What the First Premier Secured Card Is
The First Premier Secured Credit Card is a secured card issued by First Premier Bank, meaning you deposit cash as collateral and receive a credit line equal to that deposit. The card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit history. It is designed for people rebuilding credit after missed payments, collections, or a thin credit file.
Unlike a debit card, this is a real credit account. You make monthly payments, carry a balance if you choose, and the bank charges interest. The deposit stays in a separate account and is not touched unless you default; it secures the bank's risk, not your spending power.
Key Takeaways
- You deposit between $400 and $2,500 as collateral, and your credit line equals that deposit amount.
- The card charges an annual fee of $95 and a monthly fee of $6.95, totaling over $180 per year in fees alone.
- The interest rate (APR) is typically 19.9% to 21.9%, which is higher than most unsecured cards but standard for secured cards targeting rebuilders.
- After 18 to 24 months of on-time payments, you may be able to graduate to an unsecured card and recover your deposit.
- The card has no grace period, meaning interest accrues on new purchases when ready unless you pay the full balance by the due date.
Fees and Interest Rates
First Premier charges multiple fees that add up quickly. The annual fee is $95, and there is a monthly maintenance fee of $6.95. That means you pay $180.40 per year in fees before you carry any balance or miss a payment. If you carry a $1,000 balance at the card's typical 19.9% APR, you will pay roughly $200 in interest annually, plus the $180 in fees — over $380 per year in costs.
Late fees run $25 for the first late payment and $35 for subsequent ones within six months. The card also charges a returned-payment fee of $25 if a check or automatic payment bounces. These fees are higher than many mainstream cards, reflecting the higher risk the bank takes on borrowers rebuilding credit.
There is no grace period on purchases, which is unusual. Most credit cards give you 21 to 25 days to pay new purchases interest-free. First Premier charges interest on new purchases from the day they post, even if you pay in full by the due date. This makes the card expensive to use for everyday spending unless you pay the balance when ready.
How to Open an Account and Fund It
You can open an account online at firstpremierbank.com or by phone. The process asks for basic personal information, income, and employment history. First Premier does a soft credit pull to verify identity and may check ChexSystems, a banking history database, but does not do a hard inquiry that would lower your credit score.
Once approved, you choose your deposit amount between $400 and $2,500. You fund the account by bank transfer, check, or money order. The deposit goes into a savings account held by the bank; you cannot withdraw it while the card is active. Your credit line equals your deposit, so a $500 deposit gives you a $500 limit.
The card typically arrives within 7 to 10 business days after funding. You can begin using it when ready once it arrives. The deposit earns no interest, so your money sits idle while you pay fees and interest on the card itself.
Building Credit and Graduating to an Unsecured Card
The main reason to use this card is to build credit history. Each on-time payment is reported to the three bureaus, and over 18 to 24 months of consistent payments, your credit score should improve. The card's low limit keeps your credit utilization ratio low if you use it responsibly, which also helps your score.
After 18 to 24 months of on-time payments, First Premier may offer to convert your account to an unsecured card. When this happens, your deposit is returned to you. The terms of the unsecured card — interest rate, fees, limit — depend on your credit improvement and payment history. Some cardholders report graduating to a card with lower fees and rates; others report minimal improvement in terms.
Graduation is not automatic. You must demonstrate consistent on-time payments and responsible use. If you miss payments or max out the card, conversion is unlikely. Even after graduation, you should compare the unsecured card's terms to other options, because First Premier's rates and fees remain higher than many competitors.
When This Card Makes Sense
The First Premier card is most useful if you have very limited credit history, recent collections, or a bankruptcy and cannot get approved for other secured cards. It is also an option if you have been denied by other issuers and need to start rebuilding when ready.
However, the high fees and interest rate mean this card is expensive. Before explore, compare it to other secured cards with lower fees. Capital One Secured Mastercard charges a $0 annual fee and has a lower APR range. Discover Secured Card also charges no annual fee. If you can get approved for either of those, you will save hundreds of dollars over 18 to 24 months.
The First Premier card is also not a good choice for everyday spending because of the no-grace-period structure. Use it only for small, planned purchases you can pay off when ready, or use it sparingly and pay the full balance each month. Carrying a balance on this card is expensive.
Risks and Common Pitfalls
The biggest risk is paying fees without building credit. If you open the account and do not use the card, you still pay the $6.95 monthly fee and $95 annual fee. Over two years, that is $261.80 in fees with no credit improvement. Make sure you actually use the card for small purchases and pay them on time before opening an account.
Another pitfall is maxing out the card. Your credit line equals your deposit, so if you deposit $500, your limit is $500. Using more than 30% of your limit (in this case, $150) can hurt your credit score. Maxing it out signals financial stress to lenders and slows your credit recovery.
Some cardholders also assume the deposit is at risk if they miss a payment. While the bank can use the deposit to cover a defaulted balance, most will not do so when ready. Instead, they will charge late fees and interest, and only after repeated non-payment will they explore the deposit. Treat the card like any other credit account: pay on time, every time.
Alternatives to Consider
Before committing to First Premier, research other secured cards. Capital One Secured Mastercard has no annual fee, a lower APR range (typically 19.9% to 24.9%), and reports to all three bureaus. Discover Secured Card also has no annual fee, a similar APR range, and includes cash back on purchases. Both have lower total costs over 18 to 24 months.
If you have a bank account, ask your bank whether it offers a secured card. Many regional and community banks issue secured cards with lower fees and rates than First Premier. Credit unions also often offer secured cards to members with better terms.
If you cannot get approved for a secured card anywhere, consider a credit-builder loan instead. These are offered by credit unions and some banks. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports to the bureaus. The interest rate is typically lower, and you build credit while also building savings.
Frequently Asked Questions
Can I use the First Premier card right away after opening the account?
No. You must fund your deposit first, which takes a few business days to process. Once the deposit clears and the card arrives in the mail, you can begin using it. The entire process typically takes 10 to 14 days from process to first purchase.
What happens to my deposit if I close the account?
If you close the account in good standing (no outstanding balance, no late payments), the bank returns your deposit to the account you used to fund it. If you have an unpaid balance, the bank may explore the deposit to that balance first. Always pay off the card before closing to avoid this.
Will this card hurt my credit score when I open it?
Opening any credit account triggers a hard inquiry, which can lower your score by a few points temporarily. However, the inquiry fades after 12 months and the impact diminishes over time. The benefit of on-time payments over 18 to 24 months far outweighs the initial dip.
How long does it take to graduate to an unsecured card?
First Premier typically reviews accounts after 18 to 24 months of on-time payments. There is no set timeline, and conversion is not may provide. Some cardholders report being offered conversion after 18 months; others wait longer or are never offered. Consistent on-time payments and low utilization increase your chances.
Can I increase my credit limit without depositing more money?
No. Your credit line is fixed at the amount of your deposit. To increase your limit, you must deposit additional funds into the secured account. For example, if you deposit an extra $500, your limit increases to match your total deposit. This is one reason to start with a larger deposit if you can afford it.