Credit cards are payment cards that enable cardholders to pay for goods and services by borrowing funds from the credit company provider under the condition that they pay back the funds. The major types of credit cards include Capital One, Discover, Visa and American Express, which are issued by banks, credit unions and other financial institutions. The institutions attract customers by enticing them with offers to generate and maintain loyalty. This article discusses the capital and discover credit cards.
Discover credit card
Discover card is issued primarily in the USA mainly by discover bank, which was founded back in 1985. Although it is more common in the United States, Discover is accepted in more than 180 countries in the world; it partners with globally accepted merchants that accept payment via the discover card. It has grown to become more than just a card, it is a global network that is best known for cash backs. Discover card customer service is generally amazing and discover card payment options are reliable. It offers the following discover card payment options:
Discover it chrome
Discover it Student chrome
Discover it Secured
Discover it Cash Back
Discover Transferce Transfer
Discover it Student Cash Back
Advantages of discover credit card
Firstly it offers a longer balance transfer offer that lasts 18 months with a great cashback program that we should keep after debt payment.
Secondly discover card allows us to earn our cashback after large purchases with the condition of paying back over a while.
Thirdly discover card gives travellers the freedom on redeeming miles and this is made possible by one main feature whereby they do not charge an annual fee enabling us to earn triple miles on each purchase during the first year of subscription.
Discover card gives us dining and gas rewards by giving us 2% for every $1000 spent in gas stations and dinners each quarter which is an amazing offer for a zero-annual-fee card.
Discover is the best option for students; the platform gives cashback for every dollar spent on amazon.com on either gas or groceries. Within a five-year school calendar cardholder students with a 3.0 GPA and above get $20 credit statements. The card also offers a non-transaction foreign fee for all students studying abroad.
Late fees are not charged when students new to credit miss payments once, and, APR penalties don’t apply when they fall behind in payment frequently.
The card also offers financial management tools that help us ensure that our credit is always on track.
Discover has very good approval odds for any customer; whether we have good, poor or no credit history at all, besides we can earn anytime, we use the card because of their cashback feature.
Discover is also great for heavy spenders whereby, we can earn 1.5% cash back for all purchases and the freedom to redeem rewards at our own will in any amount.
Demerits of Discover Credit Card
Firstly for heavy spenders, although the cashback feature is lucrative, we have to wait for a full year after subscription to activate the offer.
Secondly the fact that all cardholder equally in terms of the APR percentage, which is at 22.99%. This makes it difficult when building credit more-so when we opt for a low-security deposit which leads to the low credit limit.
Thirdly, the 0% introductory APR for all the purchases during the first six months of subscription can mislead the inexperienced cardholder who are prone to overspending.
For students, all the monthly payment plans must be done in due diligence because the APR is reasonably higher than that of many other student cards like Capital One.in order to achieve maximum cashback students are supposed to enroll in the rotating bonus category quarterly.
Discover Card does not offer much in terms of perks, warranty extension and rental insurance.
The 0% APR period on balance transfers whereby we are allowed make payments for good and services without interest lasts only for six months after which the normal APR terms apply.
For travellers, the card does not reward loyalty to specific airlines since miles transfer to frequent-flier programs is not permitted.
Lastly, discover cards lacks a sign up bonus that is awarded by many other card providers; hence we are forced to spend more funds during the first year to earn credit.
Capital one credit cards
Capital one credit cards are provided by Capital One Financial Corporation, which is based in the USA and was founded in 1994, which is well known for its technology focus in the banking fraternity. The cards are mainly issued in Canada and United Kingdom and were listed the third-highest issuer by JPMorgan Chase in 2018. We have the following types of capital one cards;
Capital One Venture
Capital One Quicksilver
Capital One SavorOne
Capital One Platinum
Capital one secured MasterCard
Capital one venture credit card
Advantages of Capital One Credit Cards
Firstly the card waivers their annual fee charge for the first year after the subscription.
Secondly, the card offers a very generous sign-up bonus ($500) for the first time of subscription as compared to discover credit cards.
Thirdly the card gives us amazing earning rewards on every $2 spent on any goods or services.
The card allows us to earn unlimited miles for every dollar spent without considering how we earn the miles.
For travellers, the card allows us to redeem and transfer our miles to all the frequent flier programs as compared to discover cards that deny us this feature. In addition to this, it allows us to erase our purchases within 90 days after making the purchase which in turn allows us not to use our miles for travel hence the freedom to earn a credit statement.
The card also allows travellers to book our travels directly via capitalone.com, which enables us to redeem and pay for our travels at a rate of 1 cent per mile towards all travel purchases.
Capital one credit cards allow us to redeem our miles for gift cards and also cashback.
The card has unlimited redemption limit for all users with another feature that enable miles non-expiry of miles.
The card also allows transferees transfer of miles to active capital one account holders.
Capital one credit cards have risk-free offers, for example; the pre-qualification tool that allows us to know if we are eligible for one of their credits which offers the assurance of qualification for a particular credit card.
The card allows for auto rental collision damage waiver, which gives us coverage for both international and domestic car rentals.
Capital one cards offer 24/7 client support assistance during emergencies.
The card offers shopping protections and benefits for example; extended warranty that lasts two years, purchase security for 90 days in case of theft or damage with a $500 limit which is very generous as compared to other credit cards.
Lastly, capital one credit offers account management tools; it has the capital one app that makes it accessible on all smartphones, we can check our credit balance for free, we are allowed to add an authorized user, and we aren’t liable for all unauthorized purchases.
Demerits of Capital one credit cards
Firstly the sign-up bonus of $500 requires us to spend up to $3000 within the first three months of subscription.
Secondly, for capital venture credit cards, the 2:1.5 transfer ratio is lower than that of other credit card providers.
Thirdly the platinum credit card lacks a continuous flow of rewards as, unlike the quicksilver capital credit card.
Some of the credit cards offered by capital one lack the traditional sign-up bonus and ongoing rewards which requires us to deposit a refundable deposit with which we borrow off our credit.
The annual fee is not waived in all the cards offered by capital one credit cards, for example, the QuicksilverOne which has an unwaived $39 fee in the first year and the savor cash card that maintains the $95 annual fee that is not waived during the first year.
The capital one secured MasterCard is only eligible to students.
Only a few of the cards offered by capital are eligible for the most client who look forward to building their credit, or clients with a limited credit history or none at all.
Capital one credit card does not offer either low credit rates or rewards or perks even though it is easily marketable to people with average credit history.
Discover credit cards have incentives they offer to both national and international student studying in the United States, the dining and gas rewards, the low APR for the first year of subscription, financial management tools and cashback for all purchases are one of the few reasons for us to apply for the card.Their discover card customer service is exceptional and very reliable. On the other hand, the capital credit cards offer 24/7 client support during emergencies; they have a sign-up bonus, a waiver on the annual fee during the first year of subscription, free transfer of miles, rental waiver, unlimited redemption of miles and non-expiry miles, all these features are not provided by discover cards. Capital credit cards are more lucrative to customers who are under the average credit status, while the discover credit cards can be accessed by any client. I will recommend that we thoroughly check our financial capability before deciding on the credit card we are applying for to prevent misappropriation of funds in terms of credit.