It's easy to get confused by all the hype surrounding the chase credit card and its partner credit cards from American Express, Discover and Chase. These credit cards are not affiliated with one another, nor do they offer any type of direct cash back or reward programs. They are simply made to give you an easy and fast way to purchase items, pay bills and make reservations all with the convenience of a card issued from one of these companies. Chances are good that you have heard at least something about them, either through a coupon you received in the mail or on TV or from a friend who received one for a birthday or holiday gift.
All that being said, what exactly is the difference between these different credit cards? Each one has the same basic features and rewards though. Chase has a unique name, which is an “Am” term meaning American Express while Discover offers the more traditional and familiar Diner's Club card symbol. In addition to offering no annual fees or interest rate upgrades, they also both offer free airline miles when you use your card to pay for your purchases.
One key feature that both offers have in common is the ability to earn miles for every dollar you charge to the account. This means that you can earn a certain amount of miles for just spending a certain amount. You earn more miles with a higher interest rate card, but this type of card offers no credit line options and is often associated with people who are already carrying a balance on their credit card or other type of loan. The only way you will earn more miles with a chase card is by paying off your balance each month and then using your new account to make new purchases. Otherwise you will have a higher interest rate than you are used to.
What is the difference between a Discover card and a Chase card? The biggest difference is likely going to be the credit limit. A Discover card is specifically for people who are new to credit and does not usually offer any type of incentive program to begin with. They are known as a high risk card, because you will likely have a hard time getting approval for one. People that have credit issues can usually get approved for a Chase card, but you are going to pay an extremely high interest rate due to their past credit history. A Discover card would be a great option for these customers.
The Chase card allows you to purchase the things you want from their catalog, but they do have a limit on the amount you can charge. They also offer rewards on their gas cards, store cards, travel rewards and airline miles programs. All of the cards have reasonable limits on the things you can charge, but the Discover card allows you to overcharge them. If you are looking for a credit card with an interest rate that is reasonable, this is definitely the card for you.
Both of these credit cards offer a low interest rate for the first year you own the card, which is always an attractive feature. The terms and conditions for each of these cards are pretty standard, but some people prefer the terms of one over the other. The terms of the Chase prime card are a bit more lenient than the Discover card, but both are fairly standard. The main difference between the two cards is the interest rate.
There is a lot of fluctuation between the interest rates of credit cards, but most of the time, the interest rate is going to be higher on a card with a higher credit limit. It's important to remember that this interest rate is going to be permanent once you have been approved. If you want to switch credit cards in the future, it's usually not too difficult to transfer the balance and transfer the interest rate. When it comes to interest rates, there really isn't much of an impact on the credit score. The only thing is that you may find that it will take longer to get approval if you apply for a Chase prime card, simply because of your past credit history.
The Discover card gives you no credit line but does not offer any cash back or reward programs. This card is not really meant for someone who wants to build their credit. It also has a very high spending limit and offers little in the way of benefits other than cash back. This card is best suited for someone who already has a credit card with a decent limit and needs a little more spending power. If you need a card with cash back rewards and decent limits, the Discover card may be for you.