Discover is a well-known credit card brand issued mainly in the U.S. It was first introduced by Sears in 1985. When it was introduced, Discover did not require an annual fee and provided a relatively high-than-usual credit line, disruptive features to the credit card business. This is because of Discover's strategy of marketing itself as a brand that provides consumers with a variety of products. In the early days, this strategy did not produce the desired results since many consumers simply could not find credit cards that they could use. Now that Discover has changed its name to Bank of America, it is no longer so popular among consumers.
When consumers first encounter a card from Bank of America, they are usually amazed with its high-tech features and services. The card includes everything you would expect from a traditional American card including gas cards, credit cards, travel rewards cards, cash advances, store-branded rebates, and airline miles. The card is also issued with a balance transfer feature, which allows a person to transfer all their balances to a card from Bank of America. Although the card offers great benefits, there are certain downsides to using the cards.
The biggest drawback to using the cards from Bank of America is the high interest rate. Because the bank charges such high rates, many consumers find that they have very little available credit on which to make purchases. The average introductory rate on Discover cards is about fifteen percent, making them far more expensive than their competitors. While the high interest rate makes the cards very attractive to consumers, the interest rate may also be high enough that many consumers end up paying even more than they paid for the card in the first place.
Another disadvantage to cards issued by Bank of America is the fact that many banks offer competitive rates when consumers apply for cards with their bank. Since a number of banks compete for consumer credit cards, customers will often be able to obtain cards from the least expensive banks at a much lower rate than what they would get from a bank of America. This can result in higher monthly payments when consumers find that they cannot keep up with the high interest rates.
The ability to transfer balances from one card to another also makes Discover cards particularly attractive. but since consumers can transfer balances from any of their credit cards, there is no limit to how many cards they can carry at once, and therefore, they are often maxed out sooner than if the balance doesn't change as quickly as it should.
Overall, the cards from Bank of America have their own set of disadvantages. . . . . . . One of the main reasons why they are so popular is their high-pressure marketing campaigns. Many consumers see the cards as an investment in a company and when they hear about the low interest rates or the free gift cards, they tend to use these cards for whatever purpose that they can. Because of this, the high interest rate and other disadvantages that come along with the cards, it may take some time for a consumer to pay off their cards. Although many consumers enjoy the benefits of these cards, many of the downsides may outweigh the good in the end.