What are the drawbacks of using First Premier credit cards?
Eva MarcilleDrawbacks of Using First Premier Credit Cards
First Premier Bank is one of the largest issuers ofsubprime credit cardsin the United States. These credit cards are marketed to people with poor or limited credit history. While First Premier credit cards can help you establish or rebuild your credit, they also come with several drawbacks that you should be aware of before applying.
High Fees
One of the biggest drawbacks of using First Premier credit cards is thehigh fees. These credit cards come with numerous fees, including annual fees, application fees, monthly maintenance fees, and cash advance fees. The fees can add up quickly, especially if you don't pay your balance in full each month. For example, the First Premier Bank Credit Card charges a $75 annual fee, a $95 processing fee, and a $6.25 monthly fee for the first year. After that, the monthly fee increases to $10.
Low Credit Limits
Another drawback of using First Premier credit cards is thelow credit limits. These credit cards typically come with very low credit limits, which can make it difficult to make purchases or pay bills. For example, the First Premier Bank Credit Card has a credit limit of only $300. This means that you can only use the card to make purchases up to $300 at a time.
High Interest Rates
In addition to high fees and low credit limits, First Premier credit cards also come withhigh interest rates. The interest rates on these credit cards can be as high as 36%, which is much higher than the average credit card interest rate. If you carry a balance on your First Premier credit card, you will end up paying a lot of money in interest charges.
Limited Rewards
First Premier credit cards also offerlimited rewardscompared to other credit cards. These credit cards don't offer cash back, points, or miles like other credit cards do. Instead, they may offer limited discounts or rewards for specific purchases. For example, the First Premier Bank Credit Card offers discounts on purchases made at certain retailers.
Experience and Tips
When applying for a credit card, it's important to do your research and compare different options. Look for credit cards with low fees, high credit limits, and reasonable interest rates. If you're trying to establish or rebuild your credit, consider asecured credit cardinstead of a subprime credit card. A secured credit card requires a cash deposit, which serves as collateral for the credit limit. This can help you build credit without incurring high fees or interest rates.
To save money on your credit card, make sure to pay your balance in full each month to avoid interest charges. You can also look for credit cards with cash back or rewards programs that suit your spending habits. Finally, be aware of the risks of using credit cards, including overspending and debt. Make a budget and stick to it, and only use credit cards for purchases you can afford to pay off.
Article review