top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

America's Worst Credit Card

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    America's Worst Credit Card

    October 5, 2010

    Some of the highest-fee cards are aimed at people with a poor or limited credit history. The two below are particularly fee-laden.

    Worst: First Premier Bank Mastercard

    This card made our list of the worst cards two years ago, and it doesn't look like it has improved. In 2007, First Premier signed a $4.6 million settlement with the New York Attorney General's office over the card's deceptive marketing practices. First Premier's card now advertises a $25 to $95 processing charge (which fluctuates by the minute, depending on when you click on the card's website). What's worse is that when you drill deeper into the fine print, you'll find a $75 annual fee and an APR of 23.9 percent to 59.9 percent on purchases and cash advances (again, depending on when you visit the site).

    So you could face a minimum of $100 or a maximum of $170 in fees in the first year for a card with only a $300 initial credit limit. Other fees include an $11 charge for expediting bill payment over the phone and a credit-limit increase fee equal to 50 percent of the increase. So for every $100 that First Premier increases your credit limit it charges you $50. Also, look out for copycats of this card. First Premier Bank markets very similar cards under the names Centennial and Aventium.


    Runner-up: Platinum Zero Secured Visa from Applied Bank

    The Platinum Zero's marketing trades off its nameā€”zero percent APR on purchases, zero application fee, zero annual fee. But the zero fees end about halfway through the terms and conditions with a $9.95 monthly "maintenance" fee that equates to $119.40 annually. If you're late paying your bill, you'll get hit with a fee of up to $35. And though the card claims to charge zero percent APR on purchases, the agreement states, "There is no grace period for the account.

    Interest charges accrue on purchases, cash advances and our charges beginning on the date the transaction occurs or on the first day of the billing cycle in which the transaction is received by us or, at our option, the date the transaction is posted to your account."

    What to do

    If you want to repair or to build your credit history, a better option is the Citi Secured Mastercard. That card has a $29 annual fee, but the $200 to $5,000 that you deposit (and that sets your credit limit initially) goes into an 18-month CD, currently earning 4.07 percent. After 18 months, you become eligible for an unsecured Citi card. Also, consider the Orchard Bank Secured Mastercard, which waives its $35 annual fee in the first year and has a 7.9 percent APR.

    Filed Chapter 7 July 2010
    Attended 341 September 2010
    Discharged November 2010 Closed November 2010

    #2
    I don't know if I'll dare to come back to Citi again even with a secured credit card after I had over $30K of unsecured with them from this bk already
    Filed chapter 7 Jul 13, 2010 341 hearing Aug 12, 2010 Trustee's report of no distribution Aug 20, 2010 Discharged Oct 13, 2010 Closed Oct 28, 2010.

    Comment


      #3
      Originally posted by wnguyen View Post
      I don't know if I'll dare to come back to Citi again even with a secured credit card after I had over $30K of unsecured with them from this bk already
      Most major banks/financial entities blacklist those that include them in BK filings. That means even when the Bk is removed from your credit reports after 10 years for a Chapter 7 filing, 7 years for a Chapter 13 filing, your BK filing remains on their permanent records and they will never issue you credit again if you apply. Chase and AMEX are a few that are well known for this.
      _________________________________________
      Filed 5 Year Chapter 13: April 2002
      Early Buy-Out: April 2006
      Discharge: August 2006

      "A credit card is a snake in your pocket"

      Comment


        #4
        [QUOTE=keepinitreal;456948]October 5, 2010

        Some of the highest-fee cards are aimed at people with a poor or limited credit history. The two below are particularly fee-laden.

        Worst: First Premier Bank Mastercard

        This card made our list of the worst cards two years ago, and it doesn't look like it has improved. In 2007, First Premier signed a $4.6 million settlement with the New York Attorney General's office over the card's deceptive marketing practices. First Premier's card now advertises a $25 to $95 processing charge (which fluctuates by the minute, depending on when you click on the card's website). What's worse is that when you drill deeper into the fine print, you'll find a $75 annual fee and an APR of 23.9 percent to 59.9 percent on purchases and cash advances (again, depending on when you visit the site).

