Credit Card Agreement for Discover

The Credit Card Agreement for Discover filing from Capital One sets out a 26.49% purchase APR, no annual fee and a 15-month 0% opening period. Against the 4,587 filings on this site, that rate lands around the 63rd percentile.

On the face of the filing

What follows is drawn entirely from Capital One's CFPB filing for Credit Card Agreement for Discover. The filing runs nine pages, and It is issued on the Discover network.

The filing is explicit about a purchase rate, a cash advance rate, an annual fee line, a late payment maximum and a grace period. It is silent on a balance transfer rate, a penalty rate and a foreign transaction fee.

The promotional period

A 15-month promotional period at 0% is on the record here — during it, qualifying balances cost nothing to carry.

Zero-percent openings appear in roughly 458 of the filings on this site, which puts this agreement in a sizeable minority rather than a class of its own.

The go-to rate is 26.49%. Any balance still outstanding when the promotion lapses starts accruing at that figure — about $1,516 a year on $5,000.

Put the other way round, the 15-month zero rate is worth roughly $1,895 on a $5,000 balance relative to paying the go-to rate from day one — a real figure, but one that only materialises for someone who was going to carry that balance anyway.

Where the purchase APR sits

The purchase APR of 26.49% places this agreement around the 63rd percentile of the set — it is dearer than the typical filing.

Because the rate is variable, the figure quoted is tied to an index and will drift with it. Nothing here is a fixed commitment.

To be precise about which number this is: the filing identifies it as the rate that takes over after the introductory period, not the introductory rate.

What a balance actually costs

At the disclosed purchase APR, $1,000 revolving for a full year costs something like $303 in interest.

Against the corpus median of 21.99%, that is approximately $57 a year of extra interest on the same $1,000.

Treat this as an illustration of what the disclosed rate does, not as a projection of a real account, which would be shaped by payments and by the fees described elsewhere in the filing.

What the card costs before you borrow

The annual fee is $0. Roughly 75% of filings here that state a fee state zero, so the absence of one is unremarkable in this market.

For cash advances the filing discloses a cash advance fee of $10 or 5% of the advance, whichever is greater and a cash advance APR of 28.49%. That is 2 points above the purchase rate. Advances under roughly $200 are charged the flat $10; larger ones are charged 5%. Cash advances also tend to fall outside any grace period, which means interest typically starts on day one rather than at the end of a billing cycle.

What a missed payment costs

Late payments are capped at $41 under this filing, about the 89th percentile of late fee maximums in the corpus.

The grace period

25 days is the disclosed grace period for purchases — the interval in which paying in full costs nothing.

How it sits in the issuer's own range

This is one of 20 Capital One agreements collected here. Their disclosed purchase rates run from 19.49% to 30.49%, and this one at 26.49% is more expensive than 1 of them.

18 of the issuer's other 19 disclosing filings are likewise fee-free.

What the filing does not tell you

This page cannot tell you balance transfer terms, a foreign transaction fee and penalty pricing, because the filing's disclosure table as read does not contain them.

What this analysis can address is bounded by the filing: rates, fees and the terms around them. Everything a card issuer might advertise — rewards, benefits, bonuses, who qualifies — falls outside the document and outside this review.

Where the authority sits

The filed PDF is linked from this page and runs nine pages. It is the authority for every figure summarised above; where this page and the document disagree, the document is right.

In short

The pricing here is middling by the standards of the index — 26.49% on purchases is near enough to typical.