Have you received credit card offers in the last couple of weeks? If so, have you checked out the terms and the average interest rates that will be charged if you open an account? Well, don’t be shocked to find APR’s as high as 59.9%!

No, that is not a typo. I just recently got an offer in the mail from First Premier Bank to apply for their MasterCard with an interest rate of 59.9%. That is beyond outrageous, and it should be criminal. I thought the government passed a new credit card “reform” that was supposed to stop this from happening?

Any time the government gets involved in reforming anything you can expect problems. Their good intentions of reducing fees and making the terms more transparent has unexpectedly opened the door to other issues.

The bill never addressed one of the single most important issues of all… limiting the interest rates a credit card company can charge consumers who open new accounts.

According to industry analysts, credit card interest rates now average 14.72%, which is an all-time high. And this comes at a time when interest rates on loans and mortgages are at all-time LOWS. Does this even make sense? To me it is legalized theft by the finance companies. Although you should always know that when congress eliminated fees in one area, companies would find a loophole and raise them to make up for in a another area.

Obviously, the better your credit rating, the lower the fees will be on your cards, but for those with credit scores over 750, they are still getting rates that are much higher than they were a year ago.

Interest rate caps have been proposed by some in congress, but nothing has moved on it. There will have to be a major outrage before they will do anything.

Analysts say that those who have credit scores below 599 are seeing a huge hike in interest rates. In fact, you’re looking at 25-30% APR’s, and that is if you can even get a card. But with rates like that… who really wants one? Carry any kind of a balance and you’re looking at simply throwing money away in fees and rates.

Come to find out, First Premier apparently LOWERED their 59.9% APR for those with credit issues from an original rate of 79.9%!

I wonder how many will take a card like that and run out and charge up that new iPhone or big screen 3-D HDTV? Or even worse, use it for video games or a trip to McDonalds? Imagine paying 80% interest on that Big Mac meal, or that new electronic gadget?

So what’s the answer then? The first thing I would advise is to just say NO. Don’t take out a credit card with interest rates like this. Be smart and toss it in the trash. Ask yourself if you truly even need a credit card?

Next, I would look into getting a secured credit card. By secured I mean one in which you make a cash deposit and use the balance to charge items you need. It not only helps you in rebuilding your credit, but you will not have the high APR like some of these other offers.

Once you begin getting your credit re-established, then you can apply to a credit card with a much more manageable APR. Yes, it will take a little time to get back to where you once were, but with time, patience and a bit of discipline, you can do it.

Let me know your thoughts and if you have been receiving offers with sky high APR’s.