Because of the continually changing nature of the credit card industry, credit card providers have to get a little bit more creative every year in order to make up for the revenue they lose. This has been especially true ever since the recent credit card reform legislation passed by Congress.
This creativity trend has caused a few problems for the average Joe shopper who isn’t a financial wizard and who, in fact, is hardly financially savvy at all. A financial literacy survey taken this year by the National Foundation for Credit Counseling states that only around 60 percent of United States credit card users were able to clearly differentiate between all the various offers from their credit card companies A full 40 percent gave themselves terrible grades in the financial knowledge department.
CardHub.com, a financial guidance website, recently compiled a list of what it considers the very bottom of the totem pole of credit cards available today. These cards have abnormally high rates of interest and yearly fees. It is highly recommended that you avoid the below credit cards as much as possible.
Wells Fargo Business Platinum Card
Out of all the currently available credit card, this one gets the worst marks, according to CardHub.com. Its providers are some of the least trustworthy around, and its interest rate ranges from ten percent to nearly 20 percent. This card also has no included rewards and no protection against occasional increases in the already high interest rate.
First Premier Bank Card
To obtain a credit line of only $300 with this partially-secured card, Premier Bank insists that you deposit a security fee of nearly $100 ahead of time. The APR is nearly 50 percent and the membership fee is $75 for the first year, after which it climbs to a whopping $120 annually.
Standing out from the hundreds of complaints made about this card every year is the recent claim that Premier Bank has made it almost impossible to make the required payments. Whether by using dirty tricks like discontinuing statements and online services or just simply refusing to allow payments to be made, Premier Bank has stood out as one of the most creative of credit card providers. And while you try to straighten out the many problems and somehow clear your debts to them, the amount you owe is quietly but surely rising.
Visa Black Card
The yearly fee for this card is nearly $500 and it has an APR of almost 15 percent. The few benefits it provides, one percent cash back on purchases and access to airport lounges, are nothing in comparison to its exorbitant fees.
USAA Military Card
With a ten to 25 percent APR rate and no rewards or special new-user offers, there are few benefits to using this card.
It’s important that you fully understand what a credit card will give you before applying for or using it. Read the terms and conditions and get a good handle on what fees you will be charged.
Surfing the web to compare credit cards is very time efficient and saves a lot of money in the long run. Do a credit card comparison at Kanetix today to see which credit card is the most suitable for your needs.