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Both the Discover it® Cash Back Card and the PenFed Power Cash Rewards Visa Signature® Card offer rewards without an annual fee. The Discover it Cash Back edges ahead with its 0% introductory APR on purchases and balance transfers, making it appealing for those with existing balances or upcoming expenses.
However, the PenFed Power Cash Rewards card offers a welcome bonus that can quickly put cash back in your pocket. This card's potential for high cash back rewards makes it a strong contender for those eligible for credit union membership.
Discover it® Cash Back Card
PenFed Power Cash Rewards Visa Signature® Card
Regular APR
17.24%–28.24% variable
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0% APR Offer
0% intro APR for 15 months from date of account opening
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Intro Offer
Matches cash back earned at the end of the first 12 months
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Rewards Summary
Earn 1%–5% cash back
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Balance Transfer Offer
0% intro APR for 15 months from date of first transfer, for transfers under this offer that post to your account by May 10, 2024
0% Introductory Balance Transfer APR for 12 months
Balance Transfer Fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)
3% fee applies to each transaction
Annual Fee
$0
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Recommended Credit
670–850 (Good to Excellent)
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Penalty APR
None
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Not sure?
Which Card Is Better for You?
You might prefer the Discover it Cash Back if you enjoy maximizing cash back by keeping up with rotating categories and can take advantage of the card's 0% introductory APR on purchases and balance transfers. This card is especially rewarding in the first year with its cash back match offer, making it a strong contender for those who plan their spending around bonus categories.
You might prefer the PenFed Power Cash Rewards if you value a straightforward rewards program with a consistent cash back rate on all purchases. If you're a PenFed Honors Advantage member, you'll benefit from the higher 2% cash back. Additionally, the welcome bonus and the 0% balance transfer APR offer for 12 months add value for new cardholders who meet the credit union's membership criteria.
Head-to-Head Comparison: Card Details and Features
Evaluating APRs, fees, credit requirements, rewards, and other features will clarify each card's strengths. For instance, if you prefer predictable rewards, the PenFed Power Cash Rewards may appeal to you, whereas the Discover it Cash Back could be advantageous for maximizing rotating category bonuses.
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Rewards Comparison
The Discover it Cash Back card stands out with its 5% cash back on rotating categories, up to a quarterly maximum, upon activation. This can be lucrative for those who align their spending with these categories. However, some management is required to activate the categories each quarter. The rotating categories can include expenses such as gas stations, grocery stores and restaurants. You should stay informed about the current and upcoming categories to fully benefit from the 5% cash back offer.
The PenFed Power Cash Rewards card offers a steady 1.5% cash back on all purchases, or 2% for PenFed Honors Advantage Members, without the need to track rotating categories. This makes it a solid choice for those seeking a straightforward rewards program without the fuss.
The following table provides a visual comparison of the bonus categories for each card.
Category | Discover it Cash Back | PenFed Power Cash Rewards |
|---|---|---|
Quarterly Categories | 5% on up to $1,500 in combined quarterly purchases, then 1% | N/A |
All Other Purchases | 1% | 2% for PenFed Honors Advantage Members/1.5% for non-members |
Redeeming Rewards
The Discover it Cash Back offers a flexible redemption process. You can redeem your cash back for gift cards, statement credits or direct deposits. There is no minimum redemption threshold. Additionally, rewards on this card do not expire; even if you don't use the card for a period, you can still claim the rewards within 18 months of account inactivity.
The PenFed Power Cash Rewards also has various redemption options. You can get your rewards as a statement credit to your credit card account. You may also deposit rewards into your PenFed Checking or Share account or transfer them to another financial institution. There is no expiration for rewards, which is favorable if you prefer accumulating your cash back over time.
Methodology
MoneyGeek evaluates credit cards like the Discover it Cash Back and PenFed Power Cash Rewards using a tailored scoring system for different use cases. For instance, we assess the Discover it Cash Back on its balance transfer features and gauge the PenFed Power Cash Rewards on its cash back benefits.
The most influential factors in these evaluations include the introductory APR offers, the regular APR for balance transfers and the effective reward rate for cash back. For a deeper understanding of our process, you can review our ranking methodology.
FAQ: Discover it Cash Back vs. PenFed Power Cash Rewards
What are the cash back rewards for each card?
Discover it Cash Back offers 5% cash back on rotating categories, while PenFed Power Cash Rewards offers up to 2% for Honors Advantage Members.
Do either of the cards have an annual fee?
Both cards have no annual fee.
What are the introductory offers from these cards?
Discover it Cash Back matches cash back in the first year. PenFed Power Cash Rewards doesn't have an introductory offer.
How do the APRs compare between the two cards?
Discover it Cash Back offers an introductory 0% APR for 15 months, followed by 17.24% to 28.24% (variable). PenFed Power Cash Rewards doesn't provide specific APR details.
Are there foreign transaction fees for either card?
Both cards have no foreign transaction fees.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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