A 9.9% Credit Card Isn’t 9.9%

I know that First PREMIER® Bank specializes in giving credit cards to those who have less than ideal credit scores, but aren’t those the same people that can least afford terms like this?

Annual Percentage Rate for Purchases and Cash Advances 9.9%

So far so good. I’d take a 9.9% card any day!

Now it gets interesting…

Account Set-up Fee:      $29.00 (one-time fee)
Program Fee:             $95.00 (one-time fee)
Annual Fee:              $48.00
Monthly Servicing Fee:   $ 7.00  

All of these fees are immediately placed against your available credit which, according to their Truth in Lending disclosure, will be a “minimum of $250.” So you too can have a grand total of $71.00 of available credit and $179 of debt.

If you actually falls for this and charge more than $71 during the first month, you’ll get hit with a $29 over-limit fee. So even if you pay off the entire first month purchase you’ll be down to $42 of available credit.

Of course First PREMIER® Bank, being as generous as they are, will let you borrow cash against your available credit. A whopping 10% of your assigned credit limit. That’s $25 in cash. You’ll pay an additional $5.00 or 3% (in this case, $5.00) on the $25 borrowed.

I could probably get better terms pawning my old shoes it Peter’s Pawn Palace.

Oh —- Just in case you aren’t believing this unbelievable stuff, you can see it for yourself here.