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Discover Card Review: The Discover Student Credit Card Review

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By Edited Apr 23, 2016 0 0

Read The Credit Card Agreement Before You Apply

Pros


  • Ability to manage your account online
  • Cash back Bonuses on each purchase made with the card
  • Credit 101 course to help students manage credit wisely
  • $0 liability for fraud
  • Ability to Design your own credit card
  • Easy to access 24 hour customer service
  • Balance transfer available on this card
  • Initial 0% introductory APR with an increase after 9 months
  • No annual fee

Cons


  • The Credit Card Agreement is federal law and by the state of Delaware. This means if they take you to court, applicable federal law applies, but for the
    credit cards(41236)
    most part the agreement is governed by the state of Delaware and their consumer credit laws/practices and not your home state.
  • Your account and all your information can be assigned or transferred without notifying you
  • If you decide to elect arbitration to resolve dispute, the way the credit card agreement is written is that Discover will pay the fee for the arbitration if you cannot afford it, but if you lose the case, the Arbitrator can order you to pay for your portion of the costs, which can get rather high. A good arbitration clause states that you are both responsible for the costs of your own attorneys but the cost of the entire arbitration should fall on the company itself, not the consumer.  
  • Late fees are high, $25 to $35 dollars
  • Over the limit fees are also high $25 to $35 dollars (The new credit card law does seem to help in this area so it is important that you get acquainted with it.)
  • Charged $5 for extra copies of billing statements; unless it is associated with a billing dispute.

 

Review


Discover Card brand was originated in 1985 by Sear, which was and still is one of the largest retailers in the United States of America. In 2007, Discover Financial was born, and became independent from Sears.  Discover, started to carve out its own special market against large competitors like VISA, Citibank, and MasterCard by not carrying an annual fee, giving Cashback Bonuses, and introductory low interest rates.  Discover Card has a shaky and rocky start, some of which involved a major lawsuit battles and victories against credit card giants, MasterCard and VISA.

Discover Cards is accepted in Canada and parts of the United Kingdom, however in Europe, it is not a widely accepted form of payment.  Currently, Costa Rica, Belize, Mexico, Palau and many parts of the Caribbean Islands happily accept Discover Cards.  Discover card is trying to appeal to the college students and trying to help preserve their future credit by offering a brief online credit course. This is a huge plus.

However, even though the credit card agreement is plainly spelled out, the arbitration portion of the agreement is worded in such a way that may leave the consumer holding a financial mess if they decide to take a case out of course and move it to arbitration or decided to initiate a dispute through one to the Arbitration forums.  The applicant should read over the credit card carefully before applying and make sure he understands the terms and that the terms are acceptable to her. If you do not understand the terms of the agreement, then do not apply for the credit card.

 


Discover Credit Card Agreements

Not So Good Credit Discover Card Agreement

Good Credit Discover Card Agreement

New Credit Card Rules From the Federal Reserves

 

Other References

Avoid College Credit Card Debt and Financial Failure

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