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There are plenty of cash-back credit cards on the market, with some earning a flat rewards rate on all purchases and others that offer a bonus in popular categories. A handful of cards, including the Discover it® Cash Back and Chase Freedom Flex℠, take a slightly different approach, with rotating bonus categories that change every three months.

The Discover it® Cash Back earns 5% cash back on up to $1,500 in combined spending each quarter in rotating categories once you activate (from July 1 to September 30, 2022, you can earn 5% cash back at restaurants and PayPal on up to $1,500 in purchases after enrollment, then 1%). Similarly, the Chase Freedom Flex℠ also earns 5% back (5x Chase Ultimate Rewards® points) in quarterly rotating categories, on up to $1,500 in spending after activation (then 1x).

At first glance, these cards might seem almost identical, but there are significant differences that could be a big factor in deciding which is best for you. Of course, there's no reason why you can't have both, and doing so is actually a good strategy for maximizing rewards on a wider range of everyday expenses (although very occasionally, the cards' quarterly bonus categories overlap). Plus, neither card charges an annual fee, so yearly cost isn't an issue.

Here's what to know to help decide whether the Discover it® Cash Back or Chase Freedom Flex℠ is a better fit for your wallet.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Chase Freedom Flex and Discover it Cash Back welcome bonuses

Discover it® Cash Back

4.42/5

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Editor's Rating

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Annual Fee

$0

Regular APR

14.24% - 25.24% Variable

Recommended Credit Score

Good to Excellent

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Pros & Cons Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

Pros

• From July 1 to September 30, 2022, you can earn 5% cash back at restaurants and PayPal on up to $1,500 in purchases after enrollment, then 1%
• Discover will match your cash back earned at the end of your first account year
• No annual fee

Cons

• Cap on how much bonus cash back you can earn each quarter
• If the quarterly categories aren't convenient for you, you can earn more cash back with a different card

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More Information

• Intro Offer: Unlimited Cashback Match - 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 each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
• New! Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
• Every $1 you earn in cash back is $1 you can redeem.
• Get a 0% intro APR for 15 months on purchases. Then 14.24% to 25.24% Standard Variable Purchase APR applies, based on credit worthiness.
• No annual fee.
• Click "Apply Now" to see terms and conditions.

Chase Freedom Flex℠

4.65/5

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Editor's Rating

Apply Now

Annual Fee

$0

Regular APR

17.24% - 25.99% Variable

Recommended Credit Score

Good to Excellent

Pros & Cons Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

Pros

• No annual fee
• Generous bonus cash-back categories
• Great welcome bonus

Cons

• Booking through Ultimate Rewards portal can restrict outside earning potential
• Varying percentages and rotating calendar categories require extra attention
• 3% foreign transaction fees

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More Information

• Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
• 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
• 5% cash back on travel purchased through Chase Ultimate Rewards®, 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 unlimited 1% 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!
• 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24% - 25.99%.
• No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Flex℠ card
• Keep tabs on your credit health - Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.

If you're looking to earn an immediate return without meeting a huge minimum spending requirement, the Chase Freedom Flex℠ is a better choice, with a welcome offer of $200 after spending $500 on purchases in the first three months from account opening. Though it's marketed as a cash-back card, the Chase Freedom Flex℠ actually earns rewards in the form of Chase Ultimate Rewards points, so $200 cash back is actually 20,000 points (more on that in a bit).

The Discover it® Cash Back doesn't come with a standard welcome bonus. Instead, through its Cashback Match program, Discover will match all the cash back you've earned at the end of the first year. While you'll forego an upfront bonus, the Cashback Match program could actually be a lot more lucrative depending on how much use the card.

For example, if, in the first year, you earned $500 in cash back from your regular spending on the Discover it® Cash Back, Discover would match that amount for a total of $1,000 in cash back the first year.

Earning rates

On the surface, both cards appear similar. The Discover it® Cash Back offers 5% back on up to $1,500 in combined rotating quarterly category spending (then 1% back) after you activate the bonus (from July 1 to September 30, 2022, you can earn 5% cash back at restaurants and PayPal on up to $1,500 in purchases after enrollment, then 1%). All other purchases earn a straight 1% cash back.

Discover makes it easy to plan a credit card rewards strategy because, late each year, it reveals its cash back categories for the entire following year. 

Discover it Cash Back categories for 2022

• Q1 (January - March): Grocery stores and fitness club/gym memberships
• Q2 (April - June): Gas stations and Target
• Q3 (July - September): Restaurants and PayPal
• Q4 (October - December): Amazon.com and digital wallets

The Chase Freedom Flex℠ (and legacy Chase Freedom® , which isn't available to new applicants anymore) 5x calendar is a little trickier to predict, because Chase only releases new bonus categories a couple of weeks before the start of a new quarter. For example, for Q3 2022 (July through September), the Chase Freedom Flex℠ bonus categories are gas stations, car rental agencies, movie theaters, and select live entertainment.

After activating the bonus, Chase Freedom Flex℠ cardholders can earn 5% back (5x points) on up to $1,500 in combined spending each quarter (then 1x). However, there are other earning categories offered by the Chase Freedom Flex℠ that stay the same throughout the year — and none of these are capped:

• 5x points (5% cash back) on travel booked through the Chase Ultimate Rewards Travel Portal
• 5x points (5% cash back) on Lyft purchases through March 2025
• 3x points (3% cash back) on dining (including takeout and eligible delivery services)
• 3x points (3% cash back) at drugstores

You'll earn 1% cash back (1x points) on everything else.

