topic Re: 59.9% APR in Credit Cards

59.9% APR

Anonymous — Thu, 16 Dec 2010 14:35:46 GMT

So I got a First Premier junk mail for the 1st time in a long while yesterday (to be fair, I only opted-out last month so this was probably already in process)....

MasterCard PLATINUM:

59.9% APR

$75 application fee

$75 annual fee

What's the legal definition of usury anyway?

Re: 59.9% APR

wmarat — Thu, 16 Dec 2010 14:35:03 GMT

http://www.loanback.com/lending-101/basics/usury-laws-by-state

Re: 59.9% APR

ArisGreek — Thu, 16 Dec 2010 15:02:18 GMT

59.9%!?! That's insane!! Maybe it's a typo? No one in their right mind should app for that.

Re: 59.9% APR

Anonymous — Thu, 16 Dec 2010 15:31:57 GMT

They sure have made a name for themselves and it's not a good one.

Looking back I wish I never would have had them, it kinda makes me feel like even when my credit is perfect under manual review I'll always look like I had trouble at one time due to them being on my report.

I mean it kinda looks reckless that at one time I had a card from this company

Re: 59.9% APR

Anonymous — Thu, 16 Dec 2010 16:44:00 GMT

Better hope you're never late with a payment. They probably have some bone crushers that collect for them.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 08:37:55 GMT

Just be happy they didn't send you a pre-approval for 79.9%.

http://www.usatoday.com/money/perfi/credit/2009-12-17-subprime-credit-card-apr_N.htm

Re: 59.9% APR

Bcunniff9 — Fri, 17 Dec 2010 10:11:17 GMT

I have it. No problems with it so far. The 59.99% means nothing to me if I pay the balance off every month. Be responsible with credit and you wont be hit with apr and fees.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 10:46:28 GMT

I had first premeir too at one time but there is no way to justify 59.9% whether you pay PIF each month or not that APR is just crazy. If you read the fine print they also have monthly service fees of approx $6.25 + a $75 one time fee.

When I had FP I believe the APR was 9% but they also charged up front fees exceeding $200 + $8/mo + $65/year

To anyone considering them I would suggest trying to get a secured card from a real lender, at least you get your money back if you choose to close the account.

First Premier got a ton of money from me and if I had to do it all over I never would have had their card.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 12:29:17 GMT

I read in the link that was posted here that First Premier is the 10th largest issuer of MasterCards with a total customer base of 3.5 million cardholders. So many people are their customers, that's a shame!

I understand their argument that in the subprime market they face a much bigger risk of being stiffed, though. Nonetheless, I think they turn a handsome (read: big) profit on their cards. They probably could give their customers a break and treat them better. But then, they're also right that the fees and APR charged are clearly shown in the info sheet. Everyone can read before they apply.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 16:59:27 GMT

when I had FP they gave me a 250CL and the fees

were 178.00 which meant I could use a whopping 72.00.

I closed them immediately.

Re: 59.9% APR

haulingthescoreup — Fri, 17 Dec 2010 17:07:15 GMT

@Bcunniff9 wrote:
I have it. No problems with it so far. The 59.99% means nothing to me if I pay the balance off every month. Be responsible with credit and you wont be hit with apr and fees.

I've never heard of anyone being able to avoid the First Preemie fees simply by PIF'ing.

Sure, you don't pay interest, but you still have the fee for breathing in and the fee for breathing out and all the rest.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 17:09:52 GMT

Technically, the fees are finance charges even though they aren't levied as a percentage of debt.

Re: 59.9% APR

Anonymous — Fri, 17 Dec 2010 17:21:27 GMT

Some of the cards had a 50% finance charge on CLI. IMO, that is the most outrageous fee they have,

Re: 59.9% APR

Bcunniff9 — Sun, 19 Dec 2010 06:54:18 GMT

Well thats the price I pay for screwing up my credit.

Re: 59.9% APR

JayRizzo — Sun, 19 Dec 2010 07:05:13 GMT

I don't accept that 'price to pay' answer. I'd rather start with a secured card from my local Credit Union before I get bent over by a company known to withhold payments beyond due dates to collect late fees; charge waaaay over the top fees 59.99% -- I'd take my chances owing the Sopranos; and they charge you a cli fee which is half of the amount of the cli and charge 100% interest on that! I posted a video link in the 'Credit News' section. Check it out and see what the former CEO of these companies have to say about what they do to customers to collect those fees -- totally illegal!!! I started the traditional way, with a department store card and built up slowly.

Re: 59.9% APR

haulingthescoreup — Sun, 19 Dec 2010 12:11:02 GMT

Seriously, there are better ways to rebuild credit out there.

If you genuinely can't find anything better than First Preemie, either hold off for the time being while you work on your credit, or keep them for as short a time as possible until you improve enough to get something better, and then kick them to the curb.

They do a nice business by convincing people that this really is the price to pay for past problems. But that's not necessarily so.