Chase Sapphire Preferred^® Card vs Discover It: Winner?

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 Chase Sapphire Preferred is one of the most popular travel rewards cards because it offers nice welcome bonus and extra points on travel and dining, which can be transferred to airline and hotel partners or redeemed directly for travel at a rate of 1.25 cents per point through Chase Travel℠. The Sapphire Preferred also offers great travel and purchase protections for a card with a $95 annual fee.

The Discover It Cashback features rotating 5% quarterly bonus categories that can boost your rewards, though it only earns a basic 1% back on all non-bonus purchases. While the lackluster base rate is a drawback, strategic spenders can maximize value through the quarterly categories and first-year cash back match.

This article will compare each card based on several factors to help you make an informed decision on which card is the best to add to your wallet.

Full Reviews: Chase Sapphire Preferred^® Card and Discover it® Cash Back.

Overview: Chase Sapphire Preferred vs Discover It Cashback

Welcome Bonus

Chase Sapphire Preferred:

The Chase Sapphire Preferred currently offers the following welcome bonus:

Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months.

Discover It:

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.

Earning Points

Chase Sapphire Preferred:

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.

Discover It:

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:

The Chase Sapphire Preferred because it 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

Chase Sapphire Preferred:

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).

Discover It:

The Discover it 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:

Overall, the Chase Sapphire Preferred offers a wider range of benefits than the Discover it, making it the obvious winner.

Value of the Annual Fee

Chase Sapphire Preferred:

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.

Discover It:

The Discover It 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 with its no annual fee.

Redeeming Points

Chase Sapphire Preferred:

The Chase Sapphire Preferred 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.

Discover It:

The Discover It 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:

The Chase 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.