topic Re: Disco APR Reduction Question in Credit Cards

Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 04:34:27 GMT

So after seeing many people post about successful APR reduction I thought I'd go chat with them and ask for one. My account has been open 8 months and I have a 23.49% APR.

They said since it's been under a year since my account was opened they can't do an apr reduction. Just wondering if anyone has gotten one before 1 year or that's just something they won't consider until a year is up?

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 05:15:35 GMT

@Anonymous wrote:
So after seeing many people post about successful APR reduction I thought I'd go chat with them and ask for one. My account has been open 8 months and I have a 23.49% APR.

They said since it's been under a year since my account was opened they can't do an apr reduction. Just wondering if anyone has gotten one before 1 year or that's just something they won't consider until a year is up?

Is your account stil in the 0% introductory period? If yes, that's probably why they can't reduce your APR.

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 05:25:16 GMT

No I didn't get one.

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 05:27:25 GMT

@Anonymous wrote:
No I didn't get one.

Was this originally a secured card?

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 05:47:24 GMT

Yes

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 06:05:39 GMT

@Anonymous wrote:
Yes

This may be why you have to wait a year before requesting an APR reduction. I'm not familiar with Discover's secured card/upgrade policy. Hopefully, someone will be able to chime in with more insights.

On the bright side, your card is almost a year old so a reduction is on the horizon. Good luck!

Re: Disco APR Reduction Question

austinguy907 — Wed, 12 Apr 2017 06:24:32 GMT

Can't change the terms of an account in the 1st year due to CARD Act.

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 07:26:33 GMT

I don't think you can do it the first year of you having the card, even with an unsecured one (that is what I remember a CSR telling me via secure chat). However, once it is year old, they are very flexible with lowering the APR in my experience. Just had mine reduced from 17.5% to 16% after 14 months of having the card. They also gave me the option of a 12 month 0% period, but I chose the permanent reduction.

Re: Disco APR Reduction Question

CreditInspired — Wed, 12 Apr 2017 12:31:53 GMT

I don't know about Card Act. I opened my CitiDC in Dec 2016 @ a ridiculous 23.49% interest. I am still in the 0% promo period. Thanks to other MyFICOers, I reduced this APR through chat 4 different times and my new rate is 14.74%.

Re: Disco APR Reduction Question

CreditCuriosity — Wed, 12 Apr 2017 13:07:58 GMT

@austinguy907 wrote:
Can't change the terms of an account in the 1st year due to CARD Act.

Don't believe card act has anything to do with APR being lowering it.. Where-as it stops lenders from putting an AF on or charging higher feeds within the first year when what was signed up for among other things... Such as you can't PC from a 0 AF card to a 95$ card, but APR reductions I believe are fair game. With that said Discover I believe has a internal policy nothing to do with the card act that you can't ask for a lower APR prior to a year where-as Amex and other cards I have got my APR lower before a year time frame.

Re: Disco APR Reduction Question

Anonymous — Wed, 12 Apr 2017 13:22:13 GMT

@CreditCuriousity wrote:
@austinguy907 wrote:
Can't change the terms of an account in the 1st year due to CARD Act.
Don't believe card act has anything to do with APR being lowering it.. Where-as it stops lenders from putting an AF on or charging higher feeds within the first year when what was signed up for among other things... Such as you can't PC from a 0 AF card to a 95$ card, but APR reductions I believe are fair game. With that said Discover I believe has a internal policy nothing to do with the card act that you can't ask for a lower APR prior to a year where-as Amex and other cards I have got my APR lower before a year time frame.

The wording at least as I read it in the below link by MF is somewhat confusing as it does say interest rates must remain the same for a year. However, given that posters, as indicated above, have received lower APRs during the first year, it appears that they can be lowered, just not raised.

When you open a new account, your interest rate must stay at the opening rate for at least 12 months.

http://ficoforums.myfico.com/fico/attachments/fico/creditcardact/1/1/Credit%20CARD%20Act%20and%20new%20FHA%20rules.pdf

Re: Disco APR Reduction Question

joltdude — Wed, 12 Apr 2017 13:20:45 GMT

I had a thought.... it could be how Discover interprets complying with the CARD act.... as changing APR IS changing the initial terms in the first year..

Remember they are somewhat new to secured cards..... and most of their nonsecured customers usually have a promo period for the first year.... where not changing APR is a pretty standard internal policy ..... Just wait out the year and then ask.... not much you can do about it...

-J