Chicago Consumers Sign Up For Credit Cards With Outrageous Rates
Would you be OK with paying a 60% premium on your purchases? If you're like most Americans, the answer might be yes.
Consumers are signing up in droves for high-interest credit cards like First Premier's 59.9% APR card. In fact, the same card had plenty of takers when it debuted with a whopping 79.9% APR (the company only lowered the rate this year because so many borrowers were defaulting). So why are so many folks clamoring for a chance to be charged outrageous interest? Simple, say Chicago bankruptcy attorneys. They think it's the only card they can qualify for.
First Premier is marketing their product towards people with bad credit. Essentially, high-risk borrowers are being charged a penalty for being provided with a credit card, much like high-risk drivers pay a higher premium for insurance. But the card doesn't just hit customers with interest - there's also a processing fee, annual maintenance fee and monthly service fee. And if you're late on a payment or make a cash transfer? Yep, more fees.
It's true that developing a history of responsible credit use is the fastest way to rebuild your credit. But when too much debt caused the damage to your credit in the first place, signing up for an astronomical rate might not be the safest solution.
Instead, consider lowering debt to help you qualify for a more reasonable rate. You'll have a far better chance at success if you can actually afford your payments. If your debts are overwhelming, bankruptcy can help you get them under control. And contrary to popular belief, many folks receive credit offers shortly after filing. To find out if bankruptcy can help put you on the path to rebuilding your finances - and your credit - sign up for a free one-on-one debt analysis with a Chicago bankruptcy attorney today.