79.9% APR on a credit card? No, it’s not a joke

A 79.9 Percent APR on a credit card?

Are you kidding me? No, I’m not.

The Associated Press report says:

The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules.

Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card’s credit line.

Now that you’ve caught your breath, read the whole story here.

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9 comments Add your comment

RH

December 20th, 2009
11:55 am

Not suprising at all. Most regulations are like this as the government always leaves room for loop holes. These new credit card regulations are no different and are enacted just to temporarily appease the consumer and make the feds look like they are doing something. Subprime Lending is not going away as more people are now considered to be Subprime Borrowers. Many consumers are now considered high risk and lenders are in the business to make money, not lose it.

Jackie Storm

December 20th, 2009
1:08 pm

I have 2 of these cards at 9% what do I do with these cards? When I pay them off I am still goi
going to pay 20$ monthly for the card? And how much for balances? How can I rebuild credit???

Rod

December 22nd, 2009
10:13 am

Jackie – take some personal responsibility and CALL THE CREDIT CARD COMPANY AND ASK THEM YOURSELF!!!

Call it like it is.

December 23rd, 2009
10:22 am

If you want it save your money then get it. Yes it a novel concept but some say it works. Just think if everybody in America used cash for just 1 week. The credit card companies would be crying like a baby. There was a time when people didnt have to have everything right then and now. They work and saved then bought what was needed. Take control of your life and quit letting the plastic control you.

Bobby dee

December 24th, 2009
4:54 am

Call it like it is:: I used Capital One for all my trips for 3 years, taking advantage of their rewards. When they changed the rules, I got mad, redeemed all my points and started using another card. I did not received any email or letter asking me what happended. I guess they really didn’t care, because I paid off my balance every month.

T.N.

December 25th, 2009
4:35 pm

So I guess this leaves the consumer with a choice to either sign up for the card or you don’t. It is what is. You can’t say you weren’t forewarned. Maybe one should stick to not borrowing and work on cleaning up the debt you must already have. It seems like someone needing this card has credit that is shot. Just pay in cash and work towards true financial freedom.

Joe bintherdonthat

December 29th, 2009
10:21 am

It really is ok to use cash. I’ve paid off my credit cards and cut them up. Pay cash for all your purchases, yes even cars. The only thing you should have a loan for is a house. Work to pay off all your debt and then when the house is paid off you will be so set you won’t even have to worry about building credit. This will take some time so learn to be patient!!! and content and quit trying to keep up with all the materialistic crap in the world. Dave Ramsey really helps if you can’t seem to get things in order!!!

BongWater Slurpee

December 30th, 2009
1:45 pm

Hey…everyone wanted revised credit card rules and our incompetent govt gave you what ya wanted….LMAO!!

Stay within your limit, keep good credit and ya wont have worries about same.

BongWater Slurpee

December 30th, 2009
1:49 pm

Hear hear Joe! Agreed 100%. I bought my 2008 Acura TL Type S for CA$H!! Will be purchasing a house within the next 2 to 5 years and plan to have a minimum of 50% down payment!!

To have financial freedom one MUST MAKE SACRIFICES!!

Do you really need that Ipod, Bluetooth, C-phone, Rooms to go furniture with deferred interest, PS3, XBox, Wii, Guitar Hero etc? Think about it!