Stored-value cards can help those with poor credit on clarkhoward.com

Beware if you're in a credit crunch and you get a credit card offer in the mail from First Premier Bank. This locust lender will offer you a card with a $250 credit limit, but it also comes with a $95 program fee, a $29 set-up fee, an $84 dollar/year participation fee and an annual fee of $48. By the time you pay all the initial fees, you barely have any of your original credit line still available. Lenders like First Premier and CompuCredit have been in the news lately for this practice, yet there are also many online opportunities enticing those with damaged credit. If you're contemplating getting one of these cards, stop it immediately. There are alternatives called stored-value cards that have just a fraction of the fees. Stored-value cards are popular in Europe, but not widely known in the United States. Here's how they work: You pay a fee, usually around $5, to open an account. Then you get a Visa or MasterCard that holds your stored value. So you don't have a credit card per se, but you've got a card that you can electronically load cash onto and use as a payment system. Stored-value cards can help you make online purchases, for example. Be sure to read all the terms and conditions because additional fees usually apply. You can find stored-value cards at discount stores, but don't purchase them at convenience stores. The fees you'll face there will defeat the purpose.

What others are saying

First Premier Bank Experience
The wife applied for several cards one day to establish credit for me, being that I was a ghost for the better part of my 37 years, and I believe that credit companies are the bane of our exsistance. Anyhow, we received several card/offers in the mail, and after reading the terms settled on one.
The wife then set aside the others for disposal. After 23 months, as I was purchasing a new/used truck, my credit report showed an active c/c in collections. I investigated it and found out the First Premier was the culprit. Unbenownced to me, the c/c was sent activated and charged and spent the next many months incuring debt through as many fees as they could think of. I never even was given as bill, to me for 23 months the card did not exsist. So i called FPB and they referred me to NARS, a collection agency, who in turn took a written dispute and forwarded it to FPB, who sent be the c/c statements.
I found the c/c offer in my filing cabinets and the c/c's are stil glued to the paper offer. Not only did I not remove them or sign the back, I never called to activate them. Although later I found out FPB sends them activated, regardless of permission. So much for my first experience in to the whole c/c thing. FIRST PREMIER BANK should be avoided at all costs.

ps. Thank You Clark Howard, for looking out for the little guys.
By Dave @ 11/03/09 04:14:51 PMreport abuse
Premier Bank
I would like to return my card and not have to pay any of the fees, is that possible? I have not use the card.
By Eugenie @ 07/26/09 01:43:35 PMreport abuse
Absolute Harassment
I applied for a PremierBank Card because I wanted a travel card with a low limit just to do car rentals with, etc. I received the card and what happened next was ridiculous. I moved and didn't receive the first statement, not only did they hit me with a late and over the limit fee, they also harassed me when calling. I told them that I would pay the full balance when I received the statement and they said that "it had to be taken care of today." When I wanted to view the statement online, they actually wanted to charge me a $3.95 fee to do so!! How terrible. I told them to stop calling me pursuant to the Fair Debt Collections Practices Act. I then called customer service back to close the account. After being transferred to an "Account Specialist", he tried to do everything he could to keep me to keep the card open. Then he went too far. He started insulting my intelligence about not thoroughly reading the fine print. He said it was my fault and I had high-risk credit so that I should expect it. (I might mention, I just got a card with USAA with no fees and no junk rates, so my credit was not high risk.) Furious, I said "Listen, I am exercising my right to close this account, do it now or I will take further measures and file a complaint with the Office of the Controller of the Currency." He wised up and did what I requested and said that I had 90 days to re-open it. Anyone who receives a card offer like this - beware!!!
By DM @ 07/20/09 03:16:31 PMreport abuse
Help
I hope I didnt read this too late. I got First Premier Bank Card in the mail. I just had my bankruptcy discharge and wanted to rebuild my credit with one credit card. Plus I needed some work done on my car and didnt have the funds. I spoke with a representative on the phone who of course was very interested to get my information. But not very patient about answering my questions. I asked what fee's were associated with their card. The fees totaled over $200 and I told him I was no longer interested. However he had given me the customer service number very quickly and tried to convince me as to how the card would benefit me. I told him again I was not interested at this time. I called back to speak with another representative to find out what he did with my application. The representative told me that if he had given me the customer service number, then my application was completed and would have submitted. I would have to call back in 5-8 business days to find out the status. I didnt not agree to the accepting this application. What can I do?
By Rachel @ 12/31/08 01:41:23 PMreport abuse
where can i find it?
Where can i find the loadable american express card?
By garrett mccoy @ 05/31/08 10:37:14 AMreport abuse

