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Opening a credit card that earns more than 1x rewards on all purchases is a smart move, especially if you spend a lot in categories that don’t typically earn a bonus with other cards. The Chase Freedom Unlimited® and Discover it® Miles fit this bill, earning at least 1.5x rewards on spending — and neither charges an annual fee.
That’s about where the similarities end. While the Discover it® Miles earns a flat 1.5x miles on all spending, with no bonus categories to keep track of, the Chase Freedom Unlimited® offers the opportunity to earn higher rewards on dining, drugstores, travel, and rideshares — along with 1.5x points (1.5% back) on all other purchases.
The way these cards are advertised might seem a little confusing, too. The Chase Freedom Unlimited® is framed as a cash-back credit card, but it actually earns rewards in the form of Chase Ultimate Rewards points, which you can redeem for cash back, travel, merchandise, gift cards, and more.
Meanwhile, the Discover it® Miles is marketed as a travel card, earning “miles” that really are just a fancy way of saying cash back. These aren’t like airline miles or even transferable rewards (like Capital One miles), and your redemption options are all variations on the cash-back theme — with 1 Discover mile equal to 1 cent (or 1% back).
Here’s what to know to help decide whether the Chase Freedom Unlimited® or Discover it® Miles 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 Unlimited and Discover it Miles welcome bonuses
If you’re looking for an upfront bonus without having to meet a high minimum spending requirement, the Chase Freedom Unlimited® is a better choice. You’ll earn a welcome bonus of Chase Freedom Unlimited® (and remember, you’ll actually earn Chase Ultimate Rewards points which are worth 1 cent each toward cash back, travel, and more).
The Discover it® Miles doesn’t come with a standard welcome bonus, but — if you’re a big spender — the card has the potential to be a lot more lucrative in the first year. Discover’s Cashback Match program extends to the Discover it® Miles card (it’s just called Unlimited Bonus instead), and after your first year, Discover will match all of the miles you’ve earned with no limit.
For example, if you spent $2,000 a month on your Discover card in the first year (a total of $24,000), you’d earn 36,000 miles. Discover would match another 36,000 miles, for a total of 72,000 miles in the first year (worth $720 in cash back). This effectively makes the Discover it® Miles a 3% cash back on everything card for the first 12 months.
You won’t find any no-annual-fee cards that can match a 3% rate of return on all purchases, but keep in mind you’ll only get this turbocharged earning from the Discover it® Miles for the first 12 months — then it effectively becomes a 1.5% back card on everything.
Earning rates
Chase Freedom Unlimited® cardholders earn 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), and 3x points (3% cash back) at drugstores. On everything else, you’ll earn an unlimited 1.5% cash back (1.5x).
If you spend a lot at restaurants and drugstores, earning 3x points on those purchases with the Chase Freedom Unlimited® can add up very quickly — and you’ll earn even more if you book your flights, hotels, and rental cars through the Chase portal to earn 5x points.
For this reason, the Chase Freedom Unlimited® has an advantage over the Discover it® Miles, which doesn’t offer any extra categories or ways to boost earning — you’ll earn a straight 1.5x on all purchases, with no caps.
Redemption options
The Chase Freedom Unlimited® is a solid choice if you want to earn cash back, but that’s not the only way you can use your rewards. Along with redeeming Chase Ultimate Rewards points for cash back at a rate of 1 cent apiece, you’ll also have 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 Unlimited® becomes even more valuable if you also carry certain other Chase cards, 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 unlock 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 Ultimate Rewards points and maximize your rewards.
The Discover it® Miles doesn’t offer as wide a range of redemption options, and there’s no way to squeeze extra value from your rewards. You can redeem miles at rate of 1 cent each for:
A credit toward travel purchases made with your card in the past 180 days An account statement credit (to lower your balance)Direct deposit to your bank accountCheck out at Amazon or PayPal
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 Chase Freedom Unlimited® and Discover it® Miles, one card is a clear winner when it comes to benefits.
The Chase Freedom Unlimited® comes with a decent range of travel and shopping protections — including a few you don’t often see on a no-annual-fee card.
Chase Freedom Unlimited benefits
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 cardCar 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 coverageTrip 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 eventsTravel 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)
Meanwhile, the Discover it® Miles doesn’t come with any flashy perks. Cardholders receive a few benefits 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.
There’s one advantage the Discover it® Miles has over the Chase Freedom Unlimited®. If you travel abroad, the Discover it® Miles is a better choice, because it doesn’t add foreign transaction fees (the Chase Freedom Unlimited® adds a 3% fee to international purchases). The Discover it® Miles also waives the late payment fee for your first late payment (but afterward charges up to $41).
Both cards come with similar introductory 0% APR offers.
Taking advantage of a 0% introductory APR can save you a lot of money if you’re making large purchases you need to pay for over time — but be sure you have a plan and the ability to pay off your balance before the introductory period expires. Otherwise, you could get stung with high interest charges.
Chase Freedom Unlimited and Discover it Miles comparison
Chase Freedom Unlimited®
Discover it® MilesAnnual fee
Chase Freedom Unlimited®
Discover it® MilesWelcome bonus
Chase Freedom Unlimited®
None, but Discover will automatically match all the Miles you’ve earned at the end of your first cardmember year
Rewards rate
5% cash back (5x points) on travel purchased through Chase Ultimate Rewards
3% cash back (3x points) on dining and drugstore purchases
1.5% cash back (1.5x points) on everything else
1.5x miles on all purchases
Card benefits
Purchase protection
Extended warranty
Secondary car rental insurance in the US (primary otherwise)
Trip interruption/cancellation insurance
Travel and emergency assistance services
Free FICO score
No late payment fee on your first late payment (then up to $41)
Introductory 0% APR offer
Chase Freedom Unlimited®, then a 14.99%–23.74% variable APR
Discover it® Miles, then a Discover it® Miles APR Foreign transaction fee?
Yes
NoReview
Chase Freedom Unlimited card review
Bottom line
If you have to choose just one card, the Chase Freedom Unlimited® is the right pick for most people. It’s got a great welcome bonus offer, better all-around earning, and more opportunities to redeem rewards — plus the option to combine points with other Chase Ultimate Rewards cards. It also offers substantial benefits for a no-annual-fee card which can save you a lot of money.
However, if you’re a big spender, the Unlimited Bonus (Cashback Match) offered by the Discover it® Miles has the potential to get you more rewards in the first year. The card is also a better fit if you travel outside the US because it doesn’t add foreign transaction fees.
Of course, there’s no reason why you can’t have both — and, in the first year (because of Discover’s match), doing so is a great strategy for maximizing rewards on all of your everyday expenses.