including card features, bonus offers Heres a closer look at the main benefits youll receive as a cardholder. One solution to avoid a high balance-to-limit ratio is increasing your limit, which might not be a viable option right away. So if your limit gets bumped from $300 to $400, a $25 fee will pop up on your statement. Explore credit cards that don't run a credit check, While the fee schedule for First Premier cards is complicated, the interest rates are not. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. *All information about the PREMIER Bankcard Mastercard Credit Card, and Indigo Platinum Mastercard has been collected independently by NextAdvisor and has not been reviewed by the issuer. Many or all of the products featured here are from our partners who compensate us. Depending on your score and the credit limit youre approved for, the fee can be as high as $95. And in all cases, First Premier fees hit 25% on the nose or just a hair short. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). We do not receive compensation for any products mentioned on the website. Unlike the First Premier MasterCard, this credit card charges no processing fees. Let us know what questions you still have about this topic or any others. We do not cover every offer on the market. Additionally, youll have to pay a monthly fee that costs up to $10.40. When evaluating offers, please review the financial institutions Terms and Conditions. When evaluating offers, please review the financial institutions Terms and Conditions. This may influence which products we write about and where and how the product appears on a page. The First Premier credit card is designed for borrowers withbad creditorno creditwho are looking to repair or build it. And this can happen. Because we are paid by our advertising partners it may impact placement of products on the site, including the order in which they appear. Therefore, this compensation may impact how, where and in what order products appear within listing categories. By that yardstick, at least, 36% is not. Really, paying in full each month is a goal all cardholders should aspire to, regardless of where they lie on the credit score spectrum. Intro offer is not available to this PREMIER Bank credit card. To begin, youll be hard-pressed to find a card with an APR higher than the 36% ongoing APR charged by First Premier. But the annual and monthly fees do. So how do we make money? However, its a secured credit card, requiring a deposit to gain access to your credit line which can range from $200 to $3,000. Intro offer is not available to this Capital Bank credit card, Intro offer is not available to this Credit One Bank credit card. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. First Premier has a high APR andcostly fees, making it one of the more expensive credit cards for people with poor credit. Bankrate.com does not include all companies or all available products. He has worked at USA Today and the Des Moines Register and has an MBA. You must check at least one of the boxes to proceed. The monthly fee on the card with a $300 limit is $6.25 or $75 per year (waived for the first year). It also monitors your credit report and alerts you when there are any changes. When you submit your card application, First Premier assigns your credit limit based on creditworthiness, and the limit youre approved for will determine your cards fee schedule. If you still want to apply for this card, or you own it already, make sure you never carry a balance. The Journey Student Rewards from Capital One is a no annual fee credit card that rewards responsibility. The primary appeal of First Premier cards is that they are "unsecured." While the fee schedule for First Premier cards is complicated, the interest rates are not. Applying for a secured credit card could be the answer, and the First Premier credit card may be exactly what you need. First Premier provides freetext and email alertsabout your most recent transactions, available credit, payment history and more, which makes it easy to keep tabs on your finances. You can use this card with any merchant that accepts Mastercard. One last bit of advice: try to avoid a high credit utilization ratio. The primary appeal of First Premier cards is that they are "unsecured." Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. Capital One Savor Cash Rewards Credit Card Review, Is Now a Good Time to Buy a House? OK92033): Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, First Premier Credit Card Review: Bad Option for Bad Credit. If you carry a balance, you could rack up hundreds of dollars or more in interest charges. A Red Ventures company. If you have that much cash on hand and youre looking to repair a poor credit score, youll be much better off putting $200 down as a deposit on a secured credit card with no fees and a lower APR. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. You can deposit a minimum amount to your account initially, but the more you deposit, the higher your credit line will be. First Premier reports positive payment history to credit bureaus, An unsecured card option for people with bad or no credit, Costly fees, and many more fees than other credit cards charge, High ongoing APR (more than double the national average). First of all, opening a credit card with the First Premier Bank requires an active checking account with the institution. Its recommended to keep your credit utilization at less than 30 percent. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. She has worked for Silicon Valley startups and in the public sector. 8 Reasons Why Buying a House In 2021 Is Harder Than Last Year, You May Be Able to Deduct Mortgage Interest on Your 2020 Taxes, but That Doesn't Mean You Should, $5.85 per month first year, then $8.25 per month, $8.00 per month first year, then $10.40 per month, Build credit by maintaining a positive payment history, One-time program fee ranging from $55-$95 upon account opening, Annual fee ranging from $75-$125 the first year, then $45-$49, Monthly fee ranging from $6.25 to $10.40 per month, Credit limit increase fee equal to 25% of the increase amount. The APR for purchases and cash advances is a whopping 36 percent, which is more than double the current average interest rate for credit cards. Youll earn good cash back on all of your purchases, which will increase when you make five consecutive on-time payments. Sounds great, right? Our partners cannot pay us to guarantee favorable reviews of their products or services. This information may be different than what you see when you visit a financial institution, service provider or specific products site. While the First Premier credit card might not have all the features and benefits of a premium credit card, it can help you build your credit history and improve your credit score. Those fees can't add up