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Discover it® with 18-Month Balance Transfer Offer

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The Discover it® card with an 18-month introductory balance transfer offer arrived on the market with heavy fanfare, including lots of television ads and billboards touting personal service and a new rebate structure that frees customers from most cash-back traps.

This card’s critics have pointed out that other lenders extend far more generous sign-up offers, dangling hundreds of dollars in bonus rewards for new customers. If you’re carrying no debt at all, those credit card deals might fit better for you. However, Discover®’s 18-month balance transfer deal hits a sweet spot if you’re among the millions of Americans trying to shed an “average” credit card balance. Plus, you get your FICO® Credit Score online, on your monthly statement and online, for free.

You could save hundreds of dollars with Discover®’s balance transfer deal

According to TransUnion, the typical American consumer carries $4,878 in credit card debt. Down from $5,122 the year earlier, the figure shows that we’re making a little headway on our monthly balances, but not much. Using this figure and a 15 percent APR for our example, a $100 monthly payment will zero out your balance in about seven years, costing you $2,700 in finance charges along the way.

Instead, Discover®’s deal includes a balance transfer fee of just 3 percent. Buckle down with Discover®’s offer by making a $280 monthly payment and you’ll clear your $5,025 balance before the promotion expires. That’s like earning an extra $2,420 over 18 months.

Even if you can only budget $100 each month toward your balance, you’ll still clear your debt within about four years, paying $1,077 in fees and finance charges. Either way, this deal could save you at least $1,600 if you get serious about your budget — a much bigger haul than sliding a few thousand rewards points into your virtual wallet.

Shifting gears from spending to saving

This deal bucks a trend where major credit card issuers separate their rewards cards from their balance transfer cards. Even though you can find similar balance transfer offers from Discover®’s competitors, it’s rare to see this kind of opportunity extend to a card with a minimum 1 percent cash back rebate. That’s important, because if you pull off your get-out-of-debt plan with a Discover it® Card’s help, you’ll already be in position to start enjoying the benefits of a decent cash-back program.

In addition to everyday rewards, you can sign up each quarter to participate in Discover®’s quarterly promotions that can score up to 5 percent cash back up to the quarterly maximum spend in purchases on featured purchase categories.

Can a credit card company ever really be nice?

That brings up one of the key messages this lender wants to project with the Discover it® Card. Discover® has consistently earned high ranks for customer loyalty and cardmember service from organizations like J.D. Power and Brand Keys. Instead of shipping call center jobs overseas, Discover® has hired veterans and military family members to handle inbound phone calls from their home offices.

Furthermore, those customer service agents have received training on how to help callers get through tough life events, like job losses, illness and workplace injuries. Instead of shutting down accounts and imposing penalty rates, Discover® has empowered team members to authorize hardship programs with lower rates, lower monthly payments and other forms of assistance.

Of course, they’re not just doing all this to be nice — Discover® hopes that you’ll bring other business their way, through savings accounts, student loans and home loans. However, it’s refreshing to see a major lender ditch penalty fees and adjust its approach to add-on services in favor of offering products that can help us manage our financial lives much more effectively.

Discover® also offers other variations of this card that may better suit your needs. Be sure to read these additional reviews:

Discover it® card

Discover it® cardThe Discover it® card  makes a habit of saying no. No annual fee, no late fee on your first late payment — and, in fact, no APR hike for paying late. Discover®’s latest incarnation of cash back cards aims to simplify the relationship between cardholder and card issuer into one of easy cooperation. Plus, free FICO® Credit Score online and on your monthly statement.

Discover it® for Students

Discover it® for StudentsDiscover®’s made strong inroads into student borrowing over the past few years. Discover it® for Students represents the bank’s latest foray onto college campuses, with pricing and features that resemble full-featured credit cards more than the typically watered-down student accounts on the market.

Updated April 1, 2016 and originally published June 1, 2013.

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About the author

Joe Taylor Jr. has covered personal finance and business for over two decades, and has written and researched for personal finance websites for over five years. His work has been featured on NPR, CNBC, Financial Times Television, Fox Business, and ABC News. Joe also serves as a business sales manager for a Fortune 500 technology company. View all articles by .

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