I obtained a premier card to help repair my credit. I accepted the fees and even incurred additional fees by making some payments online for fear that my mailed in payments would not be applied. I never had a problem with payment applications and all my payments were reported on time to all three credit bureaus.
Where the problem lies in using Premier Credit Cards is as follows:
1. All payments were made in a timely fashion. I applied for a credit increase within the six months as advertised and my request was denied due to my low credit score.
Excuse me, but wasn't this a poor/bad credit card? The point was to prove that I could make timely payments and manage my credit and I would be given an opportunity to increase my credit.
2. All payments continued to be made in a timely fashion. Credit line increase still denied.
Almost two years later having this card my credit limit was never increased. My credit has improved and I am now getting better offers and will soon discontinue using this card.
Problems associated with having this card:
1. I was denied credit with other card companies because my current credit card balances were near their limit.
This is the "catch 22". The card is given to you to help improve your credit, but has a low limit. The limit is never increased, but no matter if the credit card balance is $250 or $2000 if you are near your credit limit it shows that you cannot manage your credit. The standard amount any creditor likes to see on your credit cards is around 30%. Meaning you should not exceed a maximum of 30% of your total credit limit. So for a credit card balance of $300 that means you should maintain a balance of around $90 at all times. I'm sorry to say but once all the fees are added, you have definitely exceeded that amount.
2. High interest and fees.
Well we accept that the high interest and fees are a given. But if you do not stand to gain a credit limit increase and it negatively affects how other creditors view you....what's the point.
If you choose to get this card anyway at least do this...
1. Make your payments on time - they do report to all three credit bureas.
2. Keep you balance below 30% - which means you really don't have a credit card but at least you'll be showing other creditors you can manage money.
3. Finally! Once your credit improves and you receive better offers, cut this sucker up.
Yes, it's true that it will negatively impact your credit to discontinue the use of your long term accounts. Meaning it will affect your credit when you stop using this account. Well that's the price you pay. Don't keep this card any longer than you have to. Pay it off. Transfer the balance to another card and grin and bear it. If the negative impact concerns you, after you have discontinued this account don't plan on making any large purchase for at least 6 months to a year. Make sure your credit report reads the card was turned off by the consumer and not by the creditor. It helps when it says you no longer wanted the card rather they no longer wanted you as a customer.
My advice had I known any of this info prior to getting this card would be to use Household Bank Card.
Much better card, not as many fees, and your not embarrassed to use it either.