Balance transfers are used to help cardholders pay off their debt. If you have accumulated a lot of debt on your credit card, you may consider 0 balance transfer or low rate balance transfer cards. With the average annual percentage rate for credit cards being around 16 percent, this rate can be difficult to pay down and this is because the interest charges continuously thus adding to the principal. The situation becomes worse when you miss payments as the rates sky rocket.
The Discover It card offers generous cashback and also a balance transfer offer of 18 months. You can transfer your balance to this card with an introductory APR rate of 0 percent that lasts for 18 months. This means that during these 18 months, you are not charged interest rate on the card. This will allow you comfortably transfer your balance and have enough time to prepare to clear the balance.
When choosing an introductory rate, you need to evaluate the amount you have accrued on your card and how sooner you can repay. Some cards that allow 0 percent intro rates are likely to place higher interest rates after the introductory period. This means that if you have the financial ability to repay your debt within a short time, you may need to choose a card that has a lower interest intro rate but which offers a lower APR after the intro period.
With Discover It, the variable purchases APR applies and as at the time of writing this review (March 2013), the card was attracting variable purchase rate of 10.99 to 20.99 percent. The card also has a 0 percent introductory APR on purchases of products for 6 months. With this card, you can also get 5 percent cashback at restaurants and movies through the month of March 2013 for up to $1,500 in total of purchases made. All other purchases attract 1 percent cashback. If you would like a credit card deal that promises handsome cashback perks, then this may be a good option.
In addition, this card has no annual fees meaning that you will not pay annual maintenance fees. Similarly, there is no fee charged on overlimit. Moreover, there is no fee for your first late payment and this means that although you may not be charged for your first late payment, you do not need to make your payment late. This can give a bad impression and could affect your negotiation power whenever you have problems making payments within the stipulated date.
Last but not least, the Discover It card does not charge foreign transaction fees. If you are struggling with a current credit card balance that attracts high interest rates, you may consider switching or transferring your debt to Discover It reward card. This will help you manage your repayment plan. The 0 percent introduction APR running for 18 months can give you sufficient time to plan on how to clear the balance. However, this card may be a good option if you feel that you cannot clear the balance in the short term.
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