There is no shortage of terrible credit-card offers out there, and if you were reading this site way back in 2002, you may have seen a reference to a deal offered by First Premier Bank of Sioux Falls, South Dakota, which struck me as something less than wonderful. Said I at the time:
The terms for this card range from not too bad (18.9 percent APR, 25-day grace period on new purchases) to stiff ($50 annual fee) to preposterous ($119 “acceptance fee”, $72 annual “participation fee” over and above the $50).
As it happens, they’ve sent me their latest offer, and it has improved in one regard: the grace period on new purchases is now 27 days. However, the annual fee has gone to $175 for the first year, $49 thereafter, and there’s a “monthly servicing fee” of $14.50, which, they are careful to spell out, is $174 a year. And the APR? Thirty-six percent.
I’ll give them this much: none of this is in Extremely Tiny Print, and everything I’ve mentioned is explained when necessary. Still, nothing moves me to accept this “pre-approved” account.