There was a time when Discover would give you checks that you could use to transfer debt from other cards or accounts, which had a promotional rate of 0% for the life of that debt. I deposited one check into my checking account that filled up my discover card credit limit, then used that money to pay off my higher rate Discover Card debt. Then I did that a few more times until my entire Discover Card balance was 0%. This made my credit spending look amazing, because I had such a huge amount coming in and going out each month, and I soon started getting offers for much better card rates. Then I paid off my other credit cards while that debt sat there accruing no interest penalty.
Also, the way the accounts worked was higher debt would be paid off first, so until I fully paid off that account, there was always some 0% debt below all the higher % debt.
TL;DR: Discover Card let me my entire credit card debt through my checking account, making my credit score look wonderful and at the same time dropping my interest rate to 0%.
Sounds similar to the tactic of serial debt transfer to one 0% interest card after another. Discover probably realized their program wasn’t motivating enough people to use Discover cards for actual spending.
There was a time when Discover would give you checks that you could use to transfer debt from other cards or accounts, which had a promotional rate of 0% for the life of that debt. I deposited one check into my checking account that filled up my discover card credit limit, then used that money to pay off my higher rate Discover Card debt. Then I did that a few more times until my entire Discover Card balance was 0%. This made my credit spending look amazing, because I had such a huge amount coming in and going out each month, and I soon started getting offers for much better card rates. Then I paid off my other credit cards while that debt sat there accruing no interest penalty.
Also, the way the accounts worked was higher debt would be paid off first, so until I fully paid off that account, there was always some 0% debt below all the higher % debt.
TL;DR: Discover Card let me my entire credit card debt through my checking account, making my credit score look wonderful and at the same time dropping my interest rate to 0%.
“There was a time when…”
Sounds similar to the tactic of serial debt transfer to one 0% interest card after another. Discover probably realized their program wasn’t motivating enough people to use Discover cards for actual spending.