New First Premier Bank Offer !

[Anonymous]

FYI,

I differ from these folks in that I DID take the FP card for rebuilding, 3 months post Ch 7 discharge.  I have NO regrets.  They gave me a card, charged me slightly less than you, and because of them I never had to give my money to a bank to hold onto in order to obain a secured card.  I like my cash where I can use it (which is also why I PAY taxes every year vs. getting a refund).

Since that card, I've obtained the Cap 1 Plat (unsecured) and the OB (unsecured), raised my score to mid-600s; again within 6 months post CH 7 bk (ironically, both Cap 1 and HSBS were included in the BK). I'm now pre-approved for $45k auto loan as well.

That said, I've had the card for 9 months.  Last month, I cut it up into tiny pieces.  I'm making a YouTube video and posting soon... oh, and in two weeks I'm calling to cancel FP before I incur another AF and monthly fees ... while doing a happy dance.

[Anonymous]

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@Anonymous wrote:

FYI,

I differ from these folks in that I DID take the FP card for rebuilding, 3 months post Ch 7 discharge.  I have NO regrets.  They gave me a card, charged me slightly less than you, and because of them I never had to give my money to a bank to hold onto in order to obain a secured card.  I like my cash where I can use it (which is also why I PAY taxes every year vs. getting a refund).

Since that card, I've obtained the Cap 1 Plat (unsecured) and the OB (unsecured), raised my score to mid-600s; again within 6 months post CH 7 bk (ironically, both Cap 1 and HSBS were included in the BK). I'm now pre-approved for $45k auto loan as well.

That said, I've had the card for 9 months.  Last month, I cut it up into tiny pieces.  I'm making a YouTube video and posting soon... oh, and in two weeks I'm calling to cancel FP before I incur another AF and monthly fees ... while doing a happy dance.

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 You have done well in your rebuilding.    And you have a philisophical disagreement with secured cards.  

The FP card is very expensive and you are not keeping the card a full year and are very happy to get rid of it.  

You have not actually recommended it for anyone else, in your post. 

IMO,  if you have money to spend to rebuild your credit, a secured card is less expensive over time.    

[Anonymous]

Except for the point that you are giving your money to a bank to hold while you use your money on a piece of plastic to feel good about yourself and then repay yourself that money and pay fees to use your money.

To me, it is the same thing as giving the US federal government money during the year to use while you eagerly await a REFUND of YOUR money.  Eh...

No thanks.  I'd rather have the ability, in an emergency or other situation, to go down the street, pull out my debit card, and get the cash I want on the spot.  I like folded money in MY pocket rather than a bank's.

You're right - I don't believe in secured cards; I think they are a bank's way of taking your money, using your money to profit in tertiary lending, and making you feel good about them doing so.

Nope, I DO recommend FP for a year.  Then dumping it quickly before 2nd year AF is incurred, and AFTER UNsecured cards are obtained.

I had a 780+ score for most of my life.  In fact, last night when I looked over my credit file, it made me sad for up until January 2009, my credit was NEVER late on any line.... now I sit with bk / foreclosure on it.

[Anonymous]

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@Anonymous wrote:

Except for the point that you are giving your money to a bank to hold while you use your money on a piece of plastic to feel good about yourself and then repay yourself that money and pay fees to use your money.

To me, it is the same thing as giving the US federal government money during the year to use while you eagerly await a REFUND of YOUR money.  Eh...

No thanks.  I'd rather have the ability, in an emergency or other situation, to go down the street, pull out my debit card, and get the cash I want on the spot.  I like folded money in MY pocket rather than a bank's.

You're right - I don't believe in secured cards; I think they are a bank's way of taking your money, using your money to profit in tertiary lending, and making you feel good about them doing so.

Nope, I DO recommend FP for a year.  Then dumping it quickly before 2nd year AF is incurred, and AFTER UNsecured cards are obtained.

I had a 780+ score for most of my life.  In fact, last night when I looked over my credit file, it made me sad for up until January 2009, my credit was NEVER late on any line.... now I sit with bk / foreclosure on it.

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In general, I agree with you. I would tend to prefer an unsecured rather than a secured card. But for me, I also believe that there is a tipping point. A $175 AF is a huge amount to be giving to the bank, money that she'll never get back. There are other subprime cards that have an AF of  $79 or less. And if the person in question can't qualify for one of those, might it not be better to open a secured card for, say, $200? Then she'd only be tying up $25 out of the $200, in the sense that with the other approach the $175 is gone forever. It's not in her pocket, and it never will be again.  How about opening with only $150, in which case she'd have saved $25? THEN... build for a few months and get approved for an UN-secured card, then close the secured card and get the money back? We all have our own views on this -- secured vs. unsecured -- but this is what makes the most sense to me.

[haulingthescoreup]

I have to say, it would be one heck of a deposit for a secured card where lost interest would equal the typical fee on an FP card.

Good discussion though; it gets everyone thinking about what their money is doing.

[lenz99]

I agree with everyone else, start with a better secured CC like orchard, capital one. If these don't work out for you, there is always public savings bank, $50 AF, no credit check, report to all 3 CB and low APR -- I didn't use them but heard good things about it.

http://ficoforums.myfico.com/t5/Credit-Cards/Public-Savings-Bank-Secured-Card-Post-Mortem/m-p/883812

[mtva24]

The point you are missing is how crazy they have gotten with the annual fee and rate.  I too used FP, in fact I have 2 FPs.  My annual fee is like $45 and my rates are 9.99%.  but 35% and 175 a year is just ridiculous...They are starting to get out of hand. 

[vish1]

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@waqaszm1 wrote:

helping DW improve her scores. She just received a pre-approved offer from First Premier. As sorry as this bank is, i figured we should get some advice here before deciding. It offers a guaranteed $700 limit with a $175 annual fee leaving an initial available cl of $525. No other fees for the first year. A 35.9% apr, and a 27 day grace period.

after the first year, its a $14.50 monthly fee - no other annual fee.

my DW usually pays in full and very rarely carries a balance. any advice ?

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What keeps her scores low? Baddies or thin file?

[Anonymous]

I am pretty much going to echo what everyone else is saying.

I received that same notice and decided not to do it as well. They want $175 for AF which is ridiculous ... you can add $125 to that and secure a card with a $300 limit. At least you will be getting the benefit of your money and not just giving it away for some for a high as heck annual fee.

Good luck!.

[Anonymous]

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@waqaszm1 wrote:

helping DW improve her scores. She just received a pre-approved offer from First Premier. As sorry as this bank is, i figured we should get some advice here before deciding. It offers a guaranteed $700 limit with a $175 annual fee leaving an initial available cl of $525. No other fees for the first year. A 35.9% apr, and a 27 day grace period.

after the first year, its a $14.50 monthly fee - no other annual fee.

my DW usually pays in full and very rarely carries a balance. any advice ?II

I'd take Orchard or CAP ONE