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New Visitor
Posts: 2
Registered: ‎02-07-2013
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New Card Discover it

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. 

 

 

Thanks, Kyle

Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: New Card Discover it

18.99% is normal for a rewards card. Here's the thing: don't carry a balance. Don't pay interest. That's just a good financial rule for life. Paying interest almost always negates any rewards earned, which makes a rewards card useless. If you are looking to carry a balance, you should reevaluate your spending habits and/or find a different credit card.

In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
0

Re: New Card Discover it

When I say different, I mean non-rewards. Like the Barclays Ring or Chase Slate.

Sorry if any of that sounded harsh. Just don't worry about the APR if you plan to use the card properly. You can always ask for APR reductions if you feel that strongly about it. Just be ready for a "no" answer.

In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
Contributor
Posts: 83
Registered: ‎12-24-2012
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Re: New Card Discover it

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.

US Bank Cash+ -- Chase Freedom -- Citi Dividend Platinum Select (in 45-day wait period for Dividend Mastercard World Elite:smileyhappy:) -- AMEX BCE
Valued Contributor
Posts: 1,524
Registered: ‎08-17-2008
0

Re: New Card Discover it

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.


$100K in Credit
Last Credit Card App: 11/16/13
New Visitor
Posts: 2
Registered: ‎02-07-2013
0

Re: New Card Discover it

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.

 

Thanks, Kyle

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