During 2009, over 500 credit card complaints were posted on Smart Balance Transfers. Of those 500, 2 were directed at Discover. While other credit card companies were doubling or tripling interest rates, adding annual fees, and pushing consumers toward the brink of financial ruin, Discover was essentially conducting business as usual. They treated their customers well and avoided the temptation to gouge them before the new credit card laws took effect. Why? In my opinion, its because they had to.
Unlike the major banks that issue credit cards, Discover is primarily a credit card company with an online banking business. As a stand alone credit card company, Discover couldn’t risk angering its customers and damaging its reputation. So, while other banks could afford to alienate customers, Discover made a very smart decision to treat their customers with respect.
Unfortunately, Discover hasn’t been recognized for their humane behavior. News stories about credit card companies behaving badly fill this blog and mainstream media outlets. But a story about a credit card company acting justly isn’t attention grabbing–that is the reason you haven’t heard too much about Discover in the past year. Hopefully, more consumers will come to recognize how truly commendable Discover’s behavior during the credit crisis was.
J.D. Power’s annual survey often ranks Discover second in customer satisfaction. But as someone whose job requires reading and responding to stories from people whose financial well-being was jeopardized by unscrupulous credit card companies, I can say without equivocation that Discover is not only the best credit card company around but, more importantly, the only one which respects and cares about the relationships it has with its customers.
-Jeffrey Weber
To learn more about Discover credit card offers, please see the Discover Card section of Smart Balance Transfers where you can compare current offers and apply online for approval.
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March 4th, 2010 at 3:11 pm
Interesting article thanks. I too like Discover card a lot.. I’ve been a happy cardholder for some time now.. To be honest though, I really want to upgrade to one of these travel rewards cards, but I don’t want to pay an annual fee.. Hmm… What to do!
March 8th, 2010 at 10:30 am
Discover actually has two very good travel rewards cards, the Escape and Miles card. You can view details of these Discover credit cards in the Discover section of Smart Balance Transfers.
March 29th, 2010 at 1:06 pm
I found this page by Googling “humane balance transfers.” I didn’t honestly think the key word “humane” would reap any authentic results, so I was pleasantly surprised to find this article. Thank you.
I have just had my First Equity credit card closed due to “inactivity.” I find this outrageous. I’ve been making above-minimum payments every month (but not spending anything new) in a faithful attempt to pay down my balance . . . and to change my old habit of spending whatever available balance I have. It appears they don’t want me to become a wiser user of my credit.
My husband’s First Equity card was closed about two years ago–unbelievably because we made a $1,500 payment (instead of our usual minimum payment).
I don’t know yet what’s going to happen with my remaining balance. I’m nervous they’ll send me a bill saying I have to pay it all off at once (which I don’t have the cash for).
I have three questions:
– Can First Equity close my card and then demand I pay the entire balance?
– Will credit card companies do balance transfers on closed accounts?
– Because of your article, I’m considering Discover for a balance transfer of my First Equity balance. Do you think I should call them and explain my situation? Or just apply online as usual?
I know any advice you give me is just that–advice–and that I’m responsible for my own decisions. But thank you for any light you can shed on this issue.
- Kiwidolphin
March 29th, 2010 at 1:22 pm
Kiwi,
Thanks for the kind words. I really feel very strongly about Discover, not only because they proved to be a fair credit card company, but because they proved me right, as I have recommended their cards above all others for many years. I wish the media paid more attention to Discover; they should be applauded for how they behaved in 2009.
As to your questions, let me try to answer them as best as I can
– Can First Equity close my card and then demand I pay the entire balance?
I don’t believe credit card companies can demand full repayment. I’ve never heard of this before, so I don’t think you have anything to worry about. A credit card is an installment account.
– Will credit card companies do balance transfers on closed accounts?
Yes, you can definitely transfer a balance from a closed account.
– Because of your article, I’m considering Discover for a balance transfer of my First Equity balance. Do you think I should call them and explain my situation? Or just apply online as usual?
I’m a little biased, as I’d prefer you applied on Smart Balance Transfers. However, I do also think calling in your application won’t make a difference. There is really very little human involvement in the application process, so while they will treat you humanely once you are a customer, your application will be more about numbers than anything else.
I hope this helps and please feel free to contact me should you have any further questions. For more info on offers, see the Discover Card section of Smart Balance Transfers.
March 29th, 2010 at 1:38 pm
Thank you! Amazing customer service to receive a reply to my post within 15 minutes.
You’ve also helped relieve some of my nervousness about this situation. The letter from First Equity says they’ll be sending me a “final statement,” which was why I was dreading a possible demand to pay the balance in full.
Now that I know I can apply for a balance transfer on a closed account, I will certainly use your site for my application. You’ve won my trust with your caring and candid response :~)
March 29th, 2010 at 1:40 pm
Thanks Kiwi. Your kindness is deeply appreciated.
April 6th, 2010 at 3:49 pm
Wanted to thank you again for your help and let you know the outcome. I applied for a Discover card (balance transfer) through your site but it was rejected.
I received my latest statement from First Equity and my monthly payment has gone down. I still don’t understand why they’d get rid of a perfectly good customer — but I guess I get to trade a ding on my credit for a lower monthly payment.
I’ll be sure to recommend you to my family or friends if it comes up in discussion. Thanks!
April 6th, 2010 at 3:51 pm
Thanks for the kind words Kiwi. Sorry to hear you got rejected, but its better to save money than have a high credit score. Your score will come back, but the money is gone forever.