Tuesday, September 27, 2022

What Is The Interest Rate For Discover Credit Card

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For Flat Rate: American Express Simplycash Preferred*

What Are Credit Card Interest Charges? | Discover | Credit Resource Center

If you want a cash-back credit card but dont want the fuss of figuring out how the spending categories work, consider the American Express SimplyCash Preferred card. You get a flat rate of 2% cash back on everything you buy, periodwith no limit to how much you can earn. Plus, for new members, theres a juicy 10% cash-back promotional offer for the first four months . Additional cards are free , which will appeal to couples or families who want to combine their reward earnings. The drawback to be aware of is that rewards can be redeemed only once per year.

  • Annual fee: $99

How Does A Discover Credit Card Work

Discover credit cards operate just as you would expect. The issuer offers credit cards for every type of credit and allows you to prequalify with no harm to your credit. You can apply online, over the phone, or by responding to a prescreened offer in the mail.

The application process is quick and should provide you with a decision instantly. If you are accepted, Discover will expedite the shipment of your new rewards card so it arrives within five days.

The credit limit on most Discover unsecured credit cards is determined by your credit history, but the secured cards limit depends on the amount of your security deposit. The two student credit cards do not require you to have any credit history. Your credit limit establishes how much you can charge on your card, withdraw in cash advances, and allocate to balance transfer offers.

As with virtually all credit cards, Discover cards have a grace period of at least 23 days between the statement closing date and payment due date. Pay your full balance before the end of the grace period to avoid interest charges.

If you prefer, you can finance your purchases over multiple billing periods. Just be sure to pay at least the minimum amount by the due date to avoid late fees . The APRs charged by Discover for carrying a balance across billing periods are very competitive with those of rival credit card companies.

Other Credit Card Interest Rate Facts To Keep In Mind:

  • Separate interest rates and charges can apply to cardholders cash advance balance and balance transfer balances. Furthermore, many credit cards will impose a higher penalty interest rate when cardholders fail to make payments.
  • Most credit card variable interest rates can change with the Prime Rate. The Prime Rate is an interest rate that is three percentage points above the federal funds rate, which is set by the Federal Reserve Bank. Because this interest rate can increase, cardholders should be careful not to incur more interest charges than they can comfortably pay each month.

Remembering these simple facts about credit card interest will empower you to make the best financial decisions for yourself and your family. Use Discovers to estimate the interest and payoff time for any credit card.

Originally published February 27, 2015.

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

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Bankrates Takeis The Discover It Cash Back Card Worth It

The Discover it Cash Back credit card is perfect for people who can adjust their spending to take advantage of Discovers cash back calendar each quarter. Its high-earning rewards scheme maximizes Discovers cash back match bonus, potentially making it one of the best first-year reward offers for a no annual fee card. The Discover it Cash Back carries perhaps the lowest rates and fees youll find, and its accessible with just a good or higher credit score .

Although isnt the most feature-rich or newcomer-oriented card in its class, the Discover it Cash Back cards focus on accessibility, affordability and excellent customer service give it all the hallmarks of a great first rewards card for those who dont mind putting in a little elbow grease to make it shine.

Compare The Best Discover Credit Cards

Why is my credit card interest rate so high? â bobsullivan.net
Cash back doubled first year 0% APR on purchases for 14 months Unlimited 1.5x rewards
Cash back doubled first year 0% APR on purchases for 12 months Unlimited 1.5% cash back
Cash back doubled first year 0% APR on purchases and balance transfers for 14 months 5% cash back on quarterly rotating categories 1% all else $0
Cash back doubled first year 0% APR on purchases and balance transfers for 14 months 5% cash back on quarterly rotating categories 1% all else Discounts on select NHL purchases $0
Best for Gas and Dining Cash back doubled first year 0% APR on purchases and balance transfers for 14 months 2% cash back on gas and dining 1% all else $0
Best Student Cash back doubled first year 0% APR on purchases for 6 months 5% cash back on quarterly rotating categories 1% all else $20 per year based on grades $0
Cash back doubled first year 0% APR on purchases and balance transfers for 14 months 2% cash back on gas and dining 1% all else $0

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Heres How To Get Discover To Lower Your Interest Rate:

  • Make sure you have your account details ready: Before you reach out to Discover, youll need your account or card number, and a refresher on your history with Discover. Your odds for a rate reduction generally increase the longer youve had your Discover card, so make sure you have that information on hand. You should have some kind of reason why Discover should give you a lower APR, whether youre trying to pay down your debt or youre considering an expensive future purchase. And its good to decide whether or not youre prepared to cancel your Discover card to push along a negotiation. It can help your case, in some instances.
  • Call the Discover customer service line at : listen through the service menu, and the automated voice will ask what you need. Just say, I want to lower my APR, and youll be directed to an account manager.
  • Reach out to Discovers live customer service chat through their website: go to Discover’s website and navigate to the Card Help Center through the Help & Resources link, found at the top right of the main page. Scroll down to the Customer Service panel on the left side, then click Contact Us and select Message an Agent. From there, simply say youd like to lower your interest rate.