to more than 25% of the credit limit. To an issuer, having a high balance-to-limit ratio can seem as if you max out your credit limit every month. However, you might want to check the fine print before applying as First Premier comes with some hefty fees. Although the issuer doesnt require a security deposit upfront, it more than makes up for it in the fees associated with opening and keeping the account. You also might want to consider its costs. The annual APR on the First Premier MasterCard is 36 percent! The amount of each fee depends on how big of a credit line you get approved for: Program fee: This is a one-time fee charged when you open the account. You have money questions. At various points a decade or so ago, First Premier cards under the Aventium and Centennial name were charging rates of 79.9%, 59.9% and 49.9% more than twice the average for people with bad credit. BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. We believe everyone should be able to make financial decisions with confidence. . If youre using this card to improve your credit, you should also keep your credit utilization rate in mind. What to do when you lose your 401(k) match, First Premier credit card vs. other cards for bad credit, Capital One QuicksilverOne Cash Rewards Credit Card, Compare the best credit cards for bad credit, California Consumer Financial Privacy Notice. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. By that yardstick, at least, 36% is not so bad. This compensation may impact how, where and in what order products appear. So if your limit gets bumped from $300 to $400, a $25 fee will pop up on your statement. For that reason alone, the card might seem attractive, but it comes with a number of fees. We maintain a firewall between our advertisers and our editorial team. Consider a secured card like the Capital One Platinum Secured Credit Card or Citi Secured Mastercard, which both require deposits of $200 or less. If you want to go the unsecured route, an option to consider is theCredit One Bank Visa Credit Card. Depending on the limit you are approved for, doing so might not be possible. This card does not currently have a sign-up bonus or welcome offer, which is often the case with cards for rebuilding credit. The other option to avoid high utilization might be making payments twice or three times a month, or cycle your credit. That sky-high rate is actually a step down from what the issuer used to charge. The PREMIER Bankcard Mastercard Credit Card* is an unsecured card option for people with no credit history or a bad credit score, but we dont recommend this as a credit-building tool. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. If you pay your bill in full every month, you don't get charged interest. The First Premier credit card simply costs too much for little benefit. She has worked for Silicon Valley startups and in the public sector. Its a much better credit card in terms of basically everything: processing fees, annual fees and wait times to increase a credit limit. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. Bankrate.com does not include the entire universe of available financial or credit offers.Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. The information on this site does not modify any insurance policy terms in any way. See privacy policy. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. If you want to monitor your credit more closely, you can sign up forPremier Credit Manager. But it's still terrible. Before you go, sign up for our newsletter to get NextAdvisor in your inbox. At various points a decade or so ago, First Premier cards under the Aventium and Centennial name were charging rates of 79.9%, 59.9% and 49.9% more than twice the average for people with bad credit. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. 2022 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Browse the rates and terms of the best secured cards on the market to see if one may be the right fit for you. If you have a $600 credit limit, your first year's annual fee is $79, and the monthly fees add up to $79.20. Previously, she was. MORE: See the best secured credit cards, About the authors: Paul Soucy is the lead credit cards editor at NerdWallet. First Premier Mastercard is designed for people with bad credit scores or no credit history. The important thing to remember about a deposit on a secured credit card is that as long as you hold up your end of the credit card agreement. If you're trying to build credit, you shouldn't be charging more to a card than you can afford to pay off every month. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. After your account has been open for 13 months, you may qualify for a credit limit increase. If you have bad credit, a secured credit card is a much better option if you can manage the minimum deposit. Opening a credit card also includes a processing fee. You may want to pair your First Premier card with asecured credit card, like the OpenSky Secured card mentioned above. A good credit score can do a lot for you, including getting you a better credit card. If you want to add a cardholder to your account, it'll cost you an extra $29 a year. You need to start looking for ways to improve it. How much should you contribute to your 401(k)? All reviews are prepared by NextAdvisor staff. All products or services are presented without warranty. If you're trying to build credit, you shouldn't be charging more to a card than you can afford to pay off every month. It reports your account activity to the three major credit bureaus and typically can improve your score in18 to 24 monthsif you use it responsibly. When First Premier reports your card use to the credit bureaus, youll want to show only a positive history of timely payments in full. Before applying for the PREMIER Bankcard Mastercard, consider other options for poor credit or no credit history. Anisha Sekar is a former personal finance writer for NerdWallet. That sky-high rate is actually a step down from what the issuer used to charge. Buying a new car? Our experts have been helping you master your money for over four decades. Why Mortgage Rates Are Dropping Despite the Latest Big Fed Rate Increase, The Crypto Markets Catastrophic Meltdown Sent Prices Through the Floor. You must check the box to agree to the terms and conditions. Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. First Premier offers afree digital wallet serviceto keep your card details safe when you shop online. Credit card issuers have All cardholders, regardless of credit limit, are charged an APR of 36% a figure that's generally considered the highest a "legitimate" lender can charge. Bankrate.com is an independent, advertising-supported publisher and comparison service. Fees like those charged on First Premier cards are gone forever. He has worked at USA Today and the Des Moines Register and has an MBA. Opinions expressed therein are solely those of the reviewer. It Also Sent Regulators Into Action, How the Latest Fed Rate Increase Could Impact Crypto Prices, Based on These 3 Charts, CD Rate Predictions: When to Lock In for the Long Term, According to Experts, Get expert financial tips delivered to your inbox. Read more. If you pay your bill in full every month, you don't get charged interest. If youre issued a $300 credit limit from First Premier, that means you should keep your monthly balances below $90 to maintain an ideal utilization rate and thats including any fees deducted from your limit. credit cards based on a variety of factors The bank also charges you 25 percent of the increase amount to increase your limit. There's no security deposit, but with multiple fees and a high interest rate, this card will still cost you plenty. All financial products, shopping products and services are presented without warranty. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Here's an explanation for how we make money. your first year's annual fee is $79, and the monthly fees add up to $79.20. Offers may be subject to change without notice. So, if you request a $200 increase, itll cost you $50. Reasonable efforts are made to present accurate info, however all info is presented without warranty and is current on the date of publication. * See the online application for details about terms and conditions for these offers. Any opinions, analyses, reviews or recommendations expressed in this article are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. And once you start fiddling around with the numbers, you'll find that the amount you pay in fees will quickly surpass what you would have been required to put down as a deposit. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. The higher your credit line, the higher your fees. What are your favorite topics to read about? Each week, you'll get a crash course on the biggest issues to make your next financial decision the right one. Experts recommend keeping your utilization (the amount of credit youre using versus the amount available to you) under 30% for the best chances of improving your score. person and may be one indicator to the credit type you are eligible for. If anything, this card could hurt you more than help you when youre trying to get out of debt. Bankrate.com is an independent, advertising-supported comparison service. the annual fee, and it ranges from $6.25 per month ($75 a year) to $10.40 a month ($124.80 per year). Sounds great, right? It ranges from $55 to $95. However, First Premier will waive or reduce this fee for the first year, which can help offset the cost of the program fee. Should you accept an early retirement offer? Theres also a one-time program fee that ranges from $55 to $95. For example: If you have a $300 credit limit, your first year's annual fee is $75, and there are no monthly fees. For people struggling to raise their credit scores, the credit cards offered by First Premier Bank might initially seem attractive. Kendall Little is a journalist covering personal finance for NextAdvisor based in New York. First Premier may begin reviewing your account for a credit limit increase after 13 months, and charge the fee automatically if youre eligible and approved for an increase. Terms apply to the offers listed on this page. card As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors. Check out our extended list of the best cards for no or bad credit. You need good credit for that. The issuer begins reviewing your account after 13 months to see if you're eligible for a credit limit increase. So you want to keep that utilization ratio low. Once you begin to build your credit, you will qualify for more cards with better rates, terms and perks. First Premier Banks Mastercard Credit Card charges expensive fees and an extremely high APR in exchange for a small line of credit and standard reporting to the credit bureaus. So if youre assigned a $500 limit based on your creditworthiness, your initial available credit is actually just $375. By providing your email, you agree to the. All Rights Reserved. Bankrates editorial team writes on behalf of YOU the reader. First Premier's fees for late payments and returned payments are in line with industry standards, but then again, those fees are capped by federal regulations. Youll get yourFICO scorefor free on your monthly statements, which can help you track your progress while building your credit. Disclaimer: This editorial content is provided by RewardExpert.com. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. This cards biggest drawback, however, is its numerous fees. the highest a "legitimate" lender can charge. That's why secured cards, with their refundable deposits, remain the best option for bad credit. What are index funds and how do they work? Monthly fee:This is charged in addition to the annual fee, and it ranges from $6.25 per month ($75 a year) to $10.40 a month ($124.80 per year). Get all of our latest home-related storiesfrom mortgage rates to refinance tipsdirectly to your inbox once a week. Opinions expressed here are the authors' alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities. Still, paying that much for a credit card that earns no rewards is hard to justify, particularly when you have options. The fee is calculated based on your end-of-month balance and costs $0.89 per $100. Really, paying in full each month is a goal all cardholders should aspire to, regardless of where they lie on the credit score spectrum. The fees above are just the ones required to have an account. That means that, unlike secured credit cards, they don't require an upfront security deposit. Credit Cards Reporter and Young Credit Analyst. The deposit lets the bank know youre not going to rack up a tab and flee the country. Annual fee: This ranges from $75 to $125 in the first year and $45 to $49 after that. That makes it one of the few options that gives folks with bad credit a chance to improve it without having to make an initial deposit. NerdWallet strives to keep its information accurate and up to date. Our partners compensate us. Here is a list of our partners. The problem is that if First Premier approves you for an increase, you'll pay a fee of 25% of the increase. , and some people simply can't afford to lock up that much money in a deposit. Whichever card you end up getting, its important to start building and improving your credit score as quickly as possible. She studied applied mathematics and economics at Brown University. PREMIER Bankcard Mastercard Credit Card. A secured credit card is like a pre-paid credit card, usually with a low credit limit. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. That said, your credit card interest doesn't have to matter. Lets look at an example.