NBC San Diego found a local wine distributor who was issued a credit card with a 79.9 percent APR.
The Premier card from South Dakota's First Premier Bank is responsible for the usurous, loan shark-style rate. The station's Bob Hansen writes:
On its Web site, First Premier says it is the country's 10th largest issuer of Visa and MasterCard credit cards. The site also says it "focuses on individuals who have less than perfect credit but are actually still creditworthy."
"I think they're trying to take advantage of me," said Hageman.
Ya think?
The story says the California Attorney General can't do anything about the card because it comes from an out-of-state bank. Anyone with a Premier card would be wise to check out the fine print on their billing statements.
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10 comments:
They could say "579.9%" and it wouldn't bother me a bit.
I have two credit cards that I use 1) for convenience and 2) for perks and rebates. I pay their balance due each month. I've only paid interest on a credit card one time in my life, and that was in 1977.
People who pay credit card interest, even if it's only 10%, are bad at math. The government's problem with rising debt is just a symptom of a greater problem -- the massive personal debt of Americans. Solution: Don't spend money that you don't have.
I'm sure "My cousin Vinny" or his friend, Guido, could come up with a better rate even in NJ. LOL
Throw your cards away, you dont need them.
Usury but its legal.They send out those fake cards with the recipients name already stamped on it and claim you are pre-approved.
don't let it continue
Stop accepting them.
It's not usury; it's a fair price for people who have bad credit. If you're untrustworthy, you're going to have to pay more to access credit. Those who lend to you are taking a huge risk. If you don't want to pay an interest rate that high, then don't borrow money from these people. It's pretty simple.
What catches my eye is the $75.00 annual fee for the priviledge of a line of credit with a 79.9% interest rate. That in itself would seem absurd. Someone who is so desperate to pay that kind of money to secure such a small line of credit is surely a poor credit risk. The ones that actually apply for one of those cards (yes, knowing the terms) just needs the money. The ability to repay or the interest rate charged is not on their mind. Usurous, no, not considering the risk involved. What is it is a product for an existing demand, but ethically, should not be offered.
Unfortunatly when you destroy your credit you have to take what you can get intrest rate wise, until you build your credit rating back up. And with the low availablity of credit these days, rates for these "high risk" customers are only going to get higher. Or you can chose not to have a credit card.
its hard not to accept them when you dont have a job, bills piling up and kids to feed. When jobs on a freeze and pay isnt going up, its very hard to get by. Unless you havent hit the hard times, dont judge what other ppl have to do to get by. There are reasons for everything. BUT 79.9% DAM Id have to go with out milk for a few days. Thats rape!
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