bank rates credit cards insurance finance calculators

Discover cards latest to raise interest rates

It will impose higher interest rates on a “small percent” of its cardholders and move some from fixed to variable rates.

Discover wouldn’t tell us how many customers are affected, or how much interest rates are going up.

But the Chicago Tribune says a couple of Discover customers had their rates raised from 16.99% to 19.99% and 11.24% to 12.99%. That’s fairly modest compared to the increases other cards are imposing.

The rate change will take effect for all billing periods beginning on or after May 2. Discover is notifying customers about the increase and will finish notification by the end of April.

As we said, Discover isn’t the only credit card company pushing rates up.

Bank of America, Citigroup. JP Morgan Chase. American Express. They’re all doing it. Even stores like Target are increasing their credit card rates.

But you don’t have to accept these new, higher rates.
If you’re a Discover customer and receive notification that your interest rate is about to increase, you can opt out of the rate increase by notifying the company in writing within 45 days.

You then can pay off your old balance at your old rate. However, you can’t ever use the card again. Make one purchase, and you’ve accepted the new rate.

Comments (4)
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 4.67 out of 5)
Loading...
4 Existing Comments
  1. Gerri Shapiro said:
    on April 23rd at 10:25 am

    If the rate increase stated in the Chicago Tribune is accurate, that is incredibly reasonable compared to others. Many are actually doubling their customers rates.

  2. DataIsGold said:
    on May 1st at 12:53 pm

    I did a balance transfer last year with Discover. My purchase rate is 17.99 rising to 19.99 Variable.

  3. DJ said:
    on July 22nd at 09:24 pm

    The of the wording in the letter I received regarding my rate increase of 6% – even though I pay every month on time and pay a small amount extra – itr ead as if you would have to pay your balance in full if you refused the new credit rate. I was unable to pay in full so I opted to continue with the new rate.

  4. Sharon Miracle said:
    on July 30th at 08:28 pm

    They’re a bunch of dirtbags. I have a platinum credit history, and had a rate that was 13.24%. They just raised my rate to 18.24% and they never notified me.