Introduction
First Premier Bank credit cards have become a significant option in the American financial landscape, particularly for consumers working to establish or rebuild their credit history. With over 13 million cardholders nationwide, these credit cards represent an important segment of the subprime credit market. Recent data from the Federal Reserve indicates that approximately 21% of Americans have subprime credit scores, making options like First Premier Bank credit cards increasingly relevant for a substantial portion of the population.
This comprehensive guide explores the essential benefits, features, and considerations of First Premier Bank credit cards. We’ll analyze how these credit products compare to other options for credit-building, examine their fee structures, and provide expert insights on maximizing their value. Whether you’re considering applying for your first credit card or looking to rebuild your credit profile, this article will equip you with the knowledge needed to make informed decisions about First Premier Bank’s credit offerings.
What Are First Premier Bank Credit Cards?
First Premier Bank, headquartered in Sioux Falls, South Dakota, specializes in providing credit cards to consumers with limited or damaged credit histories. Founded in 1986, the bank has positioned itself as a prominent issuer of credit cards for the subprime market.
Key Features of First Premier Bank Credit Cards
- Credit-building focus: Designed specifically for consumers with challenged credit histories
- Regular reporting to all three major credit bureaus: Equifax, Experian, and TransUnion
- Acceptance worldwide: Cards operate on the Mastercard network
- Online account management: 24/7 access to account information and payment options
- Fraud protection: Zero liability protection for unauthorized purchases
According to banking analyst Sarah Johnson of Credit Insights: “First Premier Bank has established a particular niche in the credit market by offering accessible credit products to consumers who might otherwise be declined by traditional card issuers. While their fee structure is higher than prime credit cards, they provide a legitimate pathway to credit rebuilding when used responsibly.”
7 Essential Benefits of First Premier Bank Credit Cards
1. Accessibility for Credit-Challenged Consumers
First Premier Bank credit cards are notably accessible to consumers with poor credit histories or limited credit experience. Recent approval data suggests that applicants with FICO scores as low as 550 may qualify for these cards, making them significantly more accessible than most traditional bank cards.
The application process involves:
- Quick online application (typically under 5 minutes)
- Rapid decision process (often immediate)
- No security deposit required, unlike secured credit cards
- Fixed credit lines based on creditworthiness
Expert Insight: Financial counselor Michael Rodriguez notes, “For consumers with few credit options, First Premier provides an opportunity to demonstrate responsible credit behavior. While the initial credit limits are modest, typically $300-$500, this can be sufficient to begin establishing positive payment history.”
2. Credit Bureau Reporting
Perhaps the most valuable feature of First Premier Bank credit cards is their consistent reporting to all three major credit bureaus:
- Reports payment activity monthly to Equifax
- Reports payment activity monthly to Experian
- Reports payment activity monthly to TransUnion
This comprehensive reporting ensures that positive payment behavior is reflected across all major credit scoring systems. According to TransUnion data, consumers who make consistent on-time payments can see FICO score improvements of 20-45 points within six months, depending on their starting credit profile.
3. Potential for Credit Line Increases
First Premier Bank offers a structured path toward credit line increases for responsible cardholders:
| Time Period | Potential Increase | Requirements |
|---|---|---|
| After 13 months | Up to $200 | Perfect payment history |
| After 19 months | Up to $300 | Perfect payment history + regular use |
| After 24+ months | Case-by-case basis | Perfect payment history + favorable account review |
Credit line increases are not automatic but are based on:
- Payment history
- Overall credit utilization
- Account usage patterns
- External credit factors
4. Financial Education Resources
First Premier Bank provides cardholders with access to financial education resources through their online portal, including:
- Credit score monitoring basics
- Educational articles on building credit
- Interactive credit simulators
- Budget planning tools
- Debt management resources
These educational tools can be particularly valuable for consumers new to credit or those working to improve their financial literacy. Recent studies by the Financial Health Network suggest that consumers who engage with financial education materials are 37% more likely to improve their credit scores within a year.
5. Fraud Protection and Security
First Premier Bank credit cards include several security features:
- Zero Liability Protection: Cardholders are not responsible for unauthorized charges when reported promptly
- 24/7 Fraud Monitoring: Automated systems monitor for suspicious activity
- Account Alerts: Customizable notifications for account activity
- Chip Technology: EMV chip technology provides enhanced security over magnetic stripe cards
According to cybersecurity expert Dr. Jennifer Lawrence: “While all major credit cards now offer fraud protection, First Premier’s monitoring systems are particularly valuable for consumers rebuilding credit, as they may be more vulnerable to identity theft attempts and cannot afford credit disruptions during their rebuilding phase.”
6. Wide Acceptance
As Mastercard network cards, First Premier Bank credit cards are accepted at:
- Over 43 million merchant locations worldwide
- Online retailers and service providers
- Automated payment systems
- International merchants across 210+ countries
This broad acceptance ensures cardholders can use their cards for everyday purchases, emergency expenses, and travel needs, providing practical utility alongside credit-building benefits.
7. Online Account Management
First Premier Bank’s digital banking platform offers:
- 24/7 account access
- Mobile app for iOS and Android
- Electronic statement options
- Payment scheduling and reminders
- Transaction history and categorization
These digital tools help cardholders maintain control over their accounts and avoid missed payments, which is crucial during the credit rehabilitation process.
Understanding the Fee Structure
First Premier Bank credit cards come with a fee structure that’s higher than prime credit cards. Understanding these fees is essential for determining if these cards are appropriate for your situation.
