Annual Fee Card?

Chase Freedom Unlimited vs. Discover it Cash Back

	Chase Freedom Unlimited®	Discover it® Cash Back
Card type	Cash back	Cash back
FinanceBuzz star ratings	4.7 FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.	4.7 FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
FinanceBuzz value calculation1	Year one earnings: $953 Year two earnings: $653	Year one earnings: $1,070 Year two earnings: $535
Annual fee	$0	$0
Welcome offer	Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year)	Discover will match all the cash back you’ve earned at the end of your first year.
Earning rate	6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 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	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.
Intro APR	0% intro APR for 15 months on purchases (then 20.49% - 29.24% Variable) 0% intro APR for 15 months on balance transfers (then 20.49% - 29.24% Variable)	0% intro APR for 15 months on purchases (then 18.24% - 28.24% Variable) 0% intro APR for 15 months on balance transfers (then 18.24% - 28.24% Variable)
Foreign transaction fee	3% of each transaction in U.S. dollars	0%
Credit needed	Excellent, Good	Excellent, Good
	Read full review	Read full review

When you should choose the Chase Freedom Unlimited

You should pick the Chase Freedom Unlimited if:

• You already have a relationship with Chase
• You prefer fixed spending categories over rotating categories
• You spend a lot on travel

Here’s a deeper look into each of these benefits:

Seamless banking with one app

Having a banking account with Chase can make it easier to get pre-approved credit card offers, since they already know how financially responsible you are. Additionally, Chase’s mobile app keeps all of your banking and credit card details organized on one, easy-to-use interface.

I have used the Chase Sapphire Preferred^® Card for several years, and the app makes it simple to search for additional Chase offers. I would select all of the offers at the beginning of the month, forget about them and then be pleasantly surprised at the end of the month when I received $2 to $10 worth of cash back from selected offers.

Cash back is earned in the form of Chase Ultimate Rewards points. You can also combine Chase points with other eligible Chase cards, including the Chase Sapphire Preferred^® Card and Chase Sapphire Reserve^®. Your Chase Ultimate Rewards will go the furthest when redeemed towards travel booked through Chase Travel, but you can also use your points for gift cards, Amazon purchases, credit statements, and more.

Easy to track cashback

Unlike cards with rotating categories, the Chase Freedom Unlimited offers a straightforward rewards structure. The card offers 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 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.

I have used the Discover it Cash Back card alongside my Chase Sapphire Preferred, and even though I meant to use the Discover card for higher earning categories, I would always forget. At the end of the year, I would end up earning more cashback rewards through my Chase card.

More travel perks

If you love traveling, the Chase Freedom Unlimited offers more cashback opportunities than the Discover it Cash Back. You can earn 5% cashback on travel purchased through Chase Travel℠. The Discover it Cash Back card will earn 1% cashback.

Additionally, booking your travel with Chase Freedom Unlimited comes with purchase protections. You can be reimbursed up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares, if your trip is canceled or cut short by sickness, severe weather, and other covered situations. You can also pay for your rental car with your card and have coverage for theft and collision damage for most cars in the U.S. and abroad.

The only downside is that you should not use your Chase Freedom Unlimited abroad. Using your card while traveling internationally will come with a 3% of each transaction in U.S. dollars fee. There are many cards that don’t have foreign transaction fees you can use on vacation instead.

Read our Chase Freedom Unlimited review.

When you should choose the Discover it Cash Back

I like the Discover it Cash Back because it has a $0 annual fee and 0% foreign transaction fees.

It is a good choice for you if you:

• Want to earn more cash back for everyday spending
• Already have a relationship with Discover
• Want a card with no foreign transaction fees

Rotating cashback categories

Discover has rotating higher-earning categories that it swaps out each quarter.

Keep in mind that you must activate the rotating bonus categories each quarter in order to receive the elevated cashback rate. You can earn the elevated cashback rate on up to $1,500 per quarter that you activate.

To make sure you optimize your spending, you can purchase gift cards within the category. For example, I typically spend $250 per month on gas. If the higher-earning category for a quarter was gas, I would not be able to hit the $1,500 threshold for gas and get the maximum cashback reward. I could either:

• Spend $750 on gas and earn $37.50 back, or
• Buy $1,500 in gas gift cards, earn $75 back, and use the gift cards for six months of gas expenses

Established Discover relationship

Having a card or account with Discover can lead to potential benefits such as better offers or higher approval odds due to your established trust and credit history with them. Additionally, it makes it easier to keep track of earned points and your finances if it is all connected.

Zero foreign transaction fees

Many cards charge a standard 1% to 3% foreign transaction fee for cardholders that make purchases internationally. While that might seem like a small amount, it can be a pesky fee that adds up quickly if you travel often, especially cardholders that live on the border states and spend frequently in Mexico or Canada.

Read our Discover it Cash Back review.

Important differences to consider

Consider these differences to help compare credit cards and find the best option for you.

Earning potential

The Chase Freedom Unlimited provides 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 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.

The Discover it Cash Back allows you to 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. Enrollment is required for the higher earning rates.

The main difference between these two rewards rates is that the Freedom Unlimited has fixed spending categories, while the Discover it Cash Back has rotating higher-earning cashback categories. Depending on the types of purchases you typically make, you could easily make a case for either card offering better earning potential.

