Complaint Review: First Premier Bank - Internet

First Premier is a Subprime credit card, which is for people that have not proven they are able to handle credit.  The only people who get this card are people who have been denied by just about every other creditor out there.  So don't say that you actually have excellent or even good credit because unless you just like throwing money away on a high-fee/high interest credit card there is no other bank who was willing to issue you a credit card.

Now, while you failed to list what your credit limit is, your balance gives you away.  You have a close to $700 balance, which means YOU spent the money and failed to make a sufficent payment to keep yourself under the limit.  People with good credit management skills keep their balances low.  In fact the ideal amount is to never use more than about 30% of your credit line.  When you start to go over 80% of your credit line you are considred "maxed out" which is a huge negative.  

The reason they do not make your payment available back on your credit line right away is because you are a subprime borrower and as such they want to make sure that the funds actually clear before they allow you to spend more of THEIR money.  In fact if they wanted to they don't have to make any credit available to you, they could close out your account today if they wanted.  Because it is their money and they have the final say in if they will allow you to use any more of their money or not.  Oh and if you are thinking "Well if they close my account I won't pay them".  That is your subprime attitude showing.  Because you still borrowed the money and you still legally owe it back, even if they say you are not allowed to borrow any more.

The reason you are being charged an over the limit fee is because you were over the limit in the billing period.  Just because you got it under doesn't take away the fact that you still did go over the limit.  So right now the ONLY way you are going to be able to get this under control is:

1. Stop using the card until you get your balance down.  Again I would not use it until you get your balance down to about 30% of your credit limit.  Oh and if you say that it is silly to only be allowed to use 30% of your credit limit...that is all part of responsibility and proper management.  If you HAVE to use more..you are seen as a much higher risk.

2. Make a payment sufficent enough to cover the amount you are currently over the limit, the interest that will be assessed,  and all fees charged.   Yes, this means that you need to make sure that even if they give you a "minimum due", that that minimum will keep you under the limit.  Again, ideally people with "good" credit never just pay the minimum.   You should be paying 2-3 times the minimum payment(or more if you need to keep yourself from going over the limit). 

3. This should go without saying, but since you are a subprime borrower.  ALWAYS make sure you pay on-time.  Even a payment 1 minute past their cut-off time on the due date is considered late, and that is just another fee you would need to pay.