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I got a fee-based card... the 1st credit card I've had in 3 years

Valued Member

I got a fee-based card... the 1st credit card I've had in 3 years

I got a 1st Premier Bank credit card (MasterCard).  The initial deposit is $95 to open a $300 credit limit and the interest on purchases is like 49.9% (I kid you not).  The annual fee is $75 for the first year and $45 for every subsequent year.  My intial available balance will be about $225... so at the beginning of June, I'm planning on paying about $45 so that my credit util. will be only 10%.  I know fee-based cards suck because of lousy terms, but has anyone else here had some success with rebuilding their credit using (and paying on time) a fee based credit card?  Thanks!


Starting Score: 487
Current Score: Equifax: 586
Experian: 589
Transunion: 602


Overall Goal Score: 700


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2 REPLIES
Frequent Contributor

Re: I got a fee-based card... the 1st credit card I've had in 3 years

My score went up about 60pts when I got this, it showed up on my reports before I even got the card in the mail.  I have no problems with it, i pay down before statement closes and leave just a few dollars on it and so far I havent see any interest charges added to my bill.  So far its helping me out but I only got it to help me rebuild my credit.

Valued Member

Re: I got a fee-based card... the 1st credit card I've had in 3 years

Yeah, the fees can be pretty steep at first but the fact that my previous accounts look ugly on my credit report and the fact that I had no open revolving credit accounts, both were hurting my score.  But if I keep my credit utilization at around 10% and pay on time every month (more than the minimum payment), that ought to be okay, right?  Plus, as I mentioned on another thread, I got approved for my first real checking account in a long time, so no more reloadable debit cards for me.  I think both of those steps are indicators of stability, right?


Starting Score: 487
Current Score: Equifax: 586
Experian: 589
Transunion: 602


Overall Goal Score: 700


Take the FICO Fitness Challenge