Typical Fee Structure
| Fee Type | Amount | Notes |
|---|---|---|
| Annual Fee | $75-$125 | Charged upon account opening and annually thereafter |
| One-time Program Fee | $55-$95 | Charged once at account opening |
| Monthly Servicing Fee | $6.25-$10.95 | May be waived for the first year on some offers |
| Credit Limit Increase Fee | Up to 25% of increase | Charged when accepting a credit line increase |
| Late Payment Fee | Up to $39 | Applied when payment is received after due date |
| Over-limit Fee | Up to $39 | Applied when balance exceeds credit limit |
| APR | 36% | Fixed rate, significantly higher than industry average |
Financial advisor Thomas Wright explains: “The fee structure of First Premier cards reflects the higher risk associated with lending to credit-challenged consumers. Customers should view these fees as part of the cost of rebuilding credit, but should also have a clear exit strategy to graduate to lower-cost credit products once their scores improve.”
Comparing First Premier Bank Credit Cards to Alternatives
When considering credit-building options, it’s important to understand how First Premier Bank credit cards compare to alternatives:
First Premier vs. Secured Credit Cards
| Feature | First Premier | Typical Secured Card |
|---|---|---|
| Security Deposit | None required | $200-$500 typically required |
| Annual Fee | $75-$125 | $0-$49 |
| APR | 36% | 17-25% |
| Monthly Fees | Yes | Rarely |
| Credit Bureau Reporting | All three bureaus | All three bureaus |
| Graduation Path | Limited | Often available to unsecured product |
First Premier vs. Other Unsecured Subprime Cards
| Feature | First Premier | Other Subprime Cards |
|---|---|---|
| Initial Credit Limit | $300-$500 | $300-$1,000 |
| Annual Fee | $75-$125 | $35-$99 |
| Program/Setup Fees | Yes ($55-$95) | Varies |
| Monthly Fees | Yes | Less common |
| Rewards | None | Some offer limited rewards |
| Approval Criteria | Credit scores 550+ | Credit scores 580+ typically |
First Premier vs. Credit Builder Loans
| Feature | First Premier | Credit Builder Loans |
|---|---|---|
| Product Type | Revolving credit | Installment loan |
| Upfront Costs | High | Low to none |
| Monthly Payment | Minimum payment only | Fixed payment |
| Building Different Credit Types | Revolving only | Installment only |
| Access to Funds | Immediate | After completion or partial |
| Credit Bureau Impact | Helps utilization & payment history | Helps payment history & mix |
How to Maximize the Value of a First Premier Bank Credit Card
To get the most benefit from a First Premier Bank credit card while minimizing costs:
1. Use for Credit Building, Not Borrowing
The high APR (36%) makes carrying a balance extremely expensive. To avoid this:
- Use the card for small, manageable purchases
- Pay the balance in full each month
- Never use the card for cash advances
- Maintain utilization below 30% of the credit limit
2. Create a Graduation Strategy
Plan to transition to a better card once your credit improves:
- Maintain perfect payment history for 12-18 months
- Apply for a secured card with a major bank around the 12-month mark
- Keep the First Premier card active but paid in full until approved for better options
- Once established with better cards, consider closing the First Premier account
3. Supplement with Other Credit-Building Tools
Combine your First Premier card with:
- Authorized user status on a family member’s well-established card
- Credit builder loans from community banks or credit unions
- Self-reporting services for utilities and rent payments
- Secured credit cards if you can afford the security deposit
Who Should Consider a First Premier Bank Credit Card?
First Premier Bank credit cards may be appropriate for:
- Consumers with FICO scores below 600 who have been denied by other issuers
- Those unwilling or unable to provide security deposits for secured cards
- Consumers focused exclusively on rebuilding credit who understand the fee structure
- Individuals with recent bankruptcies or charge-offs who need credit access
According to credit counselor Emily Matthews: “First Premier cards serve a specific purpose in the credit ecosystem. They’re not meant to be long-term financial tools, but rather stepping stones toward better credit options. When used intentionally as part of a broader credit improvement strategy, they can provide value despite their costs.”
Who Should Look at Alternatives?
These cards may not be suitable for:
- Anyone who can qualify for secured cards with major banks
- Consumers with FICO scores above 630
- Those who may carry balances from month to month
- People seeking rewards or cash back
- Those without a clear credit improvement plan
Conclusion
First Premier Bank credit cards offer a legitimate pathway to credit rebuilding for consumers with damaged or limited credit histories. Their primary value lies in accessibility and consistent credit bureau reporting, which can help establish or rehabilitate credit profiles when used responsibly.
However, these benefits come with significant costs in the form of high fees and interest rates. Consumers should approach these cards with clear understanding of both their advantages and limitations, viewing them as temporary tools in a broader credit improvement journey rather than long-term financial products.
For those with few other options, First Premier Bank credit cards can serve as valuable stepping stones toward financial rehabilitation when used strategically as part of a comprehensive plan to improve creditworthiness.
Take Action Today
If you’re considering a First Premier Bank credit card:
- Review your credit report to understand your current standing
- Compare all available options for your credit profile
- Create a budget that accounts for the card’s fee structure
- Develop a clear plan for using the card responsibly
- Set calendar reminders for payments to ensure on-time history
- Establish a timeline for transitioning to better credit products
By approaching these credit tools with knowledge and intention, you can maximize their benefits while minimizing their costs, putting yourself on a path to improved credit options and financial opportunity.