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04-03-2010 01:17 AM
I've had my First Premier Credit Card for almost 6 months and I am just starting out on building credit, so I'd like to know if you think they will raise my credit limit (once I reach 6 months with them). Also, at the 6 month mark, should I apply to other credit card companies, and if so which ones? Lastly, I've ALWAYS paid on time, at least 12 days before the due date, I've never gone over the limit, and finally I always pay at least 5 times the minimum monthly payment. Thank you!
04-03-2010 07:16 AM
It might help if you give some more background of your credit profile. Is that the only card you have with no other derogs on your reports? If so IMHO I would wait till about a year and then try to app for another card. First premier is okay for a lil while but the fees are not worth it in the long. I know you have to pay to play but after a while you will get the shaft
04-03-2010 08:26 AM - edited 04-03-2010 08:29 AM
First Premier doesn't give out credit limit increases except if you pay a huge amount for them. I think it's $25 for each $100 in increase. A real credit card gives you increases for free, so don't bother ever asking FP for a CL increase, ever.
You also don't need to carry a balance on a credit card to show good payment history. You only need to do that with a REAL CREDIT CARD if you want to convince the bank to give you a CLI. That doesn't work for First Premier. They don't care.
First Premier charges you each month to keep the account open, so there is no reason for you to ever charge anything on the card. Their monthly fees is enough for utilization PLUS First Premier never closes accounts for inactivty, as long as the borrower continues to pay the fees.
Edit: If you have no other credit cards, then FP is useful in the very few situations where the only acceptable payment method is by CC (where DEBIT is either unfair or not possible). This can be the case with some hotels or with rental cars. Some merchants are real tough on Debit users and pre-authorize whopping amounts for hotel and car reservations where they would only do for half as much for credit users. This is changing however because more than 50% of all card transactions by volume and by dollar amount are now happening on debit and almost all major hotel chains and car rental companies accept debit and competition has led to fairer terms for debit users.
In short... if you open a First Premier card, the only thing it's really good for is throwing it in your sock drawer the second you activate it. I wouldn't use it to purchase anything. A $500 credit line means you will start losing FICO points when you revolve more than 75 dollars on this card.
So you should continue to use your DEBIT card for purchases since this credit card with its toy limit is worthless. The only thing it's good for is showing an active tradeline on your credit report. Let it sit there for 12 months reporting and then try to apply for something better---hopefully for any card that has no annual fee. Once you have a No Annual Fee card, then close First Premier. You don't want to keep FP around for longer than a year.
04-03-2010 09:36 AM
Good job on 6 months of clean history.
However, First Premiere has about the worst terms in the business. The fees are excessive. Beware of Credit Limit Increases. They charge you a 50% finance charge on credit limit increases. That means if they give you $100 limit increase, you pay them $50 for the privilege. You don't get that back. That is outrageous! This is card you should plan on getting rid of soon.
Usually someone who gets this card has very bad credit. Assuming you do, there are better choices, but they involve secured credit cards. Public Savings Bank has the best terms for a secured credit card. There is a 1 time $79 fee to open plus the security deposit. The minimum is $200 deposit. It has 6 months of 0% APR , grace period, no annual or monthly fees. You can keep this card until you have great credit and then get your deposit back. I plan on keeping mine until 2015 when my report goes clean. If this is the case, I suggest you save enough, open a Public Saving Bank VIsa ASAP, and use it for your main card. In 6 to 12 months, you will have 2 positive credit lines and you can work on card number 3 to replace the First Premiere card.
If you are building from no history, you have even more options.
Please tell us more and ask more qustions.
04-03-2010 10:12 AM
i will never get a card from first premier, their terms are just terrible! secure cards( just drop in as much funds as you can into this account) and or orchard is pretty decent.
04-03-2010 10:52 AM
SECURED CREDIT CARDS == REGULAR CREDIT CARDS ON YOUR CREDIT REPORT!
Too many people aren't aware that most SCC issuers report their accounts as a normal revolving account. This means you get just as much FICO benefit and you actually come out with a useful card by going the secured route.
And you're right about Public Savings Bank--I think right now they are probably the cheapest SCC to have. You can also name your own credit limit up to $10,000. So if you really need to revolve and you need room on the card for utilization, just deposit more money.
Secured cards are also great FICO tools for those who have high utilization solely because their credit limits on their unsecured cards is too low.. Opening a large secured card with someone like PSB who gives out cards with hardly any prequalifications is a good way to fix a problem of having credit limits that are too small. Revolving balances on a Public Savings Bank secured card is going to cost a lot less than anything First Premier has to offer.
I would throw the First Premier card in the drawer and open a second secured card with Public Savings. At least you can deposit whatever you are comfortable with and you will get the money back if you close the account.
04-03-2010 12:46 PM
Public Savings Bank only does 21 and over, so they are out.
I assume you don't have any negatives on your report? Since this is new credit building and you have 6 months of good history, you options are expanding. However, your biggest problem is being under 21, by new law creditors require proof of income or a co-signer. If you have either of those, I think you have a lot of choices.
Who has your checking / savings account? Do they offer credit cards?