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- First Premier Bank is a legitimate, FDIC-insured institution, established in 1989.
- It primarily offers credit cards targeted at individuals with poor or limited credit.
- The bank’s credit cards have high fees and interest rates, making them expensive.
- Fees include setup fees, annual fees, monthly service charges, and more.
- Interest rates can be as high as 36%, much higher than traditional credit cards.
- First Premier Bank provides transparency by disclosing fees and rates upfront.
- The bank’s mobile and online banking tools are functional but have mixed reviews.
- Customers can rebuild their credit as First Premier reports to major credit bureaus.
- The bank is most suitable for individuals unable to obtain credit elsewhere.
- Alternatives, such as secured credit cards, may offer better rates for qualifying individuals.
When considering banking options, especially for those looking to establish or rebuild credit, one of the common names that comes up is First Premier Bank. The bank has garnered attention, both positive and negative, over the years, primarily due to its high-fee credit cards. However, for individuals seeking to understand whether First Premier Bank is a legitimate financial institution that can help them on their financial journey, a more nuanced review is necessary.
In this blog post, we will explore the question, “Is First Premier Bank legit?” by delving into its history, services, customer experiences, and more. By the end of this article, you will have a clearer picture of whether this bank is right for you.
Is First Premier Bank Legit?
Established in 1989, First Premier Bank is headquartered in Sioux Falls, South Dakota, and is part of the holding company United National Corporation. The bank has become well-known in the financial world due to its offerings aimed at individuals with poor or limited credit histories. However, the main question many potential customers ask is, “Is First Premier Bank legit?” The short answer is yes, it is a legitimate and regulated bank. But, like any financial institution, its specific offerings may not be suitable for everyone.
First Premier Bank offers a range of services, but its most talked-about product is the First Premier Credit Card, which is targeted at people with subprime credit. With a reputation for high fees and interest rates, the bank has attracted some controversy. But before we draw any conclusions, let’s take a deeper look at the services they provide and how they stack up against other banks.
A Brief History of First Premier Bank
When evaluating whether First Premier Bank is legit, it’s crucial to start with a look at its background. First Premier Bank is part of Premier Bankcard, a company that offers financial services, specifically credit cards, to people with lower credit scores. The bank has been around for over three decades, during which it has focused on providing financial products to a market segment often ignored by traditional banks.
First Premier is a fully licensed and FDIC-insured institution, meaning that any deposits made are protected up to $250,000 per depositor, per institution. This certification alone affirms the legitimacy of the bank. However, while this proves that the bank operates within regulatory guidelines, it does not necessarily mean that the bank’s products are beneficial for every customer. So, is First Premier Bank legit from the perspective of financial services? Let’s explore further.
What Services Does First Premier Bank Offer?
First Premier Bank offers a range of services, but its most notable product is its credit card for people with poor credit. The First Premier Credit Card is specifically marketed to individuals who have difficulty getting approved for traditional credit cards. The bank also offers traditional banking services like checking and savings accounts, but these are not as widely advertised or used as their credit card offerings.
The credit card allows people with low credit scores to begin building or rebuilding their credit, but it comes at a cost. High annual fees, setup charges, and elevated interest rates often cause consumers to question whether this is a wise financial decision. Nevertheless, the fact that First Premier Bank focuses on a market segment that many other banks overlook makes it a viable option for individuals looking for a second chance in managing their finances.
Credit Card Fees: Fair or Excessive?
One of the main reasons people ask, “Is First Premier Bank legit?” is due to the high fees associated with their credit card products. First Premier Bank’s credit cards can carry a variety of fees, including:
- Setup fees (a one-time fee when opening the account)
- Monthly service fees
- Annual fees
- Fees for requesting a higher credit limit
While the fees are disclosed upfront, they can still add up quickly and seem excessive compared to other credit cards. For example, a typical First Premier Credit Card may have an initial setup fee of $95, an annual fee of around $75, and a monthly service charge of $6.25. If a customer has a $300 credit limit, these fees can quickly consume a significant portion of their available credit.
For some people, these high fees are worth the tradeoff of having access to credit. Others may feel that these costs outweigh the benefits, especially when compared to secured credit cards that offer lower fees and better interest rates. But again, it’s important to note that First Premier Bank discloses all these fees upfront, ensuring transparency in its practices.
Interest Rates: A Cause for Concern?
Beyond the fees, another aspect that customers should carefully consider is the interest rate on First Premier credit cards. Interest rates on these cards can range as high as 36%, far above the average rate for standard credit cards. This leads some people to question, “Is First Premier Bank legit?” when compared to other options on the market.
However, the reason for these high rates lies in the risk associated with offering credit to individuals with poor credit histories. Banks charge higher interest rates to offset the increased likelihood of default. While this may make financial sense from the bank’s perspective, it can be a heavy burden for the cardholder, especially if they are unable to pay off their balance in full each month.
