Discover ‘It’ Card Offers Late-Payment Forgiveness, Few Penalties

Discover Financial Services is hard at work promoting its newest “It” card on television commercials, with a feature that consumer advocates hope becomes more of a trend: late-payment forgiveness.

As credit card delinquencies continue to decline, card companies are becoming more daring in the competitive challenge of getting the best customers, offering perks such as fewer penalty fees.

And in fewer – but growing – examples, card providers are offering outright forgiveness for the dreaded late payment, which normally draws a hefty $35 penalty and a bad mark on your credit report.

The latter may still be true when it comes to your credit profile, but at least you’ll have some peace of mind.

And that’s exactly how Citi refers to its Simplicity Card. “Peace of mind with no late fees and no penalty rate,” Citi says on its website.

For Discover, the late payment forgiveness is more prominently featured in its promotions.

Discover’s “It” has a gracious fee policy that does not punish card members too much for making a late payment. The Discover It card waives the first late-payment fee ($35 for each late payment afterward); and there is no penalty APR.

Moreover, there is no over-the-limit fee, although that’s the case for most Discover cards.

“We believe that consumers want something different from a credit card company – something that addresses their specific needs, treats them fairly and gives them what they deserve,” said Roger Hochschild, president and chief operating officer at Discover, in a statement.

J. Lipsky

Hello, I am John, born in Cedar Rapids, but lived a lot of years in Latin America. I am an economist and have specialized in credit and debt. Originally sovereign debt, but later on, in credit score management and debt consolidation. I write for many publications. Here in eCreditDaily, I write about credit, second chance banking, and debt. I also write for other websites and bulletins about inflation and country risk.

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