First Premier Bank
First Premier Bank, is an American Bank whose headquarters are in Sioux Falls, South Dakota. First Premier Bank is one of the largest banks issuer of Visa and MasterCard brand credit cards in the United States, the 10th largest to be exact. The Premier bank is an important bank known for specializing in a wide range of subprime credit cards (a type of credit card issued to people with substandard credit scores or limited credit histories) that are designed to individuals with we could say have a less than perfect credit.
In 2007, First Premier Bank settled a case with the New York Attorney General who claimed the bank used deceptive practices to market its credit cards. The bank paid $4.5 millions as part of the deal; Then, in October 2010, the bank was cited for providing the nation’s worst credit cards by the Consumers Union, and the group reported First Premier charged as much as 59% interest on credit cards limited to $300. These credit cards are marketed and sold under the names Centennial and Aventium as well as First Premier.
The First premier credit card in particular let cardholders enjoy particularly low APR and since First Premier Bank (the provider of the card) reports to the major Consumer Reporting Agencies monthly, the cardholders (you) may be encouraged and motivated to make your payment regularly and on time.
As of December 2010, Premier Bank is reportedly offering a credit card with a 79.9% interest rate, and a $300 limit. This was cited by Senator Bernie Sanders as an example of what he called extortion and loan sharking. Explaining that the practice of immoral lending at an exorbitant interest rate is known as usury.
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Subprime Credit Cards: what are Subprime Credit Cards?
As we discussed above, Subprime Credit Cards are credit cards issued to people with substandard credit scores or limited credit histories. These so-called subprime cards will typically carry much higher interest rates than credit cards granted to prime borrowers and they also come with extra fees and lower credit limits.
Subprime credit cards are issued by both major issuers and smaller financial institutions that focus only on subprime lending, such as First Premier Bank cited above. In fact, the subprime credit card industry has seen some controversy as accusations of predatory lending practices have been documented. Predatory lending can lead to a borrower not knowing the full extent of the fees they are paying; some subprime cards carry covenants that can cause the interest rate to spike if a payment is late or the card holder exceeds his or her limit. Interest rates on subprime credit cards can run as high as 30% (see paragraph above on First Premier bank credit cards) and should be used with great caution by individuals seeking a source of credit.
Find out the 6 best and well-known credit cards for people with bad credit history:
- Orchard Bank Classic Master Cards (Orchard Bank is a subdivision of HSBC which issues credit cards to customers and their main businesses focus to people with poor or bad and/or broken credit history and/or score and give them a first (or) second chance)
- AccountNow Prepaid Visa Cards (someone says this card is one of the best prepaid credit cards both in terms of cost and fees and also for those looking to rebuild their credit…)
- First Premier Bank Credit Cards
- Ultra VX Visa Cards, a credit card and the card’s activity is reported to the major credit bureaus, and the minimum payment is 4% of the Outstanding Credit Balance or $10
- New Millennium Bank (A full service bank serving New Brunswick and Somerset) Secured Black Diamond Visa or Master Cards
- Centennial Credit Cards (unsecured cards created for individuals with a damaged credit report)
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