Discover Card Offers Holiday Bonus Rewards

By Michael Killian, CardRatings.com Reporter

Editor's Note: This article is part of a popular Q & A format series in which we interview experts and industry professionals that have made significant contributions to the credit card industry.

I have written quite a few articles about Discover Card. That really isn't too amazing considering that the company's innovative style provides ample material for writers. And so allow me to paraphrase Ronald Reagan's immortal words, "Here we go again, Discover Card".

This time Discover Card is offering a $20 gift certificate just for using the card. You will be holiday shopping anyway. Why not gain an extra $20 bucks in the process? I caught up with Discover's Financial Services Marketing--Internet Acquisition representative, Polina Demidova, and asked her a few questions about this program.

Mike: Polina, can you tell me a little about this program?

Polina: Yes I can. Basically, consumers can turn receipts into rewards. They get a $20 Discover Gift Card just for shopping with their Discover Card. They will receive a $20 Discover Gift Card for every $200 they spend on their Discover Card at over 160 participating malls nationwide. They can make the most of pre- and post-holiday sales with Discover's longest redemption period yet.

They can use their Discover Card at any store in a participating mall. (The Web site offers a list of participating malls.) The cardholders then collect their receipts prior to Jan. 4, 2009. Up to 5 gift cards are allowed any consumer when they bring receipts totaling $200 or more to a mall customer service representative.

Mike: This is a great program. Is this new and is there a time restriction for this program?

Polina: This is not a new promotion for Discover. We have been offering it to our card members around the holiday season every year for the past few years. This year the promotion runs from November 1, 2008 through January 4, 2009.

Mike: Besides the obvious $20 certificate are there other awards the reader should be aware of?

Polina: We also currently offer the following promotions to our Card members in addition to the $20 gift certificate:

• 5% Cash-back bonus at grocery stores, restaurants, movie theaters and movie rentals. Just pay using your Discover Card and earn a 5% cash back bonus on up to $400 from these type of purchases from October 1 through December 31.


• 5% to 20% cash back bonus at over 100 top online retailers through our exclusive online shopping site

You can learn more about these programs at Discover Card Brighter. That site lists all features and benefits of each promotion.

Even if you don't have time to take advantage of this program this year, keep Polina's suggestions in mind. You can bank on Discover coming back next year with similar or even better programs.

You can visit our Discover Credit Cards section to check out Discover's current card offers and apply for a Discover card online!

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This article was written by Mike Killian, Founder of Learning Credit and Debt Management. Mike has been writing about credit and debt management issues that are of importance to consumers for over 8 years. His articles have been referenced by various members of the media, including MSNBC and The Motley Fool. Mike has also offered debt elimination seminars to businesses and community colleges for many years.

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

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Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Discover a “Brighter” Credit Card Campaign

By Michael Killian, CardRatings.com Reporter


How consumer friendly can a credit card campaign be? Daily consumers are "blitzed and belted" with card ads that promise to enhance our lives. A new eye-opening campaign aptly named Brighter Campaign offers a refreshing approach. As a long time consumer advocate for responsible debt management, I had never seen such an ad and was impressed by its fresh message when I first viewed it.

Instead of “charge, spend, and charge some more”, Discover’s new campaign promotes responsible, sensible use of credit. This new approach is so distinctive that it had even this very conservative reporter thinking, “Gee, maybe I should consider a Discover Card!”

But even if you have no interest in getting a card, I think every consumer should view this ad at least once to realize that at least one company is taking a proactive approach to assisting consumers.

I had the pleasure of interviewing Discover Card’s Larisa Drake, VP of Brand Communications, concerning their new “Brighter Campaign”. Following is some Q&A related to my interview:

Mike: “This new ‘Brighter’ campaign appears to be a reversal of traditional credit card marketing strategies. Where did the concept develop from and is Discover planning on continuing this path?”

Larisa: “The ’Brighter’ concept stems from our company mission to help people spend smarter, manage debt better and save more so they achieve a brighter financial future. "Brighter" is at the core of everything we do, from the development of our innovative products to the services and features we provide to help card members reach their financial goals.

This concept is especially timely right now, given the financial pressures that consumers are feeling in these challenging economic times, and we intend to continue providing consumers the tools and resources they need to have a brighter financial future.”

Mike: “Discover seems to pride itself on innovative strategies. Can you elaborate on some of Discover's other innovations?”

