The worst types of credit cards
Most credit cards are decent. There are some great options with great rewards and promotional interest rates.
There are some awful credit cards to be avoided at all costs
The worst credit cards usually prey on consumers who have made some financial mistakes and may not qualify for something better. Even if you do not have the best credit, you would not accept a credit card with terrible conditions.
When choosing a credit card, here are some features that qualify as the worst you can choose.
Few credit cards charge initial fees on a credit card, even before making a purchase. Read the credit card terms, look for fees such as account setup fees, program fees, participation fees, additional card fees, and credit limit fees. New federal rules say these credit cards cannot charge more than 25% if your initial credit is in fees. It’s still a high price to pay for a credit card only, and it’s a fee to think twice about paying.
No credit reporting
The worst credit card won’t help you make a better credit score. If you are working on building or rebuilding your credit history, a credit card that does not report to major credit bureaus will not do you any good. Because the payment history for that card won’t appear on your credit report or in calculating your credit score, your positive payments aren’t doing well, which can help you make a credit score
Unevenly high APR
The worst credit cards come with high APRs, significantly higher than the rates of other credit cards. Most APR credits range from 0% (for the promotional course) to 24.99%. The worst credit cards have regular APRs that exceed the penalty rate for many credit cards. Avoid any credit card with a regular APR of 30% or more.
Qualifying for Better Credit Cards
Before applying for a credit card, even a pre-approved credit card, read the credit card terms and conditions to find out the terms and conditions of the card. Compare credit cards with other credit cards to get an idea of which card is usually charged. Choose the credit card with the most favorable credit card terms.
If bad credit or no credit history does not prevent you from getting a credit card with better terms, consider getting a secured credit card to help you increase your credit. A protected credit card requires you to make a payment deposit to secure your credit limit. Once approved, you can use your credit card just like any other credit card. When your timely payments are reported to credit bureaus, your credit improves, making it easier to qualify for a better credit card.