Discover It vs. Chase Sapphire Preferred: Which Card Wins?
Choosing the right credit card can feel overwhelming, especially with so many options vying for your attention. Two popular choices often top the list: the Discover it® Credit Card and the Chase Sapphire Preferred® Card. Both offer enticing rewards and benefits, but they cater to different financial goals and spending habits.
This comparison dives deep into the Discover it and Chase Sapphire Preferred, examining their key features, rewards programs, and overall value. We’ll explore which card excels in specific categories, helping you determine which best aligns with your needs.
Whether you’re a student building credit, a frequent traveler, or simply seeking a card with attractive cashback opportunities, this guide will provide the insights you need. Get ready to uncover the strengths and weaknesses of each card and make an informed decision for your wallet.
Specs at a Glance
| Feature | discover it | chase sapphire preferred |
|---|---|---|
| Annual Fee | $0 | $95 |
| Rewards Rate (Gas) | Up to 5% (rotating categories) | 1x |
| Rewards Rate (Dining) | Up to 5% (rotating categories) | 3x |
| Rewards Rate (Travel) | Up to 5% (rotating categories) | 2x |
| Rewards Rate (Other) | 1% | 1x |
| Intro APR | 0% intro APR on purchases and balance transfers for 15 months | N/A |
| Foreign Transaction Fees | None | None |
| Sign-up Bonus | Cashback Match | 60,000 bonus points |
| Redemption Options | Cash back, statement credit, gift cards, etc. | Travel, cash back, gift cards, etc. |
| Card Network | Discover | Visa |
| Travel Benefits | None | Trip cancellation/interruption insurance, baggage delay insurance |
| Purchase Protection | None | Yes |
Feature-by-Feature Breakdown
Annual Fee
- Discover It: $0 annual fee. This makes it a low-risk option for those new to credit or who don’t want to pay a yearly fee. However, it may limit some premium benefits found on cards with annual fees.
- Chase Sapphire Preferred: $95 annual fee. The fee unlocks various perks and benefits, such as travel and purchase protections, but requires spending to maximize value.
- Winner: discover it
Rewards Rate – Everyday Spending
- Discover It: Offers rotating 5% cash back on specific categories each quarter (activated when enrolled), and 1% on all other purchases. Requires active management to maximize rewards.
- Chase Sapphire Preferred: Earns 1x point on all purchases and 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, select streaming services, and online groceries, and 1x point per dollar on all other purchases. Offers consistent rewards across various categories.
- Winner: chase sapphire preferred
Rewards Rate – Bonus Categories
- Discover It: Features rotating 5% cash back categories that change quarterly (up to a certain spending limit per quarter, then 1%). Can be highly rewarding if categories align with spending habits.
- Chase Sapphire Preferred: Bonus categories are consistent and focused on travel and dining, as well as select streaming services and online groceries, offering 5x and 3x points, respectively. Less flexibility but more predictable rewards.
- Winner: Tie
Redemption Options
- Discover It: Cash back redemption is straightforward and can be applied as a statement credit or direct deposit. Rewards can also be used for purchases through Amazon.
- Chase Sapphire Preferred: Points are worth 25% more when redeemed for travel through Chase Ultimate Rewards. Also offers cash back, gift cards, and other redemption options.
- Winner: chase sapphire preferred
Introductory APR
- Discover It: Typically offers an introductory 0% APR on purchases and balance transfers for a limited time. A good option for managing debt or financing purchases.
- Chase Sapphire Preferred: Offers an introductory 0% APR on purchases for a limited time. However, the period may be shorter than discover it.
- Winner: discover it
Travel Benefits
- Discover It: Limited travel benefits. Primarily offers no foreign transaction fees.
- Chase Sapphire Preferred: Offers travel insurance (trip cancellation/interruption, baggage delay), no foreign transaction fees, and access to the Chase Ultimate Rewards portal with transfer partners.
- Winner: chase sapphire preferred
Other Perks
- Discover It: Cashback Match at the end of the first year (Discover matches all cash back earned). Offers free credit score monitoring.
- Chase Sapphire Preferred: Offers purchase protection, extended warranty protection, DoorDash and Instacart credits, and more.
- Winner: chase sapphire preferred
Credit Score Requirements
- Discover It: Generally requires good to excellent credit. Can be accessible to those with a shorter credit history.
- Chase Sapphire Preferred: Requires good to excellent credit. Requires a more established credit profile.
- Winner: discover it
Winner by Category
| Category | Winner |
|---|---|
| Annual Fee | discover it |
| Rewards on Dining | chase sapphire preferred |
| Rewards on Travel | chase sapphire preferred |
| Sign-up Bonus | chase sapphire preferred |
| Rotating Categories Rewards | discover it |
| Travel Benefits | chase sapphire preferred |
| Overall Value | It depends on spending habits |
What They Have in Common
- No Foreign Transaction Fees: Both cards do not charge foreign transaction fees, making them suitable for international travel.
- Fraud Protection: Both cards offer fraud protection, providing peace of mind against unauthorized charges.
- Mobile App: Both cards have mobile apps that allow you to manage your account, track spending, and redeem rewards.
- Online Account Access: Both cards offer online account access, allowing you to view statements, make payments, and manage your account.
- Contactless Payments: Both cards support contactless payments, allowing for quick and convenient transactions at participating merchants.
