3 years ago I opened a credit card with First Premier Bank in an attempt to rebuild my credit history. There is a 79.00 annual fee and the apr is higher than any other credit card.
I have kept the card and use it responsibly. I have not missed any payments and have established good credit with them. A year ago I called customer service and asked for a credit line increase and was told no because I hadn't been a customer long enough. About 3 months later I received a notice in my consumer portal congratulating me for being such a good customer and letting me know that I am now eligible for an additional card with a 300.00 credit limit, and all the same terms as my current 700.00 card.
I have ignored this, but each time I log in to review my account the congratulations link pops up. Yesterday in the mail I received a letter with a FPB credit card and letter congratulating me on my good credit status and an offer of an additional card with a 1000.00 credit limit, and the same 79.00 annual fee and high apr.
First, paying an apr was necessary because I was in a situation where I needed to rebuild my credit history. The high apr also comes with the territory. However, because I have improved my credit and have a good established credit history it would be a very poor decision to open another card instead of getting a credit limit increase on the card I currently am established with.
Even if I wanted to transfer my credit over to my new card with the higher credit limit would be a very bad decision because of the transfer fees and the fact that I would then be starting over with my credit/ payment history as this would be a new account, and would have a negative affect on my credit score!
Third, if they wanted to offer a credit card with no apr and a higher credit limit because I have established good credit with them, that would make sense. I feel as though they are preying on individuals that have a history of poor credit and trying to get them to make further poor credit decisions. Be aware, getting a second card will NOT improve your score, or your credit history length.
Maintaining one card, making ontime payments, and improving your credit score over time so that you can get a credit card with not annual fee and lower apr is the only thing that make sense. Be responsible, research this company before trying to repair your credit with their credit card!
Product or Service Mentioned: First Premier Bank Credit Card.
Reason of review: Predatory Lending Practices.
Preferred solution: Let the company propose a solution.
I didn't like: Predatory lending practices.