If your credit score is below 620, then there is a good chance that you have received a solicitation for a First Savings credit card. At first, the application that comes in the mail feels like a breath of fresh air. After all, most credit card lenders will not invite you to apply for a credit card unless you have a reasonably good credit score. Should you take this lender up on their MasterCard offer?
The First Savings Credit Card Offers Reasonable Rates
You take a look at the terms and conditions of a First Savings credit card, the rates are actually rather reasonable. The APR for purchases and cash advances is 15.6% on one of their offers. Although there is a cash advance fee of five dollars every one that is made, some ATM fees for debit cards are 3 to 5 dollars as well. Some of their card offers have no annual fees and late payments are as low as $10 each time a payment is late.
Some of the offers from this credit card lender, however, are not as friendly. In one particular offer, the APR for purchases and cash advances is 29.9%. There is also a 2% fee for each cash advance that is based on the total amount of the advance and late and return payment penalties are up to $25 per incident. There is also a $75 annual fee and every authorized user that you permit to have on the account has an additional $20 annual fee.
Is It Worth Apply For This Card?
Although at first it might seem like the First Savings credit card is a bit of a scam, some of their offers are quite reasonable. It is also backed by an FDIC insured bank so that every user can have confidence legitimacy of the product. If you are in a bad credit situation and are looking to repair your credit score, then the high interest rate offers that this lender provides you could offer a solution over the long term if you manage it correctly.
How can you manage your First Savings credit card effectively? By making sure the balance is paid off within the grace period every month. The minimum payment every month on these credit cards is $25. If your balance exceeds this amount, then it is 3% of the total balance due or 1% of the balance plus any late fees and penalties that you have to pay. Those fees can rack up quickly.
If you are approved for this credit card, no matter what the terms might be, you will have a MasterCard with a minimum $300 credit limit. The annual fee will be immediately applied, however, so your available credit will be to $225 on the first month and if you don’t pay that fee off immediately, you could be paying 29.9% APR on it until you do.
In specific situations, the First Savings credit card could solve a lot of problems. Get the best terms possible and be smart about how you spend money on this card, and you could end up repairing your credit score and 12 months or less.
Categories: Credit Card Applications