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Author: TMFRunkle Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308226  
Subject: Discover Card Continued Date: 12/10/1997 8:31 PM
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Furthering the discussion on Discover - The Annual percentage rate for new cardmembers is 17.4% in the first year. Than it is based on the prior years total purchases. 1,000 or more - 17.4%, less than $1,000 - 19.8%. That's pretty rotten interest rates.

One thing that is tempting to me, and maybe for others that travel a lot on business is the cash back feature. I travel a lot, and keep my travel expenses on an American Express card that I use only for travel. As I always have, I pay the balance every month when I get my expense check.

So, would Discover be worth it for me with travel? I checked their website a little bit more, and I'm not sure. First, the application says you won't use it for business or commercial use. I suppose the same people that check to make sure you don't take the tags off your mattress will be checking on you for this.

Going on, they charge 2.5% on cash advances. American Express does too, and I get reimbursed for that. Except I lose my ATM slips most of the time. Now, how many major hotels accept Discover? I don't mean Red Roof Inn, Travelodge, or other fine places of lodging. While I never get to stay at some of the fancier places, I haven't noticed if Holiday Inn, Ramada Inn, or Marriott accept the Discover Card. Also, do many restaurants accept the card?

This might be something worth looking into. Anybody notice how many hotels and restaurants accept Discover Card?

George
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Author: BeavisNbutthead One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 364 of 308226
Subject: Re: Discover Card Continued Date: 12/31/1997 11:09 PM
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<<<Furthering the discussion on Discover - The Annual percentage rate for new cardmembers is
17.4% in the first year. Than it is based on the prior years total purchases. 1,000 or more - 17.4%,
less than $1,000 - 19.8%. That's pretty rotten interest rates.>>>

But if you are Foolish and pay the balance every month, does it really matter what the rate is?

<<< So, would Discover be worth it for me with travel? I checked their website a little bit more, and I'm
not sure. First, the application says you won't use it for business or commercial use. I suppose the
same people that check to make sure you don't take the tags off your mattress will be checking on
you for this. >>>

For this I think they are more concerned that you are not trying to run a business off the card - like I did when I was in graduate school.

<<< Going on, they charge 2.5% on cash advances. American Express does too, and I get reimbursed
for that. Except I lose my ATM slips most of the time. Now, how many major hotels accept
Discover? I don't mean Red Roof Inn, Travelodge, or other fine places of lodging. While I never
get to stay at some of the fancier places, I haven't noticed if Holiday Inn, Ramada Inn, or Marriott
accept the Discover Card. Also, do many restaurants accept the card?>>>

I used to travel a lot on business and this was how I got into using Discover card almost exclusively. I have never stayed at a hotel (in the U.S.) that didn't take Discover, whether it's a $25 I'm-too-tired-to-drive-anymore-tonite hotel or a $250 Let's-do-the-big-city-with-wife-and-kids hotel. Restaurants I would say it is now accepted at 80-90%, and I am sure to give the manager an earful if their establishment doesn't take it.

If you travel outside the U.S. frequently, even to Canada, the card is accepted in very few places there. Generally all you can do with it in Canada is stay at very few motels (with strong ties to US chain) and rent a car from Avis or Hertz. I found one gas station in Langley, BC that took Discover and I almost danced a jig in the store.

As far as using it for business, if I'm going to rack up $20,000/yr of business expenses, hell, take the $200 cash back and call it a bonus from the boss for making me travel so much. On the other hand, from one person's experiment of using the card exclusively, you'd be amazed how much you can buy with Discover that are everyday purchases - groceries, gasoline, dining out, etc. Even big purchases like computers that you might have saved $1500 for - put it on the card and use that money to pay off the bill - you get essentially a month of free interest AND $15 back from Discover - too good a gig to be true, as long as you are paying off your bill each month.

However, I've recently been tempted by a new card, as you will read in later posts........

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