First Premier Credit Card Information Guide

What Is the First Premier Credit Card?

The First Premier Credit Card is a credit product offered by First Premier Bank. This card is designed for people who are working to build or rebuild their credit history. Unlike traditional credit cards offered by major banks, the First Premier Card has different features and terms that reflect its purpose as a credit-building tool.

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First Premier Bank has been operating since 1988 and is headquartered in South Dakota. The company specializes in credit products for consumers who may have limited credit history, past credit problems, or lower credit scores. The First Premier Credit Card is one of their primary offerings.

The card functions like a standard credit card in many ways. Cardholders receive a physical card they can use to make purchases at merchants that accept Mastercard (the First Premier Card operates on the Mastercard network). They receive monthly statements showing their balance, payments due, and interest charges. They can make payments online, by phone, or by mail.

However, the First Premier Credit Card differs from mainstream credit cards in several important ways. It typically requires a security deposit, has higher interest rates, and comes with various fees that standard credit cards do not charge. These differences reflect the higher risk the bank accepts when issuing cards to people with credit challenges.

Understanding how this card works—including its costs, limitations, and potential benefits—is important for anyone considering whether it fits their financial situation. This card is not the right choice for everyone, and it should be evaluated carefully alongside other available options.

Practical takeaway: The First Premier Credit Card is a Mastercard designed for credit building, but it comes with features and costs different from standard credit cards. Understanding these differences is the first step in deciding if this card makes sense for your situation.

Security Deposit Requirements and How They Work

One of the defining features of the First Premier Credit Card is that it requires a security deposit. This is one of the most important things to understand about the card before considering it.

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A security deposit works differently than a down payment. When you provide a security deposit for the First Premier Card, that money does not reduce the amount you owe on purchases. Instead, the deposit sits in a separate account and serves as collateral for the card issuer. The deposit protects the bank if the cardholder stops paying their bills.

The minimum security deposit amount has varied over time but has typically been between $200 and $2,500, depending on the specific card offer available. The exact deposit amount you would need depends on factors the bank considers, and this can vary by individual and by offer. Some people may be offered cards requiring lower deposits, while others may face higher deposit requirements.

Once you provide the security deposit, it remains in the account as long as you keep the card open. The deposit is not used to pay your monthly bills. Each month, you still need to make payments on any purchases you charged to the card. These payments come from your regular checking or savings account, not from the security deposit.

The security deposit remains yours. It does not belong to the bank. You can request the return of your deposit if you close the account, though there may be specific procedures for how and when deposits are returned. Some cardholders have reported that deposit returns can take several weeks to process.

Over time, if you use the card responsibly and make payments on time, the bank may eventually return your deposit and convert the card to an unsecured card without the deposit requirement. However, this is not guaranteed, and it depends on how you manage the account and the bank's specific policies.

Practical takeaway: The security deposit protects the bank but remains your money. It does not reduce what you owe and must be paid separately. Budget for this as a lump sum expense before pursuing this card.

Fees Associated With the First Premier Credit Card

Understanding the fees attached to the First Premier Credit Card is critical because they significantly affect the true cost of using this card. These fees are one of the main reasons this card is more expensive than mainstream credit cards.

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The First Premier Credit Card has historically charged an annual membership fee. This is a yearly charge just for having the card, separate from any interest or other costs. Annual membership fees on this card have been reported in the range of $75 to $99 per year, though this can vary. This fee is charged regardless of whether you use the card, and it typically appears on your monthly statement as a recurring charge.

The card also charges interest on balances you carry. The Annual Percentage Rate (APR) for the First Premier Card has been significantly higher than rates on standard credit cards, sometimes ranging from 27% to 36% or higher. This means if you carry a balance, you pay substantial interest charges each month. For example, a $1,000 balance at 30% APR would cost approximately $25 per month in interest alone if you made no payments.

Additional fees may include:

• Late payment fees: Charged when you miss a payment deadline
• Over-limit fees: Charged if you exceed your credit limit
• Foreign transaction fees: Charged when you use the card internationally
• Balance transfer fees: Charged if you transfer a balance from another card
• Cash advance fees: Charged if you withdraw cash using the card at an ATM

Specific fee amounts and policies have changed over time and may vary based on individual card offers. Some fee structures have been modified in response to regulatory oversight. It is important to review the current fee schedule and terms for any specific First Premier Card offer you are considering.

To minimize costs with this card, many financial advisors suggest keeping the balance as low as possible and paying it off monthly to avoid interest charges. Using the card for small purchases and paying the full balance each month can help build credit while limiting the impact of fees.

Practical takeaway: Annual fees, high interest rates, and additional fees add up quickly. Plan to use this card only for small purchases you can pay off monthly to avoid paying hundreds in interest and fees annually.

Credit Reporting and Credit Building Potential

The primary value of the First Premier Credit Card for most users is its potential to help build or rebuild credit history. Understanding how credit reporting works in relation to this card is important for evaluating whether it serves your goals.

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The First Premier Credit Card is reported to the three major credit bureaus: Equifax, Experian, and TransUnion. This reporting is one of the key reasons someone might consider this card despite its high costs. When the card issuer reports your account activity to these bureaus, it becomes part of your credit history, which is used to calculate your credit score.

Your payment history is the single most important factor in your credit score, accounting for approximately 35% of your score. This means that making on-time payments with the First Premier Card can meaningfully improve your credit over time. If you have had payment problems in the past, demonstrating consistent on-time payments now can gradually improve your credit profile.

However, the credit-building benefit only occurs if you use the card and make payments on time. Opening the account and never using it does nothing for your credit. Similarly, if you miss payments or pay late, the card will damage your credit rather than help it.

The credit limit on a First Premier Card is typically modest, often between $300 and $1,000. A lower credit limit is actually helpful for credit building because it reduces the temptation to overspend and makes it easier to maintain a low balance. Credit utilization (how much of your available credit you use) makes up about 30% of your credit score. Keeping your balance low relative to your limit helps your score.

Realistically, using the First Premier Card and paying on time for 6 to 12 months may begin to show improvement in your credit score. Improvements continue to build the longer you maintain responsible use. Some people report that after 12-24 months of good payment history, they received offers from other credit card companies with lower rates and better terms.

It is important to remember that the card alone does not rebuild credit. Other factors matter too, such as paying other bills on time, reducing other debts, and correcting errors on your credit report. The First Premier Card is one tool among several that can help improve creditworthiness.

Practical takeaway: This card can contribute to credit improvement only through consistent on-time payments. Use it for small purchases