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Discussion Starter · #1 ·
Holy shit!

Credit cards from hell - Applied Bank Unsecured Visa Gold Card (1) - CNNMoney.com

It doesn't get much more expensive than First Premier's card, which has an APR of 59.99% and fees of more than $120 a year.
"You have to be awfully desperate to have that card and pay that kind of APR," said Curtis Arnold, founder of CardRatings.com. "But I don't know why you would do that when there are so many other options even if your credit is bad -- even a secured card with all its fees would be a better alternative."

The company, however, stands by its claim that it serves the needs of a growing number of consumers with less than perfect credit. And, in fact, it has nearly 300,000 customers for this card, most of whom carry a balance.

"The primary purpose of our credit card is to provide individuals (many who are at the lower end of the credit scale) with an avenue to obtain a tool to help them begin to demonstrate positive financial patterns to the major consumer reporting agencies," a spokeswoman for the bank said. "There is a very large and growing need for credit in this non-prime, underserved market niche."
 

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Bro of Bros, Bro.
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Wow, and I thought 29.99% was about the highest I've ever seen...

P.S. I need to get that Hooter's card... I'd love to whip that out at a business dinner at a nice restaurant.
 

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I actually thought I read somewhere where there was a CC with like 90% interest or some crap like that....That's insane....Unfortunately, there are desperate people out there who think a CC ='s money....
 

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The people offering those crazy interest crazy fee cards should be killed - they are vultures and thieves who hide behind the guise of being business people. Scumbags all of them :noplease:.

I do disagree with the black card though. It has a high fee but offers many services and my guess is most owners of the black card don't carry a balance. More like an American Express Charge card with lots of travel related features.
 

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Discussion Starter · #6 ·
As long as it's there in print, your signature makes it legal. Absurd rates, overcharges, late fees, late payments that make your APR quadruple - credit cards are all shit.
 

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Serious Bedroom Guitarist
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Isn't weird you are rated financially on how you use your credit card? I have a friend who moved to the US from Sweden and started using credit cards solely to get a financial rating to get the loan for a house approved.

In Sweden almost everyone has cards that charge immediately from your bank account so you can't really overcharge them or miss the payment on the card invoice. Financial rating is based on income and debt, not how you manage your cards... (or am I missing something?).
 

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Isn't weird you are rated financially on how you use your credit card? I have a friend who moved to the US from Sweden and started using credit cards solely to get a financial rating to get the loan for a house approved.

In Sweden almost everyone has cards that charge immediately from your bank account so you can't really overcharge them or miss the payment on the card invoice. Financial rating is based on income and debt, not how you manage your cards... (or am I missing something?).
I can't speak for Sweden, but in the US, how you use your cards plays a big role in determining how you handle credit in general. If you have high limits, that means you're generally considered trustworthy by most banks, so your credit score will go up. When your balances get close to those limits, your risk level goes up and your score goes down.

Having a long history of good CC payments and balances below 50% of your max available credit line shows that you're responsible with your credit. Some people can have great credit scores on paper, but when they actually apply for a loan with their 700+ scores, they either get denied or get shit rates because their balances are close to their limits.

I am a total credit nazi, and a lot of my friends just don't pay enough attention to their credit. As a result, they pay 10/15/20% APR on credit cards, or even worse, car loans. I have a friend who pays over $500/mo for a 2004 Nissan Sentra, because his credit is so horrible. That same payment would buy you him brand new BMW 3-series if his credit was good.

Cards like these try to rope people in by saying "You need to use credit cards to build your credit". This is totally untrue. You need to have a credit history, yes, but that includes things like student loans, car loans, personal loans, etc.

There's no reason at all that someone with shit credit should be using 20%+ APR credit cards. The reason their APR is so high is because the banks see them as a credit risk, and they probably are. People with bad credit need to stop spending their money so carelessly - not spend more money with high APR credit cards. They'll never get out of the hole.

Financial rating is based on income and debt, not how you manage your cards... (or am I missing something?).
This is still the case, it's just that most people don't understand it, and the CC companies do everything they can to hide it. Debt to income ratio is EVERYTHING when you're applying for a mortgage, or a car loan. If you have an 800 credit score and a 50,000 line of credit with 49,500 of it used up, guess what - no mortgage for you.
 
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