It’d be nice if every credit card offered provided an equal amount of benefit to consumers as to the credit card issuer itself. However, nothing could be furthest from the truth. While there are some good credit cards, there are many that prey on unsuspecting consumers who’ve had past financial blunders. Fortunately, these credit card issuers aren’t so good at hiding their unfair tactics.
When you’re choosing a credit card, here are some that qualify as the worst credit cards you could ever choose.
- Credit cards with high initial fees that make you have a balance even if you never make a purchase. Watch out for credit cards with fees such as account set-up fees, program fees, participation fees, fees for additional cards, and fees for credit limit increases.
- Credit cards that don’t report your payment status to credit bureaus. If you’re working to build or re-build your credit history, a credit card that doesn’t report to the major credit bureaus won’t be any good to you. Since the payment history for that card won’t appear on your credit report or in your credit score calculation, your positive payments don’t do any good to help you build a positive credit history.
- Credit cards with a high minimum APR. The annual percentage rate is the interest rate applied to balances that you carry from one month to the next. If a credit card states a minimum interest rate that’s in the double digits, don’t apply for it. That means you’ll always have an interest rate of at least 10.9% (usually it’s more than that), even if you have a good credit score.
Some credit cards have fees so high that up to 50% of your credit limit is used with account fees. One such credit card is the Aspire Visa that leaves you with $141 in available credit after you make your very first minimum payment. If you encounter a credit card like this, do not apply.
Common Credit Card Fees
Credit Report and Credit Score Overview
Before you accept a credit card, read the disclosures to find out the terms and conditions of the card. Compare with various credit cards and choose the credit card that has the most favorable terms.
If bad credit or no credit history keeps you from getting approved for a card with better terms, consider getting a secured credit card.
