Credit & Money Management

A Deal from Discover

This credit-card issuer is offering rebates on its interest rates to cardholders who make payments on time.

By Joan Goldwasser, Senior Reporter, Kiplinger's Personal Finance

May 30, 2007

If you usually carry a balance on your credit card, Discover wants to make a deal. With its new, no-fee Motiva card, Discover will rebate the following month's interest every time you make six on-time payments in a row (you can receive a rebate twice a year). Bill payments may be made online, by phone or by automatic debit -- without charge -- or you can mail a check.

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Discover is offering a 3.9% introductory rate until February 2008. Purchases made with Motiva earn a cash-back reward of up to 1%, and you can earn rebates of up to 20% for online spending at selected merchants.

One additional motivation: Discover is using the less costly, more consumer-friendly average daily balance method to calculate finance charges, rather than the two-cycle billing method that it uses for its other cards.

For the best credit card deals, see our tables.

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