Premier One is a credit card designed for people rebuilding credit or starting from scratch
The Premier One Credit Card is a secured credit card, which means you put down a cash deposit that becomes your credit limit. If you deposit $500, your limit is $500. You use it like any other credit card — swipe it, pay a monthly bill, build a payment history — but the deposit stays in a separate account as collateral while the card issuer holds it.
The card is issued by Premier Bank and marketed toward people with no credit history, a damaged credit history, or a long time away from borrowing. It reports to all three major credit bureaus (Equifax, Experian, and TransUnion), so responsible use actually rebuilds your credit score over time. After you've shown consistent on-time payments — usually 7 to 12 months — you may be able to graduate to an unsecured card or get your deposit back.
Key Takeaways
- Premier One requires a cash deposit equal to your credit limit, with deposits ranging from $300 to $2,500 depending on the issuer's current terms.
- The card charges an annual fee (the amount varies by issuer and changes over time) and reports your payment history to all three credit bureaus.
- Using the card responsibly — paying on time and keeping your balance low — builds credit history that can help you move to unsecured cards later.
- Interest rates on secured cards are typically higher than rates on unsecured cards, so carrying a balance costs more than it would with other options.
How the deposit and credit limit work
When you open a Premier One account, you choose how much to deposit. That deposit becomes your credit limit. If you deposit $500, you can charge up to $500 on the card. The deposit sits in a savings account at the bank and earns a small amount of interest — usually a rate that varies with the market.
The deposit is not a payment toward your bill. When you use the card and receive a statement, you owe the full amount you charged, just like with any credit card. You pay that bill separately from the deposit. The deposit stays locked until you close the account or the issuer converts you to an unsecured card.
Fees and interest rates you'll encounter
Premier One charges an annual fee for holding the card. The exact amount changes based on the issuer's current pricing, so you should confirm the current fee before you open an account. This fee is separate from interest charges.
The card also charges interest on any balance you carry from month to month. Secured card interest rates are typically higher than rates on unsecured cards — sometimes 10 percentage points higher or more. If you carry a $300 balance at a 24% annual rate, you'll pay roughly $6 in interest that month. Paying your full statement balance each month avoids interest charges entirely.
Building credit history with on-time payments
The main reason to use a secured card is to create a record of responsible borrowing. Every month you pay on time, that payment gets reported to Equifax, Experian, and TransUnion. Over time, a pattern of on-time payments raises your credit score — usually by 50 to 100 points in the first year if you start with no credit history or a very low score.
Keeping your balance low also helps. Credit scoring models look at your credit utilization ratio — the percentage of your limit you're using at any given time. If your limit is $500 and your balance is $450, your utilization is 90%, which hurts your score. Keeping it below 30% (so $150 or less on a $500 limit) signals responsible borrowing and builds your score faster.
When you might graduate to an unsecured card
After 7 to 12 months of on-time payments, the issuer may offer to convert your account to an unsecured card. At that point, your deposit is returned to you, and you keep the card without collateral. Your credit limit may stay the same, increase, or decrease depending on your payment history and current credit score.
You don't have to wait for the issuer to offer conversion. Once your credit score improves enough, you can explore for an unsecured card from another issuer. Many people use a secured card for 12 to 18 months, then move to an unsecured option with better terms — lower fees, lower interest rates, or rewards.
Comparing Premier One to other secured cards
Several banks offer secured credit cards, and the terms vary. Some charge no annual fee, while others charge $25 to $50. Some offer a higher interest rate but faster conversion to unsecured status. Some allow you to deposit as little as $200; others require $500 or more.
Before opening a Premier One account, compare the current annual fee, interest rate, and deposit requirements to cards from other issuers like Capital One, Discover, or your own bank. The difference in annual fees alone can save you $25 to $50 per year. Check the issuer's website or call their customer service line to confirm current terms, since these change frequently.
Frequently Asked Questions
Can I use my deposit as a payment if I can't pay my bill?
No. Your deposit is held separately and cannot be used to pay your monthly statement. You must pay your bill from your regular income or savings. If you miss a payment, it will be reported to the credit bureaus and damage your credit score, even though you have a deposit on file.
What happens to my deposit if I close the account?
When you close the account, the issuer returns your deposit to you, usually within 5 to 10 business days. If you have an unpaid balance, the issuer may use your deposit to cover it before returning the remainder. Make sure your account is paid in full before closing.
Does Premier One offer any rewards or cash back?
Most secured cards, including Premier One, do not offer rewards or cash back. The focus is on rebuilding credit, not earning benefits. Once you graduate to an unsecured card, you may have access to rewards programs.
How long does it take to build credit with this card?
You'll see movement in your credit score within 30 to 60 days of your first on-time payment. Significant improvement — 50 to 100 points — typically takes 6 to 12 months of consistent on-time payments and low utilization. The exact timeline depends on your starting score and credit history.
Can I increase my credit limit without adding more money?
Some issuers allow you to request a credit limit increase after 6 to 12 months of on-time payments, without increasing your deposit. Others require you to add more money to your deposit account. Check your issuer's policy or call customer service to ask about their increase process.