PREMIER Bankcard^® Mastercard^® Credit Card Review

For most people, the PREMIER Bankcard^® Mastercard^® Credit Card wouldn’t be a good card due to the excessive number of unavoidable fees. In addition to an annual fee, you’ll also pay a one-time program fee and monthly fees (See Provider Website for full Terms & Conditions).

The saving grace is that because it reports to the credit bureaus, you’ll have an opportunity to build credit if you have been turned down for other credit cards.

Take into consideration that the one-time program fee and the annual fee together (See Provider Website for full Terms & Conditions) would be close to what you need for a refundable security deposit if you opt for a secured credit card. In fact, with the Capital One Platinum Secured Credit Card, you may be eligible to secure a line of credit for a deposit as low as $49.

• Available to applicants with Limited / Poor / Fair

  The most appealing feature of the PREMIER Bankcard^® Mastercard^® Credit Card is that it accepts applicants with limited / poor / fair credit. If you’ve not yet started to build credit, or your credit report is blemished, you may have an easier time getting approved for this card compared to other cards for building credit. And since it’s an unsecured credit card, you won’t have to worry about making a hefty deposit up front.

• Card activity reported to credit reporting agencies

  To help you build credit, the PREMIER Bankcard^® Mastercard^® Credit Card reports your monthly history to the credit reporting agencies, or credit bureaus. This is an essential part in helping build your credit, but one that not all cards for building credit offer this.

  Your payment history and the amount of credit you use are factors in calculating your credit score. You never know which credit bureau a lender will use to get your credit score, so it’s ideal that they all have the same data. And generally your credit score is inversely related to your interest rate. When you get a mortgage, your credit score can mean the difference between spending an extra $50,000 on your home or not.

  Remember that all of the information is reported and not making payments by your due date will hurt you. If you’re new to credit, or need a refresher, you can learn more about how FICO Scores work and get tips to raise your credit score.

• Accepted worldwide

  Since the PREMIER Bankcard^® Mastercard^® Credit Card is a Mastercard, it’s widely accepted around the world. The PREMIER Bankcard^® Mastercard^® Credit Card does charge a foreign transaction fee (See Provider Website for full Terms & Conditions), so it might be best to choose another card when you travel.

• Costly fees*

  Almost all credit cards come with fees — generally a late fee, balance transfer fee or annual fee. Some of these are avoidable and there are plenty of no-annual fee credit cards. The PREMIER Bankcard^® Mastercard^® Credit Card, however, has several fees which are unavoidable even if you pay your bill on time and in full.

  1. Before you get the card, you pay a one-time program fee. The amount of this fee varies by your approved credit limit.
  2. Then there’s an annual fee, which is charged against your credit limit right off the bat. This lowers your credit limit until you pay your balance. The annual fee also varies by credit limit and decreases slightly in your second year.
  3. Finally, there’s a monthly fee, which is uncommon among credit cards. For those with credit limits of $500 and lower, this fee is waived in your first year of card ownership. For all credit limit tiers, the monthly fee increases in your second year.

  Here’s a breakdown of the fees by credit limit, as well as a look at how much you’ll pay in fees each year.

  Credit limit	Program fee (one-time fee, paid before card is issued)	Annual fee (paid from credit limit)	Monthly fee (paid monthly)	Initial credit limit*	Total fees in first year (subsequent years)
  $200	$95	$50 (first year) $45	$0 (first year), then $75.00 annually ($6.25 per month)	$150	$145 ($120)
  $300	$95	$75 (first year), then $45 annually	$0 (first year), then $75.00 annually ($6.25 per month)	$225	$170 ($120)
  $400	$95	$100 (first year), then $45 annually	$0 (first year), then $75.00 annually ($6.25 per month)	$300	$195 ($120)
  $500	$95	$125 (first year), then $49 annually	$0 (first year), then $124.80 annually ($10.40 per month)	$375	$220 ($173.80)
  $600	$75	$79 (first year), then $49 annually	$70.20 (first year, 5.85 per month), then $99.00 annually ($8.25 per month)	$515	$224.20 ($148)
  $700	$55	$ 79 (first year), then $49 annually	$96 (first year, $8.00 per month), then $124.80 annually ($10.40 per month)	$613	$230 ($173.8)

  *Credit Limit – Annual Fee = Initial credit limit

   
  This table shows how much cardholders pay in fees on a PREMIER Bankcard^® Mastercard^® Credit Card with a $200 credit limit. By the 14-month mark, cardholders spend just over $200 in nonrefundable fees.

