First Premier disbands 59 percent interest rate card
In recent weeks a number of widely publicized reports singled out credit cards with exorbitant interest rates. One such credit card option was First Premier Bank’s 59.9 percent APR MasterCard.
However, this week, the company announced it removed the product from its available credit card offers due to excessive demand. The bank originally offered a card with a 79.9 percent interest rate, though, many consumers ran up credit card debt without making monthly payments.
Despite the card’s sky-high interest rates, nearly 300,000 customers signed up for the credit card as of February, CNN reports. In addition, the card charged more than $100 in annual fees and was only carried a credit limit of $300.
First Premier decided to replace the product with a secured credit card, which carries interest rates of 19.9 percent, the news source says. While secured cards allow customers to build credit, consumers also need to tie money to the cards, and as a result, many simply opt for debit options instead.
This is because consumers likely sought the card due to their inability to qualify for unsecured credit card options. However, major lenders have loosened their restrictions of late as consumers have continued to make timely payments on their debt over the last year.