79% Interest Rate

[SF_Rabbit_Fan]

First Premiere has started offering a credit card with 79.9% interest rates to high risk customers. At first I thought, THAT's OUTRAGEOUS! CONGRESS NEEDS TO ACT NOW!

Then I realized, if you don't want to pay the interest, either don't get the card or pay off whatever you spend every month. Like every other credit card, the interest rate has dropped to zero.

[Cowbell]

Re: 79% Interest Rate

Sizeable interest payments is how you buy buildings, hospitals and old gold mines.

[Nidaros]

Re: 79% Interest Rate

One thing I would like to see the banks and credit lenders do in order for credit to be used wisely in the future is to offer seminars and work shops on using credit and doing it right. I would not have a problem with Uncle Sam giving them a tax credit for the costs of the instruction. Of course probably most of the people who need this instruction are likely to shy away and it becomes a preaching to the choir result.

I frankly do not know all the regulations but 79% APR seems usurious, but apparently Premier can do it or otherwise it would not be offered. Yes I agree, run from this card as most of us dont need it. The ones that do are often single parents with all sorts of finance difficulty. Sorry T. Denny.

[propar80]

Re: 79% Interest Rate

Sizeable interest payments is how you buy buildings, hospitals and old gold mines.

And the Dykhouse Center...
Would you like T. Denny to take the $$$ back and then YOU could fit the bill??

Go Jacks!!

Let's all not forget...especially those of us who live in SF...Premier Bankcard pays for ALOT of things in this community and no-one ever seems to complain about that.
So...if the place closes mid 2010...who pays for all of the things that Premier Bankcard/First Premier Bank pay for now that the taxpayers really should be paying for in the first place.

What if Premier Bankcard closes, then Citi, then Wells Fargo(about 8000 jobs all told)...just think about the ramifications on the whole state, not just SF.

[Nidaros]

Re: 79% Interest Rate

And the Dykhouse Center...
Would you like T. Denny to take the $$$ back and then YOU could fit the bill??

Go Jacks!!

Let's all not forget...especially those of us who live in SF...Premier Bankcard pays for ALOT of things in this community and no-one ever seems to complain about that.
So...if the place closes mid 2010...who pays for all of the things that Premier Bankcard/First Premier Bank pay for now that the taxpayers really should be paying for in the first place.

What if Premier Bankcard closes, then Citi, then Wells Fargo(about 8000 jobs all told)...just think about the ramifications on the whole state, not just SF.

T Denny is a double edge sword. Enough said.

[SF_Rabbit_Fan]

Re: 79% Interest Rate

I frankly do not know all the regulations but 79% APR seems usurious, but apparently Premier can do it or otherwise it would not be offered.

I believe this is one of the reasons First Premiere and Citi are based out of South Dakota. No usery laws.

[SoDakJack]

Re: 79% Interest Rate

T Denny is a double edge sword. Enough said.

^This

[Prairiehaas]

Re: 79% Interest Rate

Education on financial matters should be standard curriculum in Jr. High given the importance of that information in our society. Not certain why it is not. Just as I am not certain why economics is not required for all students at SDSU. Caveat Emptor.

[SF_Rabbit_Fan]

Re: 79% Interest Rate

Education on financial matters should be standard curriculum in Jr. High given the importance of that information in our society. Not certain why it is not. Just as I am not certain why economics is not required for all students at SDSU. Caveat Emptor.

I actually think it shouldn't be a curriculum, but rather one half hour per day that is basically life. Have a fake job, get a paycheck, pay bills, buy stuff, have credit cards, own a car, house, pay for kids college, etc. Live a whole 30 years in the school year. How much money you have at the end of the year determines your grade. Anything lower than a C and you have to repeat again the next year.

There is kind of a cool board game I've played that sort of does this, Cashflow 101 and Cashflow 102. Its pretty simplistic and encourages a little too much risk for my taste, but the general point gets across.

[Nidaros]

Re: 79% Interest Rate

I believe this is one of the reasons First Premiere and Citi are based out of South Dakota. No usery laws.

You are absolutely correct. I was living elsewhere when they relocated so that part of it does not come to mind automatically. Which do you think would come first in South Dakota? A state income tax or usery laws like other states have? Both when hell freezes over and maybe multi year contracts for coaches have a better chance.

[jacks nl]

Re: 79% Interest Rate

How about the "79% Event center" ??

[CatchEmAll]

Re: 79% Interest Rate

Read an article on this in the Twin Cities Pioneer Press. Headline caught me off guard, actually reading about it and it made sense. Yes, 79% is outrageous, but the credit card is capped at like a $300 limit and there's a $75 annual fee. Designed for those with poor credit...I can't get the link to the story to open, but here it is.

http://www.twincities.com/business/c...nclick_check=1

[propar80]

Re: 79% Interest Rate

Read an article on this in the Twin Cities Pioneer Press. Headline caught me off guard, actually reading about it and it made sense. Yes, 79% is outrageous, but the credit card is capped at like a $300 limit and there's a $75 annual fee. Designed for those with poor credit...I can't get the link to the story to open, but here it is.

http://www.twincities.com/business/c...nclick_check=1

Exactly...
Kind of works like this...
Your credit sucks...you get this card offer....in huge type, it says 79.99% interest with a $75 activation fee.

THE first COMSUMER decides to activate it and take advantage of the card because it is their ONLY opporutnity to build their credit. The first month they pay the $75 fee. The following months they use it for ONE tank of gas...pay it off at the end of the month. Walla, no interest and your credit slowy rises as long as you're keeping everything else clean as far as your credit is concerned.

The other COMSUMER...the person the Federal Govt is trying to save from themselves with the new "Credit card Act" will get this card opportunity....See it as...wow...free money, max it out to the $300 limit and not even think about paying a dime back.

The problem is, there are three times as many of the 2nd comsumer than the 1st consumer, hence the 79.99% interest. Simple Economics/Risk. And for those of us who have decent credit and don't think that this impacts them...think again. The banks will make their money, it will just be from you and me, since we are their only customers according the rules the federal govt will set.

"Big Picture"...something completely forgein for a group called Washington DC...Republican AND Democrat. "Big Picture" doesn't get you elected..."what have you done for me lately" does.

Sorry about the last paragraph, a bit political I know...At least I spread the blame to both sides!

Go Jacks!!

[SUPERBUNNY]

Re: 79% Interest Rate

Exactly...
Kind of works like this...
Your credit sucks...you get this card offer....in huge type, it says 79.99% interest with a $75 activation fee.

THE first COMSUMER decides to activate it and take advantage of the card because it is their ONLY opporutnity to build their credit. The first month they pay the $75 fee. The following months they use it for ONE tank of gas...pay it off at the end of the month. Walla, no interest and your credit slowy rises as long as you're keeping everything else clean as far as your credit is concerned.

The other COMSUMER...the person the Federal Govt is trying to save from themselves with the new "Credit card Act" will get this card opportunity....See it as...wow...free money, max it out to the $300 limit and not even think about paying a dime back.

The problem is, there are three times as many of the 2nd comsumer than the 1st consumer, hence the 79.99% interest. Simple Economics/Risk. And for those of us who have decent credit and don't think that this impacts them...think again. The banks will make their money, it will just be from you and me, since we are their only customers according the rules the federal govt will set.

"Big Picture"...something completely forgein for a group called Washington DC...Republican AND Democrat. "Big Picture" doesn't get you elected..."what have you done for me lately" does.

Sorry about the last paragraph, a bit political I know...At least I spread the blame to both sides!

Go Jacks!!

Right on. Spot on. And a dead-ass BINGO!

SUPERBUNNY

[joeboo22]

Re: 79% Interest Rate

Sanford made his money basically loan sharking, giving credit cards to high risk people and charging rediculus rates....