The main benefit of this First Premier credit card is that it is available to persons with bad credit or less-than-perfect credit. You can get a credit card even if you have poor credit.
A poor Credit History could make authorizing an additional credit card challenging. Still, it’s not a reason to rule out the possibility of obtaining any credit even. Credit cards available to people with bad credit tend to include higher interest rates and charges, so research before committing to anything.
Unsecured credit card options might be less for those with poor credit, but opportunities are still available. An excellent illustration could be one of the best examples: First Premier Bank Mastercard Credit Card. It’s a credit card that is not regulated, allowing a broader range of credit profiles than other cards. However, there are several significant negatives. If you’re considering purchasing one of the First Premier credit cards, here’s the information you need.
What are the benefits of having a Mastercard with First Premier Bank?
Credit card issuers like First Premier Bank provides options for individuals with poor credit to rebuild their credit score with unsecured credit cards.
The principal advantage of this First Premier credit card is that people with poor credit can utilize it. The card is available from thousands of retailers across the United States and the world as a Bank Mastercard Credit. The card also has an extended grace period of 27 days, giving customers sufficient time to settle their monthly statements and not pay interest fully. Furthermore, the monthly fees include an annual FICO score for free.
By targeting those needing to improve their Personal Finance and catering to those with less-than-stellar credit, this card has become a valuable option for individuals seeking to rebuild their credit history. This card also reflects positively in the eyes of major credit bureaus when payments are consistently made on time, improving one’s credit score over time.
What are the first Premier credit card’s drawbacks?
For a card designed to help people with bad or damaged credit scores, the charges for this card are high. However, this card has numerous disadvantages than benefits. Compared to secured cards from other financial institutions, the First Premier credit card may not be the most cost-effective choice when managing one’s Customer Service experiences and rebuilding credit.
- This First Premier bank credit card offers one of the highest rates for interest. It offers an annual percentage of 36 percent rate (as of 12/19/2019), which is more than twice the average national rate.
- The credit type offered is unsecured, which allows for a higher interest rate. The initial setup cost is high. The one-time fee is a processing charge as high as $95. The lender can deny the application if you do not pay the monthly fee within 85 days following acceptance.
- Annual fees are high. The first year’s yearly charge may lower the initial credit limit, varying between $125. If, for instance, you’re granted an amount of $300 and are paying an annual fee of $75 in the first year, your credit limit will be $225. The cost per year decreases in subsequent years; however, it’s still sufficient to take a bite out of your budget.
- Monthly service cost: First Premier Bank Mastercard charges an unorthodox monthly service charge after the 1st year. Following the first anniversary of opening the card, the monthly service fee can range from $6.25 to $10.40.
- The Credit limit increase fee is high. A credit limit can fluctuate between $200 and $1,000 following approval. Once you have had your credit card in use for 13 months, you could be qualified to receive a credit limit boost. Most credit card companies will allow you to increase your spending limit without cost if you exhibit proper payment and credit card usage. However, First Premier Bank would charge you 25% of the increase in credit limit. It would help if you rejected the credit limit increase within 30 days of receiving it to avoid paying the fee.
- In truth, there are fees for almost everything, including a 3% international transaction fee and a late payment charge of up to $39 bills. An annual user fee, a copying license, a wire transfer fee, and an expedited delivery fee are all part of the overhead costs.
- Cashback rewards are not available: While this is common with the credit card of those with poor credit, it’s disappointing that the First Premier credit card doesn’t offer any rewards.
Who is suitable for this card?
Only those with poor credit cannot qualify for other credit cards with unsecured features and want to avoid opening secured credit card accounts are advised to look into this card. The disadvantages of this card are more significant than its benefits, and it can do more harm than good for those with bad credit. Instead of helping them improve their credit score, the card imposes additional costs. It increases the chance of a missed payment or other mistakes.
Expert Advice: Are you looking for a more favorable credit card? Make sure you pay bills on time, keep your debt to a minimum, and open several credit accounts to build up good credit with time. Maintain a manageable credit limit, meet minimum income requirements, and stay consistent with your loan payments to enhance your payment history further. Learn more about.
Suppose it’s the only card you can accept after a year of paying on-time payments and boosting your overall credit score. In that case, you will be able to explore new options. Switching cards and not paying monthly service fees in the following year is possible. Credit monitoring can also help you track progress and improve your approval odds for better card options.
When considering credit cards, it is important to note that some, like the one mentioned earlier, such as the “pls check cashers” card, can do more harm than good for those with bad credit. Keeping up payments on time and aiming for a credit line increase can enhance your application approval chances.
Below are some statistics on Mastercard by First Premier Bank:
|Average credit limit||$2,500|
|Average interest rate||25%|
|Average annual fee||$59|
|Most popular card||Gold Mastercard|
|Rewards program||2 points per dollar spent on gas and groceries|
|Sign-up bonus||10,000 points after spending $1,000 in the first 3 months|
|Pros||Easy to qualify for, low credit limits available, high rewards programs, sign-up bonuses|
Alternate options to the Mastercard by First Premier Bank
The Mastercard of First Premier Bank is only suitable for some. Think about one of these options for upgrading your credit card due to poor credit.
OpenSky Secured Visa Credit Card
OpenSky Secured Visa is ideal for building or repairing their credit and credit score. A fully refundable security deposit as low as $200 or as high as $3,000. It is a requirement to be eligible for this card. There is no need to be worried about having your credit score affected, as they won’t consider your credit score when you apply for the card. OpenSky features U.S.-based Customer Service representatives and offers mobile banking services, making it easy for cardholders to monitor their accounts, make manageable payments, or even make the minimum payments required. Additionally, their customer service keeps an eye out for suspicious activity to ensure the safety of your account.
Indigo Platinum Mastercard
Indigo Platinum Mastercard Indigo Platinum MasterCard is an option for those with a low score on their FICO who want to get credit cards. It offers a recurring APR of 24.90 percent and a zero to $99 annual cost. It also has a travel-friendly feature. With the option of paying 1% for international transactions—tax, even though the maximum amount of credit is only $300.Besides, it provides convenient mobile banking options to keep track of your financial activities.
Milestones Mastercard Unsecured
The Milestone Unsecured Mastercard may be the better option if you have a good credit score. It comes with an annual APR of 24.90 percent and a monthly cost between $35 and $99. It’s a straightforward application procedure that won’t affect your credit score, contrasting with the typical credit card requiring a significant pull.
The Most Suitable Credit Card for You
If you want a better credit score, the best approach is to build up good credit. By making sure you pay all your bills punctually. Keep your debt at a minimum while opening up as many credit cards as your wallet can handle.
Frequently Asked Questions
What is The First Premier Bank Mastercard, and how does it work?
The First Premier Bank Mastercard is a credit card specifically designed for people trying to establish credit or rebuild credit. It works by requiring an upfront security deposit that becomes your credit limit.
What are the benefits and features of The First Premier Bank Mastercard?
Benefits include the opportunity to build credit when you make on-time payments each month. There are no foreign transaction fees but there are high annual, monthly, and processing fees.
How can I apply for The First Premier Bank Mastercard, and what are the eligibility criteria?
You can apply on First Premier’s website or by phone. Eligibility criteria includes being at least 18 and having a regular income source. No credit check is required for the secured card.
What are the fees and interest rates associated with The First Premier Bank Mastercard?
There is a $95-195 processing fee, $75-125 annual fee, and 29.99% variable APR. A $6.25 monthly fee also applies after the first year. There are also cash advance fees.