Global 2011: Credit card had a 79.9% APR from First Premier Bank

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Toni Riss had a credit card with a 79.9% interest rate.

The 58-year-old woman from Texas thought she struck gold when she found the First Premier card, which is aimed specifically at consumers with poor credit.

"I had an accident on a motorcycle, went through bankruptcy to pay for medical expenses and my credit went to hell in a hand basket, so I was looking for credit cards for people with bad credit" Riss said.

They granted her a card with a $300 limit -- typical for new customers -- and a starting rate of 29.9%, which Riss said she considered decent given her credit score.

But about six months after opening the card -- at the end of 2009 -- she received an unwelcome surprise in the mail.

"I about had a heart attack when I got a disclosure notice saying that my starting rate of 29.9% was going up to 79.9%," said Riss. "It was ludicrous. Talk about a highway robbery."

At that same time, First Premier Bank launched a new credit card with the sky-high 79.9% rate.

The card proved popular with consumers, said First Premier Bankcard CEO Miles Beacom, but the performance was bad: "A lot of the people ran up the card, defaulted and went directly to charge off."

http://finance.yahoo.com/news/Credit-card-had-a-799-APR-cnnm-137006553.html?x=0

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Global 2010: 6 Gifts Not to Buy This Holiday

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At first glance, you might think these are the perfect holiday presents. But don't be fooled — they come with some hidden drawbacks.

Flowers

What to buy instead: A mix tape 2.0. iTunes lets you buy songs then email them directly to a friend, along with a personal message.


Cheese of the Month Club

What to buy instead: For a foodie friend, put together your own gorgeous gift basket of preserves, spices, bread, and cured meats. It looks super luxe and can be done for $50, what you'd spend on just one shipment of cheese.


The DVD of His New Favorite Movie

What to buy instead: For the same cost as a DVD, you can sign him up for four months of unlimited movies. Netflix just added the option of a streaming-only package, which allows you to instantly watch thousands of movies from your computer (or on your TV via Wii or PS3) for $7.99 a month.


A Pretty Top from a Boutique

What to buy instead: Stick with chains and department stores–and include a gift receipt. The item has all the benefits of a gift card (exchangeable for anything) without the impersonal feel. Plus, how awesome is it when you can turn one returned sweater into three because of markdowns?!


Credit Card Gift Cards

What to buy instead: Stick with a plain old gift card, but make sure it's place or website they'll go to in the next year–iTunes is a safe bet— because certain ones start to lose value after 12 months.


$50 to Some Super Pricey Store

What to buy instead: Impress a luxe-loving friend with a designer label item that you picked up for cheap at a discount store, where you can find high-end accessories marked waaay down. Cut off the discount pricetag, leave on the original tag (but black out the price), and she'll never know it was a bargain.

http://shopping.yahoo.com/articles/yshoppingarticles/481/6-gifts-not-to-buy-this-holiday/