Highest historical credit card interest rate: 79.9% on the old First Premier Bank Credit Card. This card is no longer available. It was for people with bad credit.
Highest current credit card interest rate: 36% on the new First Premier Bank Credit Card. The card is unsecured and for bad credit. It has an annual fee of $75 - $125 for the first year and $45 - $49 after. Plus, there’s a $95 one-time processing fee.
High current credit card interest rate: 29.99% on the Total Visa. The card is for bad credit. It has an annual fee of $75 for the first year and $48 after. It has an $89 one-time processing fee.
High current credit card interest rate: 29.99% on the First Access Visa. This card is for bad credit. It has an annual fee of $75 for the first year and $48 after. It has an $89 one-time processing fee.
HOW DO CREDIT CARDS MAKE MONEY?
After discovering that the same credit card companies who had been so eager to fund my foolish lifestyle were now not so willing to help me turn over a new leaf and live a frugal lifestyle, I began to look at the cold, hard reality of how credit cards make money. Credit card companies have a number of ways of making money, which include:
Fees (annual fees, over-the-limit fees, late fees, cash-advance fees)
Interest on the revolving debt we carry with them
A cut of the purchase price from the merchants we make our purchases from (ranges from 1 – 4 percent per purchase)
Commission from selling cardholders’ names to others so more people can hawk their cards and wares at us
Credit card companies make a lot of money. Total revenue for the credit card industry was nearly $155 billion in 2011. That’s even with the weak economy driving credit card spending down among consumers. In 2010, credit card companies made nearly $164 billion off revenue from credit card accounts. Credit card companies made over $20 million from fees in 2009.
Since the Credit CARD act went into effect a few years ago, that figure has fallen by a stunning $500,000. Now, what you may know that I didn’t at that time, is that credit card debt is unsecured debt.
That means there is little that credit card companies can legally do to get their money back if a cardholder refuses to pay off charges they’ve made with that company’s money. You don’t get that feeling though, if you stop making your payments.