The Chase Sapphire Preferred® Card and Discover it® Cash Back are good credit card options for those who want to earn rewards on everyday expenses.
The Discover It Cashback is a no-annual-fee credit card that offers 5% cash back on rotating categories such as Amazon.com, grocery stores, restaurants, gas stations, and PayPal.
On the other hand, the Sapphire Preferred is a rewards credit card that offers valuable points on travel, dining, streaming, and groceries.
In this article, we’ll explain the key differences and help you decide which one is right for you.
Full Reviews: Chase Sapphire Preferred and Discover It Cashback
Overview: Chase Sapphire Preferred vs Discover It Cashback
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- 5x Points on Travel Booked Via Chase
- 3x Points on Dining and Eligible Delivery Services
- 2x Points on All Other Travel Purchases
- 10% Anniversary Points Boost
- Trip Delay and Trip Cancellation Insurance
- Primary Rental Car Insurance
- $95 Annual Fee
- 5% Cash Back in Rotating Quarterly Categories up to $1,500 Each Quarter When You Activate Offer
- 1% Cash Back On All Other Eligible Purchases
- Cash Back Match for the First Year
- No Annual Fee
Welcome Bonus
The Chase Sapphire Preferred currently offers the following welcome bonus:
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The Discover it has a unique welcome bonus. Discover will match the cash back you earned your first year for double rewards.
For example, if you earned $300 in cash back in your first year, Discover will add $300 in rewards at the end of the card member year.
Winner: Chase Sapphire Preferred.
The Sapphire Preferred’s bonus easily worth more than the Discover it.
Earning Points
The Chase Sapphire Preferred earns Ultimate Rewards points and offers bonus points on spending in several categories:
- 5 points per dollar on travel booked through the Chase travel portal;
- 5 points per dollar on Lyft purchases (through March 2025);
- 5 points per dollar on Peloton equipment and accessory purchases of $250 or more (through March 2025, with a limit of 25,000 bonus points);
- 3 points per dollar on dining, including eligible delivery services, takeout, and dining out;
- 3 points per dollar on online grocery store purchases (excludes Target, Walmart, and wholesale clubs);
- 3 points per dollar on select streaming services, including Netflix, Disney+, Spotify, Youtube TV, Pandora, Apple Music, SiriusXM, Sling, Vudu, Fubo TV, Hulu, and ESPN+;
- 2 points per dollar on all travel not booked through the Chase travel portal; and
- 1 point per dollar on all other eligible spending.
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The Discover it lets cardholders earn cashback in the following categories below:
- 5% cash back in rotating quarterly categories of up to $1,500 in purchases each quarter (requires activation).
- 1% cash back on all other eligible purchases.
Winner: Chase Sapphire Preferred.
The Sapphire Preferred earns valuable points on major categories like travel, dining, online grocery, and streaming services. Plus, you don’t have to worry about rotating categories.
Card Benefits
The Chase Sapphire Preferred offers nice benefits, including:
- Receive 25% more value on points redeemed for travel through the Chase Ultimate Rewards® portal.
- $50 annual credit on hotel stays purchased through Ultimate Rewards.
- 10% Points Bonus for each Cardmember anniversary.
- A complimentary one-year subscription to DashPass by DoorDash when you enroll by December 31, 2024.
- Trip cancellation and interruption insurance (up to $10,000 per person and $20,000 per trip).
- Primary car rental insurance.
- Lost luggage reimbursement (up to $3,000 per passenger)
- Baggage delay insurance (up to $100 per day for five days).
- Trip delay insurance (up to $500 per ticket for a delay longer than 12 hours or overnight).
- Extended warranty.
- 120 days purchase protection (up to $500 per claim and $50,000 per year).
- No foreign transaction fees.
- Free 6-month membership to Instacart+ (activate by July 31, 2024).
The Discover It Cashback offers the following benefits for its cardholders:
- No foreign transaction fees.
- Free credit alerts.
- Ability to freeze your account.
- 24/7 customer service assistance.
Winner: Chase Sapphire Preferred
Overall, the Sapphire Preferred card offers a wider range of benefits than the Discover it, making it the obvious winner.
Annual Fee
The Chase Sapphire Preferred comes with an annual fee of $95.
While some users might be initially deterred by this cost, it’s important to consider the value and benefits that come with the card.
The rewards points, travel benefits, and purchase protections can help offset the cost of the annual fee for frequent travelers.
The Discover It Cashback doesn’t have an annual fee, which makes it a great option for those who want to avoid the hassle of paying extra fees.
Winner: Discover it
Redeeming Points
The Chase Sapphire Preferred® Card earns Ultimate Rewards points, one of the most flexible points currencies.
You can use your points to book flights, hotel stays, and even rent a car through Chase Travel — all at a fixed rate of 1.25 cents per point. For example, 100,000 points are equivalent to $1,250 towards travel.
You can unlock even more value than 1.25 cents per point by transferring rewards to Chase airline and hotel partners.
Ultimate Rewards Transfer Partners [1 to 1]
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Aer Lingus
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Air Canada Aeroplan
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British Airways
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Emirates
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Air France/KLM
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Hyatt Hotels
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Iberia
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IHG Hotels
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JetBlue
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Marriott
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Singapore
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Southwest
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United
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Virgin Atlantic
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The Discover It Cashback card offers several redemption options, including:
- A statement credit to reduce your balance.
- Direct deposit into any bank account.
- Charitable donations.
- Pay with rewards at select retailers such as Amazon.com.
- Gift cards, which are sometimes offered at a discount such as $20 for a $25 gift card.
Winner: Chase Sapphire Preferred
The Sapphire Preferred offers a higher redemption value and more redemption options. The card also allows you to transfer your points to several hotel and airline partners across different airline alliances.
The Verdict
The Chase Sapphire Preferred stands out as the superior choice for several reasons, including its extensive benefits, rewards, welcome offer, and redemption options. It’s ideal for those who want to earn rewards on both travel and everyday spending categories.
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- 5x Points on Travel Booked Via Chase
- 3x Points on Dining and Eligible Delivery Services
- 2x Points on All Other Travel Purchases
- 10% Anniversary Points Boost
- Trip Delay and Trip Cancellation Insurance
- Primary Rental Car Insurance
- $95 Annual Fee
