Want a 79.9% Credit Card Interest Rate

There is no federal limit on credit card interest rates so consumers can be charged any rate. Credit card interest rates are usually between 6-36%. Unfortunately, the CARD Act of 2009 that goes into effect in February 2010 will not address this issue that has been plaguing consumers for years. According to NBC San Diego, the First Premier Bank also known as Premier Bank is offering some consumers a pre-approved credit card with a 79.9% interest rate.

The card also requires additional fees such as an account setup fee, program fee, monthly servicing fee and additional card fee which total an additional $199 a month without making any purchases. The credit card offers a limit of $250. The fees are charged on the first month's bill leaving only a $51 remaining balance.

Credit card interest rates are regulated by each state and as we can see interest rates can be any rate a credit card company desires.

Previously the highest interest rates I knew of were 32-36% by a former client of mine. I thought that was insane but 79.9% beats that by a landslide.

This is a real example of why consumers need to repair their credit, pay down their debt and increase their credit score so they won't ever receive these types of pre-approved offers in the mail.