Discover has sent out a letter to cardholders informing them that fees will be increasing on July 1st. Fee changes are as follows:
- 3% balance transfer fee will increase to 5%. You can opt out of this, but by doing so you’ll no longer be able to do a balance transfer.
- Late fee. First late fee will still be waived, second late fee will be $28 if you have not been charged a late fee during the prior six billing periods. Otherwise the fee is $39. Currently your first fee is waived and then it is $37.
- Return payment fee. First returned payment fee will still be waived, second late fee will be $28 if you have not been charged a returned payment fee during the prior six billing periods. Otherwise the fee is $39. Currently your first fee is waived and then it is $37.
They also provided some additional clarity on definitions and a few other things. You can read the full letter below
Our Verdict
Hopefully for all readers these changes to fees will make no difference, as you should be paying off your credit cards in full anyway. They are actually reducing fees if you only forget to make payments infrequently, but fees are increasing for those who are habitually late.
Hat tip to reader Brad
I wonder why anyone would do a balance transfer to Discover at a 3% fee, let alone a 5% fee.
Here’s why I am considering it – but I am open to suggestions:
I have a $35K balance on another card that’s about to hit 18%APR, but Discover is offering me 0% interest for a year with 3% fee. I have great credit, but I don’t know of any new account promos that would give me that kind of limit at opening.
If you can get in at Navy FCU (just needs a family member up to as far back as grandparents to have been in the US military), they are known for large limits (maybe not that large) and frequent 0% promos. https://www.doctorofcredit.com/navy-federal-credit-union-0-apr-12-months-0-balance-transfer-fee-new-existing-cardholders/
Desperation
Especially because MSing is basically a balance transfer with a 0% fee.
Likely someone who has multiple credit card balances and trying to consolidate debt. Certainly not a financially smart move, but some people are willing to pay fees and interest to make their life “easier”, to have one CC bill to pay vice 4. Much better options exist than BT at 3-5%. But realistically speaking, many people are in debt and paying interest… And some just seek to get a lower monthly payment so they have more money to spend.
Yep. I opened 4 new cc accounts one time to BT 13 grand. 3 of those accounts opened with 1.5k each. 4th account gave me 8.5k…
I truthfully don’t know why a non-rewards card was able to get me 8.5k.Which recently got increased to 9.5k.
never missed a payment before in 15 years of credit card stuff… everyone should pay in full on time
Happened to me once and on this discover card held for 20 years. Charged a large amount during a charge cycle for a quarterly promotion and paid some of it off quickly. The statement closed. Charged much more and made another early payment. When a 2nd statement closed there was an interest charge of about $1. With all high volume payments and transactions I miscalculated and underpaid the 1st statement by a small amount. Decided not to draw attention to myself by calling a CSR and asking for a courtesy credit.
That’s not a fee. That’s interest. Very unlikely they would waive that, even if you called. I imagine most everyone has had an oops like that… Stacking a bill in the wrong stack, paying the wrong card, etc. It happens.
amex waive it for me once
I said unlikely. Exception, not rule. Discover, not Amex.
No late fee ever for me, and have only paid interest one time.
That was on a store CC (possibly 1981, but can’t recall now)