Discover It Vs Chase Sapphire Preferred Buying Guide
Rewards and Benefits
Both the Discover it and the Chase Sapphire Preferred offer compelling rewards programs, but they cater to different spending habits. The Discover it card often features rotating categories that earn a high percentage of cash back, typically 5% on purchases in those categories (up to a quarterly limit, then 1%). The Chase Sapphire Preferred earns points on travel and dining, and also offers other bonus categories. The value of these points can be increased when redeemed through Chase’s travel portal or transferred to travel partners. Consider your spending patterns and which reward structure best suits your needs.
Annual Fees and Costs
The Discover it card is known for its $0 annual fee, making it an attractive option for those seeking a no-cost card. The Chase Sapphire Preferred has an annual fee, which can be offset by the value of its benefits, like the annual travel credit and the potential for bonus rewards. Evaluate the benefits offered by each card and determine if the annual fee of the Sapphire Preferred aligns with your spending habits and if you can take advantage of the perks. Consider other fees like late payment fees or foreign transaction fees.
Credit Score Requirements
The Discover it card generally requires a good to excellent credit score for approval. This makes it more accessible to a broader range of applicants. The Chase Sapphire Preferred typically requires good to excellent credit. Having a higher credit score can increase your chances of being approved for the Sapphire Preferred and potentially qualify you for a higher credit limit. Check your credit score before applying for either card to understand your approval odds.
Introductory Offers and Bonuses
Both cards often provide introductory offers and bonuses to attract new cardholders. The Discover it card typically offers a cash back match at the end of the first year. The Chase Sapphire Preferred frequently offers a signup bonus after meeting a spending requirement within a specified timeframe. These bonuses can significantly boost the value of the card in the first year. Carefully review the terms and conditions associated with each card’s introductory offer to determine which best suits your financial goals.
Travel Perks and Insurance
The Chase Sapphire Preferred excels in travel perks and insurance. It offers travel insurance, including trip cancellation/interruption insurance and baggage delay insurance. It also provides purchase protection and extended warranty coverage. The Discover it card, while not specifically designed for travel, offers benefits like fraud protection and purchase protection. Compare the travel benefits offered by each card to determine which aligns with your travel needs and lifestyle. Consider how often you travel and what kind of protection is needed.
Redemption Options and Value
Both cards provide various redemption options for the rewards earned, but the value can vary. Discover it cash back can be redeemed for statement credits or direct deposits. Chase Sapphire Preferred points can be redeemed for cash back, statement credits, travel through the Chase portal, or transferred to airline and hotel partners. Determine the redemption options that best align with your goals and how you value the points or cash back. Consider which redemption method provides the greatest value for your rewards.
Who Should Buy What?
Buy discover it If…
- You want a card with no annual fee.
- You want to maximize rewards in rotating categories.
- You want a card with a Cashback Match at the end of the first year.
- You want to build or rebuild your credit.
Buy chase sapphire preferred If…
- You want to earn valuable rewards on travel and dining.
- You are willing to pay an annual fee for premium benefits.
- You want a card with valuable travel and purchase protections.
- You want a card with a large sign-up bonus.
Frequently Asked Questions
What are the main differences between Discover it and Chase Sapphire Preferred?
The Discover it card typically offers rotating cash-back categories and a $0 annual fee, making it suitable for earning rewards on specific spending. The Chase Sapphire Preferred offers points on travel and dining, a higher annual fee, and a range of travel benefits like trip cancellation/interruption insurance and points transfer to partners.
Which card is better for travel rewards?
The Chase Sapphire Preferred is generally better for travel rewards. It offers bonus points on travel and dining, a travel credit, and the ability to transfer points to airline and hotel partners. While Discover it does not focus on travel rewards, it’s a good choice if you are looking for cash back.
What is the annual fee for each card?
The Discover it card has a $0 annual fee. The Chase Sapphire Preferred has an annual fee, which is offset by benefits like the annual travel credit. Always check the card’s terms and conditions for the most up-to-date information on annual fees.
How do the rewards programs work?
Discover it offers rotating cash-back categories, such as gas stations, restaurants, or groceries, that earn 5% cash back on spending (up to a limit). Chase Sapphire Preferred earns points on travel and dining, as well as other categories. These points can then be redeemed for statement credits, travel, or transferred to partners.
What credit score is required for approval?
Both cards require good to excellent credit, but Discover it is often more accessible for those with a good credit score. The Chase Sapphire Preferred typically requires a higher credit score. It’s a good idea to check your credit score before applying for either card.
Are there any introductory bonuses?
Yes, both cards often offer introductory bonuses. The Discover it card typically offers a cash back match at the end of the first year. The Chase Sapphire Preferred usually offers a signup bonus after meeting a spending requirement. Review the terms for details.
How do I redeem my rewards?
Discover it cash back can be redeemed for statement credits or direct deposits. Chase Sapphire Preferred points can be redeemed for cash back, statement credits, travel through Chase, or transferred to airline and hotel partners. The redemption method that is best depends on your spending.
Final Verdict
The Discover it card is an excellent choice for those seeking a no-annual-fee card with rotating cash-back categories, making it ideal for maximizing rewards on specific spending. The Chase Sapphire Preferred is the better choice for travelers and those who value premium travel benefits, such as travel insurance and the ability to transfer points to various travel partners.
Winner: Chase Sapphire Preferred