What the First Premier Credit Card Actually Is

The First Premier Credit Card is a secured credit card issued by First Premier Bank, meaning you put down a cash deposit that becomes your credit limit. If you have no credit history, a recent bankruptcy, or a low credit score, this card is designed to let you borrow money and build a record of on-time payments. The deposit stays in a separate account at the bank — it is not spent when you use the card.

This is not a prepaid card. You are taking on actual debt. Every purchase you make is a loan you repay monthly, and the bank reports your payment history to the three major credit bureaus (Equifax, Experian, and TransUnion). That reporting is the entire point: after 18 to 24 months of on-time payments, you may become may be able to access to convert to an unsecured card and get your deposit back.

First Premier is one of the few issuers willing to work with people who have very poor credit or no credit at all. That willingness comes with a cost — the fees are substantial, and the interest rate is high. You need to understand both before you decide whether this card makes sense for your situation.

Key Takeaways

  • First Premier requires a cash deposit ($200 to $2,500) that becomes your credit limit, and that money stays frozen at the bank while you use the card.
  • The card charges an annual fee, a program fee, and a monthly maintenance fee — all of which are added to your balance and accrue interest if you do not pay them off when ready.
  • The interest rate is high (typically 27.99% APR), so carrying a balance costs significantly more than it would with a standard credit card.
  • On-time payments are reported to all three credit bureaus, which is how the card builds your credit history, but only if you actually make payments — not if you just hold the card.
  • After 18 to 24 months of on-time payments, you may be offered conversion to an unsecured card, at which point your deposit is returned.

The Fees You Will Pay

First Premier's fee structure is where the real cost lives. The card charges an annual fee (typically $95), a program fee (typically $95), and a monthly maintenance fee (typically $6.95). These fees are not charged separately — they are added directly to your credit card balance. That means they accrue interest at the card's APR.

If you deposit $500 and never use the card, you will still owe money because of these fees. A $6.95 monthly maintenance fee alone adds up to $83.40 per year, and at 27.99% APR, that balance grows faster than you might expect. The math works like this: if you carry a $100 balance for a full year at 27.99% APR, you pay roughly $28 in interest on top of the principal.

The only way to avoid paying interest on these fees is to pay your full statement balance every single month, including the fees themselves. If you can do that, the fees are annoying but manageable. If you cannot, they become a trap that makes your balance grow even when you are not actively using the card.

How the Interest Rate Affects Your Real Cost

The First Premier Credit Card carries an APR of 27.99%, which is roughly double the average credit card rate. To understand what that means in dollars, imagine you put $500 on the card and pay $100 per month. At 27.99% APR, you will pay about $75 in interest before the card is paid off — on top of the $500 you borrowed.

This high rate is the price you pay for access when your credit is poor. Issuers with lower rates can afford to turn down risky borrowers because they have enough low-risk customers. First Premier takes the risk, and the interest rate is how they cover it. That does not make it a bad deal if you use the card correctly, but it does mean you cannot afford to carry a balance for long.

The strategy that makes sense with this card is straightforward: charge small purchases you were already planning to make, then pay the full balance when ready. Do not use it as a way to borrow money you do not have. The interest and fees will cost you far more than the credit-building benefit is worth.

How This Card Builds Your Credit Score

The First Premier Credit Card reports to all three credit bureaus — Equifax, Experian, and TransUnion. That reporting happens every month, which means your payment history starts showing up on your credit report within 30 to 60 days of your first payment. This is the card's actual value: it creates a documented record that you borrowed money and paid it back on time.

Credit scores are built on five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A secured card helps with the first three. Every on-time payment adds to your payment history. Keeping your balance low (ideally under 30% of your limit) helps your amounts-owed ratio. And the longer you hold the card, the longer your credit history becomes.

But the card only builds your score if you actually use it and make payments. Putting down a deposit and never charging anything does nothing for your credit. You need to charge something small each month and pay it off to create that payment history. Even $20 per month in charges, paid in full, is enough to trigger the reporting.

