These cards advertise 60-second online credit response with a preapproved confirmation number. Credit lines are often limited under $1,000 and the card is unsecured. Several of our acquaintances just received such offers. They owe anywhere from $30,000 to $70,000 in credit card debt, their credit is in mid 600s, so First Premier Bank sent them Platinum MasterCard credit cards, which are preapproved because of, as the letter states in each case “your credit”. Make no mistake, literally every First Premier Bank credit card is for bad credit consumers, Platinum or Gold, secured or unsecured.

Further are details of the concrete offer, shown to me. These folks may be in debt, but they are not stupid. They have no reason accepting First Premier Bank credit card for bad credit.

The credit limit is $700 with a $175 Annual Fee. Thus initial available credit is $525. Yes, you read this right. This particular unsecured Platinum First Premier Bank MasterCard offers you $700 for $175. This is one time, first year only fee, and of course, if you pay the balances off monthly you can repeat the $700 whole 12 times. And it would be stupid to carry a balance, because Annual Percentage Rate for purchase is 23.9%.

After the first year, whether you will have bad credit or not, First Premier Bank credit card will cost you $14.50 a month for 12 months, totaling $174. The bright site, you save a whole one dollar compare with the first year.

Annual Percentage Rate for Cash Advance is also 23.9%. All APRs are variable of course. Initial cash advance limit is 10% from the assigned credit limit and may be increased to 50% after 90 days that include 2 consecutive months of current payments with no delinquencies and no return payments. There is an additional cash advance fee of 3%, with $5 minimum and $10 maximum. Now think of it for a minute, in this particular case you can only take initially $70 which is 10%. You immediately owe $1.40 or 2% monthly interest which we calculated by dividing APR by 12, plus $5 fee because 3% of $70 is only $2.1, less than $5 minimum. So the $70 cash advance ends up costing you $6.40 or 9%. Of course, if you don’t pay it of with grace period, it will cost more.

Then this Platinum First Premier Bank credit card for bad credit has $35 Late Fee, $35 Return Fee, $11 Auto Draft fee and several other small one-time fees which I haven’t seen before and which will add very quickly. Like $3 fee charged for every copy of the statement or sales draft you may request, and $3.95 Internet access setup fee.

The most hysterical fee I found is Credit Limit Increase Fee. Basically, every time your account is approved for an unsecured credit limit increase, First Premier Bank will charge you 25% of the amount of increase, which under the agreement is maxed at $100. So for every $100 increase, you owe back $25. The fee is charged automatically. I can only hope that credit limit increases are not set up automatically as well.

To sum this post up, one is much better off with a secured credit card than First Premier Bank credit card for bad credit.

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