Hi all Just to let you know... I have a Discover Platinum with 14.9 APR. Yesterday I got a nice letter from them stating that they will increase the APR to 18.9. I suppose they decided I'm not worth having as customer, since I always paid it in full. Now I'm not sure what should I do... I can close it instantly, but I think I'll lose my cashback if I do that (it's about $200). I can wait until July to get the cashback, and then close it or I can keep it and pay it off every time like I did all this time. The later would be the rational choice, but I'm too pissed off right now to be rational. Moral of the story: if you don't revolve you're not valuable...
If you always pay in full it really doesn't matter what the APR is... If you were determined to cancel it's not too bad a stretch to wait for July. For $200 I think its worth it.
Sorin, If you're not revolving, then the apr doesn't really affect you. I imagine a discover account looks good on your report. I'd keep it for gas and stuff. And of course that cash back.
It's very true if you don't carry a balance then the APR doesn't matter however it is still the principle of the matter I would think. You are a good customer and yet still they jack up your rates, I would be very pissed as well whether I paid in full or not.
Mom, you're right, it's the principle... I will probably keep the card, but I won't revolve anything on it, ever. I'm curious to see if they will further jack it up or maybe they'll even close my account, who knows ... Discover, if you read this, I will rather revolve on my Providian card than on yours, since I have the same terms on it now. At least their method of computing the daily balance is sane.
Feels the same way about Discover, they did the same thing to me. I think they really suck!!! And I am glad I received AMEX to replace them!! Good Bye Discover. Try and "Discover", why you customers are leaving!!!
that's unfair! you are a good customer! I'd keep the card cause it looks good on your reports. ...you have no lates or delinquents. Can they close your account? Why? good luck! Surphie
paying off your bills in full more here: I just found this page at fleet.com Six consumer credit rights: 1. You have the right to know what is in your credit report. 2. You have the right to dispute your account bill. 3. You are liable for no more than $50 of fraudulent charges on your card. This applies to online and offline transactions. Visa and MasterCard issuers currently may waive this liability. 4. You cannot be denied credit due to race, color, religion, national origin, sex, marital status or age. 5. You have the right to know why you were denied credit. 6. You have the right to pay off your credit card bill in full at any time. http://creditcards.fleet.com/educate/rights.asp #6: you have been paying off your credit cards bills in full, it's your right.
I just go the same notification today. I too have been a good customer. I use my account for their balance transfers, and have carried a balance on most months. I always pay well over the minumum, and I have paid the account off numerous times as well. They are raising my purchase apr from 15.9 to 18.9. It was already too high for me to use for purchases.
It's cyclical. They lure customers with great deals, then change the terms-- as is their right under the laws and the contracts. But, another company will come along with the same thing to lure you away-- and end up changing the terms, too. Loss-leaders. Nothing lasts forever.
WAIT TILL JULY TO CLOSE IT IF YOU WANT TO...I WAS GOING TO CLOSE MY DISCOVERCARD IN JULY...BUT I WON'T NOW SINCE I WAS DENIED THE "PRE-APPROVED" AMEX CASH-BACK CARD. I would write them and ask them WHY?
Thanks for all your opinions and suggestions. Now that I've cooled off a bit, i have decided to keep the account. The cashback is usefull and it looks good on my report. But I will never revolve anything on it. I bet Amex or Citi or MBNA would be happy to have my balances if I decide to revolve any in the future. I think this industry is too greedy. They are supposed to make money even if you never revolve. As far as I know they keep 2-4% of every purchase. But probably that's not enough for some of them....
They oughta change the name to the "Recover Card". Recover is what one must due from hitting their head on the floor after opening the bill. We could start aDiscover Recovery Group. I havent dealt with them since Sears owned them and I dont like Sears any better!
godaddyo...AND YOUR LAST BILL WAS WHAT??? On a "SLOW" month I spend $2,000!!! BUT I PAY IN FULL, OTHERWISE YOU LOSE TOO MUCH OF THE "CASHBACK" BENEFIT...
Well, I dont have a recover card, but my last months bill was $4920.00. This was too close to my limit. It prompted me to get a credit line increase that was a real pain in the rear.
Just a quick note about what else they can do to you....My parents have a United card that they use for the airline miles. They charge EVERYTHING on this card, gas, groceries everything (one time they even charged a new car). They always paid it off every month. Out of nowhere the card was cancelled. When my mother called to find out why she was told because she never carries a balance it is not profitable for the bank to keep them. THe worst part is they now have a "closed by credit grantor" on their impeccable credit report!!!!
Maer, That really sucks. But I have always heard that you should at times leave something on there so they feel like they are making money off you. I don't have that problem personally. I can't pay them off in full each month... at least not yet. I am still paying down the 90's spending spree we seemed to have been on! Have your parents talked with them to see if they might be able to re-open the account? Who knows, maybe with a higher rate or something. Maybe they could beg and promise things? Anything just so they can then close the account themselves and have it read closed by consumer.
Sorry to hear that. That really bites. However, I don't think the "closed by credit grantor" is a negative thing as long as the account was current. I have one account on my report with this comment, but it is listed under "accounts in good standing" on my credit report. It was closed because I hadn't used the dept. store card in years. I really don't think FICO scoring takes these accounts into consideration if they are "paid as agreed".
