First Premier Bank Credit Card 59.9% Interest

I know that I always typically talk about stock investing at Buy Like Buffett. It’s Friday, so I figured that I would take a break and talk about another financial product that most people have, credit cards. I am not a fan of debt but credit cards in and of themselves are not bad if managed properly. Pay off the balance in full each month and stay away from high interest rates at all costs. Well, there is one credit card that is making this virtually impossible.

Last February I wrote a post about First Premier Bank and its 79.9% interest rate credit card. The interest rate was pure usury and First Premier fought hard to defend the card.

There is good news. First Premier Bank has gotten rid of its credit card with the 79.9% interest rate. The company found that too many customers were defaulting on the balance. Imagine that!  The company has dropped the rate to 59.9%. They have found that less customers are defaulting and that they are raking in a ton of money.

700,000 customers have signed up to be gouged by First Premier Bank.

Here are a few of the fees that I read about:

  • $135 in fees in Year One
  • $45 fee to process the account
  • $30 annual fee the first year
  • $45 annual fee every year after
  • $6.25 monthly service fee

I would be very curious to know how many bad credit individuals improve their credit with a card like this one. It’s hard to improve your credit rating paying 60% in interest a year.

Comments

  1. Wow, that’s like using gasoline to put out a fire.

    Hopefully the card doesn’t last long…

  2. avatar bp says:

    well, i can tell you this, i have one of these cards, bc my credit is in the toilet after my divorce. i use it very sparingly, and if its paid off in full the month you use it, you pay no interest. once the balance rolls over to the next month, then the interest starts adding up. as it was stated, if you use it wisely, it is a good idea. i make small purchases, and pay them off in full before the month is over, and i pay no interest. it also builds my credit. if you use it only for stuff you can afford with cash, you wont pay any interest, because you can pay it in the same month. i love this card, and i have had no problems with it. if you know of any other credit cards that i could get with a score of 576, $17,000 in debt, and 7 charge offs on my report, i would be happy to look into it. First Premier gave me a chance when no one else would, i am not going anymore into debt, and my credit is building as we speak

    • avatar Mark says:

      Capital One has a solid secured card if you pay your bill off every month.

      • avatar bp says:

        yea i know i have my bank account there. they want $200 as a down payment. i dont have $200 lying around. now with the premier bank card, i charge $30 a month, and thats all that is out of my pocket. not $200 even before i use it. i agree with “invest it wisely”, pretty much, use it wisely, and you won’t have any hard feeling later. premier bank doesnt try to hide thier interest rate, or fees, all of them are right there for you to read. if you don’t read it its your fault. i am very happy with my first premier bank card.

    • avatar FloridaRes says:

      This can only be written by some working for First Premier.

      Much better deal with 22.9% APR – not 59.9%

  3. Hard to say. It’s easy to blame the big bad company, but what happened to personal responsibility? Unless people are being forced to use these against their will, I think the option should remain open, but yeesh, what an obscene rate. Maybe it’s better off going bankrupt, but I don’t think that voluntary acts between a person and a company that is up front about the obscene rates (i.e. no nasty hidden surprises later on) should still be an option if need be!

  4. Vanquist bank has a visa card for poor credit. They charge an average of 40% interest rate. I am not sure if it’s available in the USA but might find some info on the net. Definitively cheaper than 60%. Wow!

  5. avatar Rebuilding says:

    I just canceled my first premier card today. I admit,after reading into just how thrilled BP is with his card, it did strike me as suspicious. But I can understand somewhat. It’s almost like yea, thanks for giving me the credit line when nobody else would and my credits not good, but its also predatory. I wouldn’t run out and give them a nobel peace prize. Took me over 10 mins from the point of when I told the representative to close my account to the point of hanging up, but I got it done! This card is definitely a stepping stone perhaps on a broader level of turning bad credit around, but with 39.99% and 150+ fees, annual fees and don’t forget credit line increase fees its hard to take them serious once you have a little bit of credit back established. Thanks, but no thanks!

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