First Premier Bank Secured Credit Card Review
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First Premier Bank has a history of providing credit cards to consumers with low or no credit, and good or bad, is well known for being one of the top issuers of sub-prime financial products. They have, through the years, and as a result of the Credit Card Act in 2009, worked on improving their image from what was once a negative image to a positive image, through products such as the First Premier Bank Secured Credit Card.
However, although the changes resulted in a better card than was once offered, there are still a couple features to be aware of when considering this card. Although the perfect secured credit card may not exist, it may be your only option and, depending on your situation and particular needs, you want to make sure you select the best one for you. (See our favorite secured credit cards)
First and foremost, if you are working on improving your credit rating, it is important to make sure you select a secured card over a prepaid card. Prepaid cards do not report your account to the credit bureaus and are therefore unable to help establish a positive credit history. At the very least, this card not only allows you to work toward improving your credit, but also provides a card for day to day credit card purchases.
How this Card Works
When you are approved for the card you are required to make a deposit of at least $200. This is the amount of your credit limit, less the annual fee and additional card fee. You can then use the credit card as you would any card. Your payments are reported to the three major credit bureaus, which, if managed responsibly, can help to establish a positive credit rating. After 13 months, you may be considered for an unsecured credit limit increase, which does not require additional funds to your security deposit. (However, the credit limit increase has a 25% fee.)
Pros
There actually aren't any pros to this card aside from the fact that it will help rebuild your credit if you use it responsibly. While it does offer an unsecured credit limit increase, the 25% fee is ridiculous and not worth it.
Cons
High fees. Secured cards are known for high card fees. But this card probably has the highest of them all. The annual fee is one of the highest charged by a secured card. (See also: Best Secured Cards with No Annual Fee)
Credit limit increase fee. If you do qualify for a credit limit increase, there is a fee of 25% of the increase, which is not only unusual, but extremely high. This means if you are approved for a credit limit increase of $1,000, you will pay an enormous fee of $250 (deducted from your card). Although credit limit increases are generally viewed as rewards for managing your account responsibly, in this case, a credit limit increase is a bad idea unless you absolutely need it.
High APR. The APR for purchases is also at the high end of the spectrum, even among secured cards which are also known for carrying high interest rates. If you pay your balance in full each month rather than carry them from month to month, the APR is less of a disadvantage because you can avoid paying interest. However, if you typically carry a balance from month to month on your card, you should instead choose a secured card with the lowest APR possible.
Who This Card Is Best For
The First Premier Bank Secured Credit Card is not the best secured card on the market, but it allows an opportunity to establish or reestablish your credit if you have had difficulty in the past. This card is best for those who are unable to qualify for other secured credit cards available. If you have no other options the card serves its purpose and reports to the three major credit bureaus. At some point later on you may be able to qualify for a better secured or even unsecured credit card. It is especially important that you pay your balance in full each month while using this card and do not use the card for foreign purchases.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