For those using the card responsibly—by paying off their balance each month and avoiding late payments—the high-interest rate may not come into play. However, for those who struggle to pay on time, these rates can lead to significant debt.
Customer Service and Transparency
A key component of determining whether First Premier Bank is legit lies in its customer service and transparency. The bank has mixed reviews in this area. While some customers report positive experiences, praising the company for giving them a chance to rebuild their credit, others express frustration with their service.
The bank’s transparency, however, is commendable. All fees, rates, and charges are disclosed upfront, and First Premier does not hide the cost of its credit products. This level of honesty can help customers make more informed decisions about whether or not to proceed with the bank’s credit card offerings.
Despite this, some customers still find the terms confusing or struggle with unexpected charges, leading to dissatisfaction. Like any financial product, understanding the fine print and managing accounts responsibly is key to making the most out of the relationship with the bank.
Online and Mobile Banking Experience
First Premier Bank offers online and mobile banking services to its customers. These platforms allow users to manage their accounts, pay bills, check balances, and more. Although not as robust as the online services offered by some larger banks, First Premier Bank’s digital tools are functional and generally well-reviewed.
The mobile app allows for easy access to account information, but some users have reported technical issues and difficulty navigating the app. However, for basic banking needs, the app serves its purpose well enough. For individuals who primarily need a tool for monitoring their credit card activity and making payments, First Premier’s online services are sufficient.
Rebuilding Credit with First Premier Bank
For many customers, the main reason for choosing First Premier Bank is the opportunity to rebuild or establish credit. The bank reports to the three major credit bureaus—Equifax, Experian, and TransUnion—on a monthly basis, which means responsible card use can help improve a low credit score over time.
Many customers who have successfully rebuilt their credit praise First Premier Bank for giving them the chance to prove themselves financially. However, it is important to keep in mind that failure to manage the account responsibly can result in further damage to credit scores due to the high interest rates and fees associated with late payments or carrying a balance.
As with any credit product, understanding how to use the card responsibly—by making timely payments, avoiding carrying a balance, and keeping credit utilization low—is key to leveraging this tool for credit improvement.
Frequently Asked Questions
Here are some of the related questions people also ask:
Is First Premier Bank a legitimate bank?
Yes, First Premier Bank is a legitimate, FDIC-insured bank established in 1989, known for providing credit cards to individuals with poor or limited credit.
What type of credit card does First Premier Bank offer?
First Premier Bank offers credit cards specifically designed for individuals with poor credit, helping them build or rebuild their credit history.
Are the fees on First Premier Bank’s credit cards high?
Yes, First Premier Bank’s credit cards come with high fees, including setup fees, annual fees, and monthly service charges, which can quickly add up.
Why are First Premier Bank’s interest rates so high?
First, Premier Bank charges high interest rates, sometimes as high as 36%, to offset the risk of offering credit to individuals with poor credit histories.
Does First Premier Bank report to credit bureaus?
Yes, First Premier Bank reports to the three major credit bureaus (Equifax, Experian, and TransUnion), which helps customers build their credit history with responsible usage.
Can First Premier Bank help rebuild my credit?
Yes, if used responsibly, such as by making timely payments and keeping balances low, First Premier Bank’s credit card can help rebuild credit over time.
Are there better alternatives to First Premier Bank credit cards?
Yes, secured credit cards are often a better alternative, offering lower fees and interest rates for those looking to rebuild credit without the high costs.
How does First Premier Bank’s mobile banking app perform?
First Premier Bank’s mobile app offers basic functionality for managing accounts, but some users report technical issues and difficulty navigating the interface.
What are the key downsides of using First Premier Bank’s credit card?
The key downsides include high fees, elevated interest rates, and potentially costly terms if the cardholder carries a balance or misses payments.
The Bottom Line
So, is First Premier Bank legit? The answer is yes. First Premier Bank is a legitimate, FDIC-insured financial institution that provides credit card products and banking services, particularly for individuals with poor credit. However, while the bank is certainly legitimate, whether it is the right choice for you depends on your financial situation and goals.
First Premier Bank’s credit cards come with high fees and interest rates, making them an expensive option. For individuals who have no other means of obtaining a credit card, First Premier Bank offers a pathway to rebuild credit, but it comes with costs that must be carefully considered. If you can afford the fees and are committed to using the card responsibly, it can be a helpful tool in improving your credit.
However, if you are looking for a low-cost credit card or have a better credit history, there are likely more favorable options available. Secured credit cards, for example, often offer lower fees and more competitive rates. For those who qualify, these alternatives may be a better fit.
Ultimately, the answer to the question “Is First Premier Bank legit?” is a resounding yes, but whether it’s the best option for you requires careful consideration of its fees, rates, and your own financial habits. Always compare various credit cards and banking services before making a final decision, ensuring that you choose the product that best aligns with your long-term financial health.