Author Topic: Found this gem in the mailbox today...only 29.99% APR  (Read 5811 times)

commodore perry

  • 5 O'Clock Shadow
  • *
  • Posts: 44
Found this gem in the mailbox today...only 29.99% APR
« on: May 19, 2015, 07:34:52 PM »
wow..are they barking up the wrong tree!


jj20051

  • 5 O'Clock Shadow
  • *
  • Posts: 51
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #1 on: May 19, 2015, 08:17:41 PM »
I frequently get these in the mail. They do it because ~1 in every 2,000 - 5,000 people accepts at 30% APR. Sad thing is they gear towards lower middle class families typically knowing that they aren't exactly good with their money, but they can harass them forever without said people being able to do anything about it.

Kris

  • Magnum Stache
  • ******
  • Posts: 4580
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #2 on: May 19, 2015, 08:28:33 PM »
When I met my husband, he had a Discover card that was like 24.99%.  And he didn't really even know it.  I still remember staring open-mouthed at this guy who can do complicated equations in his head but somehow hadn't bothered to put two plus two together and realize how much money he was handing over to the cc company every month. 

martin

  • 5 O'Clock Shadow
  • *
  • Posts: 15
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #3 on: May 19, 2015, 08:56:05 PM »
But by getting one of these and paying it in full every month you are saving twice as much in interest as you would on a 15% credit card $$$$$$


klystomane

  • Stubble
  • **
  • Posts: 180
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #4 on: May 19, 2015, 09:19:50 PM »
If somebody hypothetically took out a whole bunch of these loans, maxed their credit cards, then fled the country, what would the consequences be? Assuming said person denounced US citizenship and became a citizen of another country.

Gen Y Finance Journey

  • Stubble
  • **
  • Posts: 209
  • Location: CA
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #5 on: May 20, 2015, 02:11:29 PM »
When I met my husband, he had a Discover card that was like 24.99%.  And he didn't really even know it.  I still remember staring open-mouthed at this guy who can do complicated equations in his head but somehow hadn't bothered to put two plus two together and realize how much money he was handing over to the cc company every month.

I have no idea what my credit card's interest rate is. It makes absolutely no difference to me if it's 5% or 500%, I pay it in full every month.

Kris

  • Magnum Stache
  • ******
  • Posts: 4580
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #6 on: May 20, 2015, 02:29:04 PM »
When I met my husband, he had a Discover card that was like 24.99%.  And he didn't really even know it.  I still remember staring open-mouthed at this guy who can do complicated equations in his head but somehow hadn't bothered to put two plus two together and realize how much money he was handing over to the cc company every month.

I have no idea what my credit card's interest rate is. It makes absolutely no difference to me if it's 5% or 500%, I pay it in full every month.

True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(

zephyr911

  • Magnum Stache
  • ******
  • Posts: 3628
  • Age: 41
  • Location: Northern Alabama
  • I'm just happy to be here. \m/ ^_^ \m/
    • Pinhook Development LLC
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #7 on: May 20, 2015, 02:37:22 PM »
When I met my husband, he had a Discover card that was like 24.99%.  And he didn't really even know it.  I still remember staring open-mouthed at this guy who can do complicated equations in his head but somehow hadn't bothered to put two plus two together and realize how much money he was handing over to the cc company every month.

I have no idea what my credit card's interest rate is. It makes absolutely no difference to me if it's 5% or 500%, I pay it in full every month.

True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(
MOTHER OF GOD

shotgunwilly

  • Pencil Stache
  • ****
  • Posts: 547
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #8 on: May 20, 2015, 02:48:35 PM »
If somebody hypothetically took out a whole bunch of these loans, maxed their credit cards, then fled the country, what would the consequences be? Assuming said person denounced US citizenship and became a citizen of another country.

This is currently my retirement plan. Still building my CC portfolio.

Kris

  • Magnum Stache
  • ******
  • Posts: 4580
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #9 on: May 20, 2015, 03:04:53 PM »
When I met my husband, he had a Discover card that was like 24.99%.  And he didn't really even know it.  I still remember staring open-mouthed at this guy who can do complicated equations in his head but somehow hadn't bothered to put two plus two together and realize how much money he was handing over to the cc company every month.

I have no idea what my credit card's interest rate is. It makes absolutely no difference to me if it's 5% or 500%, I pay it in full every month.

True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(
MOTHER OF GOD

I kid you not. 

I made him gather up all his credit cards/statements and consolidate them all into one 0% for one year card, posthaste. 

Not sure if they even have those anymore, since the 2008 recession.

