By: Ishan Mukhopadhyay Jun. 11, 2018
Discover It credit cards showed an APR increase from 16.99% in July 2015 to 18.74% in January 2018, while also significantly expanding its grace period. This finding emerged from an analysis conducted by Raltin on information obtained from the Consumer Financial Protection Bureau. The bureau asked credit card companies to fill out a standard survey with information about the institution’s APR, late payment fees, index rate, and other variables. APR is the annual interest rate that users pay for borrowing from the credit card. Grace period is the number of additional days that one gets for completing the payment, at the end of the billing cycle. Annual fee is an amount that certain credit cards charge on an yearly basis, for the benefits they offer. An annual fee of $25 has also been added to this card from 2018.
Discover is one of the world's four largest credit card networks, with the others being Amex, Visa and Mastercard. Discover Bank, headquartered in Greenwood, DE, currently holds $55.20 billion deposits from U.S bank customers. The Discover It credit card is one of the best cashback cards currently available, with 0% interest on purchases for 14 months and 0% on balance transfers for 14 months. Additionally, it offers bonus cash back categories and automatic cash back match at the end of the first year. The card also offers an unlimited 1% cash back on all purchases and 5% cash back up to the quarterly maximum at selective stores.
Borrowing rates for a credit card vary due to multiple reasons. It is crucial to study the changes that occur in the APR of a popular credit card like Discover It, to understand how the other variables have shaped up. This information will help consumers make informed choices about potential card buys.