Credit card's newest trick: 79.9% interest

[SPalin]

I received an offer from First Premier Bank yesterday and it was the old offering of 9.99% fixed interest, but then $95 processing fee, $25 service fee, $7 a month annual fee... no thanks... I really like having cash in the bank!

[banca rotta]

I received an offer from First Premier Bank yesterday and it was the old offering of 9.99% fixed interest, but then $95 processing fee, $25 service fee, $7 a month annual fee... no thanks... I really like having cash in the bank!

You mean you would rather have cash instead of a good FICO score? Bummer!

[SPalin]

Well I think I have learned a few things during this whole economic problem... and bk! I'll wait for a better deal on a visa/mc than 1st Premier even if my current credit score of 680 doesn't increase that fast... I do enjoy having cash in the high yield savings account w/debt card!

[BNKRPTinNC]

My answer to their offer

Since I work for the USPS and we are suffering too I used the business reply envelope supplied with the offer and sent back a note "thanks but no thanks". I forget exactly how much it costs for each but I know it's postage plus a fee for each letter. Good way to make them (sender) pay and increase revenue for the post office.

[JustFileSuit]

Far too polite, BNKRPTinNC !

Given what unscrupulous bottom-feeding exploiting scum is behind that First Premier outfit, I would not be so restrained in my Notes in the Return. I admire you for maintaining your composure under the provocation...

[BNKRPTinNC]

Actually

The "thanks but no thanks" was sarcasm. My actual response was scathing as I had received these offers shortly after confirmation. And to think some folks are just desparate enough to take these offers.

[JustFileSuit]

Good to hear it (the scathing part). You can imagine what I write in...

The business model of First Premier is specifically to exploit folks who do not understand the concept of fees and interest. It is not so much that the customer is desperate for a "card;" is is that the customer has no clue. The outfit preys on the very unsophisticated. They seek out, additional to the filers in the USBC, those that are filed against for foreclosure, and those that show up in databases that they purchase as recent immigrants, persons who register to learn English as a second language... you get the idea. Anybody who can be exploited. If you are ninety years old and suffering from dementia, you are a prime customer candidate. Just lovely.

[jhdmela]

Is there a reasonable credit card out there? Maybe a secured card? Is there one that does not have astronomical fees?

[JRScott]

Is there a reasonable credit card out there? Maybe a secured card? Is there one that does not have astronomical fees?

The likelihood of such has diminished with the recent law changes. It would be better if they just taught folks in high school not to use credit cards.

[SPalin]

That and your currently in bankruptcy. I don't believe applying for any credit is wise in your situation.

Yeah I'm not going to jeopardize a dismissal due to applying for credit before being discharged (hopefully in next couple of weeks)... especially for a First Premiere card!!! Now, if I can get Chase to show that the mortgage is included in BK and then only report 60 days late instead of 120+... that might give me 5-10 more points on myfico score? Got to get that fixed before applying for anything.

[jhdmela]

All in the same boat...yet you pass judgement?

Gee.....a lot of you people have pretty sarcastic comments to common credit rebuilding questions........we all have different reasons for taking the action that we have to take. Is one bankruptcy more responsible or "better" than another? If you haven't filed bankruptcy and you are not going to - why the heck are you posting on this site? Is it a superiority thing? Have you nothing better to do than post sarcastic responses to people who are sincerely seeking help from people that have already been through such an embarrassing and devastating process? Why don't you go to greatcredit.com and have some real fun!

[AngelinaCat]

Gee.....a lot of you people have pretty sarcastic comments to common credit rebuilding questions........we all have different reasons for taking the action that we have to take. Is one bankruptcy more responsible or "better" than another? If you haven't filed bankruptcy and you are not going to - why the heck are you posting on this site? Is it a superiority thing? Have you nothing better to do than post sarcastic responses to people who are sincerely seeking help from people that have already been through such an embarrassing and devastating process? Why don't you go to greatcredit.com and have some real fun!

Welcome to the forum, but you have landed on a board that is devoted to BK and Credit New articles, and the majority of the responses are replying to the article that appears at the beginning of this thread.

If you post your question under the forum "Rebuilding Credit", you might get better responses.

Please take a few minutes and review the rules for posting in the BKforum, and abide by them if you wish to remain a member.

Thank you.

[onwards]

Is there a reasonable credit card out there? Maybe a secured card? Is there one that does not have astronomical fees?

Not sure if it counts as reasonable for you, but...

I applied for, and received, an HSBC 2% cash back card with a fixed rate of 18% and an annual fee of $59 one week after discharge.

To me that seemed quite reasonable. I intend to charge $250 every month on this card (paying off in full of course, gas and other living expenses basically) so that my annual fee gets reimbursed through the cash back offer.

By the way, something I noted on the HSBC pre-selector site: they have four cards on offer for bad credit, but it seems that they work in a sort of "reverse dutch" approach. What seems to happen is that when you first go through it, you will get the offer for the secured card. Close the browser and try again, you will get the classic (worse rate, higher fee). Do it again and you will get the gold (again lower rate, higher fee). Do it one last time and you will get the platinum 2% cash back one. Worked for me, anyway.

[AMISLANDER]

I remember thinking that the 29% Hooters Card was a rape; Hooter's has zero on this card.

[jhdmela]

Thank you that is very helpful. Good luck