Sid Hoffman

  • Pencil Stache
  • ****
  • Posts: 743
  • Location: Southwest USA
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #10 on: May 20, 2015, 04:59:03 PM »
True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(

Yeah he had a high interest rate because he either had a poor credit score or missed a number of payments.  Discover is competitive with other rewards cards.  Good credit risks are going to qualify for rates like 13% or so, which for a no-fee rewards card seems to be pretty typical.  Any credit card can have a high interest rate if you miss a few payments, especially if you also have a high unsecured credit utilization ratio and/or low credit score.  Interest rates are certainly something to watch out for, no matter who the issuer is.

Kris

  • Magnum Stache
  • ******
  • Posts: 4580
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #11 on: May 20, 2015, 05:26:54 PM »
True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(

Yeah he had a high interest rate because he either had a poor credit score or missed a number of payments.  Discover is competitive with other rewards cards.  Good credit risks are going to qualify for rates like 13% or so, which for a no-fee rewards card seems to be pretty typical.  Any credit card can have a high interest rate if you miss a few payments, especially if you also have a high unsecured credit utilization ratio and/or low credit score.  Interest rates are certainly something to watch out for, no matter who the issuer is.

Yup.  Must have been missed payments because, bizarrely, his credit score wasn't that bad.  I sat him down and had a "come to Jesus meeting" with him (read: I will leave you in the dust unless you change your evil ways) and thankfully, he saw the light.  I still shake my head when I think of where he was when we started.

The Money Monk

  • Pencil Stache
  • ****
  • Posts: 619
  • Location: Nevada
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #12 on: May 20, 2015, 06:07:48 PM »
wow..are they barking up the wrong tree!

LOL yeah I just got one of these in the mail too. For like 25%. Springleaf was the company. and i have 750 or so credit score, so its not just for people with bad credit. I was thinking about recording myself calling them up and fucking with them. Saying like, "I saw the interest rate is 25%? I was wondering if you had anything higher?"

Sid Hoffman

  • Pencil Stache
  • ****
  • Posts: 743
  • Location: Southwest USA
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #13 on: May 20, 2015, 10:12:29 PM »
Yup.  Must have been missed payments because, bizarrely, his credit score wasn't that bad.  I sat him down and had a "come to Jesus meeting" with him (read: I will leave you in the dust unless you change your evil ways) and thankfully, he saw the light.  I still shake my head when I think of where he was when we started.

I'm glad to hear everything worked out with you two!  He's lucky to have someone as sharp and responsible as you.

Gen Y Finance Journey

  • Stubble
  • **
  • Posts: 209
  • Location: CA
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #14 on: May 21, 2015, 10:00:33 AM »
True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(

Yeah he had a high interest rate because he either had a poor credit score or missed a number of payments.  Discover is competitive with other rewards cards.  Good credit risks are going to qualify for rates like 13% or so, which for a no-fee rewards card seems to be pretty typical.  Any credit card can have a high interest rate if you miss a few payments, especially if you also have a high unsecured credit utilization ratio and/or low credit score.  Interest rates are certainly something to watch out for, no matter who the issuer is.

Yup.  Must have been missed payments because, bizarrely, his credit score wasn't that bad.  I sat him down and had a "come to Jesus meeting" with him (read: I will leave you in the dust unless you change your evil ways) and thankfully, he saw the light.  I still shake my head when I think of where he was when we started.

Wow. Good job helping him out! I don't know how I would have responded to that situation. My husband wasn't very financially savvy when we met, and--even without any debt--it was hard enough for me to come to terms with the fact that he didn't have nearly as much money saved up as I thought he should. :)

I'm a red panda

  • Walrus Stache
  • *******
  • Posts: 8010
  • Location: United States
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #15 on: May 21, 2015, 10:13:15 AM »

I have no idea what my credit card's interest rate is. It makes absolutely no difference to me if it's 5% or 500%, I pay it in full every month.

I'm with you. I've never looked at the APR on a credit card. It is completely unimportant to me. I look at the rewards offered to me.

I don't even know what would be reasonable- I don't think I could advise someone on what kind of credit card would be good to get if they don't pay them off every month.

« Last Edit: May 21, 2015, 10:15:39 AM by iowajes »

Alternatepriorities

  • Bristles
  • ***
  • Posts: 273
  • Age: 39
  • Location: Alaska
  • Engineer, explorer, investor, blogger
    • Alternate Priorities
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #16 on: May 21, 2015, 11:52:23 AM »
I'm with you. I've never looked at the APR on a credit card. It is completely unimportant to me. I look at the rewards offered to me.

I don't even know what would be reasonable- I don't think I could advise someone on what kind of credit card would be good to get if they don't pay them off every month.

