Discover APR Reduction Counter Offer

[C6Guy]

So I'm sitting at the dread 22% interest rate with my discover it. I had it for 10 months and was NOT approved with the introductory terms. So today I call to see if they could offer me an apr reduction and the rep told me they couldn't but they could offer me 0% on new purchases for a year. Looks like my Discover IT will be getting mad use again

[CreditMagic7]

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@C6Guy wrote:
So I'm sitting at the dread 22% interest rate with my discover it. I had it for 10 months and was NOT approved with the introductory terms. So today I call to see if they could offer me an apr reduction and the rep told me they couldn't but they could offer me 0% on new purchases for a year. Looks like my Discover IT will be getting mad use again

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They been doing a lot of that of late i noticed. Gonna take my turn after i PIF current balance when i'm done giving them more spend this month LoL

[C6Guy]

Oh yea, from what I think all they want is for the client to use them well and give them time. I'm still not thrilled having the higher apr since I have a working theory that the approval algorithms take in to account current aprs as part of the equation. But for now 0% financing will do me well! Hope more people call in and maybe they'll get a nice treat too!!

[longtime_lurker]

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@C6Guy wrote:
Oh yea, from what I think all they want is for the client to use them well and give them time. I'm still not thrilled having the higher apr since I have a working theory that the approval algorithms take in to account current aprs as part of the equation. But for now 0% financing will do me well! Hope more people call in and maybe they'll get a nice treat too!!

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I mean I hate to break your theory, but other creditors have 0 idea what your APR other places. Discover has no idea (and probably doesn't care) what rate billy bob's best bangin' rater is. As I and other posters discussed on another thread last night, the apr is part of a bank's risk mitigation. Discover's algoritm might rate you high risk, and you could then apply at Citi and be offered lowest available. 

[CreditMagic7]

In all fairness to Discover my profile at the time of their preapproval mailer was 22.99% worthy

But not anymore

[Themanwhocan]

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@C6Guy wrote:
Oh yea, from what I think all they want is for the client to use them well and give them time. I'm still not thrilled having the higher apr since I have a working theory that the approval algorithms take in to account current aprs as part of the equation. But for now 0% financing will do me well! Hope more people call in and maybe they'll get a nice treat too!!

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What approval algorithms?

[C6Guy]

I would assume that all credit card companies have a specific formula to qualify individuals. My idea is that said formulas look at your credit reports and extrapolate information from it. For the most part payment history etc. average credit lines and I think the aprs are also factored in. Don't have proof of it. But it only makes sense to offer an apr at either a lower or equal level to your competitors. Of Course this is based on observation I made from my own case. Another poster said it's based on their own internal risk assessment which I'm sure is part of it. But for the most part I think what competitors are charging at least for me if I was trying to compete would be something I would use to determine a competitive interest rate.

[longtime_lurker]

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@C6Guy wrote:
I would assume that all credit card companies have a specific formula to qualify individuals. My idea is that said formulas look at your credit reports and extrapolate information from it. For the most part payment history etc. average credit lines and I think the aprs are also factored in. Don't have proof of it. But it only makes sense to offer an apr at either a lower or equal level to your competitors. Of Course this is based on observation I made from my own case. Another poster said it's based on their own internal risk assessment which I'm sure is part of it. But for the most part I think what competitors are charging at least for me if I was trying to compete would be something I would use to determine a competitive interest rate.

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But see why would Barclays offer me 13.99 on SM, me use it heavily, PIF, and perfect payment history for 13 months, then when I app for US it was 24.99

This isn't even looking at outside bank info, this is something they definitely had access to. They judged me to be a higher risk than previously.

[C6Guy]

I wouldn't be able to answer your question as two differing aprs with the same card company if you're record remained entirely the same. However if you applied for newer cards or if your inquiries had gone up dramatically or if your utilization had gone up that in itself would lead for a high apr. the risk of default being higher with any of those metrics showing. However say the record is clean and no apps have been done and the record is the same from what I have seen wjth my cards most companies will be in the same ape range. I'll eventually cut older rebuilders and when I have an app spree I'll be able to test if that's the case. Of course like I said it's just conjecture.

[Themanwhocan]

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@C6Guy wrote:
I would assume that all credit card companies have a specific formula to qualify individuals. My idea is that said formulas look at your credit reports and extrapolate information from it. For the most part payment history etc. average credit lines and I think the aprs are also factored in. Don't have proof of it. But it only makes sense to offer an apr at either a lower or equal level to your competitors. Of Course this is based on observation I made from my own case. Another poster said it's based on their own internal risk assessment which I'm sure is part of it. But for the most part I think what competitors are charging at least for me if I was trying to compete would be something I would use to determine a competitive interest rate.

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The problem is that APR is not on your credit reports. So only you and the company that issued your card know that value.