First Bank of Delaware is a subprime lender. Subprime lending is a term which has come to prominence over the last couple of years, largely due to the financial crisis which we are currently experiencing. It refers to financial institutions lending in ways that do not meet 'prime' standards - i.e. to the riskiest category of consumers. This is usually people with a FICO score below 640.
The term can encompass a range of financial products, such as mortgages and loans - but it is credit cards that we will look at in this article. There are four brands of cards issued by First Bank of Delaware: the Continental Finance Credit Card, the Simply Gold MasterCard, the Imagine Gold MasterCard and the Tribute MasterCard.
The Continental Finance MasterCard is an unsecured card which carries an APR of 19.92%, with a 25 day grace period. New cardholders are given an introductory limit of 0, which can rise to ,000 if you manage your account well. Be aware that this card carries a number of fees and charges, including a one-off set up fee of 0, an annual fee of and a monthly fee of .
The Simply Gold MasterCard gives owners an initial limit of 0, but a one-off set up fee is deducted straight away, leaving the cardholder with left available. There is also a monthly fee of . The limit is assessed every six months, and can eventually rise to ,500.
The Imagine Gold MasterCard works along slightly different lines. Unlike most cards, this one requires the cardholder to set up an automatic payment plan from their bank account. The APR is the prime rate plus 11.5% - with a minimum of 19.5%. There is an annual fee of 0 and a monthly maintenance fee of .50. The limit starts at 0, with increases considered every six months.
The Tribute MasterCard is another unsecured card that is similar in nature to the Continental Finance card. The introductory limit is 0, with a limit of prime rate plus 24.5%. There is an annual fee of 0 and a monthly fee of .95, but no one-off application fee.
All of these could be considered by those who have a poor rating, as approval requirements are lower. They give these people the opportunity to buy products over the Internet and in stores, hire a car, pay bills and generally assist them with everyday life.
There is however several drawbacks. The fees are extremely high - with the Continental Finance MasterCard customers are left with just of their initial 0 credit, after their set-up, annual and monthly fees have been deducted. The APR is also higher than that of many other similar cards.
Anyone with a score over 500 should first look at a secured card. These carry lower fees and will improve your score at a faster rate. Make sure you fully understand the terms and conditions before applying for a First Bank of Delaware card.