My Premier Credit CardPosted on January 27, 2012 by Rachael in Credit Card Tips
I’m always suspicious of bank websites that don’t clearly advertise their products and the terms and conditions that go with them.
I tend to think that means they are not very proud of their offerings.
So when I pulled up the First Premier bank website home page looking for their current credit card deals I was disappointed to find that there was no clear information available.
First Premier is one of the banks who issue credit cards to customers with poor credit scores.
As a general rule, customers with a poor credit score probably expect to be penalised for past misdemeanours and so are likely to be more accepting of higher fees and charges.
But that doesn’t give card issuers licence to exploit those customers.
Customers with a poor credit history do pose a greater risk but secured credit cards, for example, require a security deposit that mitigates the risk without penalty fees and charges on top.
This fact seems to have escaped First Premier.
While there is not a great deal to go on from their website, no credit card flies under the radar and a Consumer Reports magazine article from December 2011 waves a red flag about the First Premier Bank Gold Card.
The First Premier Bank Gold card offers an APR of 49.9% for an annual fee in the first year of $75.
The annual fee drops to $45 in subsequent years but the $30 saving is more than offset by a monthly fee of $6.50 that has kicked in by then.
With nearly half of the $300 credit limit eaten up in fees by year two the risk of defaulting is certainly reduced, mostly because there is not much spending power left on the card.
The First Premier website does have a link to a list of 20 PDF’s of their ‘current credit card agreements’, and sure enough #18 confirms the terms highlighted above.
It also includes a $6/5% cash advance fee and a $35 fee per late payment and per returned item.
First Premier don’t give you a great deal of bang for your buck, and for people looking to rebuild their credit history there are far better cards on the market such as the Orchard card.