When to Request Rate Reduction?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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VictorSuede
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When to Request Rate Reduction?

Postby VictorSuede » Thu Jan 23, 2014 5:43 pm

Hello. I've been a Discover IT cardholder since March 2013, and will begin having to pay interest in May 2014. So far I've gotten one automatic CLI (the 90 day one).

Due to an unforeseen and unavoidable incident I had some surprise bills I ended up having to put on the card and have been running a non-zero balance for the last five or six months. I've been paying more than the minimum to get it down and am confident I'll have it paid off or close to it by May. I've never missed a payment, and often paid two or three times a month.

I'd like to get my interest rate reduced if possible, before it starts accruing on my account. Can I request a reduction before May? Is there a recommended guide for how to put the request together?

Thanks. :)
Victor Suede

My Cards
  • Discover IT (1% Everything; 5% Rotating): $15.7k (Credit Limit Increase: 3/15)
  • American Express Premier Rewards Gold (1 Point per Dollar Everything; 3 Points per Dollar Travel; 2 Points per Dollar Gas and Groceries): NPSL (7/13; Credit Limit Adjustment 8/14)
  • Chase Slate: $500 (4/14)
  • Barclaycard MasterCard (1 Point per Dollar Everything; 2 Points per Dollar Gas, Groceries, Utilities): $2.9k (8/14; Credit Limit Increase 4/15)
  • Citi Simplicity MasterCard: $1.5k (4/15)

Total CL: $20.6k


takeshi
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Postby takeshi » Fri Jan 24, 2014 9:33 am

For any request or app with any creditor it's generally best (in regard to the APR you could end up with) to do so when your credit is strongest. Odds will probably be better the lower your utilization. I'd suggest making the request after paying off.

whit
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Postby whit » Fri Jan 24, 2014 3:02 pm

several options you can go thorough depending on your comfort level and thought process

what is the amount? let's say it's 3k

is your CL with discover pretty high or about that amount?

if I were in your shoes, I would pay off as much as I can on the 0 percent, so around April, or a little before, the utilization is as low as I can make it.

call and see if they can work with you on that apr

or balance transfer to another 0 percent card, if you don't have many lines open

or seeing what the balance is see if you can get family/friend to help you

VictorSuede
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Postby VictorSuede » Fri Jan 31, 2014 3:30 pm

Thanks for the responses. I'm doing my best to get the card paid down by May, but I can't be sure that'll happen right now. I should be able to get pretty close, though.

Trying to get them to lower the APR is a good idea, but they've treated me so well so far with a high opening limit and a huge 90 day auto-CLI, I don't want to look like I'm abusing the card/not being fiscally responsible. (It figures that as soon as I get the Discover card, within 90 days I'm hit with massive emergency expenses that blow my balance out of whack for a year. It's not lost on me that if I hadn't had the IT card, I'd have been in deep trouble.)

Right now I'm running at about 77.8 utilization--not at all where I want to be. And I honestly really don't want to call them and end up making myself look like a credit risk. I haven't actually used the card in 3 months, just paid on it. More than once a month, and in excess of the minimum payments.

I don't have any other credit lines with anyone (my AMEX is a charge card, so that doesn't count). If I get to March 1 and it's still looking like I'm going to have a big balance come May 1, I'll probably start looking for a 0% intro APR card to apply to for balance transfer. Maybe a MasterCard (BarclayCard? I shop at the Apple Store at least once every 18 months or so...)

On the other hand, I'm not super hot on the idea of trying to apply for a new credit card while I've got significant utilization. I'm not even sure what cards I would want to be looking at if I did.

Thoughts?
Victor Suede

My Cards
  • Discover IT (1% Everything; 5% Rotating): $15.7k (Credit Limit Increase: 3/15)
  • American Express Premier Rewards Gold (1 Point per Dollar Everything; 3 Points per Dollar Travel; 2 Points per Dollar Gas and Groceries): NPSL (7/13; Credit Limit Adjustment 8/14)
  • Chase Slate: $500 (4/14)
  • Barclaycard MasterCard (1 Point per Dollar Everything; 2 Points per Dollar Gas, Groceries, Utilities): $2.9k (8/14; Credit Limit Increase 4/15)
  • Citi Simplicity MasterCard: $1.5k (4/15)

Total CL: $20.6k

DavidNY
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Postby DavidNY » Fri Jan 31, 2014 6:03 pm

Chase Slate.

VictorSuede
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Postby VictorSuede » Fri Jan 31, 2014 6:26 pm

DavidNY wrote:Chase Slate.


Thanks. I should have mentioned, I'd prefer to go with a non-Chase card, if at all possible.
Victor Suede

My Cards
  • Discover IT (1% Everything; 5% Rotating): $15.7k (Credit Limit Increase: 3/15)
  • American Express Premier Rewards Gold (1 Point per Dollar Everything; 3 Points per Dollar Travel; 2 Points per Dollar Gas and Groceries): NPSL (7/13; Credit Limit Adjustment 8/14)
  • Chase Slate: $500 (4/14)
  • Barclaycard MasterCard (1 Point per Dollar Everything; 2 Points per Dollar Gas, Groceries, Utilities): $2.9k (8/14; Credit Limit Increase 4/15)
  • Citi Simplicity MasterCard: $1.5k (4/15)

Total CL: $20.6k

samhradh
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Postby samhradh » Sat Feb 01, 2014 2:08 pm

Citi Simplicity or the BoA Better Balance card
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).



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