What the First Premier Credit Card Is
First Premier Bank issues a secured credit card designed for people rebuilding credit or working with a limited credit history. You deposit money into a savings account held by the bank, and that deposit becomes your credit limit — typically between $200 and $2,500. You then use the card like any other credit card, and your payment history gets reported to the three major credit bureaus.
The card itself is not free. First Premier charges an annual fee (the amount varies by the specific card product), a monthly maintenance fee, and interest on any balance you carry. These fees are higher than cards for people with established credit, which is the trade-off for access when other issuers will not approve you.
The goal is not to keep this card forever. It is a stepping stone. After you demonstrate consistent on-time payments — usually 6 to 12 months — you become may be able to access to move to an unsecured card with lower fees, or you may find other issuers willing to approve you at better terms.
Key Takeaways
- First Premier requires a cash deposit that becomes your credit limit, so you need $200 to $2,500 available upfront.
- The card charges an annual fee, monthly maintenance fee, and interest on balances, making it expensive to carry debt on.
- Your payment history reports to all three credit bureaus, so on-time payments directly improve your credit score over time.
- After 6 to 12 months of consistent payments, you may be offered a path to an unsecured card or better terms elsewhere.
- The deposit is held in a savings account and remains yours — it is not a fee, though the bank pays minimal interest on it.
The Deposit and Credit Limit
When you open a First Premier account, you choose how much to deposit. That amount becomes your credit limit. If you deposit $500, your limit is $500. The deposit sits in a savings account at First Premier Bank and earns interest, though the rate is typically very low — often less than 0.5% annually.
You do not lose the deposit. It remains in the account as long as your card is open. If you close the account or the bank closes it, you get the deposit back (minus any unpaid fees or balances). The deposit protects the bank if you default, which is why they can issue the card to someone with poor credit.
Your credit limit does not grow automatically. Some cardholders report that First Premier has offered to increase their limit after a period of good payment history, but this is not may provide. You can request a limit increase, which may require an additional deposit.
Fees and Interest Rates
First Premier's fee structure is the main cost of using this card. The annual fee is charged once per year and typically ranges from $35 to $99, depending on which First Premier product you choose. There is also a monthly maintenance fee, usually between $5 and $10, charged whether you use the card or not.
If you carry a balance, you pay interest. The APR (annual percentage rate) on First Premier cards is typically in the range of 19% to 22%, which is higher than cards for borrowers with good credit but not unusual for secured cards in this category. If you charge $500 and pay only the minimum, interest will add up quickly.
First Premier also charges fees for late payments, returned payments, and going over your limit. These fees range from $25 to $39 per incident. The strategy with this card is to charge small amounts and pay them off in full each month, so you pay interest and late fees only if you slip up.
How Your Payment History Gets Reported
First Premier reports your account activity to Equifax, Experian, and TransUnion — the three major credit bureaus. This means every on-time payment you make helps your credit score, and every late payment hurts it. The reporting typically begins within one or two billing cycles after you open the account.
Payment history is the single largest factor in credit scoring (about 35% of your FICO score). If you make on-time payments for six months to a year, you should see your score improve noticeably, assuming you have no other negative marks on your report. This improvement opens doors with other lenders.
Late payments stay on your credit report for seven years, so avoiding them is critical. Even one 30-day late payment can set back your progress significantly. Set up automatic payments or calendar reminders to may support you do not miss a due date.
When to Use This Card and When to Avoid It
First Premier makes sense if you have been denied by other issuers, have no credit history, or are actively rebuilding after past problems. The fees are real, but they are the price of access when you have limited options. Treat it as a tool for a specific period, not a permanent solution.
Do not use First Premier if you can get approved for a card with lower fees elsewhere. Compare offers from other secured card issuers — some charge no annual fee or lower monthly maintenance fees. If you have any credit history at all, shop around first.
Do not use this card to carry debt. The combination of high interest and monthly fees makes it expensive to borrow. Charge only what you can pay off in full each month. If you need to borrow money, a personal loan or credit union loan will almost always be cheaper.
Moving Beyond First Premier
After 6 to 12 months of on-time payments, First Premier may offer you a path to an unsecured card. This means you no longer need the deposit, and your credit limit is based on your creditworthiness rather than your cash. The fees and interest rate may improve, though they will still be higher than cards for people with excellent credit.
You do not have to wait for First Premier to offer. Once your credit score improves, other issuers may approve you. At that point, you can close the First Premier account and move your business elsewhere. When you close it, your deposit is returned to you.
Keep the First Premier account open for at least a year even after you get approved elsewhere. Closing it when ready after opening a new card can hurt your score temporarily. The longer you keep accounts open with good payment history, the stronger your credit profile becomes.
Alternatives to First Premier
Other banks issue secured cards with different fee structures. Capital One Secured MasterCard, for example, charges an annual fee but no monthly maintenance fee. Discover Secured Card charges no annual fee. If you have a bank account or credit union membership, check whether they offer secured cards — credit unions often have lower fees than national banks.
If you have a small amount of credit history or a recent problem (like a late payment from two years ago), you might be approved for an unsecured card with a higher interest rate but no deposit requirement. These cards are more expensive to borrow on but do not tie up your cash. Compare the total cost of fees and interest across options before deciding.
If you cannot afford a deposit right now, a credit builder loan from a credit union may be a better starting point. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports to the credit bureaus. Once you pay it off, you have built credit and have the money back in your pocket.
Frequently Asked Questions
Do I get my deposit back if I close the card?
Yes. When you close the account, First Premier returns your deposit to the bank account you provided, minus any unpaid balance or fees. This typically takes 5 to 10 business days. The deposit is not a fee — it is your money held as collateral.
Will First Premier increase my credit limit automatically?
Not automatically. Some cardholders report receiving offers to increase their limit after demonstrating good payment history, but this is not may provide. You can request a limit increase, which may require an additional deposit. Check your account online or call First Premier to ask about your options.
How long does it take for my payment history to show up on my credit report?
First Premier typically reports to the credit bureaus within one or two billing cycles after you open the account. Your first payment may not appear for 30 to 60 days. You can check your credit report for free at annualcreditreport.com to see when the account appears.
Can I use First Premier if I have an eviction or bankruptcy on my record?
First Premier does not automatically deny applicants with evictions or bankruptcies, but approval depends on how recent the event was and your overall process. Older bankruptcies (more than two years) are more likely to be approved than recent ones. Contact First Premier directly to discuss your situation before explore.
What happens if I miss a payment?
A missed payment triggers a late fee ($25 to $39), increases your interest rate, and gets reported to the credit bureaus. A 30-day late payment damages your credit score significantly. If you miss a payment, contact First Premier when ready to bring the account current and ask about hardship options.