Past Discover cashback categories have included:

• Walmart and grocery stores (July-September 2024)
• Gas stations and electric vehicle charging stations, home improvement stores, and public transit (April-June 2024)
• Restaurants and drug stores (January-March 2024)
• Amazon.com and Target (October-December 2023)
• Amazon.com and digital wallets (October-December 2022)

Winner: It’s a tie because the better rewards structure depends on your spending habits and preferences.

Redemption options

The redemption methods are generally the same between the two cards, but the Freedom Unlimited offers more choices. It’s especially noteworthy that you can use your Chase points for travel, which isn’t an option on the Discover it Cash Back.

The Chase Freedom Unlimited provides these redemption options:

• Statement credits
• Direct deposits into eligible U.S. checking and savings accounts
• Travel through Chase Travel
• Gift cards
• Shop with points at Amazon
• Combine points with other eligible Chase rewards credit cards
• Chase Pay Yourself Back
• Chase Dining
• Apple purchases

The Discover it Cash Back provides these redemption options:

• Statement credits
• Deposits to eligible checking or savings accounts
• Gift cards
• Charitable donations
• Pay with Cashback Bonus at select merchants

Winner: Chase Freedom Unlimited because it has more options.

Foreign transaction fees

A foreign transaction fee is a fee charged by a credit card issuer, such as Capital One, American Express, and Bank of America, when you make a purchase with a foreign merchant. These fees are commonly charged if you use your credit card to make purchases when you travel abroad.

The Chase Freedom Unlimited charges foreign transaction fees to the amount of 3% of each transaction in U.S. dollars.

The Discover it Cash Back charges 0% foreign transaction fees.

Winner: Discover it Cash Back because it doesn’t charge foreign transaction fees.

Card networks

Credit cards are issued by a certain card issuer, and credit card payments are processed by card networks. In some cases, the card issuer and network are the same.

The Chase Freedom Unlimited cash back card is issued by Chase and runs on the Visa network. Visa cards are accepted in over 200 countries and territories worldwide.

The Discover it Cash Back is issued by Discover and runs on the Discover network. Discover cards are accepted by 99% of U.S. merchants that accept credit cards. But the international acceptance levels aren’t quite at the same level as Visa or MasterCard.

Keep in mind that even though the Freedom Unlimited might have better international acceptance than the Discover it Cash Back, you would still have to pay foreign transaction fees with your Unlimited card.

Winner: Chase Freedom Unlimited because the Visa network has excellent global acceptance.

Protections and benefits

The Chase Freedom Unlimited provides:

• Purchase protection
• Extended warranty protection
• Trip cancellation/interruption insurance
• Auto rental collision damage waiver
• Zero liability protection
• 2/47 fraud monitoring
• Travel and emergency assistance services

The Discover it Cash Back provides:

• Online privacy protection
• Free Social Security number alerts
• $0 fraud liability guarantee
• FICO credit score for free
• Recurring scans of select people-search sites

The Chase Freedom Unlimited benefits are generally much more useful than what you get with the Discover it Cash Back. That’s mainly because the Discover it Cash Back doesn’t provide anything you can’t already get from other cards or services for free.

Winner: Chase Freedom Unlimited because it provides more card protections and benefits.

FAQs

Bottom line

You really can’t go wrong with either card, especially since both are annual fee-free cards. Even if you realize at the end of the year that it isn’t the right card for your spending habits, you didn’t waste money paying to use the card.

Both cards excel at the following:

• Welcome offers: Both the Chase Freedom Unlimited and Discover it Cash Back provide generous welcome bonuses that new cardholders can earn after account opening.
• Cashback rewards: You can earn cash back by making eligible purchases with either card.
• Intro APR offers: Both cards provide introductory APR offers on purchases and balance transfers. Note that balance transfers typically come with balance transfer fees.

If the Chase Freedom Unlimited or Discover it Cash Back is right for you depends on your spending habits and which company you already have a relationship with. If you are just starting out with using reward credit cards, it can be easier to use a card attached to your primary banking.

Up To 5% Cash Back

Discover it^® Cash Back

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Discover it^® Cash Back

Apply Now

Rates and fees

Current Offer

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

Annual Fee

$0

Rewards Rate

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.

Benefits and Drawbacks

Benefits

• $0 annual fee
• Intro APR on purchases and balance transfers
• Dark web monitoring and other privacy protection services

Drawbacks

• Requires you to activate the highest-earning category each quarter
• Not accepted as widely overseas as Visa or Mastercard

Card Details

• 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.
• Apply and you could get a decision in as little as 60 seconds.
• 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.

Unlimited Cash Back

Chase Freedom Unlimited^®

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Chase Freedom Unlimited^®

Apply Now

Current Offer

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.

Annual Fee

$0

Rewards Rate

6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 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

Benefits and Drawbacks

Benefits

• High base rewards rate of 1.5%
• $0 annual fee
• Valuable welcome bonus for new cardholders
• Intro APR offers for purchases and balance transfers

Drawbacks

• Has a foreign transaction fee of 3% of each transaction in U.S. dollars
• No bonus categories for gas or groceries

Card Details

• 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