Charge The Customer $14.95 for $150.00 Credit Line Increase.

[ggistny02]

Why would a Credit Card Company charge the customer for a CLI?

[TheGardner]

Sounds like a sub prime lender in which case... It's always a money grab with them. Always.

[sailor_mercury]

What company and card/product was this?  I would be curious to read the disclosures.  I personally have never had this happen.

[xerostatus]

Well, why not?

If someone wants to pay for it, then there will always be some company willing to charge for it.

Just to avoid sounding like that was a dismissive answer, I will add, further that:

One really ought to avoid any credit card company that charges ridiculous AFs, has no grace period for interest on purchases, charges for CLIs, etc.

Those companies are in the business of driving you further into debt and/or trying take advantage of your less than stellar credit.

Stay far, far way, if you can help it.

[39Xelor]

Avoid cards like this at all costs! Some people will boast that these types of lenders have helped them rebuild but in the end they are terrible cards. Extremely high annual fees, ridiculous interest rates, activation fees, setup fees and charging for CLI's are all part of their "game plan".. Do yourself a favor and tear up any offers from Credit One and First Premier.

[Darrell82]

Sounds like First Premier stunt there. I heard they charge to give you an increase.

[Walt_K]

If you serve a high risk customer base, you make money on fees.  A single default wipes out a whole lot of swipe charges, so this is why cards catering to people that are rebuilding charge high APR, monthly fees, CLI fees, etc.  If you are in a situation where you have to use these types of cards to rebuild, you use them to reestablish credit and ditch them as soon as possible.  Preferably, you get a secured card from Cap One, BofA, etc. rather than going to First Premier and the like.

[39Xelor]

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@Walt_K wrote:

If you serve a high risk customer base, you make money on fees.  A single default wipes out a whole lot of swipe charges, so this is why cards catering to people that are rebuilding charge high APR, monthly fees, CLI fees, etc.  If you are in a situation where you have to use these types of cards to rebuild, you use them to reestablish credit and ditch them as soon as possible.  Preferably, you get a secured card from Cap One, BofA, etc. rather than going to First Premier and the like.

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 +1 I recommend that anybody who is in a situation that warrants looking into Credit One or First Premier go the secured card route instead! You'll thank yourself later in your credit journey, trust me.

[plasectomy]

My take is that many people building/rebuilding credit feel that they "need" these subprime lenders to give them an opportunity since other lenders won't. These lenders can easily capitalize on this since their clients likely need the lender more than the vice-versa.

Reminds me of my Orchard Bank card with a $300 CL and $59 AF. It hurt paying the fee, but it helped go from ~540 to the 700's

[wacdenney]

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@ojjlkjlkj wrote:

My take is that many people building/rebuilding credit feel that they "need" these subprime lenders to give them an opportunity since other lenders won't. These lenders can easily capitalize on this since their clients likely need the lender more than the vice-versa.

Reminds me of my Orchard Bank card with a $300 CL and $59 AF. It hurt paying the fee, but it helped go from ~540 to the 700's

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I had the exact same Orchard bank card with the exact same terms and it is now a QuickSilver One.  I have to email every year to get the fee waived and as ridiculous as that sounds it is still far better than the other rebuilder choices.  Mine has 2+ years of history behind it now and I will likely close it next year rather than bother with emailing them again, but I do not exactly loathe the card.  It was there for me when I needed it in a big way and in a weird way I sortof feel nostaligic about it.  I will sortof hate to see it go.