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First Premier is suing the feds

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Valued Contributor

Re: First Premier is suing the feds

 


 

As much as store and gas cards help, there is a ding for not having a major credit card. 

 


i don't see how that matters. i learned early on, the best way to build credit to aquire unsecured major cards, even sub-prime, unsecured, major cards with fees (captal one, best buy rzmc) is to start of with (some stores only) store credit and secured credit. it might not be the same tier credit as unsecured subprime, or prime major credit, but building at this tier helps one get to the next tier (unsecured major credit) experian views home depot citibank the same as unsecured prime major credit (freecreditreport).

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Message 41 of 58
Senior Contributor

Re: First Premier is suing the feds


@scottwagnon wrote:

 


 

As much as store and gas cards help, there is a ding for not having a major credit card. 

 


i don't see how that matters. i learned early on, the best way to build credit to aquire unsecured major cards, even sub-prime, unsecured, major cards with fees (captal one, best buy rzmc) is to start of with (some stores only) store credit and secured credit. it might not be the same tier credit as unsecured subprime, or prime major credit, but building at this tier helps one get to the next tier (unsecured major credit) experian views home depot citibank the same as unsecured prime major credit (freecreditreport).


I seriously doubt anybody at Experian told you they view a Home Depot credit card the same as a major bank card.  Even if they did, what Experian thinks is irrelevant.  FICO scores a mix of credit products which includes store and major bank cards.  In fact, there is even one comment in the FICO reasons stated for a particular score that lack of a major bank card is a factor.  And try as you may, a Home Depot credit card is not a major bank card no matter which bank you hope is behind it.

 

In addition, there is always the aspect of people who want to rebuild quickly.  Some find it worthwhile to shell out some extra cash to FP for an instant major bank card than waiting 1/2 a year or so playing with a store card or two first.

 

It's also a bit difficult to go out to eat and pay with a store card or use it to pay your monthly cell phone bill.

 

Finally, there is the pesky little issue of JC Penney or Home Depot actually refusing credit to people whose credit is tanked.  FP rarely denies anybody.  It's impossible to say the same for Home Depot or JC Penney.

 

Everybody has different objectives and a different credit profile.  The fact is that FP, for some, is the best option.

 

 

IAALBNYL
Message 42 of 58
Valued Contributor

Re: First Premier is suing the feds

i probably would have such an issue with FP, except that this can make someone look bad. i have heard lenders will look more unfavorably at a borrower, simply because he/she has this on his/her report even if this account has been shown that it was handled responsibly. i wouldn't want to be this borrower down the road, even if i improved my credit standing. it will still be there giving most lenders a question about my understanding of responsible borrowing.

 

i have known jcpenney to accept applicants with lower scores. maybe that is no longer true. i know anyone with credit that is less than decent, is going to have no chance with a home depot card (dislike the way home depot, inc. is handled anyway). still there is public secured bank; that approves secured major credit without a credit check. and you don't have to have CreditOne or FirstPrimier on your report.

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Message 43 of 58
Valued Contributor

Re: First Premier is suing the feds

here is a link to public secured. besides its actually a small bank in pennsylvania. how quaint and wholesome sounding.

 

https://www.publicbankcard.com/PSBFrontEnd/Pages/ApplicationScreen1.aspx

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Message 44 of 58
Senior Contributor

Re: First Premier is suing the feds


@scottwagnon wrote:

i probably would have such an issue with FP, except that this can make someone look bad. i have heard lenders will look more unfavorably at a borrower, simply because he/she has this on his/her report even if this account has been shown that it was handled responsibly. i wouldn't want to be this borrower down the road, even if i improved my credit standing. it will still be there giving most lenders a question about my understanding of responsible borrowing.

 

i have known jcpenney to accept applicants with lower scores. maybe that is no longer true. i know anyone with credit that is less than decent, is going to have no chance with a home depot card (dislike the way home depot, inc. is handled anyway). still there is public secured bank; that approves secured major credit without a credit check. and you don't have to have CreditOne or FirstPrimier on your report.


You're likely right about FP looking bad on one's credit report, but I really don't know.  For automated decisions, though, it would be irrelevant.  Public sounds pretty decent, but it's possible for some people that the $300 initial outlay for a Public Savings Bank credit card would, short term, be higher than for a FP with a $300 limit. 

 

One main disadvantage with Public is that they do not advertise as much as FP.  I've been hearing about FP for what seems like decades, but until joining these forums I had never heard of Public. 

 

Up until recently I was pretty convinced that FP was the scum of the Earth.  After seeing where they have a 40% charge-off rate, though, I can start to understand their position.  There is a world of difference -- and not just in attitude -- between a creditor with a 5% charge-off rate and one with 40%. 

 

IAALBNYL
Message 45 of 58
Frequent Contributor

Re: First Premier is suing the feds


@scottwagnon wrote:

i probably would have such an issue with FP, except that this can make someone look bad. i have heard lenders will look more unfavorably at a borrower, simply because he/she has this on his/her report even if this account has been shown that it was handled responsibly. i wouldn't want to be this borrower down the road, even if i improved my credit standing. it will still be there giving most lenders a question about my understanding of responsible borrowing.

