As you obsess over personal finance, you begin to see certain patterns from financial companies over time. For example, I know that Ally Bank has kept an edge on other high interest savings accounts with their interest rates. Other companies could raise their rate, but they are happy with promoting their other advantages and saving money with a lower rate – at least that’s how I justify it.
Another trend when it comes to personal finance is that most credit card offers are remarkably similar. Starting a couple years ago, almost all of the popular credit card companies started a rotating categories rewards bonus program. That means that instead of a standard 1% or 2% back on all expenses, credit cards offer a higher percentage (usually up to a certain dollar amount). While I don’t know this for certain, I imagine that they all copied it from Discover. This is just one of the many trends that takes place.
Let me make the point clearer: As a result of the capitalistic society and the need to stay competitive, companies often offer very similar products. There are some that provide clear advantages to certain people while others who provide advantages to others. Very rarely does one company hold a monopoly on a market. This is often the reason that I hold back from explicitly promoting certain products. That is, until now.
Discover It Card – Why Everyone Should Consider it
I just recently read the Discover It credit card details today. I had received a notice that Discover came out with a new program a while back, but I was too busy at the time to pay any attention to it. Just another credit card, is what when through my mind. Oh, how I was wrong. Discover continued one of the best things that I love about Discover – the rotating categories. It continues to offer 5% back on rotating categories, while offering a standard 1% on non-category items. As far as I am concerned, this matches if not exceeds the cash back rewards of any credit card. Anyone can plan to buy their airline tickets within a 3 month window to take advantage of the rotating cash back bonus – and this is just one of the things that you can do to earn more cash back rewards money. But, enough about the rewards, let’s talk about what really sets this card apart from the others.
No Late Fee for First Payment
Everyone makes at least one mistake when paying their credit card. I was lucky enough to make this early enough in life so my penalty was small. The outstanding balance, on which I was forced to pay interest, was small. Once I made this mistake, I knew I would never let myself do this again. And I haven’t. I’m a firm believer that no one should have to pay for their first late payment – and apparently, Discover is too as they do not charge a late fee for the first payment. My guess is that you would still have to pay interest on the balance, but the fact that they are eliminating what is typically a $25 fee is still pretty huge.
Late Payments Won’t Increase APR
One of the ways that credit card companies make their money is by providing unreliable people with credit cards. They can’t control their spending and before you know it, they carry a balance from month to month because they can’t afford to pay it off. This is where credit cards make a lot of money. The interest rates are astronomical, and they only get worse. The fees and rates that are added on are still surprising to me. I’ve never had to worry about the rate of a credit card because I always pay my balance off each month. In other words, this won’t affect me too much, but if you think there might be a chance that you won’t be able to pay off the balance, this would be a great safety net. This is also a great indicator to me that Discover is the type of business that is not out to trap you into a bad agreement. In other words, they show that they are ‘playing fair’ with this feature.
Discover also goes on to list all of the other benefits of their cards, which include special exceptions for families experiencing job loss. Perhaps there has been a credit card company to offer this before, but I’ve never heard of it. When I read through the details of this card, I couldn’t believe it – yet, it’s definitely true. They even offer a Discover It Student Card if you want to get your first credit card while in school.