  Fee breakdown for a card with a $200 credit limit

  	Program fee	Annual fee	Monthly fee (total per year)	Total fees per year	Cumulative total of fees
  Year 1	$95	$50	$0	$145	$145
  Year 2	$0	$45	$75	$120	$265
  Year 3	$0	$45	$75	$120	$385

  Note that a credit card fee is something you pay and don’t get back. If you’re unable to get a traditional credit card, consider a secured credit card like Discover it^® Secured Credit Card or Capital One Platinum Secured Credit Card. Although you have to give them a security deposit, the deposit is refundable if  you close your account or graduate to an unsecured credit card.

• Sky-high APR*

  The PREMIER Bankcard^® Mastercard^® Credit Card charges an APR that is very high even among cards targeted to consumers with low credit scores. Credit card interest can be avoided by paying off your statement balance before the due date. However, emergencies and unexpected expenses pop up and it’s not always possible to pay your balance in full, so it’s preferable to avoid a card with a high APR.

  The OpenSky^® Secured Visa^® Credit Card has a lower regular APR of 25.14% (variable), which is significantly lower and is better if you frequently carry a balance.

• No rewards program

  The PREMIER Bankcard^® Mastercard^® Credit Card doesn’t offer any rewards program. While rewards are nice they are more common among credit cards that require good to excellent credit for approval. When you have limited credit or bad credit it’s important to give priority to establishing, and building, your credit history.

  If, however, you don’t mind getting a secured card, the Discover it^® Secured Credit Card is a better option for applicants with low credit scores that offers rewards.

• Foreign transaction fees*

  Although Mastercard is accepted worldwide, there is a foreign transaction fee when you use the PREMIER Bankcard^® Mastercard^® Credit Card outside of the United States. If you want a card that’s less expensive to use when traveling abroad, look for a card with no foreign transaction fees, like the Capital One Quicksilver Secured Cash Rewards Credit Card.

  *To see rates & fees for Capital One Quicksilver Secured Cash Rewards Credit Card, please click here.

PREMIER Bankcard^® Mastercard^® Credit Card vs. Discover it^® Secured Credit Card

 
The Discover it^® Secured Credit Card is a more affordable option for people who are building or repairing credit. While you’ll have to pay a $200 deposit upfront, it has a $0 annual fee. Plus, you may be able to have your deposit refunded in less than a year. Starting at seven months, Discover will do automatic reviews of your account and other financial data to see if you can transition to an unsecured credit card.

It also has a solid rewards program — you 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically

PREMIER Bankcard^® Mastercard^® Credit Card card vs. Capital One Platinum Secured Credit Card

 
The Capital One Platinum Secured Credit Card is a $0 annual fee card that offers a potentially lower security deposit. The refundable security deposit amounts include $49, $99 or $200 and you get a $200 line of credit for any of them. After six months of using the card responsibly, your account information is reviewed to see if you’re eligible for an increased credit limit.

Unlike the Discover it^® Secured Credit Card, it doesn’t offer a clear timeline for upgrading to an unsecured credit card. It also lacks a rewards program, which you can find on many secured credits cards, as well as on some unsecured credit cards for people with low credit scores. Still, it’s a solid choice for building credit without having to pay ongoing fees.

If you’ve exhausted all other options for getting a credit card, the PREMIER Bankcard^® Mastercard^® Credit Card may be a viable option to help you build or repair credit. After a year of using it, you may find that there are more credit card options available to you, not just cards for no credit history or cards for bad credit.

However, given all its fees (See Provider Website for full Terms & Conditions), a secured credit card may be a more cost-effective option for building credit. Not only will you get that money back, but secured cards often offer a path to upgrade to an unsecured card — at no additional cost.