First Premier Bank Experience

The wife applied for several cards one day to establish credit for me, being that I was a ghost for the better part of my 37 years, and I believe that credit companies are the bane of our exsistance. Anyhow, we received several card/offers in the mail, and after reading the terms settled on one.
The wife then set aside the others for disposal. After 23 months, as I was purchasing a new/used truck, my credit report showed an active c/c in collections. I investigated it and found out the First Premier was the culprit. Unbenownced to me, the c/c was sent activated and charged and spent the next many months incuring debt through as many fees as they could think of. I never even was given as bill, to me for 23 months the card did not exsist. So i called FPB and they referred me to NARS, a collection agency, who in turn took a written dispute and forwarded it to FPB, who sent be the c/c statements.
I found the c/c offer in my filing cabinets and the c/c's are stil glued to the paper offer. Not only did I not remove them or sign the back, I never called to activate them. Although later I found out FPB sends them activated, regardless of permission. So much for my first experience in to the whole c/c thing. FIRST PREMIER BANK should be avoided at all costs.

ps. Thank You Clark Howard, for looking out for the little guys.

By Dave @ 11/03/09 04:14:51 PMreport abuse

Premier Bank

I would like to return my card and not have to pay any of the fees, is that possible? I have not use the card.

By Eugenie @ 07/26/09 01:43:35 PMreport abuse

Absolute Harassment

I applied for a PremierBank Card because I wanted a travel card with a low limit just to do car rentals with, etc. I received the card and what happened next was ridiculous. I moved and didn't receive the first statement, not only did they hit me with a late and over the limit fee, they also harassed me when calling. I told them that I would pay the full balance when I received the statement and they said that "it had to be taken care of today." When I wanted to view the statement online, they actually wanted to charge me a $3.95 fee to do so!! How terrible. I told them to stop calling me pursuant to the Fair Debt Collections Practices Act. I then called customer service back to close the account. After being transferred to an "Account Specialist", he tried to do everything he could to keep me to keep the card open. Then he went too far. He started insulting my intelligence about not thoroughly reading the fine print. He said it was my fault and I had high-risk credit so that I should expect it. (I might mention, I just got a card with USAA with no fees and no junk rates, so my credit was not high risk.) Furious, I said "Listen, I am exercising my right to close this account, do it now or I will take further measures and file a complaint with the Office of the Controller of the Currency." He wised up and did what I requested and said that I had 90 days to re-open it. Anyone who receives a card offer like this - beware!!!

By DM @ 07/20/09 03:16:31 PMreport abuse

Help

I hope I didnt read this too late. I got First Premier Bank Card in the mail. I just had my bankruptcy discharge and wanted to rebuild my credit with one credit card. Plus I needed some work done on my car and didnt have the funds. I spoke with a representative on the phone who of course was very interested to get my information. But not very patient about answering my questions. I asked what fee's were associated with their card. The fees totaled over $200 and I told him I was no longer interested. However he had given me the customer service number very quickly and tried to convince me as to how the card would benefit me. I told him again I was not interested at this time. I called back to speak with another representative to find out what he did with my application. The representative told me that if he had given me the customer service number, then my application was completed and would have submitted. I would have to call back in 5-8 business days to find out the status. I didnt not agree to the accepting this application. What can I do?

By Rachel @ 12/31/08 01:41:23 PMreport abuse

where can i find it?

Where can i find the loadable american express card?

By garrett mccoy @ 05/31/08 10:37:14 AMreport abuse

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Dec 07, 2007 -- Stored-value cards can help those with poor credit

What others are saying