Review of First Premier Bank Credit Cards: Is It a Good Option

Review of First Premier Bank Credit Cards

It’s meant for those with bad credit who can’t be approved for most unsecured credit cards; this is why it’s available from First Premier Bank. Most importantly, don’t expect to use this card very frequently. Using this card for a short time while building your credit is better than switching to a more standard credit card that offers lower interest rates and fees.

There may not be many credit card alternatives available to you if you have bad credit or are trying to restore it. Before issuing credit, most rewards credit cards will want a better credit score and a more extended credit history. As a result, if your credit is terrible or poor, you could need to temporarily depend on a secured credit card or an unsecured credit card with high fees while you try to raise your credit score.

This card is for whom?

Customers trying to establish or restore their credit and are turned down for conventional credit cards might apply for the First Premier Bank Credit Card. You should only apply for this card if you can’t get accepted for a credit card with lower costs and aren’t willing to use a secured credit card because of the card’s high fees and lack of benefits.

Ideally, you won’t need to maintain the First Premier Bank credit card for more than 18 to 24 months if you want to utilize it. This is because if you use the card sensibly during this period, you ought to be able to raise your credit score enough to qualify for additional cards.

Wisconsin and New York citizens are not eligible for this card. Additionally, this card is not accessible to covered borrowers under the Military Lending Act, including active-duty military members and their families.

How to make use of this card?

Improving your credit score should be your primary objective when using this card to be accepted for a credit card with benefits, reduced fees, and a greater credit limit. Various factors determine your credit score, but according to one of the main formulas used to compute credit scores, FICO, 30% of your score is defined by your credit usage ratio, and your payment history determines 35% of your score.

Financial history

Your credit rating will suffer if you’re late on payments. If you pay promptly, this might raise your credit rating. To improve your payment history, make at least the minimum payment required each month before the deadline. To prevent interest costs and maintain a low credit usage rate, pay the stated amount by the due date.

Utilizing credit

Your debt-to-credit ratio is calculated by dividing your overall debt by the total credit across all accounts. You should maintain your debt-to-credit ratio around 20%. Using the First Premier Bank Credit Card entails maintaining a balance of no more than $65 when your credit limit is $350. And no more than $250 when your credit limit is $1,100. You may wish to pay down the amount on your card more often throughout the month.

Costs and drawbacks of this card

The primary reason I gave this card such a low rating is because of the many fees it levies and how difficult it may be to understand them, even for someone who is used to reading credit card terms and conditions. Let’s go through all the costs and drawbacks so you can confidently decide.

Rates of interest

You should be able to avoid interest charges if you pay off your account debt in full each month and refrain from using cash advances. But it’s a good idea to at least be aware of your card’s interest rates and interest charges.

The 34 percent annual percentage rate (APR) for purchases and cash advances on the First Premier Bank Credit Card is among the highest I’ve seen. Fortunately, your due date is at least 28 days following the end of each billing statement, and as long as you pay your whole amount by the due date each month, you won’t be charged interest on purchases.

However, interest on cash advances will be levied to you as of the transaction date. Therefore, if you utilize a cash advance (which you should typically avoid doing), you should settle the sum in full as soon as you can.

How to make a First Premier Credit Card Application

  • Visit the webpage for the First Premier credit card.
  • Complete the application. You’ll have to provide basic financial details like your Social Security Number, mailing address, and yearly salary.
  • Verify the data is correct before submitting your application.

Check out our guide to the top credit cards for poor credit if your credit score prevents you from being approved for this credit card.

Pros and Cons

Pros

  • Examines candidates with fair or bad credit.
  • Multiple credit bureaus get First Premier Credit Card records.

Cons

  • Purchase APRs that are above average.
  • Charges a cost of up to $100 each year.
  • Does not provide a welcome benefit.
  • Neither incentives nor cashback is available.
  • Charges a 3 percent international transaction fee.
  • Not every purchase results in benefits.
  • Has few credit card advantages.

Frequently Asked Questions

Does using First Premier improve one’s credit score?

Once their credit card account has been open for 14 months, First Premier cardholders may be qualified for an increase in credit limit. However, you will have to pay a charge equal to 26% of the credit limit increase each time your account is authorized for a credit limit increase.

What credit score is required to qualify for a First Premier credit card?

No minimum credit score is necessary for First Premier credit cards since they are designed for those with terrible or weak credit. But not every application will be approved.

Can I use my First Premier Bank credit card to make cash withdrawals?

The First Premier Bank Credit Card enables cash advances from purchases. After opening your account, your initial cash advance limit will equal 10% of your credit limit. However, your cash advance limit could be raised to 50% of your credit limit if your account has been open and active for at least 90 days, has two months of current payment history, is not late, and has had no return payments in the last 60 days.

A cash advance transaction charge of $8 or 5% of the cash advance, whichever is higher, must be paid if you accept a cash advance. Additionally, interest on cash advances will start to accumulate right now. Therefore, it’s better to steer clear of monetary advances.

Should I sign up for the credit protection package offered by First Premier?

When the principal cardholder enrolls in the First Premier Bank Credit Card’s optional credit protection program and later suffers from involuntary unemployment, disability, unpaid family leave, illness, or death, the program may make the minimum payment due on your billing statement. For every $100 of your outstanding ending monthly bill, you will pay $0.89 per month for optional credit protection.

If you choose optional credit protection, you will continue to accumulate interest and other costs throughout the benefit period. Still, you won’t be able to utilize your account. Therefore, it will be advisable for most cardholders to decline the optional credit protection package and focus on building an emergency fund instead.

Should I cancel my credit card with First Premier Bank?

Keep credit card accounts open as much as possible to raise your average account age. But suppose you’ve been granted a more conventional credit card with reduced costs. In that case, it will probably be advisable to terminate your card account unless you can downgrade to a no-fee card with First Premier Bank, which doesn’t appear to be a possibility.

To sum up

A specific group of customers who need an unsecured credit card but have weak or low credit is served by the First Premier Bank Credit Card. Expecting this card to provide the same advantages, rates, and costs as credit cards that need great credit is ridiculous. However, with a limited credit limit of $350 to $1,100 determined by creditworthiness, this card has very high monthly, yearly, and program fees.

If you don’t want to use a secured credit card and can’t get accepted for an unsecured credit card with lower costs, the First Premier Bank Credit Card may be a handy option. But unless you are debt-free and actively trying to repair your credit, I wouldn’t advise applying. In this manner, you may concentrate on safely using the card before upgrading to a card with a reduced charge and a bigger credit limit once you notice that your credit score has sufficiently increased.

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My Name is Jay has and I have a passion for financial writing. I am the chief writer on this blog. I do my best to verify all the information but if there is anything amiss please let me know and I will do my best to correct it.

Author: Jay Batson

My Name is Jay has and I have a passion for financial writing. I am the chief writer on this blog. I do my best to verify all the information but if there is anything amiss please let me know and I will do my best to correct it.

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