Your credit history and score is everything. It allows you to buy a car, get a mortgage, and rent an apartment. Sometimes, you also need a good score/history to get a job, buy a phone plan, and more. If your credit score isn’t all that great or you don’t have a lot of credit history, you should work on this issue. It’s best to get a credit card, which helps your record and can boost your score/report if you pay the bill on time each month. One option is to apply for a credit card from First Premier Bank.
What Is It?
This credit card doesn’t have all the benefits and features of a traditional/premium card, but it can help you raise your credit score and build your credit history.
It’s a fully functional card, and the company allows you to pay online or download the app for such purposes. Along with such, it is not a secured card, which means you don’t need a cash deposit to use it. Therefore, it’s one of the few choices available for people with bad credit who don’t want to deal with deposits and low credit limits.
However, the credit card from First Premier Bank does have a variety of fees, so it’s a good idea to learn more about them.
Fees Associated with the Credit Card from First Premier Bank
If you’re considering this card, it’s best to focus on the many fees that you will have to pay. Because it is regarded as a sub-prime credit card, it has higher interest rates, higher late fees, and a variety of other costs associated with it.
For one, you need to have an active checking account to apply for and use the card. You will also have to pay using a check or input the routing numbers and other information.
There’s also a processing fee. Your credit limit and score determine the price, which might be as high as $95. That’s just to process the application. If you are approved (and you’re likely to be), that charge is automatically deducted from your total credit limit.
You’ll also find an annual service fee, which can range in price from $49 to $125. The company will tell you how much the service fee will be, but only after you apply for and get the card. Plus, on top of that cost, you also have a monthly service charge, which can range between $6.25 to $10.40. It is waived for the first year, however.
Some people might find it possible to rebuild their credit enough during that first year so that they can get a more conventional credit card. However, it’s also important to note that it looks bad on your credit report if you close too many accounts. If you don’t have a good credit history, it might ding you for opening and closing the account within that first year.
On top of it all, you don’t earn any special rewards for using or having this credit card. Of course, it helps to rebuild your credit score and establish history. Still, you’ll be paying a lot of money into a card that doesn’t give you anything in return.
If you got the card with a $300 limit, you’ll pay $95 to open it and $75 for the service fee ($45 a year after that). From the start, you’ve already paid $170 (over half) of the credit limit in costs to own it. Plus, you’ll have a high APR on purchases, and the fees count toward that.
While the credit card from First Premier Bank isn’t a secured card, there might be better options available. Therefore, you might want to keep researching your choices.