Are you struggling with bad credit but still want to enjoy the benefits of a credit card? Don't worry, Flik Eco has got your back! In this article, we'll explore Premier Bank credit cards for people with bad credit. We’ll break down the features, benefits, and pitfalls, and provide you with all the information you need to make an informed decision.
Premier Bank Credit Cards For Bad Credit Table of Contents
What is Premier Bank?
Premier Bank, also known as First Premier Bank, is a South Dakota-based financial institution that specializes in providing credit cards to those with less-than-perfect credit. They aim to help individuals build or rebuild their credit while providing necessary financial tools and resources.
Understanding Bad Credit
Before we get into the details of Premier Bank credit cards for bad credit, let's take a moment to understand what bad credit is. Typically, a credit score below 579 is considered "bad" according to the FICO scoring model. This makes it difficult to acquire loans, mortgages, or credit cards with favorable terms.
Causes of Bad Credit:
- Late or missed payments
- High credit utilization
- Default on loans
- Bankruptcy
- Foreclosure
Featured Premier Bank Credit Cards for Bad Credit
There are a few options available to those with bad credit. Let's explore the best Premier Bank credit cards for bad credit:
First Premier Bank Mastercard®
This credit card is designed specifically for those with poor credit, and it can be a great option to help build your credit score.
- Initial credit limit of $300
- Reports to the three major credit bureaus: Equifax, Experian, and TransUnion
- High annual fee and interest rate
- Regular reviews for credit limit increases
First Premier Bank Secured Mastercard®
A secured credit card is one where you deposit a certain amount of money upfront, which becomes your credit line. This is an excellent option for those with a bad credit history who want to rebuild their credit score.
- Minimum deposit of $200 to open account
- Reports to all three major credit bureaus
- Low annual fee and reasonable interest rates compared to other cards designed for bad credit
- Regular reviews for credit limit increases
Potential Drawbacks
While these cards can be helpful in building or rebuilding your credit, there are some potential pitfalls to be aware of:
- High fees and interest rates: Both the First Premier Bank Mastercard® and the Secured Mastercard® come with higher fees and interest rates compared to cards designed for people with good or excellent credit.
- Low initial credit limit: The First Premier Bank Mastercard® comes with an initial credit limit of only $300, which may not be enough for your needs.
- Deposit requirement: The Secured Mastercard® requires an upfront deposit to open an account, which might not be feasible for everyone.
Premier Bank Credit Cards For Bad Credit Example:
Let's take a look at a realistic example of how a Premier Bank credit card for bad credit can benefit you. Imagine you've had a few late payments in the past and are now working on rebuilding your credit. You decide to apply for the First Premier Bank Secured Mastercard®. You deposit $500, which becomes your credit limit. Over the next few months, you make on-time payments and keep your balance low, demonstrating responsible credit behavior. The bank reports your good habits to the credit bureaus, and your credit score gradually increases.
In conclusion, Premier Bank credit cards for bad credit can be a helpful tool to build or rebuild your credit score. Despite higher fees, interest rates, or deposit requirements, they can provide a stepping stone towards achieving a healthy financial future. If this article was helpful, don't forget to share it with your friends and explore other personal finance guides on Flik Eco to take control of your financial journey.
