That translates to an APR of 12.99 percent right now, but prime rates are currently at historic lows. When they inevitably increase, he could be in for quite the APR hike. Over 17 percent is easily a reality if you look back to the prime rate a few years ago, or the one back in the late 80s that was over 20 percent. Those are high rates for a super-prime credit card.
Here's the rationale from Discover:
We remain committed to providing credit and superior customer service to our customers. However, our decision to make this change was based on the higher cost of doing business due to the challenging economic environment.
Did you receive the same letter from Discover? From another credit card company? Share your story in the comments section below or send us your thoughts by email.
Emily Peters – Credit.com's personal finance expert and former TransUnion credit bureau insider, Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com editor.
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Yep. I got one. And I promptly ran the card through the shredder four or five times, put it in an envelop with my opt-out letter, and sent it off to them.
Sure….my god-feared FICO will take a hit…but I will not be held hostage (for ransom) to a number.
Credit is important. Piracy is simply piracy.
They pushed up my due date so they could charge late fees and have an excuse to up my rates to 29.99%.
They say I can reset my due date, but it still leaves the outrageous interest.
This is fraud.
Discover and Bank of America sent me a letter. Rejected both rate increase. It’s a shame. Discover card was my first credit card and MBNA now Bank of America “Had” a picture of my Wife’s college. Guess I’ll spend my 250 in bonus money and buy myself something good.
Oh yeh! I did what Mark did, cut up the card and took “my” bailout! wasnt late or overlimit, went from 6.9 to 16.9, then after I opted out of their “special” program became overlimit due to interest hike and was bumped up to an EXTRA special program of 24.9! They’re dismay…at my refusal to submit to their criminal activity..is mind numbing to me. How can they think that people will put up with this….they might just as well thug their way over to my house and fit me with size 7 cement boots.
US BANK Credit Card Rep: “quote” You mean you are just simply not going to pay it” after explaining it to her “only” 3 times.
Got mine the other day. Called them and opted out. Have a great credit score and this is the 3rd card I have had to close because of this.