Check this out: Credit Reform and My New 703.8% Card
Now before you say, “Damn! That’s a high APR,” read this:
Department Stores National Bank, which issues the card, charges a â€œminimum interest charge.â€ On my average daily balance of $3.41, that minimum charge worked out to â€œan actual annual percentage rateâ€ of 703.80%. (Part of the impact of last yearâ€™s credit reform is that the issuer had to disclose that shocker on the statement, while also noting that the cardâ€™s normal APR is 24.5%.)
Did you see it? HER AVERAGE DAILY BALANCE WAS $3.41! She conveniently leaves out what the interest charge was, which couldn’t have been more than a few dollars. I’m not sure why she’s being charged interest if she’s not carrying a balance.
Besides that, what’s she doing opening a department store credit card during Christmas? Isn’t that one of things you’re not supposed to do?
Just curious. Read the rest of the article. There’s all kinds of good material there. Oh, and the name of her column is “Devil in the Details.” Hahaha…