02-07-2013 10:14 PM
Well I just signed up for the Discover it, I figured it was time to get my second card. First some background then I'll get to my question. Currently according to the Discover application my FICO score is 739. I am 22, and a full time student. I had my first credit card with a co-signer at 18, since then I have closed that card (only to remove the co-signer) and have had the same card from my credit union with a $1500 limit and a 9.5% APR. This card is also a rewards card. I have also had a car note (paid off over a year ago) plus student loans so I do have some established credit. I just signed up for the Discover it and the credit limit given was $2000, which I have no problem with, that issue is that I feel the interest rate of 18.99% APR just seems insainly high. I was looking for a cash rewards card and I also considered the AMEX and the Chase Freedom, but decided on the Discover from what I had read and the features they offered. I am enjoying the card, and so far the service has been excellent, but I'm worried that the interest rate is way to high. For reference my younger sister, with less credit history (note neither of us have missed a payment) recieved a lower inerest offer from an AMEX Rewards card. So, my question is does the 18.99% seem too high for my FICO score, and if so what is the best way to go about asking for the rate to be lowered.
02-07-2013 10:30 PM
02-07-2013 10:33 PM
02-07-2013 10:52 PM
Congrats on the approval!
I wouldn't worry too much about the APR. Just be careful and always pay in full, and if you need to carry a balance, do so on your credit union card. Keep in mind that the lowest APR on this card is 10.99% so your credit union card was always going to be a better APR, no matter what. Also, APR isn't reported to the credit bureaus so it has no impact on your credit score.
As you build more revolving credit history, you'll soon get the best rates available on all your cards.
02-07-2013 11:26 PM
High APR is associated with thin file or new to credit. Discover tends to give high APR because of rewards and no to low fees of certain features this card offers. In general the big banks have high interest rates for rewards cards. CUs like PenFed offer low interest and great rewards. Key word CU because they can do this.
Discover offers a lot of promo rates through out the life of the card. Which they will offer you on your CC home page
Also congrats on your approval.
02-08-2013 08:41 AM
Thank you for the pointers. I have a good habit of paying the entire balance off each month, but life happens and I just thought that rate seemed awfully high. I'll live with it.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.