More fun with small print: Chase Manhattan

Since I wrote the entry about the Discover card and have heard from some people, I've been keeping track of the offers I get in the mail, rather than just shredding them as I usually do. Today I got one from Chase Manhattan for a Platinum MasterCard with an 8.99% APR. Not too bad, until, as usual, you read the small print.

That's why there's the "Summary of Terms" on the back, but it really makes no sense: APR: Preferred pricing: 8.99% for elite pricing, or 12.99% for premium pricing or 18.99% for standard pricing. For cash advances it's 19.99% for elite and premium pricing or 23.99% for standard pricing, and if you call into the non-preferred pricing, everything has an interest rate of, ready for this? up to 25.99%. And in case you think that makes sense, they go on to state that preferred pricing APR is calculated by adding either 4.99%, 8.99% or 14.99% to the Prime Rate. Which, of course, they can't control, so if we got into a recessionary spiral or saw some inflation, the Prime Rate could easily move far higher than its current 4.00% value...

Again, you need to read the small print on these so-called "offers" and make sure to call and ask questions if you don't completely understand what they're selling.