bank rates

Discover Just Lowered My Interest Rate?!

The Credit CARD Act requires mandatory account reviews for some card holders.I’ve spent a lot of time writing about shady stuff credit card companies pull in order to get you to pay them more.

So imagine my surprise when I got a letter in the mail from Discover saying it was dropping my APR down to 11.99%.

I was shocked further at another note informing me my credit limit had been bumped to $11,000.

I’ve had my Discover card since 2008, but only have records that go back to mid-2009.

They show I had a 14.49% APR that jumped to 16.99% by December of that year. My credit limit was also parked at $10,000.

According to a Discover spokesman, I now have a lower APR and high credit limit because, “Consistent with regulatory requirements, Discover is lowering the interest rates for certain card members who have been repriced since January 2009. Rate decreases started in March and began to be reflected in April statements.”

In plain English, this means the government, in part, made Discover do it.

The Credit CARD Act of 2009 requires mandatory account reviews every six months for any card holder who saw a rate hike between Jan. 1, 2009 and Feb. 22, 2010 — the time when card issuers were hiking interest rates in anticipation of the new law, according to CreditCards.com.

The first reviews occurred in February.

Reductions are made at the credit card company’s discretion.

And, in fact, Discover wouldn’t tell me exactly why I was chosen for a better deal, but I can guess why.

First, I paid off all my credit card debt, right down to zero.

Second, I had a collection removed from one of my credit reports — a collection that belonged to another Jen Miller.

Making sure it was erased from my credit report, I’m sure, bumped up my FICO score (I don’t know exactly what it is because I’m not applying for a mortgage or a car loan and won’t pay to see what it is until I need to know).

I don’t plan on using the higher credit limit, or carry a balance on my Discover card again.

But it’s slightly nice to know that doing what I’m supposed to be doing financially is being recognized.

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