WASHINGTON — In a sea of abundant credit card offers, how do you know which ones to avoid? CardHub hopes to take some of the guesswork out of the process by pinpointing the worst deals.
CardHub, which compares credit cards, looked at more than 1,000 options to determine which cards will cost consumers the most in the long run. It’s important information as Americans are on track to end the year with $54.8 billion more credit card debt than at the start of 2014, according to CardHub.
Making its fourth appearance on the list, the First PREMIER Bank Gold Credit Card earned CardHub’s title of “Worst Credit Card for Rebuilding Bad Credit.” The group said the card has a $95 processing fee prior to opening an account, a $75 annual fee during the first year, $120 in annualized membership fees in each subsequent year, a 25 percent fee for any credit limit increase and a 36 percent interest rate.
US Bank College Visa Credit Card found its way to the list as the worst for students because it doesn’t provide any rewards or low introductory rates. Additionally, students may end up with a regular APR as high as 20.99 percent, which CardHub says is one of the highest rates among student cards.
The Visa Black Credit Card – not to be confused with the well-known Centurion Card from American Express – was ranked as the worst credit card for rewards. In return for a $495 annual fee, consumers who have this card would get 1 point per $1 spent, airport lounge access and the chance to earn 25,000 bonus points if they spend at least $1,500 during the first 90 days. CardHub says there are a number of cards that offer better bonuses and higher rewards for much lower fees.
See the full credit card rankings plus tips to avoid bad credit deals on CardHub.com.