So, my wife came across an article on Yahoo the other day highlighting the worst credit card available.
They choose the First Premier Bank Mastercard. Here are some of the [low]lights about this card:
Up to a $95 processing charge (varies)
$75 annual fee
APR of 23.9 – 59.9%
$11 charge for paying your bill over the phone
Credit limit increase fee (something I never heard of) equal to 50% of the increase. So, get a $500 limit increase and you owe them $250!!!
Thankfully, because of the Credit CARD Act of 2009, during the first year after a card is issued, the issuer cannot charge fees that total more than 25% of the credit limit on that card. Meaning that they will have to give you a $680 limit in order to charge the full $170.
But that’s still $170 that you owe for doing NOTHING!!! That’s on top of the nearly 60% interest rate! And somebody please tell me what a “credit limit increase fee” is? They really plan on increasing your credit limit, and then charging you 50% of that amount?
Everybody, please burn any advertisements you get from this company (unless they are emails – wouldn’t want to have to charge a replacement monitor at 60%)! This is the reason why everyone must get out of credit card debt now!!!
They picked the Platinum Zero Secured Visa card as their runner-up. This gem from Applied Bank includes:
A $9.95 MONTHLY ($119.40/year) maintenance fee
$35 late fee (I personally have no problem with late fees, since you should be paying your bill on time anyway!)
No grace period, so interest accrues immediately
I’ve never heard of a credit card that doesn’t offer a grace period on purchases! Well, if the $119.40 maintenance fee wasn’t enough reason for you to stay away, that sure is!
Ever had a card this bad?
I remember a long time ago I had a card like this! I was desperate to build up my credit, and since I kept getting turned down, I figured it was my only option. I think I had a $300 limit and had to pay $179 in fees. So, by the time the card arrived in the mail, I only had $121 left to spend! Needless to say I got rid of that card rather quickly!
What about you?
Have you ever had a card this bad?
If not, what was your worst one?
If you had/have bad credit, would you pay an annual or monthly fee in order to get a credit card to improve it?
photo by Andres Rueda