topic Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying? in General Credit Topics

Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 00:11:50 GMT

I have recieved a letter from Discover offering to "reward" me for my many years of being a good CC customer by offering me a a personal loan of up to 25k at 6.99% to 18.99% I could certainly use this to pay down some higher rate cards but only if it came in at around 9.99% or less, and I feel like this might be a bit of a bait and switch with 3 hard pulls to offer me a high rate. My credit is 720-740ish on all 3 with no lates or derogs but some pulls. So my question is, has anyone applied for this? If so what was your score in relation to what rate you were offered. Thank you so much for taking the time to read this! -BG

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 00:20:56 GMT

I do want to mention I did do a google search, a search here and on CK and was only able to find people commenting on it with really positive things to say if they were approved with a low rate and really negative things to say if they were offered a bad rate. That is why I am asking you fine folks since we all keep a close eye on our scores. Thanks again!

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 00:46:47 GMT

It isn't bait and switch. All loan providers advertise an interest rate range. Where you fall in that range is based on your individual credit worthiness.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

OnTheRebound — Tue, 07 Apr 2015 04:50:39 GMT

I recieved that same offer a couple weeks back. Went straight into the trash can since it is of no use to me.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 05:03:55 GMT

They offered us a refi on our 3 yr old home. We're still holding at 4% fixed.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 13:30:28 GMT

@Anonymous wrote:
It isn't bait and switch. All loan providers advertise an interest rate range. Where you fall in that range is based on your individual credit worthiness.

Maybe I wasn't specific enough, I am just looking for some people who have applied and what their scores were and what their corrosponding rates were so I don't take 3 hard pulls and get a bad rate offer. I am well aware that they offer a range and that it is based on my credit worthiness, that is the whole reason I made this post!!!!

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 13:31:51 GMT

@OnTheRebound wrote:
I recieved that same offer a couple weeks back. Went straight into the trash can since it is of no use to me.

Why did you bother posting a reply?

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

merc64 — Tue, 07 Apr 2015 16:02:03 GMT

Hi, although I can't answer your answer specifically I would like to point out that Lending Club and Prosper both offer these type of loans. In addition, they will do a soft pull during your application process which will give you an applicable interest rate for your specific loan amount. I recently did this and although I did not choose to get the loan the process was easy. hth

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

youdontkillmoney — Tue, 07 Apr 2015 19:05:31 GMT

@Anonymous wrote:
I have recieved a letter from Discover offering to "reward" me for my many years of being a good CC customer by offering me a a personal loan of up to 25k at 6.99% to 18.99% I could certainly use this to pay down some higher rate cards but only if it came in at around 9.99% or less, and I feel like this might be a bit of a bait and switch with 3 hard pulls to offer me a high rate. My credit is 720-740ish on all 3 with no lates or derogs but some pulls. So my question is, has anyone applied for this? If so what was your score in relation to what rate you were offered. Thank you so much for taking the time to read this! -BG

^^^^^

I don't like Discover Loans, I got a mailer and called to see what the rate was and I have impecabble credit since 1991, no lates or baddies...ever. They offered some rate above 12%...if the lowest rates are for the best creditworthy folks, who am I?!

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Tue, 07 Apr 2015 23:29:13 GMT

Since your credit score is 720+ with no baddies, skip the loan and go for a 0% (due to fees, effective rate may be a few percent) balance transfer promo. Personal loan even at 9.99 (basically 10%) isn't all that great based on your credit score / profile.

While it's frustrating to not get the exact answer you're seeking, consider this ... why didn't Discover tell you straight up what your rate would be?

Back in my better credit days with similar scores to yours, I'd get many loan mailers with range / little detail, but also received some with a specific rate and term. I'd say if focused on Discover, call them and explain you're seeking to transfer balance(s) from higher interest card(s) and what can they offer. Loan may not be the way to go; balance transfer could be better, but beware of the fees, which can be substantial (ie. 3% of balance with no limit), though can often be negotiated.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Wed, 08 Apr 2015 03:26:56 GMT

@Anonymous wrote:
Since your credit score is 720+ with no baddies, skip the loan and go for a 0% (due to fees, effective rate may be a few percent) balance transfer promo. Personal loan even at 9.99 (basically 10%) isn't all that great based on your credit score / profile.

While it's frustrating to not get the exact answer you're seeking, consider this ... why didn't Discover tell you straight up what your rate would be?

Back in my better credit days with similar scores to yours, I'd get many loan mailers with range / little detail, but also received some with a specific rate and term. I'd say if focused on Discover, call them and explain you're seeking to transfer balance(s) from higher interest card(s) and what can they offer. Loan may not be the way to go; balance transfer could be better, but beware of the fees, which can be substantial (ie. 3% of balance with no limit), though can often be negotiated.

Thanks, good advice for sure! I have been thinking about another card at 0%, however that may impact my credit with a bit of a ding for a new young account. My main reason for investigating this loan was that they were offering a large ammount (up to 25k) which would allow me to consolidate all of my CC debt and then some, while I would expect any 0% CC I would be approved for would have a limit of only around 4k-5k based on my past experience.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Wed, 08 Apr 2015 03:54:46 GMT

Not suggesting another card. I'm presuming, since Discover is offering up to $25K, you currently have other cards with relatively high credit limits of say $10K or so. Some of my friends, who have good scores and prime cards, get convenience balance transfer check offers in the mail all the time. I used to too. They're a good indication the card issuer is willing to extend cheap credit - call and see what they can do.

If $10K or whatever isn't enough and/or very concerned about utilization (while carrying a large balance on any one card isn't desirable, if total util of all cards combined is under 30%, credit score drop may be minimal; less likely to spook other creditors) and/or need a longer term than a year or two, then a loan may be the way to go.

If going loan route, consider a bank / credit union not credit card. But be wary of taking out a home loan - while that can easy to get, rates are very good, and interest may be tax deductable, it can lead to ever increasing debt; avoiding temptations of running back up the cards again.

Hope this helps.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

takeshi74 — Wed, 08 Apr 2015 12:01:45 GMT

@Anonymous wrote:
Maybe I wasn't specific enough, I am just looking for some people who have applied and what their scores were and what their corrosponding rates were so I don't take 3 hard pulls and get a bad rate offer. I am well aware that they offer a range and that it is based on my credit worthiness, that is the whole reason I made this post!!!!

What you're asking for is clear but CAPTOOL was pointing out that you're misusing "bait and switch" since your credit determines what you qualify for. If you're well aware of that then don't use bait and switch. You'll only find what you qualify for after they perform a hard pull.

Re: Discover Personal Loans. Bait and Switch? Anyone have experience applying?

Anonymous — Wed, 08 Apr 2015 13:55:16 GMT

In all of my research for this loan I have not come across anyone who has been able to get the 6.99 rate advertized in the literature. Even those with 800+ credit scores. I think that qualifies as bait and switch as you waste 3 hard pulls just to be told your rates are going to be too high to do you any good.

@takeshi74 wrote:
What you're asking for is clear but CAPTOOL was pointing out that you're misusing "bait and switch" since your credit determines what you qualify for. If you're well aware of that then don't use bait and switch. You'll only find what you qualify for after they perform a hard pull.