Capital One vs Discover

Customer reviews are only one piece of the puzzle in deciding which credit card company is best for you. While Capital One and Discover offer similar services and rewards, there are some key differences to consider.

Variety of Cards

To meet the needs of a wide range of consumers, both Capital One and Discover offer multiple types of credit cards. Consumers can then choose which card will be most beneficial to them based on their needs.

Discover offers eight types of cards, all with no annual fee. Capital One, on the other hand, offers 22 types of cards with varying rewards, fees, and rates.

Based on your credit history and current financial situation, it is important to consider the variety of cards offered by both companies and how they compare and contrast. Both companies offer cash back cards, travel rewards cards, business rewards cards, student cards, and secured cards. When comparing cards, it is important to look at annual fees, interest rates, and the required credit score for each card. Capital One has specific cards for specific credit levels, whereas interest rates and credit limits with a Discover card will be determined based off of your credit score.

If you have an excellent credit score and are looking for the best cash back or miles rewards, Capital One will likely be the best option for you.

Secured Credit Cards

Both Capital One and Discover offer secured credit cards with no annual fee, but there are some differences to be aware of.

A secured credit card is intended for borrowers who are looking to build credit for the first time, or are looking to rebuild credit. Because it is a secured card, a security deposit is required. Capital One requires a minimum refundable deposit of $49, $99, or $200. You will receive an initial credit line of $200 upon paying the minimum deposit, a limit you could increase if you deposit more money before your account opens.

Discover requires a security deposit of $200, which becomes your credit line, an amount which can be refunded if you pay your balance in full and close your account. It is important to note that the Discover secured card is also a rewards credit card, offering cash back, which is a unique offer among credit card issuers.

The purchase rates for Capital One and Discover cards also differ:

• Capital One — 26.99% variable APR
• Discover — 22.99% variable APR

Although the secured credit card differences between each card issuer are minimal, it is important to take note as the small details could save you more money in the long run.

Annual Fees

None of the Discover credit cards has an annual fee, including the Discover secured credit card. Many of Capital One’s cards do not have an annual fee, but not all. In general, Capital One cards for fair credit will have to pay an annual fee, but even some of the rewards cards for those with excellent credit charge an annual fee. 

Annual fees are a common practice in the credit card industry and are generally indicative of cards that offer bigger rewards. Generally, the rewards will outweigh the price of the annual fee.

Card Acceptance

Capital One credit cards are backed by either Visa or Mastercard and can be used worldwide. In the past, it was common thought that Discover cards were not widely accepted, but this is not the truth. Most Discover credit cards are backed by the Discover Bank, and are accepted virtually anywhere nationwide. However, outside of the United States, use of Discover credit cards may be limited.

Branch Locations

Capital One offers various banking options and has branch locations and ATMs available to customers. These locations are limited to the following states: Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. 

Discover has no physical branch locations, only offering services online. 

Depending on your needs and preferences, this may be a deciding factor for you between the two companies.