How Much Should I Pay

  • Statement balance: The amount you owed when your last billing cycle ended, due by the due date
  • Current balance: The total amount you owe, which is usually your previous statement balance minus any payments that youve made since it was generated, plus any new purchases youve made since your last statement was generated
  • Minimum due: A minimum monthly payment your credit card company is willing to accept to not mark your account as past due

We recommend you pay the statement balance by the due date every month. That way, youll avoid credit card debt and interest. Most credit card companies let you connect checking accounts to set up automatic payments. This makes it easy to pay the full statement balance each month. Just remember to review your statement to check for fraud or billing errors. We cover avoiding interest more on the next page. Basically, its easy to avoid, as long as you pay on time and in full, and avoid cash advances.

Even though your current balance may be more than your statement balance, most credit cards have a grace period on new purchases. That means you dont have to pay interest on new purchases right away, or ever, as long as you pay off your full statement balance by the due date each month.

If you want to learn all about how paying a credit card bill works, grace periods, and everything mentioned in this section, read this guide.

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Is It Worth It To Get A Discover Card

If youre going to make the effort to obtain a new credit card, Discover cards are among those worth your time and effort. We are fans of Discovers honest approach to credit cards, with its emphasis on customer satisfaction and the elimination of annual fees.

Moreover, these cards have low fees, good rewards, and the famous unlimited Cashback Match. As weve often stated, getting a new Discover card is a great strategic choice when you plan to spend big sums during the first year of ownership. Your end-of-year Cashback Match may be worth thousands, meaning you are effectively making your Year One purchases at a significant discount.

The Discover it® Miles card, with its first-year Mile-for-Mile Match for new card membership, is rare among competing cards in that it offers travel benefits without charging an annual fee or foreign transaction fee. Discover is also unique among leading competing cards in offering two student credit cards.

In other words, when asked Is Discover a good credit card?, our answer is that its a solid choice with good perks that we have no trouble recommending to all consumers looking for their first or next credit card.

Several Of Discovers Credit Cards Offer An Introductory Balance Transfer Apr But A Couple Of Cards Are Better Than The Others If You Need To Pay Down Debt: The Discover It Cash Back And The Discover It Chrome

How To Calculate Credit Card Interest Rates?

While the Discover it® Cash Back and Discover it® chrome cards are perhaps best known for their cash back rewards offers, each comes with an intro balance transfer offer for new cardholders that may help you save on interest while trying to pay off credit card debt.

Still, there are several risks to using rewards cards to pay down debt. Read on for our look at these cards offers, Discovers other options and some tips on how to make a balance transfer work for you.

Also Check: Cabelas No Interest Financing

Best Discover Cards For Cash Back

Cash back! The words lilt off the tongue, especially when you collect the unlimited Cashback Match on all the cash rewards posted during the first year after opening the account.

$0 Good/Excellent

When choosing a cash back card, its best to look at your finances and determine the spending categories you frequent each month. This will get you the most bang for your buck so to speak if that category is an available rewards category. Keep in mind each card has its own limitations when it comes to earning rewards please see applicable terms. Plus, with these cards above, you can take advantage of introductory offers as well as other generous benefits that reward you for choosing to carry a Discover card.

Best For No Credit: Discover It Secured

Discover will match all the cash back you’ve earned at the end of your first year, automatically.

Allows upgrade to unsecured card Yes
10.99% for 6 Months
Rewards Earning Rate Earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases.
  • Why We Chose This Card:
  • Pros & Cons:

We selected the Discover it Secured card as the best card option from Discover for consumers with no credit or bad credit, as it considers applicants with those credit profiles and its security deposit requirement starts as low as $200. With on-time payments, Discover will automatically review accounts for eligibility to graduate to a non-secured card in as little as eight months.

  • Outstanding rewards for a secured credit card

  • Cash-back is matched at the end of the first year

  • Discover reviews your account after a period of responsible usage to determine eligibility for transition to an unsecured card

  • No annual or foreign transaction fees

Read the full Discover it® Secured credit card review

Recommended Reading: What Is The Annual Fee For First Premier Credit Card

Best For Travelers: Discover It Miles

Discover will match all the cash back you’ve earned at the end of your first year, automatically.

Earn unlimited 1.5 miles for every dollar spent.
INTRO PURCHASE APR
  • Why We Chose This Card:
  • Pros & Cons:
  • Highlights:

Youll get 1.5 miles for every $1 you spend with this card, and redeeming them is as simple as requesting reimbursement after making a travel purchase. The cards atypical sign-up bonus can be quite valuable, too. At the end of your first year, Discover will double the miles youve earned. However, while the ongoing purchase APR may be quite low, never carry a balance if you can help it.

