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Q: I cannot always pay my credit card bills in full. Those interest charges are pretty high. Is there any way I can earn cash back on credit card interest charges?
Most consumers dread the interest charges assessed to their credit card accounts. But now, there’s a card where account holders can actually benefit from the interest on their account. Earlier today I mentioned how we never recommend carrying a balance.
However some of you may not have the option for business or personal reasons and may have already amassed a large balance.
The Discover® Motiva(SM) Card offers cash back rewards like other Discover cards, but also issues rewards to cardholders for timely payments based on their interest charges.
Every time that a cardmember makes six consecutive on-time payments, Motiva will deposit a “Pay On-Time” Bonus into the member’s cash back account that is equal to a full month’s interest.
So suppose that the annual interest rate on the card is 20% and the account balance is $15,000. If six on-time payments in a row are made, the cardholder would receive $250 in his or her cash back account (or 20% of 15,000 divided by 12).
The Pay On-Time Bonus comes in addition to normal cash back bonuses on all charges of up to 1%, as well as 5% to 20% cash back on purchases made through Discover’s online shopping mall.
New Discover Motiva cardholders will get an APR of 3.99% on purchases for the first 12 months and a similar rate on balance transfers for 15 months. You can read our full review of Discover Motiva here.