There once was a time when cash back credit cards were offering heavy bonuses in addition to the already lucrative 5% cash back on all purchases.  Now-a-days, most cash back credit cards offer a standard cash back amount of just 1% but if you look hard enough, there are still a few cards out there that offer excellent cash back opportunities.  The two more widely and most popular versions of cash back credit cards are the Chase Freedom MasterCard and the Discover More Card.  Both offer a linty of perks besides the cash back each month so let’s compare each card and see just which card delivers the knockout.

Chase Freedom MasterCard

The Chase Freedom MasterCard offers 5% cash back on rotating purchases made throughout the year and 1% standard cash back on all other purchases.  This means that some months (usually in blocks of three), your gas purchases are eligible for 5% cash back, while other months, you’ll receive just 1% cash back.  Chase will kindly let you know ahead of time which categories offer 5% cash back and when, so plan accordingly.  In addition to the high cash back offer, the Chase Freedom Card offers a 0% APR on balance transfers for the first 12 months and a 0% APR on purchases for the first six months (as low as 12.99% variable, thereafter).  There’s no annual fee to hold the Chase Freedom MasterCard and if you buy merchandise through their Ultimate Rewards website, you might find a cash back rebate of up to 20%. To recap:

  • 5% cash back on rotating categories, 1% on all other purchases
  • 0% APR on Balance transfer for the first 12 months, on Purchases for the first six months
  • As low as 12.99% variable APR
  • No annual fee
  • Up to 20% cash back shopping through Chase’s website

Discover More Card

Similar to the Chase Freedom MasterCard, The Discover More Card also offers 5% cash back on rotating categories, again in blocks of three months.  Slightly different however is the cash back rate on all other purchases.  The first $3,000 of regular annual purchases will only receive a 0.25% cash back rate and only after $3,000 spent will you receive 1% cash back.  The Discover More Card has an intro offer of 0% APR on balance transfers for the first 12 months and a 0% APR on purchases for the first six months (11.99% – 19.99% thereafter).  The Discover More Card carries no annual fee identical to the Chase Freedom MasterCard, there is an opportunity to earn up to 20% cash back on select purchases through Discover’s website.  To recap:

  • 5% cash back on rotating categories, 0.25% cash back for the first $3,000 in other purchases, 1% cash back thereafter
  • 0% APR on Balance transfer for the first 12 months, on Purchases for the first six months
  • 11.99% – 19.99% APR
  • No annual fee
  • Up to 20% cash back shopping through Discover’s website

As you can see both cards are fairly similar in their programs so how do you determine the right one for you?  It could depend on the following three factors:

  1. Do you plan to carry a balance? Discover More Card offers the better APR compared to Chase, albeit slightly
  2. Are the cash back incentives more important? Chase Freedom MasterCard is better since there are fewer restrictions on the 1% cash back on all other purchases. Discover seems to be somewhat tight with their cash back.
  3. Are you interested in simplified billing statements, card information and payment plans? Chase offers the “Blueprint” program giving you several more options as compared to Discover,  including customized repayment plans and payment history tracking.

The overall winner in my opinion is the Chase Freedom MasterCard because their program is more conducive to the customer seeking a practical cash back program with few restrictions and an easy way of tracking all purchases.  The only advantage the Discover More Card has is the APR,  so if you don’t carry a balance you’re not taking advantage.  If you really want to take advantage, you could sign up for both cards and utilize the 5% cash back on rotating purchases throughout the year.  In the end, the choice is yours.

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