Larisa: “As the pioneer of cash rewards and 24/7 customer service, Discover is a company that thrives on innovation. Two of our more recent examples include the Discover Motiva Card, which rewards cardmembers for good credit management, and the Paydown Planner, a tool that helps guide cardmembers’ spending and payments by calculating the period of time it may take to pay down a balance. These are both prime examples of how Discover delivers on the “Brighter” commitment.

Mike: “Is there any concern that the "brighter" campaign could result in less profit by advocating responsible card management?”

Larisa: “No. We want consumers to know that we have listened to them and what they want from a credit card. Discover Card offers them innovative products and services to help them achieve their financial goals and achieve a brighter financial future. Hopefully, by knowing that we are on their side, consumers will be further engaged with Discover Card and continue to keep it top of mind and top of wallet.”

Mike: “Do you sense that cardholders feel that Discover is sincerely interested in helping them?”

Larisa: “Consumers consider it unexpected that a credit card company acknowledges the fact that consumers face a balancing act between spending and saving, and actually provides products and services that help them manage it –- whether it’s helping them get the most from the money they spend, making a plan to pay down their balance or budgeting for a future purchase. We offer so many tools and features to help consumers with financial management.

For example, Discover Card members have the ability to earn unlimited rewards on all purchases, and then redeem the Cashback Bonus as a credit to help pay down their balance. The Discover Motiva Card was the first credit card to reward card members not just for their spend, but also for paying their minimum balance on time. The budget planners we developed are customized with card members' unique account information, making it easy for them to calculate what it will take to pay down their balance or make a big purchase. It's counter-intuitive programs, tools and features like these that help demonstrate to consumers that we're on their side.”

Mike: “Would you like to add any additional comments?”

Larisa: “I'd like to reiterate that Discover Card understands the financial pressures people are under, and the balancing act consumers face when it comes to spending versus saving. We are committed to helping consumers spend smarter, manage debt better and save more, and offer the tools and services that allow our card members to make financial progress and in turn, achieve a better quality of life.”

I appreciate Larisa's insights and am encouraged to hear some positive news about the card industry for a change! Please share your comments regarding the card industry on our active credit forum.

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This article was written by Mike Killian. Mike has been writing about credit and debt management issues that are of importance to consumers for over 8 years. His articles have been referenced by various members of the media, including MSNBC and The Motley Fool. Mike has also offered debt elimination seminars to businesses and community colleges for many years.

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Discover Launches New Credit Score Tracking Service

By Curtis Arnold, Founder of CardRatings.com


Discover Card is now offering comprehensive credit score tracking to its cardholders. Discover’s Credit ScoreTracker, which costs $7.99 a month, sends out alerts when a member’s score changes. It also provides resources to help members understand their scores and to reach target scores that they set themselves.

If you’re a regular reader of the CardRatings.com Forum, you’re already aware of how important it is to know your credit score, and to keep an eye on it - as well as on your credit reports - to both protect your identity and to make sure there are no errors cropping up. ScoreTracker gives you 24/7 access to your Experian credit report.

Discover has created some nifty tools for its ScoreTracker. For example, you can look at a graph that shows your credit score over time - as well as in relation to the goals you’ve set for yourself. You can take a short-term view, such as three or six months, or open up the picture of your credit score to one or two years, so you can see the highs and lows over time.

There’s also something called the Credit Score Illustrator, which shows the importance of various factors in determining a credit score, for example, payment history, closing accounts, credit inquiries, and so on. Interestingly, you can also use this tool as a simulator, to see what might happen to your score if, for example, you pay off more of what you owe or open a new account. I can see how this tool might motivate some folks to improve their credit.

Other resources that Discover makes available via its Credit ScoreTracker include an interactive survey and quiz, which were designed to lead to better financial decision-making, along with articles written to help cardholders better understand their credit. Perhaps the best benefit of this product is that if you need help understanding your credit score, you can always call a Member Services Representative toll free!

If you have a Discover card, you can enroll online or you can call Discover at 888-201-1440. If you do enroll, please let us know your thoughts about this new service!

This article was originally published on CreditBloggers.com by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. Curtis is currently working on publishing a book about credit card usage with Pearson/Prentice Hall- more details forthcoming!

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Discover Card Consumer Survey Shows we're Upbeat about our Personal Finances, but…

By Curtis Arnold, Founder of CardRatings.com


In May, Discover launched a new research program, the “Spending Confidence Monitor,” with Rasmussen Reports, a well-known, independent survey research firm. Together, they’re planning to survey lots of us every month – they interviewed 500 consumers daily (15,000 total) in August alone – to find out what we think we’ll spend in the future, what shape our finances are in now, and what our opinions are on the economy.

