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.