New CC Offers/Watch The Fees!!

[SinkingFast]

We got this CC offer from First Premier Bank via email. So I took a look at the fine print so to speak.

Fees, Costs and Limitations

Below are the account fees, rates, costs, limitations, available credit and other terms for the UNSECURED offer.
Please print these disclosures and keep them with your records.If you are unable to print these, write to First PREMIER Bank, C/O Correspondence, P.O. Box 5524, Sioux Falls, SD 57117-5524 and request a copy. By submitting this application you understand that your initial credit limit will be at least $250.00 and the following fees will be billed to your first statement: Annual Fee of $48, Account Set-Up Fee of $29, Program Fee of $95, monthly Participation Fee of $6, and an Additional Card Fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. You will be eligible for consideration of a credit limit increase in as little as 6 months. In addition, by submitting this application you certify that you have read, meet, understand, and agree to the account fees, rates, costs, limitations, available credit and other terms listed below.

Annual Percentage Rate for Purchases 9.9%
Other Annual Percentage Rates+ APR for Cash Advances 19.9% and Penalty APR 19.9% for Purchases.


++The Participation Fee of $72.00 will be billed at $6.00 per month.

OK, so you start with a $250 LOC.
Then they automatically charge your CC:
Annual fee of $48
Account Set-Up Fee of $29
Program Fee of $95
monthly Participation Fee of $6

Suddenly, your $250 LOC becomes $72 of available Credit.

If you take a 2nd card for an authorized user, your LOC is only $52.

Be sure and read the fine print. Watch those offers for Credit to rebuild post BK.

[tinroofrusted]

We got this CC offer from First Premier Bank via email. So I took a look at the fine print so to speak.

Fees, Costs and Limitations

Below are the account fees, rates, costs, limitations, available credit and other terms for the UNSECURED offer.
Please print these disclosures and keep them with your records.If you are unable to print these, write to First PREMIER Bank, C/O Correspondence, P.O. Box 5524, Sioux Falls, SD 57117-5524 and request a copy. By submitting this application you understand that your initial credit limit will be at least $250.00 and the following fees will be billed to your first statement: Annual Fee of $48, Account Set-Up Fee of $29, Program Fee of $95, monthly Participation Fee of $6, and an Additional Card Fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. You will be eligible for consideration of a credit limit increase in as little as 6 months. In addition, by submitting this application you certify that you have read, meet, understand, and agree to the account fees, rates, costs, limitations, available credit and other terms listed below.

Annual Percentage Rate for Purchases 9.9%
Other Annual Percentage Rates+ APR for Cash Advances 19.9% and Penalty APR 19.9% for Purchases.


++The Participation Fee of $72.00 will be billed at $6.00 per month.

OK, so you start with a $250 LOC.
Then they automatically charge your CC:
Annual fee of $48
Account Set-Up Fee of $29
Program Fee of $95
monthly Participation Fee of $6

Suddenly, your $250 LOC becomes $72 of available Credit.

If you take a 2nd card for an authorized user, your LOC is only $52.

Be sure and read the fine print. Watch those offers for Credit to rebuild post BK.

I believe this is what's called "predatory lending"

[jetset]

Well I got the FPB card with those terms, and to be honest, I can't complain. I Got the first card, with the first bill, and sent in the payment immediately. I will let you know how they begin posting to my CB. There's a price to pay being a high risk borrower and thats just what I am.

adam

[I Is Broke]

With the fees they charge you, you are using a major percentage of your available credit and they are then probably going to raise your interest rate because of this. This will negatively affect your FICO score.

You should not use more than 50% of your available credit at any time.

[SinkingFast]

I believe this is what's called "predatory lending"

I agree, Tin.

We've gotten offers from other CC's.

We've had some with no fees.

One came today from Cap 1. Pre approved. $39 fee to start, decent interest rate, and guaranteed $300 minimum LOC to start. Automatic increase with 90 days of on time payments.

We aren't even to our 341 yet so we aren't seriously considering any thing, but looking toward getting started rebuilding.

[tradewiz50]

I believe this is what's called "predatory lending"

Um, the price you pay for a fresh start.

[tinroofrusted]

Um, the price you pay for a fresh start.

Not always.

That's ingorance speaking.

There ARE credit cards out there that don't charge exorbitant fees, that don't prey on those wanting to rebuild, and that give people a second chance.

Do your research before settling.

[papa0881]

sinking fast, you got the info on the c1 card? where do i apply

thanks

[CindyLou]

Yep, fresh out of BK, my hubby and I each decided to take one big hit. He chose 1st Premier and I chose Aspire. No biggie. It was like an investment in our credit future. Now almost 2 years later both of those cards are closed. We each have a Juniper cards with 2500 credit limits at 14.5% and no fees and orchard cards with 1300 limits with 29.00 fees at 16% ....and improving everyday. its baby steps. I wouldn't suggest getting more than one of those "predatory" cards or keeping them for more than one year, but they do serve their purpose for rebuilding credit quickly!

