2. First Premier – The bank claims to want to offer people a second chance when it comes to their finances, but its fee structure and fine print prove the exact opposite. First Premier charges you a $95 processing fee just to apply for a credit card. Then it levies a $75 annual fee on the credit cards and most cards only come with a $300 limit. You’re paying $170 for a $300 credit line! The APR is a painful 36%. In year two the annual fee reduces to $45, but then you’re charged a monthly servicing fee of $6.25. And to top it all off, you’ll be charged a 25% fee if your credit limit is increased. Stay away from this card! Use the $170 it would take to open the card and get a secured card instead.
Anyone else may have to pay if they want their actual FICO score by visiting myFICO.com. The site offers single-time and monthly packages. The recurring ones run between $19.95 and $39.95 per month and include identity theft monitoring. The single-time package ranges from $19.95 to $59.85. Of course, the more you pay, the more features you receive. Instead of a credit report from one bureau, for example, you get all three with the middle- and top-tier products. You will also see scores specifically tailored for auto, mortgage and credit card lenders.
Just want to read your credit report without seeing your score? You can do that once a year, completely free, at www.annualcreditreport.com. The nice thing about this government-sanctioned site is that you can request reports from all three bureaus: Experian, Equifax and TransUnion. Because some banks use only one or two of the reports to make lending decisions, it’s always a good idea to make sure all three contain accurate information about your borrowing history.
Credit scores are calculated from your credit report, which is a record of your credit activity that includes the status of your credit accounts and your history of loan payments. Many financial institutions use credit scores to determine whether an applicant can get a mortgage, auto loan, credit card or other type of credit as well as the interest rate and terms of the credit. Applicants with higher credit scores, which indicate a better credit history, typically qualify for larger loans with lower interest rates and better terms.
You should also consider your level of comfort with sharing your financial account information. The UltraFICO is a positive use of such data, Wu said, but other potential applications could be worrying, such as debt collectors accessing this data. And last year’s Equifax data breach proves that consumers should be concerned with how credit reporting agencies collect, store and use personal data.
Annualcreditreport.com and the nationwide credit reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide credit reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at firstname.lastname@example.org.