Granted, our expectations certainly can change unexpectedly for various reasons. However, as time goes on, I think Discover’s monthly surveys will become very insightful for what they tell us about people’s current situation – and what the trends may be. Right now, here’s how I read Discover’s key findings from the May, June and July surveys:

1. No money. The number of families that had no money left over after paying their monthly bills rose from 38% in May … to 50% in July. (There’s only a 1% margin of error.) About 45% of younger adults (18-29) in July reported having money left over after paying their monthly bills.

2. No cushion. Two-thirds in June said they could support their current lifestyle for a month if they were faced with an unexpected loss of income. But 29% in July said they wouldn’t be able to do even that, which is up from a quarter in May.

3. No hope. With credit tight, the housing market soft, gas prices high, and a war going on, it’s no surprise that about 63% in July told Discover that they rated the economy as fair or poor.

If “no money, no cushion, and no hope” is how you’d describe your current situation, as Discover shows, you’re not alone! About half of us – or more – seem to be in the same boat. So don’t beat yourself up about it. Instead, tell us what’s up and we’ll try to steer you to people who can help.

Please note that the August survey was just released (click for details) a few days ago and I haven’t had time to completely digest the numbers yet. However, after a cursory glance, I did find it very interesting that the August survey reveals that consumer confidence in the U.S. economy rose and fell week-to-week. This rise and fall seems to reflect fluctuating concerns about the economy, housing market and sub-prime mortgage challenges.

More importantly, though, despite such fluctuations, consumers were relatively upbeat about their personal finances in August, rating them much higher than they rated the economy. With that, I will end this article on a positive note!

This article was originally published on CreditBloggers.com by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. Curtis is currently working on publishing a book about credit card usage with Pearson/Prentice Hall- more details forthcoming!

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CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thanks for your interest!

New Discover Card Offer Rewards On-Time Payments

By Nancy Castleman, CardRatings.com Senior Reporter



Motiva, a unique new credit card from Discover, is designed for people who carry a balance and can use some extra motivation to pay their bills on time. Here's how it works: When cardholders make six on-time payments in a row, they receive the seventh month's interest as a "Pay-On-Time Bonus." Send in that seventh payment promptly, and it counts toward the next set of six timely payments, so there can be two bonuses a year.

You can use the Pay-On-Time Bonuses, along with other Discover cash-back bonuses, to pay down your credit card bill, which could be helpful in getting that balance paid off. If you prefer, Discover will send you a check or direct deposit the amount into your bank account. All you have to do is call or go online to let Discover know how you want to redeem them.

Motiva is a no annual fee card with a teaser rate of 3.9%, good for 10 months on purchases, which then goes up to anywhere between 10.99% and 17.99%, depending on the cardholder's credit picture. That 3.9% rate is also offered on balance transfers made by July 1, 2007 - and it's good through April, 2010.

When you sign up for Motiva, you can choose the due date, and pay by phone or online, even on the due date. (Discover will also take checks and money orders, as well as automatic direct payments from your checking account.) If you want, Discover will even send you email reminders to help you avoid fees and pay on-time.

Does Motiva Motivate People to Stay in Debt or Get Out of It?

Personal finance writers and consumer advocates recommend that folks with balances pay them off as fast as they can, using a "no frills" card with the lowest interest rate they can get. That rate could be less than Motiva's teaser or long-term rates.

One viewpoint is that Motiva encourages people to spend more money, to carry bigger balances, and to remain in debt longer. After all, there's no "Pay-On-Time Bonus" if you don't owe anything, and the more you owe, the bigger your bonus will be.

I asked Margo Georgiadis, Executive Vice President and Chief Marketing Officer at Discover, for her response to these points of view. Here's what she said:

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"Some people are always going to carry a balance. We feel that our cardmembers should be rewarded for using our card, no matter how they use it. Motiva is part of our commitment to make sure we offer a range of smart products designed for the different ways people choose to use credit. We're giving people more options to make the most of their money."

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My own view? If you usually carry a balance, have higher rate cards, and think the bonus might motivate you to get out from under, Motiva is well worth considering.

Here are my tips for using Motiva to get out of debt:

1. Transfer balances from higher rate cards.

2. Limit your card use to emergencies, only. Resist the temptation to spend!

3. Pay off as much of your credit card bill as you can ... every month ... especially while you have the teaser rate.

4. Apply every single bonus against your outstanding balance.

5. Don't be late! If you're late making a payment on your Motiva card, your rate will go up - to as high as 28.99%.

Click here for more information on Motiva including application details.

