Tanesha’s Take: First Savings Credit Card

04 Jul

Who are they?

First Savings Bank, FSB, is a FDIC-insured bank that was established in 1989. However, eventually the FSB was dropped. Now it goes by simply First Savings Bank. The bank’s headquarter office is located in Beresford, South Dakota. In 1995, the First Savings Bank acquired two New Mexico based banking institutions, Sun World Bank and Home Federal Savings Bank. First Savings Bank operates 22 offices throughout 6 states (NV, AZ, SD, NE, NM, and TX) and as of June 30^th held over $375 million in deposits. It is also affiliated with First National Banks, which has branches in IL, IA, MN, SD and CO.

First Savings Bank professes to stand by its mission of commitment… commitment to providing great products, personalized services and excellence overall.

In the news

First Savings Bank has not been in the news lately. Actually it was hard to find any information about this bank. However, circulating the web are few rip-off reports and comments posted by pissed customers regarding a MasterCard issued by the bank.

The gist of the card holder complaints is that First Savings credit card is a total sham.

The card

In piecing together information posted by First Savings credit card holders, here is what I gather about the card:

The basics

You can only apply for the card if you receive a special invitation through the mail
The invitations are targeted to people what have less than stellar credit. Or to be frank… the invitations are sent to those with horrible credit who are desperate to repair their credit situation yet have very limited options.
Invitations can be accepted through this site or by mailing the completed application to a Sioux Falls, SD address
An applicant’s identity may need to be verified by sending in a copy of a driver’s license and utility bill
Credit limit typically max out at $300 and limits are rarely increased
$35 processing fee to apply for the card
$50 annual fee
$110 fee to have the card activated
$6 monthly participation fee
$29 over the limit fee
Once issued, card is hard to cancel
Uses LTD Financial Services, L.P. to collect on delinquent accounts

The extras

Ain’t none… unless you count a headache as an extra

My take

First Savings MasterCard offers its holders an opportunity to develop a positive credit relationship. This allows consumers to build or rebuild their tarnished credit. Well… that’s the premise anyway. The truth, on the other hand, is quite different. Let’s do the math:

$300 card limit

Less $35 processing fee

Less $110 activation fee

Less $50 annual fee

Now you’re left with what? $105 in credit

Ok, so let’s say you want to go shopping. So you use your brand new credit card to fill up your gas tank at the neighborhood Exxon. With today’s gas prices, that’ll set you back a 100 bucks. Well hell, all your credit is used up and you have not even made it to the mall.

But wait… it gets better. At the end of the month, First Savings applies the $6 monthly participation fee to your account.

Now you’re at $301… and BAM! You’re socked with a $29 over the limit fee! Doesn’t sound like a good deal to me.

My take, if you get this First Savings invitation in the mail… please do yourself a favor and chuck it. It will not lead you to the road of good credit.