Near Prime Cardmember Agreement

Near Prime Cardmember Agreement 033126, as filed by Discover Bank, carries a 26.49% purchase APR and no annual fee. That purchase rate ranks near the 63rd percentile across this corpus of 4,587 filings.

What this filing discloses

What follows is drawn entirely from Discover Bank's CFPB filing for Near Prime Cardmember Agreement 033126. The filing runs five pages, and It is issued on the Discover network.

On the record here: a purchase rate, a cash advance rate, a balance transfer rate, an annual fee line and a late payment maximum. It is silent on a penalty rate and a foreign transaction fee.

The purchase rate in context

Set beside the rest of the index, the purchase APR of 26.49% lands at the 63rd percentile; it comes in above the median.

The filing marks this rate as variable, which means it moves with the index the agreement names rather than staying where it is quoted today.

Translating the rate into money

At the disclosed purchase APR, $1,200 revolving for a full year costs something like $364 in interest.

On a median-priced agreement from this index (21.99%) the same $1,200 would run about $295 a year, so this card costs in the region of $69 more annually for the identical balance.

Note the $0.50 minimum interest charge, which overrides the arithmetic above whenever the calculated interest falls below it.

These figures are arithmetic on the disclosed rate, not a quote: they assume the balance is never reduced, ignore any payments, and take no account of fees charged separately.

Fees, and what triggers them

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.

Taking cash against the card means a cash advance fee of $10 or 5% of the advance, whichever is greater and a cash advance APR of 28.49%. Cash is therefore 2 points dearer than buying something with the card. $200 is the crossover point where the percentage overtakes the $10 minimum. The grace period described below generally does not extend to cash advances, so interest on them usually begins immediately.

Moving a balance onto this card carries an up-front charge of 5% of the amount transferred, with the transferred balance priced at 26.49%. Shifting $7,500 across attracts something like $375 in fees on day one.

The downside terms

The filing explicitly states that no penalty APR applies. That is worth noting: a default on this account does not, by the terms of this document, reprice the whole balance upward.

The maximum late fee is $41 — roughly the 89th percentile of the late fee ceilings disclosed across this index.

The grace period

Purchases carry a 25-day grace period: pay the statement in full inside it and the purchase rate never applies.

A minimum interest charge of $0.50 applies in any cycle where interest is due, which makes very small revolving balances disproportionately expensive.

The limits of this document

This page cannot tell you a foreign transaction fee, because the filing's disclosure table as read does not contain it.

An agreement filing is not a marketing document. Rewards, perks, welcome offers and eligibility rules are not in it, are not in this dataset, and are therefore not discussed anywhere on this page.

Against the rest of Discover Bank's filings

This is one of 3 Discover Bank agreements collected here. Pricing across this issuer's filings is uniform at 26.49% — the rate table does not distinguish one of its cards from another.

Reading the agreement yourself

The filed PDF is linked from this page and runs five 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. Because there is no annual fee, everything depends on the revolving behaviour: used as a payment instrument and cleared monthly, this agreement costs nothing.