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Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
0

Discover Open Road -vs- Chase Freedom.

[ Edited ]
DISCOVER OPEN ROAD CARD:
5% Cashback Bonus on gas and everyday auto maintenance purchases for the first $100 in purchases each billing period - up $1,200 every year
0.25% if the purchase is part of your first $1,500 in total annual purchases,
0.50% if the purchase is part of your second $1,500 in total annual purchases, and
1.0% if the purchase is part of your total purchases in excess of $3,000

Then CHASE FREEDOM
You'll earn a 3% cash back rebate or 3 points for every $1 in eligible purchases made in the top three bonus categories where you spend the most. When you reach $600 in spending in the bonus categories, you will only earn the 1%
Purchases not eligible to receive the 2% bonus rebate or 2 bonus points include, but are not limited to, purchases made at superstores, warehouse clubs and discount stores. Online and catalog purchases are not eligible to receive the 2% bonus rebate or the bonus points unless the merchants have correctly identified and billed the transactions. (my note: that's the 3% for the first $600 /mo. 1% base and 2% special = 3%. But it seems that you will still get the 1% back)

Lets compare.
If I were only using the cards for gas of $2,592 a year...($216 /mo)

DISCOVER OPEN ROAD CARD
First $100 each month, cash back $5 x12=$60.00 /yr
Next $116 each month, cash back (0.5%) $0.58 x12=$6.96 /yr
--------------------------
Total cash back....... $66.96 /yr.

CHASE FREEDOM
First $216, cash back $6.48 x12=$77.76 /yr
--------------------------
Total cash back....... $77.76 /yr.

But then CHASE FREEDOM also give 3% back on Food and Drugstores if those are the top spending categories. Since you have up to $600 you can still earn 3% back on more items.

Hmm. Does chase win over discover buy a large margin??????? It would seem the way to win would be to use Discover for up to $100 in gas purchases monthly then move to Chase to complete at the pump and for other purchases. Still trying to figure out the best method. Work in progress. Either that or have multiple Discover cards with Open Road programs.

Another thing to consider
Discover pays out when you reach $20.
Chase pays out when you reach $50 for best return.

.... Maybe those with 50+ credit cards are on to something. If you spend $300 a month on gas it would be better to have 3 Discover cards... Maintain a steady 5% on all gas purchases.

This cash rebate game takes lots of effort to maximize returns.

Message Edited by ilovepizza on 09-21-2008 02:08 AM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Established Contributor
jaybird201
Posts: 672
Registered: ‎07-05-2008
0

Re: Discover Open Road -vs- Chase Freedom.

I dunno. I think Discover might take issue with someone working 3 Discover ORs for 5% back on gas for all of them.
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: Discover Open Road -vs- Chase Freedom.



ilovepizza wrote:
.... Maybe those with 50+ credit cards are on to something. If you spend $300 a month on gas it would be better to have 3 Discover cards... Maintain a steady 5% on all gas purchases.


Or one PenFed Plantinum Cash Rewards VISA...   :smileyhappy:
Regular Contributor
shreco
Posts: 134
Registered: ‎05-05-2008
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Re: Discover Open Road -vs- Chase Freedom.

Yeah I product changed my Open Road to More after I got approved for Penfed Cash Rewards. Open Road actually worked for me as I fillup on average once a month. But Penfed just gives you your 5% automatically every month, no muss no fuss. Side note I found that Discover gave me 5% cash back even when I paid inside for gas along with coffee, snacks etc.

Shop Discover has no caps though and I abuse it regularly.
FICO TU 730 EQ 731 EX 706
Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008
0

Re: Discover Open Road -vs- Chase Freedom.

[ Edited ]
It really doesn't take any effort at all with the Chase Freedom Plus. That's what I've got. By 4th-5th statement (depends on how much I can work through the card this month, I have a feeling I'll be somewhere around $185-190 and will end up pushing to the 5th month) I'll have $200 in cash rewards which I can cash in for the bonus $250 check. Top 6 of the 15 spending categories that for me, work out to be just about everything I use my card for. No caps either that I can see. I'm averaging about $40-45 a month or so. And, when you factor in the $50 bonus after you rack up only $200 in cash, it winds up being more than 3%.


I also abuse ShopDiscover and I think this month about $24-25 of my rebate was from buying things I would have purchased in the strore but coming home and purchasing through shopdiscover instead.

Message Edited by UpUpUp on 09-21-2008 09:55 AM
Valued Contributor
athensguy
Posts: 1,291
Registered: ‎02-26-2008
0

Re: Discover Open Road -vs- Chase Freedom.

It looks like a good idea to use the Penfed card in combination with a Chase Freedom as your primary cards. That's what I plan to end up with.
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Discover Open Road -vs- Chase Freedom.



athensguy wrote:
It looks like a good idea to use the Penfed card in combination with a Chase Freedom as your primary cards. That's what I plan to end up with.


A perfect combo. And once you hit your monthly cap on groceries with the Chase for 3%, you switch to PenFed at 2% for groceries, as they are uncapped. Same with whatever other 3% category you use on the Chase: once you hit the $600, you can either elect to get 1% from Chase, or 1.25% on the PenFed.

A lot to be said for keeping things simple! Or as simple as you can get with cash rewards CC's, at any rate.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
0

Re: Discover Open Road -vs- Chase Freedom.

Is there a CAP on how much earnings with PenFed? Like Discover $100 and Chase $600 max for rewards before they drop to 1%?
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Discover Open Road -vs- Chase Freedom.

Nope, no cap, no forms to fill out, no waiting until you get a certain amount every month.

It all just pops up as a credit on your statement each month.

For the life of me, I don't see how they afford it, and I live on the edge of a state of mourning, waiting for it to be changed.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007
0

Re: Discover Open Road -vs- Chase Freedom.

PenFed rocks
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