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

[Anonymous]

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

[Anonymous]

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!

[Anonymous]

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.

[OnTheRebound]

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

[Anonymous]

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

[Anonymous]

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@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.

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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!!!!

[Anonymous]

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@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.

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Why did you bother posting a reply?

[merc64]

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

[youdontkillmoney]

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@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

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^^^^^

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?!

[Anonymous]

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.