My wife had one for years, and had an excellent credit rating with a low balance. So what do they do? Send her a letter saying that they were going to jack up her interest rate to 24%. Obviously, she paid off her balance, and got rid of the card. I get offers all the time in the mail...use them to start the fire. My advice for anyone thinking about taking out a discover card...don't.
You sound like one of those familys that pays interest,let stockboss teach you a lesson, the way to use a discovercard or all credit cards that earn rewards is use it for everything for cashbackbonus, then when you get the bill pay it off!, ive earned a few hundred this year in cash back bonus for useing my discove and not paid a dime of interest, i could care less if my interest rate was 39.99% apr, stockboss does not pay interest, i earn $ for useing my discover...class dismissed!
I couldn't disagree more. I've had a Discover card for 20 years, and have yet to pay a penny on interest. I pay off my balance at the end of each month, whether it's $500 or $5000. I use them for four reasons:
1. Cash back bonus
2. If I ever have any dispute with a merchant they are more likely to take my side, not the merchant's. This is based on first hand experience, not hearsay. I've been able to recoup thousands of dollars in several disputes with fraudulent merchants that I would have otherwise lost. This is more than I can say about other credit cards.
3. Their security is top notch; better than any other card. On two separate occasions I had my credit card number stolen, and each time they detected it in less than an hour - before I could have noticed it, even though I'm always on top of my charges. On each occasion they checked with me immediately and asked if I wanted to cancel my card, which I did. And each time I had a new card in my hand in less than 24 hours. I never owed a penny on the fraudulent charges.
4. Great, efficient customer service. And they actually speak English.
I agree w/you...use my Discover Card for the things I 'want' and enjoy the cashback earnings later in the year. It's free money.
With any credit card and usage, comes discipline. Most people cannot ascertain the difference between wants and needs. Rather, most justify the wants as needs thus, get caught up in the never-ending vicious cycle of credit card debt, transferring balances, etc...
It's unfortunate schools do not teach basic finance 101 (even in h/s) to understand these basic principles & fundamentals.
Like Stockboss, I don't care if they send me letters every other day telling me they're raising my interest to 95%. Fact is, if you have to charge it, you probably don't need it!!