Boosting your score using a line of credit is a brilliant idea as long as you can afford the card. But that may not be the case with the First Premier Bank credit card.
At first glance, the First Premier Bank credit card is an unsecured one issued toward customers with less-than-spotless scores. As a card that reports to the major credit bureaus, you’re guaranteed a safe trip towards building your credit score. However, that comes at a price.
The eye-popping fees, high interest rates, and lack of benefits stand in this card’s way of being the right choice for those looking to get their financial situation back on the right track. Still, there’s only one category of customers who can benefit from it.
Who are they, how can they benefit from this card, and what does the First Premier Bank credit card really feature? That’s what we’re about to tell you, so stick around!
What Is the First Premier Bank Credit Card?
The First Premier Bank credit card is a card that requires no deposit, issued by the First Premier bank. The bank is one of the well-established card issuers in the U.S., offering numerous credit lines, mortgages, and investment credits since 1986.
The card being an unsecured one means you won’t have to worry about signing up with a deposit or leaving an asset as collateral.
Now that’s unusual for a credit card for bad credit since issuers reserve the secured ones for customers with bad credit to secure their rights of getting their money back in case of a default.
However, First Premier Bank secures itself by a range of high fees and interest rates that are considered the highest on the market. So, while this card offers you the chance to build credit, it can drown you in an endless whirlpool of debt if you jump into taking it without a solid plan to repay.
Is the First Premier Bank Credit Card Worth It?
The First Premier Bank credit card sure has its pros, which you can find on other cards as well, but the cons are special to this card. So, let’s see what you get when you apply for it.
The major benefit of this card is that you won’t have to worry about getting approved. Having minimum requirements when it comes to credit scores, the bank accepts almost everyone. Even customers with recent bankruptcies, disreputable financial histories, and black marks in their reports can be approved. So, the qualification process is easy.
All you have to do is visit the website and click on the “Apply Now” button. You’ll be directed to an online application, which you can fill from the comfort of your couch in a couple of minutes.
Within one minute, you’ll receive a decision, and if you get accepted, you’ll own a Mastercard that you can use anywhere.
Higher Credit Limits Are Possible
Unlike other credit cards for bad credit that put restrictions on the limits and increases, the First Premier Bank credit card does offer limit increases when you keep up with your payments on time for 13 consecutive months.
The catch is that you’ll be obliged to pay 25% of the increase as fees, meaning that if the amount of your increase is $500, you’ll only get $375 deposited in your credit card account.
Boost Your Score
The First Premier Bank credit card makes for a good chance to give your credit score a push, as the bank reports to the major reporting agencies: Experian, Equifax, Innovis, and TransUnion.
Additionally, you receive a free FICO score on your monthly billing statement so that you can follow up on your credit score.
Optional Credit Protection Program
For this service, you’ll have to pay $0.89 for every $100 of your monthly balance. When you sign up for this program, the bank will cover or postpone your payments in the event of death, job loss, disability, or any type of emergency.
Here comes the fatal flaw! The First Premier Bank credit card is packed with fees in every step.
When you apply for the card, you’ll be charged a program fee of $25 to $95, depending on the credit limit you’re signing up for. If you fail to pay this amount of money within 85 days of your approval, your account will be closed.
Next comes an annual fee, which ranges from $75 to $125 the first year, then decreases to a maximum of $49. Paying an annual fee doesn’t exempt you from paying a monthly fee of $6.25-$10.4, depending on the amount of money you take out each month.
To give you a better look at the numbers, here is a table that explains the fees you’ll have to pay for each credit limit:
|Credit Limit||Program Fee||Fee Per Year||Fees Per Month|
|$300||$95||$75 for the first year, then $45||No fees for a year, then $6.25|
|$400||$95||$100 for the first year, then $45||No fees for a year, then $6.25|
|$500||$95||$125 for the first year, then $49||No fees for a year, then $10.4|
|$600||$75||$79 for the first year then, $49||$5.85 for a year, then $8.25|
|$700||$50||$79 for the first year then, $49||$8 for a year, then $10.4|
|$1,000||$25||$79 for the first year then, $49||$8 for a year, then $10.4|
That’s for the membership fees; however, that’s not the end of it. Some of the other fees include:
- Adding an authorized member: $29 per year
- Cash advance: 5-6% of the amount you take out plus a fixed 36% interest fee until you repay it
- Late payment fee: up to $38
- Express delivery fee: $35
- Foreign transactions: 3% of your purchases’ worth
Sky-Rocketing Interest Rate
Even with all these charges, you’re still obliged to pay a fixed interest rate of 36%, which is too high for a Mastercard designed to help customers with bad credit.
No Rewards or Benefits
Given the high cost of this card, one would expect they’d get any extra benefits in return, but that’s not the case here. The First Premier credit card doesn’t come with reward systems, nor does it offer purchase protection, travel interruption coverage, or any other type of benefit.
How to Get the Best Out of the First Premier Bank Credit Card
There is only one way you could benefit from the First Premier Bank credit card, and that’s by considering it as a means of building credit and building credit only. You won’t be opting for it anyway unless it’s your only way out of a less-than-optimal financial situation, so here’s what you need to do.
Choose a credit limit that you can deal with and limit your purchases to small ones, which you can pay off by the end of the month on time and in full. This will help you steer clear of the whopping 36% interest fee and keep your report clean for a while to boost your score.
Also, consider the high membership fees as a form of disciplinary measures and avoid the additional fees as much as you can. In other words, try not to take out cash advances, keep your card safe to avoid paying the express delivery fee, and don’t add an extra member on your card unless it’s absolutely necessary.
Frequently Asked Questions
Should I Close My First Premier Credit Card?
Since you’re getting the card to give your score a boost, it’s better to leave your account open even if you’re not using it since closing a credit card can further hurt your score.
Can I Use My First Premier Credit Card Right After Paying It Off?
Yes! The card renews itself as long as you haven’t closed your account. So, after you pay it off, your credit limit gets restored, and you get to use it again.
What Is the Credit Score Required to Get a First Premier Credit Card?
The First Premier Bank doesn’t specify a certain score limit per se but extends its invitation to all customers with below-average scores. However, they do take other factors into consideration, like your employment status and yearly income.
Should You Apply?
As you can see, the First Premier Bank isn’t a card that a usual cardholder would benefit from, but a customer with bad credit can use it to tweak their financial circumstances a bit.
Only those who have exhausted their other choices, have no enough money to lay down as a deposit, and want to build their credit and qualify for a more affordable card should apply for it.
Just be prepared for the high fees and lack of extra benefits and consider it a chance to set yourself on the right foot again.