Credit history is everything! Applying for a secured credit card could be the best option. Especially if you are buying a car, applying for a mortgage, or even renting an apartment. First Premier credit card may be exactly what you need.
For consumers with less than perfect credit on their credit reports, it can seem like your credit card applications will never be approved.
Fortunately, there arecredit card issuers that are willing to give consumers another chance, and First Premier Bank credit cards are at the top of the list.
The First Premier Credit Card
While the First Premier credit card might not have all the features and benefits of a premium credit card, it can help you build your credit history and improve your credit score.
While this is a fully functional card, complete with a First Premier credit card app (called MyFirstPremierCard), it’s most notable for not requiring a cash deposit upfront.
That makes it one of the few options that gives folks with bad credit a chance to improve it without having to make an initial deposit.
For that reason alone, the card might seem attractive, but it comes with a number of fees. Let’s take a closer look.
How Does the Card Work?
When you apply for the First Premier Bank Card, your credit limit is $300. As with most cards for those with bad credit, there are fees involved. First, there is a security deposit of $95.00 which is refundable.
If you close your card account, you will receive your security deposit minus any balance that is on the card. You can pay on the security deposit as you like, but your account won’t be opened until the full amount has been paid.
You will also pay an annual feewhich is $75.00 the first year and then $45.00 annually thereafter. There is also a monthly servicing fee which is billed at $6.50 per month for a total of $78.00 annually.
The monthly servicing fee does not begin until after the first year of card ownership, which means that you won’t pay this particular fee the first month.
The APR on the First Premier Bank credit card is 36% on purchases and cash advances (in fact, it was as high as 79.9% for some customers who signed up for my mailings!).
You can avoid paying interest on purchases if you pay your entire balance in full by the due date each month. (Note: the screenshot was taken from old terms and conditions page before they raised it to 59.9% and 79.9%!)
What to Watch Out for
Complex Fee Structure
The First Premier Bank Credit Card‘s annual and monthly fees depends on your credit limit. But expect to pay a:
One time program fee payment from $25 to $95.
An annual fee from $79 to $125 for the first year and then $45 to $49 annually after that.
Monthly fee from $5.85 to $8 for the first year, and then from $6.25 to $10.40 after that.
The 36% variable interest rate is significantly more than you’ll find with other cards. If anything, this card could hurt you more than help you when you’re trying to get out of debt.
With interest rates like this, you have to be extra careful not to miss a due date. Otherwise, the costs of rebuilding credit will add up even further.
Foreign Transaction Fees
Expect to pay a 3% fee of the amount of each transaction made abroad or online with foreign merchants.
1. Can I put someone else on my First Premier credit card account?
Yes. There’s a $29 fee for an additional card.
2. Is there a fee for increasing my credit limit?
Yes. You’ll pay 25% of the amount of the credit increase after you’ve had the card for at least 13 months.
3. Can I take out a cash advance?
Yes, you can. You’re limited to 10% of your credit limit when you open your account. This may increase to 50% if your account has been open for 90 days, has two consecutive months of payment history, is not currently delinquent and has no returned payments over the past 60 days.
The First Premier Bank Credit Card comes with hefty fees that are most attractive for people getting out of the payday loan cycle and looking to build their credit.
Because of the high fees, you may want to shop for other credit-building cards until you find an option that matches your needs.
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