When First Premier Makes Sense and When It Does Not

This card makes sense if you have no credit history (you are young or new to the country), or if your credit score is below 550 and you have been turned down by other issuers. It also makes sense if you have recently come out of bankruptcy and need a way to rebuild. In these situations, the fees and interest rate are the price of access, and access is what you need.

First Premier does not make sense if you have a credit score above 600 or if you have been turned down by this card specifically. If your score is 600 or higher, you likely may have access to for a secured card from a bank or credit union with lower fees and a lower interest rate. If First Premier has turned you down, it means your financial situation is too unstable for them to take on, and you should focus on stabilizing before explore anywhere else.

It also does not make sense if you cannot commit to paying the full balance every month. The interest and fees will work against you faster than the credit-building benefit will help you. A better move in that case is to spend three to six months building savings, then explore for a secured card when you have a financial cushion.

The Path From Secured to Unsecured

First Premier's stated timeline for conversion is 18 to 24 months of on-time payments. After that period, the bank may offer to convert your account to an unsecured card — meaning you no longer need the deposit, and the money is returned to you. This is not automatic; the bank decides whether to offer it based on your payment history and current creditworthiness.

The conversion offer, when it comes, usually arrives as a letter or a notice in your online account. You can accept or decline it. If you accept, your deposit is returned within a few weeks, and your credit limit may increase or stay the same depending on the bank's assessment. Your credit score will likely improve during those 18 to 24 months because you have been making on-time payments, so you may also may have access to for better cards from other issuers by that point.

Some people use the First Premier card for exactly that long — to build enough history to move to a better card elsewhere — and then close the account. Others keep it open even after conversion because a longer account history helps your credit score. Either choice is reasonable, depending on your goals.

Alternatives to Consider

Before you commit to First Premier, check whether you may have access to for a secured card from a credit union or a bank like Discover or Capital One. Credit unions often offer secured cards with lower fees and lower interest rates to their members. Discover's secured card, for example, has no annual fee and a lower APR. Capital One's Secured Mastercard charges an annual fee but no program fee or monthly maintenance fee.

If your credit score is between 550 and 620, you may also may have access to for an unsecured card designed for fair credit, such as the Capital One Platinum or the Discover it Secured card's unsecured cousin. These cards have higher interest rates than standard cards, but lower rates than First Premier, and they do not require a deposit.

If you have no credit history at all, becoming an authorized user on someone else's credit card account (with their permission) can also build your credit without requiring a deposit or paying fees. This works only if the primary cardholder has good payment habits and the card issuer reports authorized user activity to the credit bureaus.

Frequently Asked Questions

Can I get my deposit back before 18 months?

No. The deposit is held for the full term, and early withdrawal is not an option. If you need the money before 18 months have passed, you would have to close the account, which stops the credit-building process and may hurt your credit score slightly because you are closing an active account.

What happens if I miss a payment?

A missed payment is reported to all three credit bureaus and will damage your credit score. It also triggers late fees and may cause your interest rate to increase. If you miss a payment by 60 days or more, the bank may freeze your account or close it entirely.

Does First Premier do a hard credit inquiry?

Yes. First Premier performs a hard inquiry, which temporarily lowers your credit score by a few points. This is standard for credit card applications. The impact fades after a few months, but it is worth knowing before you explore.

Can I increase my credit limit without adding more money?

First Premier does not typically offer unsecured credit limit increases on secured cards. Your limit stays equal to your deposit unless you add more money to the account. Some cardholders add to their deposit over time to increase their limit, which also increases their credit utilization ratio and can help their score.

Is First Premier a scam?

No, but it is expensive. First Premier is a legitimate bank regulated by the Office of the Comptroller of the Currency. The fees and interest rate are high, but they are disclosed upfront, and the card does report to the credit bureaus as promised. The card is not a scam — it is just an expensive tool for people with few other options.