Card Comparison: Capital One Venture vs. Discover it

Advertiser Disclosure

There are many great credit cards out there.  The Discover it® credit card is an awesome one because of its large cash back rotating categories and its no annual fee.  Another card, the Capital One Venture, is an excellent one as well, and is advertised often in multiple venues.  But, how do they compare?  Let’s check them out below and see how the benefits of each stack up!

Apply Now: Discover it® 

 

Annual Fee

One major category of benefits that is important to cardmembers is the annual fee for opening the credit card.  There is good news in this category for one of the cards: there is no annual fee for the Discover It credit card.  So, any benefits you earn could potentially be “free” if you manage your expenses well and not pay interest on a revolving balance each month.  However, the Capital One Venture credit card features a $59 annual fee, which is waived for the first year.  Advantage: Discover It.

 

Introductory APR

An introductory APR is important for some, since opening up a new credit line may be for a new, large purchase that will take time to pay off.  With an intro APR, you have interest-free lending for a specific amount of time.  For the Capital One Venture credit card, you’ll have 13.9-20.9% APR, depending on your credit history.  For the Discover It credit card, the period is 14 months of 0% APR, with an APR of 10.99 and 22.99 percent after that.  Advantage: Discover It.

 

Sign-Up Bonus

Another big draw for customers, the sign-up bonus is that beautiful mannequin in the window to draw you in.  For the Capital One card, you’ll earn $200 cash back with $2,000 in spending over three months.  For the Discover It credit card, there actually is no sign up bonus!  Advantage: Capital One Venture.

 

Bonus Categories

These two credit cards each feature unique ways of giving you cash back, either they offer “bonus categories” that rotate four times a year, or straight 2% back on every purchase.  The Discover It card offers 5% cash back for each category, up to $1,500 cash back.  At the time of writing, the Discover It card has ‘Home Improvement’ as a category for the second quarter, which includes any store in that category, as well as Bed Bath and Beyond.

The next quarter will be gas stations, and the final quarter ‘holiday shopping.’  In addition, the Discover It card has an online shopping mall offering 5%-20% cash back for purchase.  The Capital One card offers 2% back, but on every purchase you make.  Winner: I would say it depends on your spending preferences– if a lot of your purchases fall in the Discover It bonus categories, that’s the clear winner.

 

Regular Spend 

You will also receive bonus points for regular spend.  The Discover It card offers you one point per dollar of regular spending, but the Capital One card offers 2% back on every purchase.  Advantage:  Capital One.

 

Redemptions

One thing to note is that for the Capital One Venture card, if you redeem for cash back, you won’t get the full value of your points (only a 1% cash back rate).  Thus, the Venture is the winner for travel rewards and the Discover it wins in the cash back category.

 

Other Benefits

The Capital One card offers no foreign transaction fees, and easy redemption for travel with your cash back.  However, the Discover It card offers free FICO scores every month, and no foreign transaction fees, which are valuable benefits in my book.  I would say that this is a tie.

 

Verdict

With no annual fee, the Discover it® credit card is certainly a valid contender.  However, the $59 annual fee Capital One card offers two points back on every purchase you make on the card, allowing you to most likely rack up benefits quicker with this card. That said, it really depends on how you plan to redeem your points. If you’re looking strictly for cash back rewards, the Discover it® is your best bet.

Apply Now: Discover it®