Discover Interest Rate Reduction

[TrueGeminiNC]

Hi All,

I updated my address on my Discover card from IL to NC this week.  Thereafter, I realized that it was time to request another interest rate reduction.  The request was approved.  My interest rate was reduced by ~ 3 basis points (20.24% to 17.24%).  

The representative suggested that she was even shocked.  She said that she has never seen such a big drop.  I am now curious and wondering if location or residential address has anything to do with credit decisions.  

Not much has changed with my overall credit other than my newest accounts AMEX, BOA and Discover have all aged a little more though this is not reflecting in my credit score which is still hovering around ~700.  All accounts are approaching 2 years old.  The Discover card will be 2 years old in April while the AMEX and BOA will be 2 years sometime around June.

Also - i should add - I rarely use the Discover card and when I do, I have always paid in full.  With the exception, back in December, I received a 12 month 0% balance transfer promotion which I took advantage of.  I moved 3K from my Citi account to the Discover card.

Thoughts?

[chalupaman]

I'm not really sure but that makes me excited for April to get here so I can request my APR reduction. That's when I will have had mine for a year. My APR on the card right now is 18.99%.

[TrueGeminiNC]

---

@chalupaman wrote:

I'm not really sure but that makes me excited for April to get here so I can request my APR reduction. That's when I will have had mine for a year. My APR on the card right now is 18.99%.

---

It seems almost strange.  When I opened the account, the rate was really high.  The few interst rate reductions that I did get every 6 months was relatively small and a fraction of a percentage point.  I was shocked to get a 3 point reduction.

[flan]

---

@TrueGeminiNC wrote:

Hi All,

I updated my address on my Discover card from IL to NC this week.  Thereafter, I realized that it was time to request another interest rate reduction.  The request was approved.  My interest rate was reduced by ~ 3 basis points (20.24% to 17.24%).  

The representative suggested that she was even shocked.  She said that she has never seen such a big drop.  I am now curious and wondering if location or residential address has anything to do with credit decisions.  

---

300 basis points, not 3. 

Address shouldn't have anything to do with credit decision, since in many areas, address is pretty good proxy for race, which is a protected class.  It's more likely that the discover computer system thinks that giving you a 3% drop will make the more money.  It might think that because the new rate is in line with what you'd get somewhere else with your current credit file, and having an uncompetitive rate means you won't use their card.  It might because if you get a lower rate, you're more likelyt to carry a balance.  

[Anonymous]

Just got an APR reduction via chat. 17.99 to 16.24, account over 2 years old with 3k limit.

[cottoncrown]

I've had two, one from 22.99 to 20.24 and then last week from 20.24 to 17.24. Perhaps there are teirs they follow for reductions?

[TrueGeminiNC]

---

@cottoncrown wrote:
I've had two, one from 22.99 to 20.24 and then last week from 20.24 to 17.24. Perhaps there are teirs they follow for reductions?

---

Interesting.  My APR reductions were similar to yours.  I wonder what the next reduction will be.  LOL

[NRB525]

I asked for an APR reduction last summer, and went from 19.99 to 18.24. Had the card about 2 years at that point, I had not asked for any reduction prior. They initially sent me a note they could not reduce the APR, then did reduce the APR.

[ibmrad7]

I am sitting on 14.99. Do you folks think I can go any lower?

[chwebb1]

---

@chalupaman wrote:

I'm not really sure but that makes me excited for April to get here so I can request my APR reduction. That's when I will have had mine for a year. My APR on the card right now is 18.99%.

---

You'll probably get 17.24%. I also started at 18.99% and that's what they reduced me to. I still have quite a bit of work to do to get it down to the minimum APR of 10.99%.