We welcome your comments about credit and money issues in our popular credit forum!

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Nancy Castleman has spent 20+ years helping people get out of debt, save money, and live better on less. Along with her partner, consumer advocate Marc Eisenson, Nancy is known for her work on mortgage pre-payment, and for first explaining "credit card math" in her often acclaimed free e-letter, The Pocket Change Investor. Find it, along with many articles from back issues, special reports, link picks, and book reviews, on her Good Advice Press Web site. You can also see pictures of her 10,000 square foot organic garden and her nine grandchildren.

But what she'd most like you to do is read about her book, Invest in Yourself (Wiley, 1998, 2001), which she wrote with Marc Eisenson and Gerri Detweiler. Nancy considers this book, which discusses how to invest your time, energy, and money to create the life you want, to be her life's work. Nancy's books have received rave reviews in leading national publications, including USA Today and Money Magazine.

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thanks for your interest!

New Discover Card Offer Rewards On-Time Payments

By Nancy Castleman, CardRatings.com Senior Reporter



Motiva, a unique new credit card from Discover, is designed for people who carry a balance and can use some extra motivation to pay their bills on time. Here's how it works: When cardholders make six on-time payments in a row, they receive the seventh month's interest as a "Pay-On-Time Bonus." Send in that seventh payment promptly, and it counts toward the next set of six timely payments, so there can be two bonuses a year.

You can use the Pay-On-Time Bonuses, along with other Discover cash-back bonuses, to pay down your credit card bill, which could be helpful in getting that balance paid off. If you prefer, Discover will send you a check or direct deposit the amount into your bank account. All you have to do is call or go online to let Discover know how you want to redeem them.

Motiva is a no annual fee card with a teaser rate of 3.9%, good for 10 months on purchases, which then goes up to anywhere between 10.99% and 17.99%, depending on the cardholder's credit picture. That 3.9% rate is also offered on balance transfers made by July 1, 2007 - and it's good through April, 2010.

When you sign up for Motiva, you can choose the due date, and pay by phone or online, even on the due date. (Discover will also take checks and money orders, as well as automatic direct payments from your checking account.) If you want, Discover will even send you email reminders to help you avoid fees and pay on-time.

Does Motiva Motivate People to Stay in Debt or Get Out of It?

Personal finance writers and consumer advocates recommend that folks with balances pay them off as fast as they can, using a "no frills" card with the lowest interest rate they can get. That rate could be less than Motiva's teaser or long-term rates.

One viewpoint is that Motiva encourages people to spend more money, to carry bigger balances, and to remain in debt longer. After all, there's no "Pay-On-Time Bonus" if you don't owe anything, and the more you owe, the bigger your bonus will be.

I asked Margo Georgiadis, Executive Vice President and Chief Marketing Officer at Discover, for her response to these points of view. Here's what she said:

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"Some people are always going to carry a balance. We feel that our cardmembers should be rewarded for using our card, no matter how they use it. Motiva is part of our commitment to make sure we offer a range of smart products designed for the different ways people choose to use credit. We're giving people more options to make the most of their money."

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My own view? If you usually carry a balance, have higher rate cards, and think the bonus might motivate you to get out from under, Motiva is well worth considering.

Here are my tips for using Motiva to get out of debt:

1. Transfer balances from higher rate cards.

2. Limit your card use to emergencies, only. Resist the temptation to spend!

3. Pay off as much of your credit card bill as you can ... every month ... especially while you have the teaser rate.

4. Apply every single bonus against your outstanding balance.

5. Don't be late! If you're late making a payment on your Motiva card, your rate will go up - to as high as 28.99%.

We welcome your comments about credit and money issues in our popular credit forum!

---

Nancy Castleman has spent 20+ years helping people get out of debt, save money, and live better on less. Along with her partner, consumer advocate Marc Eisenson, Nancy is known for her work on mortgage pre-payment, and for first explaining "credit card math" in her often acclaimed free e-letter, The Pocket Change Investor. Find it, along with many articles from back issues, special reports, link picks, and book reviews, on her Good Advice Press Web site. You can also see pictures of her 10,000 square foot organic garden and her nine grandchildren.

But what she'd most like you to do is read about her book, Invest in Yourself (Wiley, 1998, 2001), which she wrote with Marc Eisenson and Gerri Detweiler. Nancy considers this book, which discusses how to invest your time, energy, and money to create the life you want, to be her life's work. Nancy's books have received rave reviews in leading national publications, including USA Today and Money Magazine.

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thanks for your interest!