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Hi everyone,
So i applied for a new discover credit card and I found out that they gave me a 18%interest rate. I have a decent 770-780 credit score and usually get offers of 9-14%(I have 3 CC within that range). Honestly, I was hoping for the 11% rate but they gave me there highest. Should I just cancel it? I read it will be a bump in my score for a while but it will eventually go away. Any advice would be helpful. Thanks in advance.
Krazy---welcome to the forums!
It depends on your goals. If you are a PIF cardholder, the interest rate is not an issue. Over time you may be able to talk them down, but there are better alternatives to carrying at even 11%.
Many posters are now writing about Addison Avenue Federal Credit Union, their good customer service, and yes---their 5.24% Visa.
You may want to check into this card. Otherwise, if your PIF, the Discover rate should not affect you.
@krazy wrote:Hi everyone,
So i applied for a new discover credit card and I found out that they gave me a 18%interest rate. I have a decent 770-780 credit score and usually get offers of 9-14%(I have 3 CC within that range). Honestly, I was hoping for the 11% rate but they gave me there highest. Should I just cancel it? I read it will be a bump in my score for a while but it will eventually go away. Any advice would be helpful. Thanks in advance.
My guess is that you're going to see a lot of banks give higher APRs at approval in anticipation of the new credit card laws going into effect next year. I wouldn't take it personal.
If you PIF, or keep low UTIL, the APR is not significant. In addition, Discover is still one of the better cards in terms of rewards, customer service, and consistency.
thanks for the quick reply!
I tend to carry a balance more, as for talking interest rate down in the past I have been unsuccessful. I will definitely check out Addison Avenue federal credit union in the future but as for right now, I am still unsure of keeping it. If I were to close this recent Discover account how much will it affect my score and how long?
@krazy wrote:thanks for the quick reply!
I tend to carry a balance more, as for talking interest rate down in the past I have been unsuccessful. I will definitely check out Addison Avenue federal credit union in the future but as for right now, I am still unsure of keeping it. If I were to close this recent Discover account how much will it affect my score and how long?
I don't see any advantage to closing the card. You've already burned an inquiry and it will show as a new account. Just curious, could you share the CL given to you?
@krazy wrote:
I guess, there is no advantage to closing. The credit line was only 3,000 .(still student who barely works part time : / )
$3k CL from Discover for a student who barely works should be embraced, not closed. Keep it, use it, enjoy it.
@Anonymous wrote:
@krazy wrote:
I guess, there is no advantage to closing. The credit line was only 3,000 .(still student who barely works part time : / )$3k CL from Discover for a student who barely works should be embraced, not closed. Keep it, use it, enjoy it.
This is what I am leaning towards... thanks for your input.
@krazy wrote:
I guess, there is no advantage to closing. The credit line was only 3,000 .(still student who barely works part time : / )
Little income student 3K initial limit and you want to close because the interest rate is too high? The credit card companies are going to love you until they don't. Careful.