79.9% Interest Rate Credit Card?
Yup, you read that correctly. It seems that First Premier Bank has decided that it can skirt new credit card regulations by offering a credit card with an annual interest rate of 79.9% to people with bad credit. The maximum they can have on the card is $300, and the minimum monthly payment is $20.
They’re doing this because one of the new regulations that was passed has a cap on the amount a yearly fee can be for credit cards to 25% of whatever the balance on a credit card is. First Premier Bank used to charge $256 a year in fees to use a credit card with a limit of $250, and now that’s been thrown out. And let’s not forget to add that there will be a $29 fee for going over the limit or making a late payment.
The bank believes it’s offering people will lousy credit a chance to build their credit back up. My opinion is that loan sharks get less of a rate than that. It’s potentially taking advantage of people, and I don’t like that one bit. The bank says it doesn’t know how long it will have the card plan. I’d rather they kill it right now and don’t give those who don’t qualify for credit new credit cards to begin with.
Anyone disagree with me on this one?