First Premier Bank’s $50 Limit Mastercard

Though I thought I had opted out of the pre-approved credit card offers today I received an offer for a Mastercard.  Being on the lookout for a good 0% balance transfer offer I dug into the packet to see what the terms of this Mastercard were.  Boy was I shocked.  Apparently the card I got is for people with damaged credit,and has some downright ludicrous fees associated with it.  As an aside I wonder if Yark Automotive sold our information when we purchased a car from them last year and I should check my credit report for inaccuracies.

Once I read through the enclosed disclosure I found a slew of fees associated with the new Mastercard I was being offered.

• $29 Account Setup Fee
• $95 Program Fee
• $48 Annual Fee
• $84 Monthly Servicing Fee ($7 per month)
• $20 Additional Card

These charges would bring the fee total on the card’s first statement to $199!   Just to get that across you start off with $199 in fees and you haven’t purchased anything.  After you get the card you better hope all you plan to use it for is the dollar menu at McDonald’s because your credit limit is $250.  Yes your new card will buy you about 17 gallons of Gas before you Max it out.  As an added Bonus First Premier bank will up your credit limit when available at a $25 charge each time your account is  able to increase.

Here are a few scans of the Disclosure:

 

There is no point in getting a credit card if your available balance is only $51 bucks.  Your just going to dig further into a hole and you would be better off just using your existing money to buy $51 worth of stuff at a cost of $51 instead of $250, and that is assuming you pay the balance in full before month two and cancel the card.  If you need a credit card that bad, try opening an account at a local credit union and getting a secured card.  That route is almost assured to be cheaper by month two even though the funds are sitting in the bank.