  • Miles can be redeemed as travel statement credits or cash back

  • Generous, unconventional bonus doubles your first year earnings

  • Competitive 0% purchase APR offer

  • Miles cant be transferred to airline loyalty programs

  • No travel insurance benefits

  • Card acceptance may vary compared to Visa or Mastercard

  • Earn unlimited 1.5 Miles for every dollar spent on all purchases.
  • Only Discover automatically matches all the Miles you’ve earned at the end of your first year.
  • Use your card to pay for airfare, hotels, rideshares, and more with no blackout dates. Then easily redeem miles as a statement credit for travel or get cash.
  • No annual fee.

For Bonus Categories: Cibc Dividend Visa Infinite

How To Find The Cheapest Interest Rate On A Credit Card

On top of its standard 1% earn rate, the CIBC Dividend Visa Infinite card earns accelerated cash back rates in a diverse range of five common spending categories. It earns 4% cash back on both groceries and gas , and you can earn twice the cash back on dining , daily transit , and 2% on recurring bills . And its a standout compared to other cash back cards, as you can redeem whenever you like, as opposed to just once a year. Cash back redemption is done in increments of $25.

  • Annual fee: $120
  • Welcome bonus: 10% cash back for all purchases for first four statement periods
  • Earn rate: 4% cash back on gas and groceries 2% on transportation, dining and recurring bills and 1% on everything else
  • Income requirement: $60,000 or $100 as a household
  • Additional benefits: Mobile device insurance emergency travel insurance concierge service Visa Infinite Dining and Wine Country program, save up to $0.10 per litre at participating Chevron, Ultramar and Pioneer gas stations when you link your card with Journie Rewards.

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Discover Vs Wells Fargo

You should pick Discover if you need a better interest rate and go with Wells Fargo if you find it impossible to do your banking without an actual bank to visit. While Discover’s fees and rates are far more customer-friendly, some people might find it difficult to manage their money without the help of branch locations and face-to-face service.

It’s somewhat difficult to make a useful comparison between Discover, an online bank, and Wells Fargo, one of the largest brick-and-mortar banks. Despite the rapid growth of online banking, most Americans still prefer to have at least some access to a physical location. While Discover’s fee policy is much more cost-effective, it’s hard to dismiss the many advantages in convenience and accessibility you pay for at a national brand like Wells Fargo.

Wells Fargo also holds the advantage for any small business owners, thanks to its extensive selection of small business loans and deposit accounts. In general, you’ll find that traditional banks offer a much wider range of financial services than online companies like Discover, including loans, mortgages and retirement accounts. If your financial situation requires more comprehensive management, a bank like Wells Fargo may be preferable.

How To Decide: What Is The Best Credit Card For Me

To decide which credit is the best for you, you need to look at your priorities. If you normally carry a balance or you want to reduce your debt, then a low-interest or balance transfer card should be the only types you consider.

People who always pay off their full balance every month need to decide whether a travel or cash-back card makes more sense for them. Travel cards can offer lucrative rewards, but if you dont like to travel, theres no point in you getting a travel credit card. If this sounds like you, then a cash-back card may be the way to go.

Now that youve got your category of card selected, take a look at the earn rate, additional, benefits and which type of points you earn for each card. If you happen to spend a lot on gas and groceries, then look for a card that has a high earn rate for those categories.

The annual fee should also be a consideration in your decision making, but if you think youre getting good value out of your additional benefits and youre making more back than you paid with the fee, then it shouldnt be a big deal.

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Discover It Cash Back Vs Chase Freedom Flex

As far as rotating category cards go, the Chase Freedom Flex may be the best on the market. Choosing between the Discover it Cash Back and the Freedom Flex may seem like a no-brainer thanks to the Flex cards additional year-round 3 to 5 percent back categories, superior benefits and ability to improve reward value toward travel with a Chase Sapphire card, but there are a few other elements at play you should consider.

The Freedom Flex does have an extra month of intro 0 percent purchase and balance transfer APR , but the Discover it Cash Back has minimal fees, including a much lower interest rate: 11.99 percent to 22.99 percent versus 14.99 percent to 23.74 percent . Unlike the Freedom Flex, the Discover also doesnt charge foreign transaction fees, a penalty APR or a first-time late payment fee . Its also worth noting that Chase only announces its 5 percent quarterly categories a month or so ahead while Discover provides its bonus categories the year before. Discovers cash back match offer also has the potential to be a lot more rewarding than the Freedom Flexs $200 cash sign-up bonus .

Granted, the Chase Freedom Flex will provide more value for most cardholdersespecially if you already have a Chase rewards card. However, the Discover it Cash Back may be wiser for cardholders that may want lower rates and fees for emergency expenses, more predictable rotating categories or a better-rated customer service experience .

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