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Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: Applied bank

The high fee cards are basically "secured cards" on lay away plans.  By the time you pay the initial fees, app fees, annual fees, program fees, monthly maintenance fees, etc.  by the end of 1 year they have charged you almost or as much as your CL....so from that point forward they have no real risk of a loss on the account.

 

This is WHY I recommend a good CU secured card.  Put those fees into a savings account and build a real relationship.  If you want 2 cards, go for another secured.  This way you get to KEEP your fees (savings) and have the credit card.  And once you get to graduate to unsecured, you have your money available in addition to your CL.

 

Check your local CU's.  Check if you qualify with NFCU.  Most CU's that offer secured cards have no fees, low rates and you get a long term financial relationship to finance autos, LOC, home, etc.  Builder cards get you a TL.  Secured cards get you on a road to real financial freedom.

 

Of course, IMO only.  Feel free to disagree freely   :smileywink:

 

 

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Valued Contributor
Jazzzy
Posts: 2,647
Registered: ‎07-29-2009

Re: Applied bank


creditwherecreditisdue wrote:
Not for long. The fee harvester cards are going to be slammed by the Credit CARD Act of 2009 in two months. It will be interesting to see if they are able to reformulate their scam game to circumvent the new legal provisions.

http://www.argusleader.com/article/20091218/NEWS/912180322

 

First Premier apparently intends to make their profits through a 79.9% interest rate. This is not circumventing the new legal provisions. It's just circumventing common sense.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Applied bank


LynetteM wrote:

creditwherecreditisdue wrote:
Not for long. The fee harvester cards are going to be slammed by the Credit CARD Act of 2009 in two months. It will be interesting to see if they are able to reformulate their scam game to circumvent the new legal provisions.

http://www.argusleader.com/article/20091218/NEWS/912180322

 

First Premier apparently intends to make their profits through a 79.9% interest rate. This is not circumventing the new legal provisions. It's just circumventing common sense.


This is a misinterpretation of the APR. The 79.9% APR is the effective APR including all of the various fees imposed. There are restrictions on fee harvester cards contained in the Credit CARD Act of 2009 that will substantially curtail the ability to issue this type of card in the first place and force issuers like FP to alter their game plan:

SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF SUBPRIME OR ‘FEE HARVESTER’ CARDS.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637), as amended by this Act, is amended by adding at the end the following new subsection:

‘(n) Standards Applicable to Initial Issuance of Subprime or ‘Fee Harvester’ Cards-

‘(1) IN GENERAL- If the terms of a credit card account under an open end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate amount in excess of 25 percent of the total amount of credit authorized under the account when the account is opened, no payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.

‘(2) RULE OF CONSTRUCTION- No provision of this subsection may be construed as authorizing any imposition or payment of advance fees otherwise prohibited by any provision of law.’.

Valued Contributor
casinoannie97
Posts: 1,989
Registered: ‎08-17-2007

Re: Applied bank

TX JOHN: 
Yes I agree.  I wish I knew that 9 Years ago.  However, CAP ONE started out in 2002 with A/F and deposit for a 300 cl.  Now they are a rewards card with 5400 cl and they sent back my deposit a longggggggggggg time ago.  Out of the three, Premier, Applied and Cap One they are only ones to do this.
Frequent Contributor
ladydi
Posts: 278
Registered: ‎10-17-2009

Re: Applied bank


casinoannie97 wrote:

I started out with Applied (It was  CountryCross Bank)  The fees are exorbitant.  You pay for every cli. It was like 100.00 each time I got one.  My highest cl before closing was 1575  They wanted to charge me so much a month when I got over 1000 so I closed.  

 

They are pretty bad but served their purpose   Probably on a par with Premier.

 

I foound HSBC and Cap One although cheap with clis to be better with their fees. 

Message Edited by casinoannie97 on 12-28-2009 08:55 AM

u got that crap right....when i tried for for a cli, she said i was eligible but there was a 100 fee. so i asked her what kind of cli will i get, she stated she dont know it could be from 100 and up...i said thats ok, i will stick with my $850 limit

Valued Contributor
casinoannie97
Posts: 1,989
Registered: ‎08-17-2007

Re: Applied bank

I think I posted before.  When I got to over 1000 cl  they wanted to charge me so much a month.  That' swhen I closed.

 

They actually wanted to penalize me for building my credit. Bummer!!!

 

Orchard treated me a lot better and gave me clis automatically.  I thought they were pretty good starter card compared to those other vultures.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Applied bank

Orchard is vastly better than FP, Applied, Millennium, etc. They are actually fairly civilized. So is HHB.
Frequent Contributor
charliebrown1370
Posts: 313
Registered: ‎06-26-2009

Re: Applied bank


creditwherecreditisdue wrote:
Orchard is vastly better than FP, Applied, Millennium, etc. They are actually fairly civilized. So is HHB.
+1

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Valued Contributor
casinoannie97
Posts: 1,989
Registered: ‎08-17-2007

Re: Applied bank

The strange thing is that while Premier and Applied were doing these awful charges  Tribute (another vulture now out of business I think) offered me 3250 cl with absolutely no fees.  I denied it but thought it was really strange.

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Applied bank

Tribute had serious legal problems.

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