And you thought your credit card APR had a high rate?

Discussion in 'Other Credit Card Programs' started by Infinite1K, Apr 23, 2011.  |  Print Topic

  1. Infinite1K
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    Infinite1K Silver Member

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    I was looking at the British Airways/Chase Visa offer but somehow got on the UK BA website. I was a little taken aback when I saw this banner ad:
    [​IMG]
    At least the UK laws call for up front disclosure of the APR instead of having it be buried in the T's & C's ;)

    And I thought the 20ish APRs on the credit cards here in the US were high...
     
  2. viguera
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    viguera Gold Member

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  3. jw3711
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    jw3711 Silver Member

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    Wow....thanks for sharing.... That's a lot....
     
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  4. Scottrick
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    Scottrick Gold Member

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  5. Infinite1K
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    Infinite1K Silver Member

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    Thanks for sharing the article. I'll make sure to stay away from that card. :)

    While 50% is a high rate, what got me is how in your face the rate is in the advertising. The First Premier does not really highlight their rate unless you click the T's & C's section.
     
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  6. canucklehead
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    canucklehead Gold Member

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    Wow, that First Premier card is crazy!

    "First Premier charges a total of $135 per year in fees. It starts with a $45 processing fee to open the account. Then there's an annual fee of $30 for the first year -- $45 for every subsequent year. Plus, there's a monthly servicing fee of $6.25 (or $75 a year)."

    other snippets: most people start with a $300 credit limit. half the clients carry a monthly balance....

    legalized robbery by the financial institution and very poor financial skills of those who take out this card. I am amazed that they have 2million cardholders and 2-300K new applications each month!
     
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  7. geclub1
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    geclub1 Silver Member

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    I think UK law mandates the upfront listing of the APR.
     
  8. hulagrrl210
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    hulagrrl210 Gold Member

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    craziness! I just canceled a citi card because it had a rate of 29.99% and I thought that was bad. Typically that is like a default rate, but I'd never missed a payment and paid in full every month. Customer service basically admitted to me that they were losing money and had to pass along such high rates to their customers because of it.
     
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  9. gleff
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    gleff Co-founder

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    Don't UK cards have to show 'typical costs' as APR in their upfront listings, ie the rate shows up especially high because they include the annual fee as though it were interest on a typical customer's charges?
     
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  10. mattsteg
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    mattsteg Gold Member

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    Were there any kind of awards associated with the card? If you're paying off every month, my general feeling is that there's little point in choosing on APR.
    Their "representative example" is based on borrowing 1200 pounds at 19.9% and then add in the 150 pound annual fee.

    That's just a stupid law - "Let's make a law to force credit card issuers to fabricate a random big number "representative APR" that may or may not have any relationship to an actual customer's use to scare people away." If you want to legislate disclosure, just make them put the APR and annual fee up front.
     
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  11. hulagrrl210
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    Cash back, one of their dividend cards I think, but I didn't use the card that much anyway. I needed at least $50 to claim a check (when I signed up in like 2001, you could redeem anytime as I remember) I forfeited $14 when I closed. It was really more about the principle more than anything else, while I never paid interest on the card, it pissed me off having a rate that high.

    I had problems with citi before that when they randomly changed my card (and number) to some other type without me asking or consenting. It really messed up a bunch of stuff like directv that I had on autobill and they gave me no notice whatsoever of what they were doing. I called and asked, "who the hell did this?" because I was thinking it had to be identity theft or something but they were like "oh, no we did it, we thought you would like this other card better." After that I had to really fight to get my original card and number back. PIA and terrible customer service. Overall, I'm bummed about the $14 but glad to be rid of the headache.
     
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  12. techboyds
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    techboyds Silver Member

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    The card is designed and marketed towards people with terrible credit ratings that cannot get a card in any other way.

    The consumer is effectively paying those fees to repair credit. The card is dumped once better ones become available, as credit scores go up with reported on time payments.
     
  13. canucklehead
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    canucklehead Gold Member

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    While I do agree that these are being marketed to those with bad credit, I disagree with companies who are thriving off the up-front fees. Even before a dime is spent, they incur a fee that is almost half the credit limit. For some who are in this situation, it is the lack of wise credit card decisions that may have taken them to this position, and getting another credit card in not the solution, counselling on managing your finances would be a better road to take (and I do not think the credit card company is issuing high-fee low credit cards to rehabilitate the client!)
     
  14. cfischer
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    cfischer Silver Member

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    That's a funny rate :D Thankfully I always pay in full and don't either care or know the rates on my cards. Credit cards and not for 'credit' IMO.
     

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