When First Premier Bank first offered a credit card with a top interest rate of 79.9 percent, it evoked outrage. So they lowered it…to 59.9 percent. And, as Michael Snyder at the Economic Collapse noted, “Not only are the interest rates on those cards super high, but they also charge a whole bunch of fees on those cards as well.”
$45 processing fee to open the account
annual fee of $30 for the first year
$45 fee for every subsequent year
monthly service fee of $6.25
Some argue that anyone who would sign onto a deal like that must be "stupid." But these are cards pitched to those with bad credit – an ever larger group thanks to the recession. It's easy to scoff at such rubes until one realizes that the lion's share of these “stupid” people have no choice but to take on even very costly debt if they want to eat or pay the rent. 6.2 million Americans have been out of a job for 27 or more weeks; 3.9 million saw their benefits run out entirely last year.
CNN reported that 700,000 people have signed up for the card, and between 200,000 and 300,000 new applications are coming in each month. That's a lot of bread for First Premier.
Join us on our
Share this page with your friends
on your favorite social network: