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Why would a credit card company proactively reduce apr on your credit card?

New Visitor

Why would a credit card company proactively reduce apr on your credit card?

Hello everyone! I am new to the forum and I have a question. I currently have the discover it card the secured version, and just a few days ago I received a letter from discover saying they are changing the minimum interest I would pay when carrying a balance so instead of $1 it would be .50. So just for craps and giggles I got online and asked a rep if I had any offers on my account and she said that there was an offer for a reduction of apr which would take me from 24.99% to 19.99%. Is this sort of thing normal when it comes to secured credit card and can I assume that my credit profile is looking more attractive to them? So more information I have had the account gor a full year and never missed a payment or was late. Thanks in advance gor any input.
Message 1 of 14
13 REPLIES
Contributor

Re: Why would a credit card company proactively reduce apr on your credit card?

This is my opinion.

 

Discover seems to love people who build credit. They will grow with you, and give you credit line increases and be your best buddy. Because Discover wants to be the only card in your wallet, but Discover isn't stingy, they know you like looking at other lenders.  So Discover will lower your APR as your scores go up, to make sure discover stays your number one.

 

So be nice to Discover, call Discover up every one in a while. Remember to use Discover when you go out on dates. Discover will treat you well.

Message 2 of 14
New Visitor

Re: Why would a credit card company proactively reduce apr on your credit card?

Thank you so much Kree for giving me some insight. I wasn't aware that secured credit cards can get better terms I thought you were just stuck until they unsecured you lol.
Message 3 of 14
Contributor

Re: Why would a credit card company proactively reduce apr on your credit card?

That is probably true with other secured cards, but not with Discover. Discover is special.  For full disclosure Discover just upped my credit limit to 17300 from a starting limit of around 800.  So maybe I'm a bit biased.

Message 4 of 14
New Visitor

Re: Why would a credit card company proactively reduce apr on your credit card?

Very nice! Congrats! I hope one day to see a limit like that on my discover card but until then I have to make sure that the credit I do have now I am taking very good care of.
Message 5 of 14
Regular Contributor

Re: Why would a credit card company proactively reduce apr on your credit card?


Why would a credit card company proactively reduce apr on your credit card?

 Is this sort of thing normal when it comes to secured credit card and can I assume that my credit profile is looking more attractive to them? 

 

To make you more comfortable with the idea of carrying a balance, and therefore more likely to pay them interest.  That's how they make their money.

 

It's not common for secured cards to get new benefits in general.  Usually, people will graduate to a regular card in order to make that kind of advancement in terms.


Message 6 of 14
New Visitor

Re: Why would a credit card company proactively reduce apr on your credit card?

Thank you Glen_M. That is what is so weird about it. I have no idea why they would do that and not unsecure me. So weird.
Message 7 of 14
Frequent Contributor

Re: Why would a credit card company proactively reduce apr on your credit card?


Kree wrote:

This is my opinion.

 

Discover seems to love people who build credit. They will grow with you, and give you credit line increases and be your best buddy. Because Discover wants to be the only card in your wallet, but Discover isn't stingy, they know you like looking at other lenders.  So Discover will lower your APR as your scores go up, to make sure discover stays your number one.

 

So be nice to Discover, call Discover up every one in a while. Remember to use Discover when you go out on dates. Discover will treat you well.


Dear Discover,

 

Discover... also Discover.

 

Discover your Discover as you Discover that which can be Discovered

 

Signed,

 

Discover.

In the garden since 11/15/17 = Last FICO Update: 12/07/17 = CL 23,800 = EX 660 = TU 667 = EQ 717 = Make credit great again!

Message 8 of 14
Contributor

Re: Why would a credit card company proactively reduce apr on your credit card?


TheCreditGame wrote:

Kree wrote:

This is my opinion.

 

Discover seems to love people who build credit. They will grow with you, and give you credit line increases and be your best buddy. Because Discover wants to be the only card in your wallet, but Discover isn't stingy, they know you like looking at other lenders.  So Discover will lower your APR as your scores go up, to make sure discover stays your number one.

 

So be nice to Discover, call Discover up every one in a while. Remember to use Discover when you go out on dates. Discover will treat you well.


Dear Discover,

 

Discover... also Discover.

 

Discover your Discover as you Discover that which can be Discovered

 

Signed,

 

Discover.


I don't know if discover is a girl or a boy, so I didn't want to use pronouns to offend Discover.

Message 9 of 14
New Visitor

Re: Why would a credit card company proactively reduce apr on your credit card?

Lol @ Dear Discover,

Discover... also Discover.

Discover your Discover as you Discover that which can be Discovered

Signed,

Discover.
Message 10 of 14