First Premier Bank preys on people with bad credit in the most heinous way possible, by gouging customers with huge fees and interest rates of 49.9% and some as high as 79%. This means, if you make a $500.00 dollar purchase that purchase would cost you almost $750.00 dollars. However this would be impossible since the credit line they offer is $300.00 with an initial fee of $75.00 which leaves you with $225.00 of available credit. The following year the annual fee is $45.00 with a $78.00 Monthly servicing Fee. If you never used the card at all, on your one year anniversary you would be left with $180.00 available credit after paying $120.00 in fees. After a two year period you would now have additional fees charged to the card of $78.00 leaving you with $102.00.
Do you see how confusing this is? This also does not take in the account if you made any purchase at where you would accrue a 49.9% interest fee. Do you see how easy it would be to end up in the red eating up all of your hard earned money until nothing is left?
Their credit card practices are some of the worst if not worst in the industry. Many people looking to re-establish credit receive a “congratulations, you are pre-approved for a First Premier MasterCard” letter not realizing they are making a deal with the financial devil if they apply. People need to be extra diligent to read credit card terms before applying or sending in money, sadly many do not.
It also seems suspicious that the Better Business Bureau has given them an A+ rating even when they have had 1341 closed complaints in the last three years. First Premier Bank has also had legal actions against them from the state of New York forcing them to refund consumers $4.5 million dollars as well as civil penalty fees. The Better Business Bureau also states that “BBB knows of no significant government actions involving First PREMIER Bank - Retail.” I think that seem like a “don’t ask don’t tell” policy for large Businesses with lots of money behind them.
Scary fact they state that they are the 9th largest issuer of MasterCards
Summary
Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 49.9%
APR for Cash Advances 49.9%
Based on your initial credit limit of $300.00, your initial minimum available credit will be only about $225.00.
Annual Fee: $75.00 for first year; after first year, $45.00 annually
Monthly Servicing Fee: None for first year; after first year $78.00 annually ($6.50 per month).
Credit Limit Increase of $100.00 will cost you a $25.00 fee.