A Credit Card with a 79.9% Interest Rate?


SAME OLD G

SAME OLD G

A product of Greatness
Staff member
Gott Dayum!!!!! :eek:

NEW YORK (AP) -- It's no mistake. This credit card's interest rate is 79.9 percent.
The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.

Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card's credit line.

In a recent mailing for a preapproved card, First Premier lowers fees to just that limit -- $75 in the first year for a credit line of $300. But the new law doesn't set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent.

"It's the highest on the market. It's the highest we've ever seen," said Anuj Shahani, an analyst with Synovate, a research firm that tracks credit card mailings.
The terms are eyebrow raising, but First Premier targets people with bad credit who likely can't get approved for cards elsewhere. It's a group that tends to lean heavily on credit too, meaning they'll likely incur the steep financing charges.

So for a $300 balance, a cardholder would pay about $20 a month in interest.

First Premier said the 79.9 APR offer is a test and that it's too early to tell whether it will be continued, according to an e-mailed statement. To comply with the new law, the bank said it will no longer offer the card that has $256 in first-year fees as of Feb. 21, 2010. However, customers will still be able to use their existing cards. The bank said "no final decisions" have been made regarding any rate changes for those cards.
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Who would actually apply for this.

Capital One hates me....they have not made 1 cent of interest off of me.....I pay in full EVERY month.
 

Why do we need laws for people to be fiscally responsible. Pay your bills, you have no problem. If you use credit in the right manner, you won't need to apply for a card with 79% interest. Seriously, if they can get that much, and someone is willing to pay it.....I don't see a problem!
 
Suge said:
Why do we need laws for people to be fiscally responsible. Pay your bills, you have no problem. If you use credit in the right manner, you won't need to apply for a card with 79% interest. Seriously, if they can get that much, and someone is willing to pay it.....I don't see a problem!
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Suge, I understand totally. However, I think the problem is that some people simply don't know enough about APRs to know the difference. There are some people who think credit cards are all the same. Some are so eager to know they can qualify for one, they don't care about the APR. Thus, the term predatory lending.
 
SLT said:
Capital One hates me....they have not made 1 cent of interest off of me.....I pay in full EVERY month.
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:tup: :tup:
I have two credit cards (under the same company) that I use from time to time to just keep some good activity on my credit report. It's never any big purchases, normally nothing over $150. And I try to pay them in full at the next billing cycle. They just sent me a 3rd credit card. I ain't falling for it. :lol:
But it's definitely good to have in times when the cash flow is a little tight. But I ain't trying to pay no interest.
 
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CriTAUcal said:
:tup: :tup:
I have two credit cards (under the same company) that I use from time to time to just keep some good activity on my credit report. It's never any big purchases, normally nothing over $150. And I try to pay them in full at the next billing cycle. They just sent me a 3rd credit card. I ain't falling for it. :lol:
But it's definitely good to have in times when the cash flow is a little tight. But I ain't trying to pay no interest.
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I have had mine for years and refuse to give them nothing more than I charge. I have a low credit line(purposely) and every so often they try to sneak it up. I promptly call them and tell them to put it back like it was....:smug:
 
yeah, that's some BS, but it's best to not even have credit cards....Personally, I don't see why folks feel the need to use those things all the time. It's an unnecessary bill, to me. I got rid of all mine long time ago and don't have not a one any longer...thank you, JESUS! Don't plan on getting anymore either. This is allowing me to learn how to save money and manage money better, vs relying on credit.
 
79%!!!!!

Do you at least get dinner, a movie and maybe sone skittles for getting phugged like that?????



There just ain't no love in da werll no moe, yall...

Ain't no moe love......

:shame::shame:
 
Warndalyn said:
yeah, that's some BS, but it's best to not even have credit cards....Personally, I don't see why folks feel the need to use those things all the time. It's an unnecessary bill, to me. I got rid of all mine long time ago and don't have not a one any longer...thank you, JESUS! Don't plan on getting anymore either. This is allowing me to learn how to save money and manage money better, vs relying on credit.
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The parts in bold.....real talk! But Suge does have a valid point. If you apply for it, you're responsible for making the payments no matter how high or low the interest rates are.
 
I love credit cards - They allow me to live without having a lot of cash on me at any time. I also use them to acquire travel points. I don't do annual fees or carry balances.

Award points have allowed me to take some major vacations for the cost of food and local tours. I flew to Australia in business class and stayed at nice hotels for free with my points for 2 1/2 weeks. With airline tickets you just have to pay taxes, at hotels, there are no fees.
 
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mighty hornet said:
:smh::smh:

79% interest rate!!!!!!!!!!
:vomit::vomit:

There's got to be laws against that!!!!
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I thought there was a cap on the interset rates they could charge.

CriTAUcal said:
:tup: :tup:
I have two credit cards (under the same company) that I use from time to time to just keep some good activity on my credit report. It's never any big purchases, normally nothing over $150. And I try to pay them in full at the next billing cycle. They just sent me a 3rd credit card. I ain't falling for it. :lol:
But it's definitely good to have in times when the cash flow is a little tight. But I ain't trying to pay no interest.
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Yep, I have a bank that I had 2 cards from and when I canceled one of them they sent me one of those Black American Express Cards.
 

That black AMEX looks good when you pull it out.......sorry I just love the fact that I have one!

Kenn and MH, I understand the predatory aspect, but we are talking about adults, and adults need to make better decisions. I said the same when folks wanted to put the blame for all the mortgage madness on th elenders, when many of these same poeple got these loans trying to take advanatge of the same overbown market as the lenders. Some people do get taken advantage of, but I refuse to believe that is the majority.
 
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