First Bank Of Delaware Credit Cards

It's not that they don't like you and they understand that sometimes good people run in to some unfortunate financial situations

. Credit card companies also know that not everybody is going to pay back the money that they lend them. Some will not honor their commitments leaving the bank to foot the bill. These are the people who are considered high credit risks.

If you understand the description above, you understand a little bit about a subprime credit card. Subprime lenders market primarily to those with damaged or no credit at all. Because these customers are such a high credit risk, higher fees including application fees, annual fees and sometimes monthly fees are not uncommon in addition to higher interest rates. All of these fees are designed to mitigate the risk involved with higher risk customers.

An example of a subprime card is the First Bank of Delaware Credit Cards. This bank has a variety of cards but the two most common are the Tribute and Imagine Gold credit cards. Both of these cards are unsecured, meaning your bank account balance is not equal to your credit card balance.

The Imagine gold card assists you in rebuilding your credit by reporting to the three major credit bureaus. In order to open and maintain this account, you have to pay an annual fee $150. You also pay a $9.95 monthly maintenance fee as long as you carry a principal balance. There is also a set up fee of $4.95 so in order to be approved for this card, you are going to pay nearly $275 in fees. You also have to set up an automatic payment plan from your bank account so in order to qualify for an Image Gold card, you have to have a bank account.

The Tribute card is a little different. It is an unsecured credit card but you begin with a credit limit of $300. Much like the Imagine Gold card, there is a $150 annual fee and a monthly maintenance fee of $9.95. One of the most alarming facts about this card is the 24.5% interest rate. Even within the subprime credit card market, this is an exceptionally high interest rate.

Keep in mind that you can avoid the $9.95 maintenance fee by not holding a balance. If you can pay your bill in full at the end of the month, you can save almost $120 per year.

Why would anybody pay these kinds of fees? The best reason for paying these fees is that the only way to rebuild your credit is to get a credit card and practice good habits. All of the first bank of Delaware cards report to the three credit bureaus so providing you are paying your bill on time, a positive credit history is again being shown. Although the fees are high, for the consumer who has damaged credit, the first bank of Delaware cards offer an opportunity to rebuild.

by: Jason Abmramsons

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