THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.
Our list of the the top five worst credit cards will not only help you avoid bad cards. It will help you understand how to spot cards that take advantage of you. Because you deserve a card that provides you net benefits.
There are many credit cards out there that just don’t provide the same benefits as competing cards. Or worse, there are cards that really just take advantage of cardholders.
Want some examples? Read our list of the worst credit cards available today.
And take caution from the list below. There are always hidden fees and other fine print that make credit card benefits less than they seem at first blush.
How do you know if the benefits of your credit card are greater than takes more advantage of you than Although many credit cardholders have recently found their interest rates climbing and limits decreasing, cardholders of these accounts were never enjoying a good deal.
Our Top 5 Worst Credit Cards
If you’re considering applying for one of these cards, think again. These credit cards were rated worst in each of the following categories.
Review this list and if you find one of your credit cards on here, it may be time to think about switching to a different card issuer.
Worst Cash-Back Credit Card
Money Return Platinum Plus Visa from Bank of America
Cash back credit cards can be a great deal for people that use credit frequently, especially those that pay their balance in full each month. This card is definitely the exception, however.
The Money Return Platinum Plus card sounds great on paper: no annual fee, 0% introductory APR on balance transfers for 6 months and a staggering 10% cash back rebate.
The fine print, however, paints a different picture.
You need to carry a balance to earn the 10% cash back. And the annual percentage rate ranges from 9.99% to 19.99%. Which means you’ll end up paying up to 20% to earn 10% back.
Worst Retail Credit Card
Macy’s Credit Card
Although retail credit cards usually have bad deals, Macy’s manages to take the lead on bad terms.
While retail credit cards can often charge over 20% interest rates, the Macy’s credit card begins at a shocking 23.99% interest rate. This just shows that it’s often better to avoid retail credit cards, especially if you’re only getting them for a one-time savings.
Worst Subprime Credit Card
Centennial Gold Mastercard from First Premier Bank
Credit cards that target people with poor credit usually come with high fees and bad terms, although the Centennial Gold card stands out from the others.
This credit card appears great with a 9.9% fixed interest rate. However, it comes with a host of terms.
First is the one-time set-up fee of $29. Next up is the one-time program fee of $95. Don’t forget the annual fee of $48 and the $7 per-month service fee, adding an extra $84 per year. All together you’re charged $256 your first year in fees alone!
If you’re only approved for $250, say good-bye to your available credit.
After the new Credit CARD Act takes place next year, cards like this will thankfully be a thing of the past as issuers will no longer be able to charge fees in excess of 25% of the limit.
Worst Secured Card
New Millenium Bank Secured Gold & Platinum Visa/Mastercard
These two secured cards work like standard secured credit cards: you make a deposit equal to your credit limit.
These two credit cards, however, charge shockingly high fees and interest rates and have no grace period.
If you sign up for these cards, expect a $59 annual fee, a $99 processing fee and an interest rate of almost 20% that applies to purchases and balance transfers. And with no grace period, no matter how soon you pay your bill you will owe the full interest on all purchases.
Editor’s Note: There are several subprime secured and unsecured cards out there that play this trick. If you are going to be charged interest from the day you make a purchase (with no grace period), then it is not a credit card. It is a cash advance.
Worst Prestige Credit Card
Visa Black Card
The Visa Black card (see our review) tops the list of worst prestige cards thanks to its incredibly high annual fee that offers few services.
The fee for the Visa Black is $495 per year, all for services that many other credit cards offer for free, like concierge service and access to airport lounges. This below-average card with above-average cost should be avoided at all costs.
How to Spot a Bad Credit Card
These cards are the worst of the worst.
They offer few services, charge insanely high fees and are generally bad to do business with. But you would only know if you checked the fine print and compared these cards to other offerings.
Which is what we recommend you do.
There are dozens of worthwhile credit cards out there. So make sure you avoid these five, if you hope to get ahead. Instead, use our site to find the best credit cards available.