        So you could face a minimum of $100 or a maximum of $170 in fees in the first year for a card with only a $300 initial credit limit. Other fees include an $11 charge for expediting bill payment over the phone and a credit-limit increase fee equal to 50 percent of the increase. So for every $100 that First Premier increases your credit limit it charges you $50. Also, look out for copycats of this card. First Premier Bank markets very similar cards under the names Centennial and Aventium.





        It's so bizarre. I was just reading this here yesterday and sure enough, today I got an offer from First Premiere Mastercard in the mail. The interest rate is 29%, the application fee is $25 (which they claim will be refunded if I'm denied), but the yearly fee is $125.00 (not $75.00).

        Stay away from this card! I'll never be that desperate.

        Ironically, my bk isn't even discharged yet. One more month . . .
        Filed BK 7 Pro Se: August 2010 341 Meeting: September 2010
        November 2010
        Closed: January 2011!!!

        Comment


          #5
          Nice info. Thanks
          Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
          Report of No Distribution 9/27/10. Discharged 2/7/11 Closed 02/25/1
          10/12 EXP. 681

          Comment


            #6
            I just got this card offer in the mail yesterday. $25 application fee, 23.9% interest, $700 credit limit, $175 annual fee! Oh, and they charge a one-time fee of $3.95 just to access your account online. I just laughed...

            Edited to add: I still have a month before discharge too!
            Filed Chapter 7 (08/17/10)
            341 Meeting (09/20/10)
            Discharge (11/30/10), Case Closed (01/18/11)

            Comment


              #7
              After being on this forum for several years, there have been many, many postings about people just absolutely having to get credit cards immediately after discharge and will do anything to get one. What these entities are doing is catering to that group and the bottom line is they want to make money off that group who is now debt free. Again, a credit card is no danger unless one obtains it and uses it. Otherwise there is no cost or issue. Some people just don't care what fees are involved and/or do not read the information that comes with the card and are shocked to get those charges on the statement when it comes in. They just want the card.
              _________________________________________
              Filed 5 Year Chapter 13: April 2002
              Early Buy-Out: April 2006
              Discharge: August 2006

              "A credit card is a snake in your pocket"

              Comment


                #8
                Originally posted by Flamingo View Post
                After being on this forum for several years, there have been many, many postings about people just absolutely having to get credit cards immediately after discharge and will do anything to get one. What these entities are doing is catering to that group and the bottom line is they want to make money off that group who is now debt free. Again, a credit card is no danger unless one obtains it and uses it. Otherwise there is no cost or issue. Some people just don't care what fees are involved and/or do not read the information that comes with the card and are shocked to get those charges on the statement when it comes in. They just want the card.
                agreed...however, we are 2 months out and got "decent" offerings from capital one.

                and we did have them on our bk petition so that did not stop them from making offers to us...and compared to the ones above they were excellent.

                also our reasoning as i have stressed before, to establish or re-establish credit may be for different reasons than most. we NEVER ever charged a "luxury" item.

                anyway...we got two offers...Unsecured....both under 13% one cost $39 a year one is free.....one limit is $1500 and the other is $1300.

                i think it is because we were never late on our bills when we filed. our scores immediately following our bk were 690 and685...of course not in the 800's they use to be in...but a good start.

                we need to buy this home one day....NOT one day soon, but one day.........we do NOT Know if our paid for 11 year car will last forever and a day...we need to prepare for our future...i don't want to buy someone else's car problems by buying used. stress helps no one and we are too old to be sitting on the side of the road in 110 degree weather to wait for someone to fix our car...good teeth, good comfy shoes and a good car....(and education helps as well).

                i do know this...if i got one of the above offers, we would never consider them. so WAIT, the offers will come. one needs to be patient....and unfortunately for us, as well in the state we live our auto insurance is based on our credit....so there are indeed not just "i want to spend beyond my means" reasoning, for wanting to get a card and begin to build your credit back up.

                flamingo...you said it perfect...[QUOTE again, a credit card is no danger unless one obtains it and uses [/QUOTE]
                8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                Comment


                  #9
                  Originally posted by tod183 View Post
                  I just got this card offer in the mail yesterday. $25 application fee, 23.9% interest, $700 credit limit, $175 annual fee! Oh, and they charge a one-time fee of $3.95 just to access your account online. I just laughed...

