Shopping for a new credit card is easy if you have a good credit history. You might be surprised to learn there is credit available even if you have questionable or even bad credit.
Located in Sioux Falls, South Dakota, First Premier Bank and Premier Bankcard are under the holding company of United National Corporation.
South Dakota is a likely location for a bank that takes a chance on credit card customers that other lenders automatically decline. This is an area of the country where survival and independence are valued highly and differences are celebrated.
The First Premier Objective
This bank understands that not everyone has great credit. A medical emergency or chronic illness can provide temporary stress on your finances and can add black marks to your credit bureau ratings in only a few months.
A divorce or downsized job can put a strain on finances that results in late payments reported to credit bureaus.
Credit that has been damaged can be restored but to do that you need to use credit and demonstrate financial responsibility. It’s hard to do if you can’t qualify for a credit card.
However, almost anyone can qualify for the First Premier Gold Card and using the account for purchases and paying the bills responsibly. By doing this, you will provide reports generated to the credit bureaus that will in time override your bad credit.
You might expect to pay a high interest rate on a credit card issued to those with poor credit ratings but this card will surprise you. The interest rate of 9.9 percent APR is lower than that offered by mainstream credit lenders today.
You will pay for this account, however, in the many fees associated with this credit card. This lender is taking a high level of risk by awarding credit to those who have not demonstrated financial responsibility in the past. Fees charged include:
- $29 for account set up (one time fee)
- $95 program fee (one time fee)
- $48 annual fee
- $84 servicing fee (charged at $7 per month)
A $20 fee is charged annually if you require a second card on the credit account.
The First Premier Bank credit card will approve almost all applications but the initial credit limit will be only $250.
As listed above, the fees to open this new credit account total $179 the first month and $7 per month servicing fee each month after that. The fees for opening this account come directly from the $250 credit limit.
Thus, the first month you have your new credit card you will immediately show a balance of $179 on your account.
This is how First Premier Bank is able to assume the risk of granting credit to customers with poor and bad credit. The amount of money that you are able to charge to your new account is limited to $71 that first month.
Pros and Cons
Many applicants see the fees and immediately decide not to apply for the card. This could be a mistake. Where else can you qualify for a real credit card when you have a low credit rating?
The secured credit cards are rapidly disappearing from the financial scene and prepaid cards do not report to credit bureaus. If you want to rebuild your credit, you may have to pay for the privilege. Some good features of this card are:
- Full 25 day grace period from closing date of statement to due date
- Apply online and get a decision in 60 seconds
- Monthly reporting to the major credit bureaus by First Premier
Even though the first few months after a new account is opened may be spent paying off the account fees, you will be adding good reports to your damaged credit file. If you have bad credit that has prevented you from obtaining a credit card, First Premier may offer the solution you need.