[HRx]

The first thing you should realize is just about every credit card offer you recieve right after BK will be a COMPLETE WASTE OF MONEY, because of all the absurd fees they charge each month/year--because they are Subprime Credit Cards. With that said, keep in mind that for many folks there are also very effective ways to of re-establishing credit, if they are used, and managed responsibley.

I wouldn't suggest that a person start trying to re-establish credit immediately out of BK though! You should focus more on saving up your monies first, since this is why you filed BK in the first place. Give it a year or two to start rebuilding your credit---you will have plenty of time to start rebuilding your credit! I always suggest that folks start increasing the size of thier savings account/401k, etc.

When the time is right to start accepting some of the many Pre-Approved Credit Card offers you've been receiving, don't even bother using these cards for regular purchases...just make a payment each month (more than the minimum), so that payments gets reported to the CRA's, make timely payments for eleven months, and pay the card off in full on the 12th month. By this time you should be able to qualify for a credit cards that aren't people with bad/no credit.

Please remember that it takes time, and fiscal responsibility to re-establish credit. So don't be overly eager to re-establish yoru credit by applying for multiple credit cards, auto-loans, et cetera, or you will wind up being in debt up to your eyeballs again! Having bad credit will suck, but you will learn that there's a lot more to life than having great credit. Like having your own money in the bank, and not having to worry about writing several checks each month to different creditors!!

Good Luck!

[Minnymouth]

HRx,

How I do "appreciate" your WORDS OF WISDOM............. how true!!

[tresjolie]

Excellent Advise

HRx - I have to agree 100% with you and Minnymouth. That is the true secret - living within your means and utilizing credit for what it is truly intended for and not to live outside your means.....to allow yourself financial piece of mind - not that horrible stress and worry....
I'm just enjoying living simpler and with less - I've gained so much more by doing so.....

[ebm48021]

I agree with waiting for a bit. My BK was discharged in June of 2007 and the only thing I did was lease a brand new car thru GMAC the following month (I already had a lease through GMAC and paid on time every month). I waited until December of 07, which isn't too long but you don't want to wait 2 years. My score was 680 before I got into trouble and right before I filed it was about 550. I am now a 640 and its been a year since the discharge. I have a Capital One card, First Premier Card, and Orchard Bank plus a small line with HCC. I plan to keep the Cap1 card since I have no fees, etc. While the other 2 have fees, its something you deal with if you can't find anything else and want to have a cc. I pay on time each month and have received credit limit increases on all 3. I do not use Orchard and Premier anymore unless I know the charge can be paid in full each month. I do carry a small balance on cap1 but I am working on it. I also obtained a small loan on Prosper which was a great experience. There is life after BK you just have to do a lot of research and keep yourself disciplined.

[lrprn]

EBM, please do NOT post to these old threads. They can contain information that was true at that time but is no longer true now. That's why our forum rules clearly state not to post to old threads.

In the future, rather than tacking onto an old, long-inactive thread like this one, please start a new thread of your own to post your experiences or ask a question - thanks!

[downwardspiral]

I got an offer just like this in the mail a few days ago. What a joke!

We got this CC offer from First Premier Bank via email. So I took a look at the fine print so to speak.

Fees, Costs and Limitations

Below are the account fees, rates, costs, limitations, available credit and other terms for the UNSECURED offer.
Please print these disclosures and keep them with your records.If you are unable to print these, write to First PREMIER Bank, C/O Correspondence, P.O. Box 5524, Sioux Falls, SD 57117-5524 and request a copy. By submitting this application you understand that your initial credit limit will be at least $250.00 and the following fees will be billed to your first statement: Annual Fee of $48, Account Set-Up Fee of $29, Program Fee of $95, monthly Participation Fee of $6, and an Additional Card Fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. You will be eligible for consideration of a credit limit increase in as little as 6 months. In addition, by submitting this application you certify that you have read, meet, understand, and agree to the account fees, rates, costs, limitations, available credit and other terms listed below.

Annual Percentage Rate for Purchases 9.9%
Other Annual Percentage Rates+ APR for Cash Advances 19.9% and Penalty APR 19.9% for Purchases.


++The Participation Fee of $72.00 will be billed at $6.00 per month.

OK, so you start with a $250 LOC.
Then they automatically charge your CC:
Annual fee of $48
Account Set-Up Fee of $29
Program Fee of $95
monthly Participation Fee of $6

Suddenly, your $250 LOC becomes $72 of available Credit.

If you take a 2nd card for an authorized user, your LOC is only $52.

Be sure and read the fine print. Watch those offers for Credit to rebuild post BK.