The First Savings Bank has been serving the citizens and residents of the US since 1913. Initially, it was the First Savings Bank, FSB that had FDIC-insurance. Only recently, the board of directors dropped the “FSB,” and it is now popular as the First Savings Bank. Its headquarters is in Beresford, South Dakota. Early in 1995, the institution acquired two financial institutions in New Mexico – Home Federal Savings Bank and Sun World Bank. Over the years, First Savings Bank has acquired more banking institutions and inaugurated new branches across the country. Currently, it has offices in New Mexico, Nevada, South Dakota, Texas, Nebraska, and Arizona.
It has helped small business owners and farm owners extensively by providing smart financial services. It is the ideal community bank that provides livestock loans, agriculture loans, equipment loans and other types of business loans. Apart from offering a melange of loans to the target consumers, First Savings Bank also provides credit card services. The quality of service has remained constant in the last few decades, and that applies to the credit facilities as well.
Why should those with poor credit scores consider the First Savings Credit Card?
This card is a boon for those with poor credit scores. Here’s why –
i. People with average or poor FICO scores have a tough time finding credit cards with amicable interest rates and APRs.
ii. It does not check credit score as stringently as other banking institutions.
iii. It is a credit card that primarily targets people with bad credit records.
iv. If you don’t have open lines of credit or any loan in your name, you might not have a credit score. However, you can apply for it quickly.
v. The application process is quite straightforward, and it requires minimal credit history checks.
As you can see, this credit card is ideal for people, who want to work on their credit record. If you’re going to boost your FICO score by 20 or 30 points within a year, the First Savings Bank card might be your best chance. Due to the low-interest rates, and easy repayment terms, users find it effortless to maintain the card and clear their dues on time. This credit card gives you the opportunity to apply for new loans in the near future.
What are the fundamentals of qualifying for a First Savings Credit Card?
Here are the basics about the First Savings Bank credit card you need to know –
i. The only way to apply for this credit card is via an invitation through postal services (mail). The credit card service has no dedicated website and chancing upon it is quite rare.
ii. Only those with less-than-desirable credit scores receive the invitation in the mail. If you are desperate to repair your FICO score, then your invitation is probably on its way.
iii. You can respond to the invitation online, or you can mail the filled-out application form along with copies of other necessary documents to the address they have provided. (Sioux Falls, South Dakota).
iv. First Savings Bank usually approves a copy of the driver’s license or a utility bill as the proof of identity of the applicant. Be sure to send copies of every identity proof necessary.
v. The first savings credit card limit increase is not an easy task. For most users with bad credit, the limit maxes out at $300. While people might find it restrictive, it is actually helpful in preventing people from overspending.
vi. The card bears a $35 processing fee.
vii. It has a $50 annual fee.
viii. There is a one-time $110 charge for the activation of the credit card.
ix. There is also a compulsory $6 participation fee that first savings bank charges per month.
x. Most importantly, you will find it particularly hard to cancel the card after the activation.
You should note that till date, first savings credit card uses LTD Financial Services, LP to collect the dues from delinquent cardholders.
Does this credit card offer any extras?
Sadly, there aren’t too many extras this card can offer to the users. Since it is primarily a tool for credit score repair, there is not much you can expect from this credit card. There are no reward points or cash backs that you can enjoy upon every purchase. There are no bonus rewards on first purchase. However, the charges are up front, and the interest rates are quite manageable. The repayment period is generous too. Therefore, most business owners, farm owners, and personal credit card holders find this card to be quite fuss-free.
What is the credit limit of the first savings credit card?
If you do the math here, the $300 upper credit limit does not seem like much. You need to pay $35 in processing fee, $110 as an activation fee, $50 in annual fee and $6 as compulsory participation charge. That leaves you or any average user with only around $99 credit limit. In most cases, First Savings charges the $6 fee at the end of the month. Unless you account for that while charging your expenses to the card, you might overshoot the upper limit of expenses. If that happens, you will end up with an additional $29 over limit fee.
Why is a low credit limit right for you?
The first savings credit card limit is almost always unchangeable for most cardholders. Unless you improve your credit scores drastically, First Savings Bank does not offer any credit card upper limit increase services. While struggling with his or her credit record, a person should not have the ability to overshoot his budget because of a flexible credit limit. Several American bank credit cards provide their users with a high credit limit, but once the users fail to pay their dues within the repayment term, the institutions are likely to seize the security (it can be a home, car or equipment, depending upon the type of loan and the bank).
What’s our take?
The first savings credit card is safe for people with average monthly expenses and no loan or credit history. If you get an invitation to sign up for the First Savings Bank credit card, you should go ahead and take it. It might be the most pro-active way for you to mend your credit record.