Money Under 30

One Unique Credit Card

I know, I know. Everybody’s probably writing about this, but it’s not every day a financial product comes around that’s radically different than everything else on the market. So I have to weigh in.

Discover® just released the new Motiva Card. It works like an ordinary Discover® Card, with one unique exception: For every six months you pay on time, you get one month of interest waived. Not that you should ever carry a credit card balance, but if you have to, the Motiva card beats the alternative.

The fact that many consumers carry credit card balances has been a dirty little secret in the industry even though it accounts for the majority of credit card company profits. Not that this or any credit card offer should be an incentive to get into or stay in debt, but I give props to Discover® for providing an alternative incentive that will actually save consumers money. (Let’s face it; as great as getting credit card rewards can be, there’s a reason the companies can give them away. You paid for them…several times over).

If you’re considering the Motiva card and have reservations about going with Discover®, I can honestly say I’ve had a Discover® More Card for about 8 years. As with any card, Discover® Card has pros and cons.

Discover® Card Pros

Customer Service - As with any big company there are horror stories about Discover® customer service, but overall my experience has been good. Reps answer quickly and are courteous and get things done.

Online Account Management – Checking and paying my statements online is easier with Discover® than with my Citi or local bank credit card. It’s incredibly easy to navigate and get information.

Security – Discover® Card’s security is strong. Reps have called me immediately upon making suspicious purchases. Discover® offers a 0% fraud guarantee.

Balance Transfer Offers - The Motiva Card offers 3.9% on balance transfers until 2010 while other cards give you 0% for a year. Both are competitive.

Discover® Card Cons

Merchant Network – True, Discover® is not accepted everywhere like MasterCard and Visa. However, I can count on one hand the number of times in 8 years I haven’t been able to use my card where I wanted.

Good Credit Needed – From what I hear, Discover® Card tends to require better than average credit to obtain a card. This might discourage some applicants with borderline credit from applying.

High Credit Limits – Yes, that’s right. I listed high credit limits as a “con”. Discover® Card gave me a $10,000 credit limit when I was a freshman in college while other banks gave me $500 or $1000. That’s crazy. I recommend you only carry the credit you need; but Discover®’s high limits can be a plus if you want to take advantage of their generous balance transfer rates or you need to make large purchases on a credit card every month.

Learn more about the Motiva Card or Discover® More Card now.

Related Posts

• 5 Questions to Ask Yourself Before Transferring a Credit Card Balance
• Five Reasons to Apply for a Business Credit Card as an Individual Consumer
• Q&A: What kind of credit score do I need to get approved for a balance transfer credit card?
• Summary of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009
• For the Lowest Credit Card Interest Rates, Look to Small Banks

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