Worst Credit Card Ever? Hint: 79.9% APR (oh, but that is not all)

October 23rd, 2009. By AbiK

Need credit real bad? So bad that you’ll go almost anywhere for it so long as they accept your application? I’ve got the credit card for you: a First Premier credit card. But you also have to be willing to pay a price—a hefty one. I took a moment to read through the fine print over at First Premier and it’s like reading a Dr. Seuss book…”oh, but that is not all…oh no, that is not all!” (thank you Cat in the Hat)…until all hell breaks loose.

The folks at First Premier are not fools. They see a market and they pounce. With phrases like “Application responses in less than 60 seconds!” you can’t help but feel you’re beating the credit bureau bureaucracy when someone’s going to process your credit application in less than one minute flat. But then again, you also can’t help but raise an eyebrow—and you should.

I’m sure you’ve seen the reports lately about First Premier offering a 79.9% APR credit card deal. Outlandish? Yes. But such a rate is so out there that I can’t really give it any credence. Who in their right mind would take First Premier up on such a deal? No, the real eye-opener is when you go to apply for a First Premier credit card. Here’s what you find out…

The APR is listed as 9.9%. Ok. That seems pretty good. But let’s put on some readers and check out the proverbial fine print.

It’s a Fee-for-All!

Here are the fees associated with the privilege of carrying a First Premier credit card:

• Account Set-up Fee: $29.00 (one-time fee)
• Program Fee: $95.00 (one-time fee)
• Annual Fee: $48.00
• Monthly Servicing Fee: $84.00 Annually (billed at $7.00/month)
• Additional Card Fee: $20.00 Annually per card, (if applicable)

Now, to show how Customer Service-oriented First Premier is, they actually EXPLAIN what this means to your credit card account upon opening it up. Read on…(the bold is my input)

Available Credit and Cash Advance Limitations: The initial minimum credit limit will be at least $250.00 and the following fees will be billed to your first statement: Account Set-Up Fee of $29.00, the Program Fee of $95.00, the Annual Fee of $48.00, the Additional Card Fee of $20.00 per card (if applicable) and Monthly Servicing Fee of $7.00. These fees will reduce your available credit until they are paid. If you are assigned the minimum credit limit of $250.00 your initial available credit will be $71.00 ($51.00 if you select the additional card option). 

So, yes, if you have a $250 line of credit and you’re thinking you can charge up to that amount once you open the account—watch your step—you only have a $71 credit limit and you best make note of that.

“Finance Charge” takes on new meaning

I’m just top-lining these, but what I love is how First Premier categorizes all their fees in ALL CAPS…”This fee is a FINANCE CHARGE”. Please—it’s a fee folks, plain and simple.

• Internet Access Fee: one-time $3.95 for internet access to your account….This fee is a FINANCE CHARGE.
• Credit Limit Increase Fee: Each time your Account is eligible and approved for an unsecured credit limit increase, a Credit Limit Increase Fee of $25.00 is imposed….This fee is a FINANCE CHARGE.
• Account Maintenance Fee: $3.00 will be imposed for any month in which you have an outstanding balance of $20.00 or greater after you have closed your account. This fee is a FINANCE CHARGE.

We’ll get your cell phone provider in on the fees, too!

Here’s one you’ll appreciate:

Your Consent for Calls and/or Text Messages to Your Cellular Phone. If we collect your cellular phone number from you, from another source, or as a result of receiving a cellular phone call from you, you expressly consent to accept from us, our affiliates or any third party acting on our behalf:

1. Calls or text messages for collection purposes or for other account-related purposes, such as to process your application.
2. Calls or text messages that we initiate to your cellular phone number made or transmitted using any automatic telephone dialing system and/or contain prerecorded messages.

You agree you will be responsible for any fees or charges you incur as a result of incoming calls or text messages from us, from our affiliates or from any third party acting on behalf of us or our affiliates.

So basically, if you’re at a store and want to call First Premier to see how close you are to your limit so as to avoid being denied a charge, you have just expressly given First Premier (and its affiliates!) an “All-Access” pass to become your new best buddy on your cell phone. And, you’re going to pay for all those incoming calls and text messages. The part I also love with this one is that the “express consent” is given even if First Premier obtains your cell phone info “from another source”.

I’m sure I could go on, but I’ve read enough—and it’s enough for me to rank First Premier’s credit card as one of the worst when it comes to preying on folks who desperately need credit and will turn to just about anyone for it.

And personally, I enjoy reading Dr. Seuss much more.

Tags: 79.9% APR, credit cards, First Premier

This was posted on Friday, October 23rd, 2009 at 9:09 am and is filed under Emerging Issues, Financial . Feel free to respond, or trackback. Read our comments policy.