Discover card holders, check your bills. You may be one of 400,000 lucky members getting their interest rates significantly increased for no apparent reason.
We received a “Love Note” separately from our statement from Discover stating that our APR will be rising from 12.74% to 19.99% . While I do carry a small balance on the card sometimes, it has never been one that I use much because I have cards that are below 8% APR and still offer rewards. Now, my credit isn’t bad (744 FICO – just checked after getting off the phone with Discover). I have no past dues, never pay late, etc. I also noticed that the statement said “this decision to change your terms was NOT based upon information in your credit file”.
Bewildered, I called Discover and could not believe the explanation I got….
I was told approximately 400,000 cards were given this APR increase so that they “remain competitive” in the industry. Say what??? The representative had no explanation how raising my APR to the point where I would be determined to pay off the card and let it rot was going to help their bottom line though. I guess they are trying to make up for the third quarter 16% decline in revenues by strapping it to the backs of their consumers. Stupid move, but all too typical, I guess.
Jim F. – Frankfort, IL
If you’re affected by this rate raise, and threatening to move to another card doesn’t get the rate lowered back to normal, it’s time to shopping for a new credit card company with a better rate and initiating a balance transfer between the old and new cards. Bankrate’s credit card comparison tool is a great place to start.