First premier credit card pre-approval

[financialfreedom777]

So, I got a pre-approval via snail mail from First Premier Bank for a whopping $400 limit. Do I take it?

1st wk of Jan I applied for  Khols card (got $300 limit) and MyRewards Visa Card from Childrens Place ($400) limit and my scores dropped 15-20 average across the board. Am in shock its dropped! 

Goodies: Fingerhut account I rarely use, open since 2016 and always ontime. I have a self lender am paying (also always ontime-bout 6months in now), a closed Discover Card I have been paying off (ontime 18months so far but it once reached 120days late).

Baddies: a closed Amazon Card (paid) and charged-off Chase Card with balance, I pay this off slowly but since its chargeoff they do not report the payments, just the new lower balances.

So what do I do, will another card (upping my overall accounts) and slightly increase my limit therefore lowering my overall % of balance owed or ditch the pre-approval? I worry my scores will drop again.

And what is up with the drop? I feel like my scores barely budge and now the big drop! I have very low income so paying off more is just not possible.

HELP!!!!

[Anonymous]

What are your scores and where are you getting them from? 

Scores temporarily drop when you open new accounts due to the hard inquiry, and lowering of your average age of accounts (aka AAOA) scores will generally rebound in Time provided no new accounts are open and no further derogatory items surface 

[Anonymous]

I would work on taking care of paying off those negative accounts first and study current from here on out. I’d advise not opening new accounts for a solid 6 months. 

[financialfreedom777]

They are the Fico Scores purchased feom myfico (deduct 15-20 points from the current scores in my signature) sigh

[Anonymous]

Sorry no need to sigh. 

Im on my cellphone and laying in bed as I have an early morning flight. 

But my post above stsnds... I’d strongly advise against new accounts at this time. 

[NimbusIII]

Stay away from First Premier if you can, this is considered a predatory lendor. Give what you have time to establish and better offers will come in time. 

[Anonymous]

I agree with the others, need to pay down those other debts and turn negative ms around.

You mentioned a closed Discover your making payments on. This is one I would work on first and settle it ha e a lump to offer. Those charge offs will hold you back.

Cards like First Premier are predators. Usually have an annual fee and fees for opening the account and then have low limits. As soon as you open it and haven't even used it and can already have high utilization due to the charges.

Keep in mind you can get a credit card from Self Lender. It's secured against your savings/loan with them. So you are protected if things go bad and you get to have them report both as a loan and as credit card, using the same funds. It's a two for one.

You do have to have a minimum in your Self account of $150 to be eligible.

[Anonymous]

Agreed - stay away from a First Premier card. Huge APR, fees for everything, and you can owe nearly 50% of the credit line as soon as you activate it. As stated, work on the derogs and keep the accounts you currently have at low utilization. As you pay off derogs your scores will increase. That'll open you up to better cards than FP (which is to say, virtually anything is better - only one that's worse off the top of my head is Fortiva, which should be criminal).

[AverageJoesCredit]

Its nice to get offers but in this case i would not take it. Hard as it is, not getting a headache before you get one is best. 

[Egaffne2]

I would only recommend first premier as a LAST RESORT card if u have no other options to build with