If you spend a lot at restaurants and drugstores, earning 3x points on those purchases with the Chase Freedom Flex℠ can add up very quickly — and you'll do even better if you book your flights, hotels, and rental cars through the Chase portal to earn 5x points. For this reason, the Chase Freedom Flex℠ has an advantage over the Discover it® Cash Back, which only earns 1% on everything (outside of its quarterly categories, up to limits).

Redemption options

The Discover it® Cash Back is purely a cash-back card, and your redemption options are straightforward. Cardholders can redeem rewards, in most cases for any amount, toward:

• An account statement credit (to lower your balance)
• Direct deposit to your bank account
• Check out at Amazon or PayPal
• Donations to select charities 
• Gift cards or eCertificates from partner retailers (starting at $5)

Things aren't as simple with the Chase Freedom Flex℠, but that's a good thing if you want more ways to use points. As mentioned, the card earns rewards in the form of Chase Ultimate Rewards points, which you can redeem for cash back at a rate of 1 cent apiece. But you've also got these redemption options:

• Gift cards (1 cent per point)
• Airfare, hotels, car rentals, and more through the Chase Ultimate Rewards travel portal (1 cent per point)
• Apple purchases (1 cent per point)
• Pay Yourself Back (more than 1 cent per point, categories and value vary)
• Amazon purchases (0.8 cents per point)

The Chase Freedom Flex℠ becomes even more valuable if you have certain other Chase cards in your arsenal, because you can combine points between your accounts. For example, if you have the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you'll get the ability to transfer points to Chase's airline and hotel partners. You'll also have more ways to redeem points through Chase's Pay Yourself Back program, and when you book travel through the Chase Travel Portal, your points have a higher value.

In fact, pairing a Freedom card with one of the Chase travel cards mentioned above is one of the best ways to increase the value of your Chase Ultimate Rewards points and maximize your rewards. 

Chase Ultimate Rewards points are worth, on average, 1.8 cents apiece based on Insider's points and miles valuations— primarily because you can get outsized value when you transfer points to airline and hotel partners for award travel.

Benefits and features

Between the Discover it® Cash Back and Chase Freedom Flex℠, one card is a clear winner when it comes to extra perks. 

The Chase Freedom Flex℠ comes with a broad range of travel and shopping protections — including select World Elite Mastercard benefits — that you don't often see on a no-annual-fee card.

Chase Freedom Flex benefits

• Cell phone protection: When you pay your wireless bill with the card, you'll get up to $800 per claim and $1,000 per year, with a $50 deductible per claim and a maximum of two claims per 12-month period
• Purchase protection: Coverage for damage or theft for 120 days, up to $500 per claim and $50,000 per account, when you pay for an eligible new purchase with your card
• Car rental insurance: Decline the rental company's collision insurance and charge the entire rental cost to your card, and you're covered for theft and collision damage on most cars (coverage is secondary in the US, primary otherwise)
• Extended warranty: Eligible items you purchase with your card, with a manufacturer's warranty of three years or less, can receive an additional year of extended warranty coverage
• Trip interruption/cancellation insurance: Pay with the card and you're covered for up to $1,500 per person and $6,000 per trip if your trip is canceled or shortened because of illness, severe weather, or other eligible events
• Travel and emergency assistance services: Access an assistance hotline that can help arrange things like legal and medical referrals, prescriptions, translation services, and more (any third-party costs are your responsibility)
• Other World Elite Mastercard benefits: These include Lyft, Fandango, and Hello Fresh credits when you make eligible purchases, and a complimentary one-year ShopRunner membership

In comparison, the Discover it® Cash Back doesn't come with any flashy benefits. Cardholders receive a few perks that come standard with many cards, including access to a free FICO score and the ability to freeze their account in the event they misplace their card or suspect fraudulent use.

One advantage the Discover it® Cash Back has over the Chase Freedom Flex℠ is fees. If you travel abroad, the Discover it® Cash Back is a better choice, because it doesn't add foreign transaction fees (the Chase Freedom Flex℠ adds a 3% fee to international purchases). The Discover it® Cash Back also waives the late payment fee for your first late payment (but afterward charges up to $41).

Both cards come with an introductory 0% APR offer. New Discover it® Cash Back cardholders receive a 0% intro APR for 15 months on purchases and balance transfers, followed by a 14.24% - 25.24% Variable APR.

The Chase Freedom Flex℠ also offers a 0% intro APR on purchases and balance transfers for the first 15 months. After that, a 17.24% - 25.99% Variable APR applies.

Discover it Cash Back and Chase Freedom Flex comparison

Bottom line

If you have to choose just one card, the Chase Freedom Flex℠ is a better pick for most people. It's got a solid welcome offer and more bonus categories and opportunities to redeem rewards — plus the option to combine points with other Chase Ultimate Rewards cards. And it offers excellent benefits for a no-annual-fee card which can save you a lot of money.

However, if you'll spend a lot on your card, the Cashback Match offered by the Discover it® Cash Back has the potential to generate more rewards in the first year. The card is also a better fit if you'll travel internationally because it doesn't add foreign transaction fees.