I don't look at cc interest rates either, just the rewards. The best advise for someone who isn't going to pay off their cc each month is "don't get one". If someone really need a short term loan there are much cheaper options than a credit card. Someday when everyone is mustachian enough to understand this the rewards will go away, but until that happy day we can do our part to reduce cc profit margins.

zephyr911

  • Magnum Stache
  • ******
  • Posts: 3628
  • Age: 41
  • Location: Northern Alabama
  • I'm just happy to be here. \m/ ^_^ \m/
    • Pinhook Development LLC
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #17 on: May 21, 2015, 12:21:35 PM »
I made him gather up all his credit cards/statements and consolidate them all into one 0% for one year card, posthaste. 

Not sure if they even have those anymore, since the 2008 recession.
From what I hear, they are less common than they used to be. However, in the past few years, I've been offered 0% for 6-10 months on my Travelocity AMEX (1% fee), and recently USAA lost their mind and offered me 12 months, 0%, $0 fees, up to 95% of my limit (which is $22K after 15 years).

The solar panels go up next month and will be paid off next spring... hehehe

Kris

  • Magnum Stache
  • ******
  • Posts: 4580
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #18 on: May 21, 2015, 01:54:45 PM »
True for me as well.  Unfortunately, if memory serves, he had about $24,000 on that particular card. :(

Yeah he had a high interest rate because he either had a poor credit score or missed a number of payments.  Discover is competitive with other rewards cards.  Good credit risks are going to qualify for rates like 13% or so, which for a no-fee rewards card seems to be pretty typical.  Any credit card can have a high interest rate if you miss a few payments, especially if you also have a high unsecured credit utilization ratio and/or low credit score.  Interest rates are certainly something to watch out for, no matter who the issuer is.

Yup.  Must have been missed payments because, bizarrely, his credit score wasn't that bad.  I sat him down and had a "come to Jesus meeting" with him (read: I will leave you in the dust unless you change your evil ways) and thankfully, he saw the light.  I still shake my head when I think of where he was when we started.

Wow. Good job helping him out! I don't know how I would have responded to that situation. My husband wasn't very financially savvy when we met, and--even without any debt--it was hard enough for me to come to terms with the fact that he didn't have nearly as much money saved up as I thought he should. :)

Thanks! I was terrified, to be honest... I was very much in love with him, but old and wise enough to know that I could not attach myself long-teem to someone whose financial house was so out of control.  I was very worried that I would have to walk away, but thankfully, he was one of the very rare ones who was actually thankful for my ability to help him turn things around.  I basically told him exactly what to do and put him on a strict budget, made him get rid of things he couldn't afford (like a time-share that was the subject of another face-punch meeting), and eventually we righted his ship.  Now, nine years after meeting him, we are looking at retiring in three more years.  He is so thankful for me that he has never once complained at any of this.

Paul der Krake

  • Magnum Stache
  • ******
  • Posts: 4658
  • Age: 11
  • Location: USA
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #19 on: May 21, 2015, 02:07:34 PM »
If somebody hypothetically took out a whole bunch of these loans, maxed their credit cards, then fled the country, what would the consequences be? Assuming said person denounced US citizenship and became a citizen of another country.
I've fantasized about this: buy a boat, a ton of food, and setting sail. I'm not a citizen, not even a green card holder, yet have just shy of 6 figures of available credit from US institutions, all credit cards. I don't think the CC companies have the ability or desire to launch a planet-wide manhunt over $100,000- so I assume they would just eat the loss.

FIRE me

  • Handlebar Stache
  • *****
  • Posts: 1099
  • Location: Louisville, KY
  • So much technology, so little talent.
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #20 on: May 23, 2015, 07:05:43 PM »
If somebody hypothetically took out a whole bunch of these loans, maxed their credit cards, then fled the country, what would the consequences be? Assuming said person denounced US citizenship and became a citizen of another country.

This is currently my retirement plan. Still building my CC portfolio.

The White House (whomever the occupant at that time may be) will authorize a drone strike. Because people who stiff banks are terrorists.

FIRE me

  • Handlebar Stache
  • *****
  • Posts: 1099
  • Location: Louisville, KY
  • So much technology, so little talent.
Re: Found this gem in the mailbox today...only 29.99% APR
« Reply #21 on: May 23, 2015, 07:13:36 PM »
wow..are they barking up the wrong tree!

At least you could pay that one off monthly and pay nothing. I used to get offers for secured credit cards “to rebuild your credit”. Never mind that mine didn't need rebuilding.

I read the fine print on the secured card offers for the tragic comedy. With the application fees, processing fees, card issuing fees, and monthly fees, it would have been a great way to turn $500 into $350. And that was before the victim charged a single dollar.

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian