First Premier

[NeedinHelp42]

Ok, so I am in the process of rebuilding a previously destroyed credit score.  I have two unpaid charge offs on my CRs-one is for $419 from First Prem and one is for around $1200 for Cap One. 

Both are due to fall off in the next year and are out of SOL, so I have been bouncing back and forth about whether to cave in and just pay them both, but then.........

First Premier sends a pre-approved app for a new unsecured credit card this week.  Go figure.  Anyone think this is legit or just their attempt to get in touch and settle for the $400?

I already hold an AMEX on which I keep zero to no balance, but could certainly use the boost of another unsecured line of credit-the $250 or so seems like a small price to pay.

[Anonymous]

Those unpaid charge offs will continue to hurt you...until the fall off...they still are being factored in you UTL...I heard First Premier was the WORST rebuilder to get...go more towards Orchard...HSBC...same company...different cards...

[Anonymous]

Having been through this myself, be wary before you apply for another CC with a company you currently hold a delinquent account with -- in some states the SOL resets if you apply for new credit with them, and they can them come after you for the delinquent balance. I think, though, that once the SOL has fully expired you're safe to do business with them again. To be on the safe side, I would wait until it completely drops off your CR or check the laws in your state before I did anything new with them. ALSO... if you pay the balance due now, it will update your CR and reflect as a current charge off, whereas it's probably been just sitting there in limbo for the last few years and isn't dramatically affecting your score since it's the most recent 2 years that count the most.

[ChuckG]

I did not have any previous problems with FP but I would not recommend them as a rebuilder card...

They charged me $172 in fees off the bat just to get started and then another $7/mo maintenance fees. I still have them now but will be closing this account just as soon as I add 1 more prime card.

The only one worse was Continental finance... $225 right off the bat and $12/mo maintenance fees.

I would recommend Orchard (as many people here do), or Applied bank.

[Anonymous]

Don't even go for Continental...I have them..and I regret it EVERY month...I got it a year ago...my first CC...since my charge offs when I was 19...and my charge offs was with FP..and HSBC...so my only option was Continental...

[creditreformer]

If you are out of SOL for collection purposes, you may be alright- check your state laws to be sure.  Not sure paying off now would really help your ficos as most of the damage has been done and the older your baddies are, the less they hurt your ficos. either way, first premier and HSBC do NOT blacklist you for chargeoffs.

As for first premier, they are not the best, but they are not the worst (continental, tribute, rewards 660 and several others come to mind in terms of gouging on fees).  Sometimes, the first premiers are your ONLY option for credit.  I have 2 b/c @ the time, they were my ONLY option.  Once I got them, orchard offered me unsecured ccs…w/2 HSBC chargeoffs (out of SOL for collection purposes) STILL on my reports.  Again, orchard/hsbc is not the most fabulous, but it’s slightly better than 1st premier.  BOTH ccs did/are doing their job- helping me REBUILD.

Since first premier/orchards (obtained in early 07), my ficos have jumped nearly 200 pts (scores are now in the mid-high 600s) and I’ve gotten-

Cap 1- again not glamorous, but moving slightly up the foodchain.  cc has potential for a 4 digit CL.

Ba 99/500- finally got in w/a PRIME bank.  Partially secured, but unsecures in 9-12 mos. and WILL give me a 4 digit CL upon graduation and WILL grow w/me

Target red- not a high CL (200), but ok card and diversifies my tradelines.  Should get a CLI to 500 in a few mos. AND there’s a possibility that this card may be upgraded to the target visa down the road.  However, that’s NOT guaranteed and seems to be totally random, but at least the possibility is there.

future plans- ask first premier to combo my 2 ccs into 1 in 8/08 (when the 2nd cc hits the 1 yr mark).  That will reduce my # of active ccs by 1.  FIRE first premier for good in early 09 (when the 2 yr anniv. Hits on the 1st cc).  that will reduce my # of active ccs by 2 and then I’ll be DONE paying MONTHLY ‘usage’ fees for ANY cc.

have asked orchard to combine my 2 ccs into 1.  they still WON’T give me a CLI unless I agree to a hard pull which is silly.  Comboing them will cut my # of active ccs by 1 and orchard will probably be FIRED in early 2009 as that will be my 2 yr anniv.

Firing subprimes will hurt my age for a bit, but there comes a time to DUMP them.  As I said, they’re not the grandest of ccs, but they DO their job.