What the Premier One Credit Card Is

The Premier One Credit Card is a secured credit card issued by Premier Bank. You put down a cash deposit, and that deposit becomes your credit limit — so if you deposit $500, you can charge up to $500. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds your credit score over time.

This card is designed for people rebuilding credit or establishing a credit history from scratch. Because the bank holds your deposit as collateral, they take on less risk, which is why they approve people with no credit or damaged credit. The tradeoff is that the card carries an annual fee and a higher interest rate than unsecured cards.

Key Takeaways

  • Your cash deposit becomes your credit limit, so you control how much credit you can access by choosing your deposit amount.
  • The card charges an annual fee (the amount varies by deposit tier) plus a higher interest rate than standard credit cards, typically 19% to 27% APR.
  • On-time payments are reported to all three credit bureaus, so consistent use and payment can raise your credit score over 6 to 12 months.
  • After 12 to 18 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit.

Deposit Amounts and Annual Fees

Premier One offers several deposit tiers, and your choice determines both your credit limit and your annual fee. Deposits typically start at $200 and go up to $2,500 or higher, depending on the current product structure. Each tier has its own annual fee — a lower deposit usually means a lower fee, but the fee does not scale proportionally.

For example, a $200 deposit might carry a $35 annual fee, while a $500 deposit might carry a $49 annual fee. The fee is charged to your account, not deducted from your deposit. This means if you carry a balance, you are paying interest on the fee as well. Check the current fee schedule on Premier Bank's website or by calling their customer service line, because these amounts change and vary by state.

Interest Rates and How They Affect Your Balance

Premier One cards typically carry an APR between 19% and 27%, depending on your credit profile at the time of approval. This is significantly higher than the average unsecured credit card, which hovers around 16% to 18% for borrowers with fair credit. The higher rate reflects the risk the bank perceives, even though your deposit protects them.

If you carry a balance month to month, interest compounds daily and adds up quickly. A $500 balance at 24% APR costs roughly $10 per month in interest alone. The best strategy is to charge small amounts and pay the full statement balance each month — this builds your credit score without costing you interest. If you cannot pay in full, pay as much as you can above the minimum, because the minimum payment barely covers interest.

How Payments Report to Credit Bureaus

Every on-time payment you make is reported to Equifax, Experian, and TransUnion. This is the main reason to use the card: your payment history makes up 35% of your credit score, and secured cards report just like unsecured ones. After 6 to 12 months of consistent on-time payments, you should see your score begin to rise, assuming you have no other recent negative marks.

Late payments are also reported and damage your score. Even a payment 30 days late stays on your report for seven years. Set up automatic payments for at least the minimum due, or set a phone reminder a few days before the due date. Missing a payment defeats the entire purpose of the card.

When You Can Get Your Deposit Back

After 12 to 18 months of on-time payments, Premier Bank may offer to convert your secured card to an unsecured card. When this happens, your deposit is returned to you — usually within 30 to 60 days — and your credit limit may increase. You keep the same card account, so your credit history with that card continues to build.

Conversion is not automatic. The bank reviews your account and decides whether to offer it based on your payment history and current credit score. If you are approved for conversion, you can request it, or you can wait for the bank to offer it. Some cardholders are never offered conversion; in those cases, you can close the account and recover your deposit, though closing the account stops the credit-building benefit.

Comparing Premier One to Other Secured Cards

Other banks offer secured cards with different fee structures and interest rates. Capital One Secured, Discover Secured, and U.S. Bank Secured are common alternatives. Capital One Secured has no annual fee and a lower starting APR for some borrowers, though approval depends on your credit profile. Discover Secured also has no annual fee and offers cash back on purchases, which Premier One does not.

The tradeoff is that cards with no annual fee may have higher interest rates or stricter approval requirements. If you have very poor credit, Premier One may approve you when others do not. If your credit is fair or better, a no-fee card like Capital One or Discover may save you money. Compare the total cost: annual fee plus interest on a typical balance, not just the fee alone.

Costs and Fees Beyond the Annual Charge

In addition to the annual fee and interest, Premier One charges late fees (typically $25 to $35 for a payment 30 days late), returned-payment fees if a check or ACH transfer bounces, and foreign transaction fees if you use the card outside the United States. These fees are standard across secured cards, but they add up if you miss a payment or travel internationally.

There is no fee to close the account or recover your deposit early. If you decide the card is not working for you, you can close it and get your money back without penalty. However, closing the account stops your credit-building activity with that card, so your credit score may dip slightly in the short term.

Frequently Asked Questions

Can I increase my credit limit without adding more money?

Some cardholders receive automatic credit limit increases after 6 to 12 months of on-time payments, without needing to deposit more. Whether this happens depends on your payment history and the bank's current policies. You can also request a limit increase by calling customer service, though they may ask you to add more to your deposit.

What happens if I miss a payment?

A missed payment is reported to the credit bureaus and damages your score. The bank may also charge a late fee. Your deposit is not automatically applied to cover the missed payment — you still owe the amount due. If you miss multiple payments, the bank may close your account and use your deposit to cover the debt.

Can I use the card internationally?

Yes, but Premier One charges a foreign transaction fee (typically 1% to 3% of the purchase amount) when you use the card outside the United States. If you travel frequently, a card with no foreign transaction fee may be cheaper. Check the card's terms for the exact percentage before traveling.

How long does it take to build credit with this card?

You should see movement in your credit score within 6 to 12 months of on-time payments, assuming you have no other recent negative marks. The longer you use the card responsibly, the more your score improves. Building credit is a slow process — expect meaningful improvement over 18 to 24 months, not weeks.

What if I cannot afford the deposit?

Premier One's minimum deposit is typically $200 to $500, depending on your state. If that is out of reach, you may be able to use a credit-builder loan from a credit union instead, which costs less and builds credit faster. Some credit unions offer these loans for $300 to $1,000 with no credit check.