WARNING: Lower Interest Rate NOT applied to existing balance

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
4 posts
2Tall
 
Posts: 1
Joined: Tue Apr 14, 2015 4:44 am
Location: United States

WARNING: Lower Interest Rate NOT applied to existing balance

Postby 2Tall » Tue Apr 14, 2015 5:04 am

When you request and receive a lower interest rate on your existing Discover Card, Discover won't apply that lower rate to your existing balance AND subsequent payments are applied to the new balance at the lower rate first and any amount over the minimum payment amount is then applied to the old balance that continues to accrue at the higher interest rate. Consumer beware if you plan on keeping a revolving balance.


User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3970
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Tue Apr 14, 2015 11:19 am

2Tall wrote:When you request and receive a lower interest rate on your existing Discover Card, Discover won't apply that lower rate to your existing balance AND subsequent payments are applied to the new balance at the lower rate first and any amount over the minimum payment amount is then applied to the old balance that continues to accrue at the higher interest rate. Consumer beware if you plan on keeping a revolving balance.


This is true. Of course, anyone who plans to keep a revolving balance should focus on getting a very low or 0% APR and only think secondarily about rewards. If you want a low APR, it's easy to get something lower than Discover (and most other rewards cards).
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt, SPG
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Thu Apr 16, 2015 10:22 am

2Tall wrote:Consumer beware if you plan on keeping a revolving balance.

Consumer should generally be wary about carrying balances if not on an introductory 0% offer.

JamesMS
Centurion Member
Centurion Member
 
Posts: 151
Joined: Mon Apr 13, 2015 6:17 pm
Location: Fort Worth, TX

Postby JamesMS » Thu Apr 16, 2015 10:54 pm

takeshi wrote:Consumer should generally be wary about carrying balances if not on an introductory 0% offer.


Agreed. If you don't want to pay interest, pay off your card, or be on 0%.
Main Cards:
Amex BCE
Amex Everyday
Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Citi Thank You Preferred

Spark Cash Back (Business), Amex Plum (Business)



Return to “Discover, Diners Club”

Who is online

Users browsing this forum: No registered users and 2 guests