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.
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