 

i have known jcpenney to accept applicants with lower scores. maybe that is no longer true. i know anyone with credit that is less than decent, is going to have no chance with a home depot card (dislike the way home depot, inc. is handled anyway). still there is public secured bank; that approves secured major credit without a credit check. and you don't have to have CreditOne or FirstPrimier on your report.


I dunno, that wasnt my expierience, went from FP to Aspire to BBRZMC to Capital One to BOA and Barclays to BOA and Chase Sig cards and Discover.

 

This was my second rebuild after second wife LOL.

 

It took about 4 years. It didnt appear that FP was anything but a foot in the credit door. 

Scores: EQ (FICO) - 730 | EX (FICO) - 722 | TU (FICO) - 713 - 06/25/2014



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Message 46 of 58
Senior Contributor

Re: First Premier is suing the feds


@scottwagnon wrote:

here is a link to public secured. besides its actually a small bank in pennsylvania. how quaint and wholesome sounding.

 

https://www.publicbankcard.com/PSBFrontEnd/Pages/ApplicationScreen1.aspx


You're right, it does sound good.

 

Public ought to advertise as much as FP does so people are more aware of their options.

IAALBNYL
Message 47 of 58
Valued Contributor

Re: First Premier is suing the feds

and unlike orchard, this card reports immediately. and also, unlike orchard, you don't have to have a checking account, and you don't have to print an application and go to the store to get a money order, and then go to the post office to mail. its done instanly all of it online. none of the painstaking effort of dealing with capone or orchard.

 

here is also another great offer from applied bank. this only tacks on a one time fee of 30 dollars, apr purchases is only 10%

 

https://onlineacceptance6.appliedbank.com/displaySecureCardOffer.do?packType=3192

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Message 48 of 58
Frequent Contributor

Re: First Premier is suing the feds


@ptkdude wrote:

From what I've read and experienced with First Premier, I can't say that what they are doing constitutes "criminal activity", nor did I experience "pain and suffering".  Spare us the hyperbole and look at the issue objectively.

 

They gave me a credit card when no one else would, and because of my credit history, the credit they granted came at a higher cost than someone with a better history than mine.  All the fees I was charged were clearly disclosed to me before I applied for the card.  I read the credit card agreement, which is fairly standard from what I can tell (even compared to my newer cards now that my credit has improved somewhat).  I do not believe First Premier violated the agreement.

 

Every contact I had with their customer service department was well-handled by courteous, efficient, and accurate representatives.  When I called to cancel the card, they asked why I was canceling and I honestly told them that I no longer needed the card.  They helped me start off the rebuilding process, and I was grateful that they gave me a chance. The rep said she was glad they could help, and wished me the best.

 

Is First Premier the greatest card in the world?  No.  But they are useful for what they are:  a company willing to bear the risk of bad credit consumers.  They are not devious in their fees, though some of them are certainly onerous.  But again, that's the price you pay for having bad credit.  I'll be interested to see how this case turns out.  I haven't read the law involved, but it looks to me that First Premier has a valid point regarding pre-account-opening fees.  As much as people on this board hate First Premier, they serve a valid purpose and I hope they continue on. 


LOL, it's called humor dude. I'll spare you the hyperbole (NOT!) and *maybe* look at it more objectively IF you spare us the humorless tone and look at it from a more light-hearted perspective Smiley Wink. We make fun of First Premier here, that's just the way it is. Yeah we brought them into our lives, but that doesn't mean we can't criticize them or knock their business practices. That goes for any business.

 

As for cancelling the card without any problems, it sounds like you had an easier time with that than a lot of us did and didn't have to deal with customer service reps telling you that your credit would be "hurt" if you closed their prestigious card. I was fed that line of BS immediately after declining the rep's previous offer. It all just reeked of Retention Specialist desperation. He begrudgingly closed the account and had this "FINE!" attitude about it like some bratty little kid who didn't get his way.

 

With the exception of one time, every contact I've had with their customer service department was handled by people who sounded like they were annoyed that a customer would have the gall to call them in the first place. I don't know whether they were depressed, hated their job, their life, their neighbor, their neighbor's dog or all of the above, but you could hear it in their voices. Well, the guys that is. There was one exception as I mentioned before. When I called to cancel the card I first spoke to a lovely sounding young woman who came off as friendly and accommodating. I thought I dialed the wrong number, LOL.. She was pleasant and I thought I lucked out and was going to have a way easier time closing the card than I imagined.. BUT then she transferred to someone else, and when the guy picked up the phone, I knew I had called First Premier.

 

To this day I'm still not convinced that First Premier Bank isn't just an online bank being run out of someone's garage, lol..

Message 49 of 58
Valued Member

Re: First Premier is suing the feds

They charge an anual fee of $72, then charge a monthly charge of $6 regardless if there is a balance or not, then they charge a CLI fee of 25% of the approved amount. So if you have 300 to start after the first year evertyhing is ok, you get approved to 700, you now would have paid 144 in fees and a 100 in cli fees the first year alone, not to mention 29% and up interest rate. Secured is the way to go, and you would ultimately get that money back.

10.28.09 EQ 571 TU 606
11.24.09 EQ 611 TU 566
1.3.10 EQ 653 TU 566
2.6.10 EQ670 TU598
5.4.10EQ691
9.17.10 EQ658 TU682
Message 50 of 58
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