                  Edited to add: I still have a month before discharge too!
                  Now my wife got an offer from them. 29.9% interest, $500 credit limit, $125 annual fee... I think they may be nuts...
                  Filed Chapter 7 (08/17/10)
                  341 Meeting (09/20/10)
                  Discharge (11/30/10), Case Closed (01/18/11)

                  Comment


                    #10
                    Anyone and everyone with bad credit or BK on their credit reports receives these offers. You can opt out with the Credit Reporting Agencies to receive offers such as this. Otherwise, creditors obtain information from the CRA's as to certain segments of the population and for cards such as this, the bad credit/BK folks are targeted. Many bite as they want the card and don't care about the fees; otherwise the card would not be in existence because the bank is not making money from it. It is all simple as that.
                    _________________________________________
                    Filed 5 Year Chapter 13: April 2002
                    Early Buy-Out: April 2006
                    Discharge: August 2006

                    "A credit card is a snake in your pocket"

                    Comment


                      #11
                      We get 'offers' such as these, all the time. Some come via email, others by snail mail. These get deleted and shredded.
                      "To go bravely forward is to invite a miracle."

                      "Worry is the darkroom where negatives are formed."

                      Comment


                        #12
                        I have opted out and still get them...that and the debt settlement scam letters that look like govt documents.
                        First consult: You go now, no CH 7 for you. You spent entire buffet. 13 has a 95 percent payback. (Owwwch) On to next consult....

                        Comment


                          #13
                          Originally posted by flyinbroke View Post
                          I have opted out and still get them...that and the debt settlement scam letters that look like govt documents.
                          That is because your name is on a BK or bad credit mailing list somewhere and could stay out there for a long, long time. We are 4 1/2 years past discharge and STILL get BK-related offers, junk mail, etc. Also, when one files BK, your name/address is immediately out there as public information and goes everywhere - that information is obtained immediately from filing papers by creditors, etc. to send out offers. Again, it's all about money, it's all about who wants to bite. Getting these offers does not mean anyone is special - it's because you have bad credit and/or filed BK. That's it...and those sending the offers are in business and want to make money off that segment of the population if that segment is even accepted when they apply for any card/credit.
                          _________________________________________
                          Filed 5 Year Chapter 13: April 2002
                          Early Buy-Out: April 2006
                          Discharge: August 2006

                          "A credit card is a snake in your pocket"

                          Comment


                            #14
                            Originally posted by Flamingo View Post
                            Most major banks/financial entities blacklist those that include them in BK filings. That means even when the Bk is removed from your credit reports after 10 years for a Chapter 7 filing, 7 years for a Chapter 13 filing, your BK filing remains on their permanent records and they will never issue you credit again if you apply. Chase and AMEX are a few that are well known for this.
                            As far as I know, only Amex has a true blacklist ; I was able to re-up with all the major national cards once enough time passed from my initial chapter 7 way back in the 90's. Heck, even casinos gave me credit, and they're pretty much the most awful creditor to have when things go bad.
                            filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

                            Comment


                              #15
                              Originally posted by catleg View Post
                              As far as I know, only Amex has a true blacklist ; I was able to re-up with all the major national cards once enough time passed from my initial chapter 7 way back in the 90's. Heck, even casinos gave me credit, and they're pretty much the most awful creditor to have when things go bad.
                              yes, cat, i heard the same thing.

                              well, personally, i think, in todays economic climate they best change their ways or they may not have very many accounts??

                              watch...mark these typed words....these companies will come out with a "new" card that is geared for the bk person...because they simply are losing way to much business!!! they can't survive unless they have customers...now can they....( well ok they can...but you know what i mean).
                              8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X