Sweet! <brand name> Card! 36% APR!

[Adalen]

I received a pre-approved offer in the mail the other day for a (payday) loan of $800 (with lovely green scenery and sunshine on the envelope).  At a rate of only 370% APR!  They even quoted how it was much cheaper than your average 400% APR.  Yes folks, you too can borrow $800 RIGHT NOW for only twelve easy monthly payments of $150!

Sounds like a great deal!

[dude11]

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@Adalen wrote:

I received a pre-approved offer in the mail the other day for a (payday) loan of $800 (with lovely green scenery and sunshine on the envelope).  At a rate of only 370% APR!  They even quoted how it was much cheaper than your average 400% APR.  Yes folks, you too can borrow $800 RIGHT NOW for only twelve easy monthly payments of $150!

Sounds like a great deal!

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I got the same one!!! LOL!!! Somewhere from Montana maybe? Not sure I forgot.

[ChesterPDexter]

Maybe one of the states that has "tribal land" payday loans, maybe?  http://www.thestreet.com/story/11174918/1/tribal-land-payday-loans-spark-reservations.html

[SpiceIslander]

There was a time when I got similar offers from a "certain" bank almost weekly. At that time the only sub-prime card I had was Cap One. My Cap One Visa had a CL of 5103.00, not exactly sub-prime. Anyway, I felt insulted. After all, I even had Discover in my wallet! LOL! After I got the third one, I decided it was time to apply. I took a sharpie and wrote across the application..."Are you crazy or do you think I am?" I mailed it to them in their postage-paid envelope. I got two more and did exactly the same thing. I've never received another.

[crunching_numbers]

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@Adalen wrote:

I received a pre-approved offer in the mail the other day for a (payday) loan of $800 (with lovely green scenery and sunshine on the envelope).  At a rate of only 370% APR!  They even quoted how it was much cheaper than your average 400% APR.  Yes folks, you too can borrow $800 RIGHT NOW for only twelve easy monthly payments of $150!

Sounds like a great deal!

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Without compounding the 370%, those payments are more like $300 for a year.  If our legislation in this country would make loans like these FEDERALLY illegal, then tribal lenders could not even offer such inviting terms. 

The point that the mainstream sub-prime lenders make that they take the high risk on non-payment, (blah blah blah) is also a joke.  They should have maximium interest they can charge, and and a maximum amount of fees.  Charging a CLI fee should be illegal, period.

Loan sharking is illegal unless you hang up a payday loan sign....

[AZHeather]

I received one of these crazy cc offers about a month ago.  My 16 year old daughter was reading it.  She finished, put it down, looked at me and said, "If that is how much a credit cards cost to have, I am never getting one!"  I laughed and then sat down with her and talked to her about her credit, subprime vs. prime cards, scores, etc.  She learned a lot, but not as much as she is going to learn this summer when I sign her up on this site so that she can read through these forums and really get a good understanding.  She can ask questions and be prepared for all the offers that will start hitting our mailbox when she turns 18.

I am so disappointed in the school systems for not teaching our kids basic personal financial information like how to manage a checking account, understanding credit, the importance of savings, how interest rates work, etc.  Something has to change.

[tinuviel]

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@AZHeather wrote:

I received one of these crazy cc offers about a month ago.  My 16 year old daughter was reading it.  She finished, put it down, looked at me and said, "If that is how much a credit cards cost to have, I am never getting one!"  I laughed and then sat down with her and talked to her about her credit, subprime vs. prime cards, scores, etc.  She learned a lot, but not as much as she is going to learn this summer when I sign her up on this site so that she can read through these forums and really get a good understanding.  She can ask questions and be prepared for all the offers that will start hitting our mailbox when she turns 18.

I am so disappointed in the school systems for not teaching our kids basic personal financial information like how to manage a checking account, understanding credit, the importance of savings, how interest rates work, etc.  Something has to change.

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I agree with this so very much! With much of modern life taking credit scores into account -- being able to get a loan (car, mortgage), being approved for a credit card, getting the best car insurance rates, renting an apartment, and, in some cases, securing employment -- I believe that learning about credit and how to manage it properly is rapidly becoming a must have skill. I wish that schools would work this into their curricula so that our kids would go out into the world informed about these matters. And the fact is that many -- if not most! -- parents simply don't have the knowledge to be able to educate their kids adequately, at least not beyond the most basic of basics, such as paying your bills on time. But as those of us on these forums know, there is more to it than that, as well as the issue of how much misinformation is circulating in the mind of the general public.

[ChesterPDexter]

Look, I'm pretty old (46) and I remember in 9th grade that we had a unit on consumer finance.  We learned about revolving debt.  The teacher explained that it would be something like a store credit card (for Dress Barn or some other such store.)  He explained how they compute the interest, what a revolving card is, and how interest compounds.

I didn't care a lot or absorb much of it, but at least they tried to teach it. Obviously I still remember some of it.  Do they not teach any of this anymore, or do they teach it but kids don't pay much attention?  If they don't anymore, but used to, they should get back to it, and make it a little more comprehensive.  I do remember that his tone was to  basically discourage from using revolving store credit (I think he used the example of a store card because the rates are higher and terms less forgiving) or at least forewarned about the costs.

[AZHeather]

I too had a class that use to teach the basics of balancing a check book, the basics of interest, and a few other economic stuff, but I was 13 and really didn't absorb much of it.  Now though, they do not teach those things at all.  Like I said, my daughter is 16, almost 17.  She was a junior in high school this year and there was not even an option to select a class that taught economics.  We just finished her course selections for her senior year and nada.  I have reviewed her course options with her every year and there was never a class that offered anything in that regard.  Sad, but true.  

[annielorie]

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@Anonymous wrote:

Got a sweeeeeeet offer from <brand name> Bank, Sioux Falls, SD!

- $700 CL (Sweet!)

- 36% APR (Plus an additional spiffy $6 or 5% (whichever is greater) on cash advances)

- $175 AF(1st year) / $49 AF (2+yrs)

- A BONUS $14.95* monthly servicing fee (generously waived for first year! Must be some awesome sweet  service!)

(* = The $14.95 "Monthly Servicing Fee" will accrue even after the account is closed as long as the balance is greater than $20)

- $29.00 additional card fee (billed annually, of course)

- 25% CREDIT LIMIT INCREASE FEE

My point is read your stuff before you agree to this garbage (the members of this forum already know this, of course ) Has anyone seen an offer this egregious lately? I know they can get away with it because of where they're from, but this is just <explicative> ridiculous. Shameful!

I would not normally single out a company for these types of terms, but I think it serves as a useful reminder.

EDIT: Removed bank name to respect forum's policies.

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OPh my God I hate to play can you top this but....Before I came to Fico in a land far far away I found out I didnt have a score. THe only secured card I found was FP and if you can believe it 49.9% APR 95$ secure for $300 limit $75 dollar fee upfront!!!!!!! Same 25% credit increase fee.But my fico is now 715 TR and &710 EQ  I pay in full4months till they go BABYE