What You Should Know About Discover Credit Cards Before You Apply

June 28, 2012 by  Filed under: Credit 

If you are currently considering your various options for credit cards, you may be thinking about applying for Discover credit cards. Credit cards are a financial commitment, and before you sign on the dotted line you will want to look at the terms you are agreeing to and compare several options to find the one that suits your needs best.

The exact terms of Discover credit cards may vary from time to time, and you can get all of the information you need from their website description of the card before you apply. As of March 2012, the current offering for a Discover card is as follows:

Introductory Interest Rate

For 15 months, starting from the date you open your account, your credit purchases will receive a 0% introductory APR. When the 15 month introductory period ends, your purchase APR will be between 10.99% and 19.99%, depending on your personal credit score and creditworthiness. The better your credit, the lower your interest rate will be. The interest rate will be variable and based on the current market Prime Rate.

Balance Transfer Offers

If using your Discover card to transfer higher interest card balances, this card offers a 0% APR on transferred balances that post to your account before September 10, 2012 for 15 months from the date of the first balance transfer. Many people rely on a 0% balance transfer offer to pay off high interest debts faster and less expensively. Every dollar you send to a card with a 0% interest rate is going toward paying off your debt. If you can pay your balance off within the 15 month period, you can repay your purchases interest-free and accelerate your debt pay-off plan.

For any transferred balances that are not paid in full within 15 months, the remaining balance will be charged a variable APR between 10.99% and 19.99% depending on your personal creditworthiness.

Credit Card Cash Advance

If you decide to use your Discover credit cards for a cash advance, the money you withdraw will be charged a variable 23.99% interest rate. Unless you are able to repay the cash advance within one billing cycle, the interest paid on cash advances is generally not worth the use of the cash. Consider cash advances carefully before using your card for this purpose.

What Happens if You Miss a Discover Card Payment

Discover credit cards apply a penalty APR based on your personal creditworthiness. If you are late making a payment, your purchases and/or balance transfers may then receive an APR from 15.99% to 24.99% variable and based on the market Prime Rate. As with any credit account – it is always best to make sure you only spend what you can afford to pay back quickly – and to ensure you are making your payments on time.

Annual and Other Fees

Discover credit cards do not currently charge an annual fee to card holders. If you decide to transfer other balances to your card, you will be charged 3% of the amount per transfer. Cash advances receive a $10 or 5% of the amount of cash advance fee, whichever is greater. This is in addition to the interest charged on cash advances until they are repaid. If you make a payment late or your check bounces when you make a payment, you will be charged up to $35.

Choosing Discover Credit Cards

After you review the terms of a Discover card and determine it is the best card for your unique financial situation, you can then apply for a credit card online.

Debra Lee Dragon is a freelance writer providing content for CardGuys.com- a site that helps consumers find the best gas rewards credit cards and balance transfer offers. Find and apply for a credit card that best meets your needs, today!

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