Chasing Freedom Unlimited VS.Discover It Cash Back – Forbes Advisor

Comparing the welcome bonuses for these cards is tricky because they are a little different than typical bonuses. Both can increase your earnings in the first year of owning the card rather than offering a one-time bonus.

Chase Freedom Unlimited® offers an additional 1.5% cash back on purchases up to $20,000 in the first year, worth up to $300 in cash back. This means you can earn up to $300 from this bonus.

Discover will automatically match any cash back earned by card members at the end of their first year. There is no minimum spend or maximum reward. After activation, you will also receive 5% cash back on daily purchases at different locations each quarter, with a maximum spend of $1,500 per quarter. Plus, all other purchases automatically earn unlimited 1% cash back. If you maximize the 5% category each quarter by spending $1,500, you'll receive a $300 match. Your earnings on daily expenses will also double during your first year of ownership, from 1% to 2%.

While there is theoretically no limit to the bonuses offered by Discover, maximizing the 5% bonus category is difficult.

Based on data from various government agencies, Forbes Advisor estimates that the average household spends as much as $39,337 a year on credit cards. If you use the Discover card for half the bonus category space and spend $750 per season, that means you'll get a $150 match on the bonus category and $363 on other spending, for a total of $513, beating Chase's Quotation.

There are several ways to increase Chase's bonus value by 50% or more, but Discover still offers bigger bonuses, making the competition tougher.

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