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Nov 05, 2024

What are the worst credit cards right now?

The average American adult has four credit cards, but which card you choose matters. People tend to have different cards for different reasons, like one with a high limit to make big purchases,

The average American adult has four credit cards, but which card you choose matters.

People tend to have different cards for different reasons, like one with a high limit to make big purchases, another tied to an airline or hotel chain for travel, and one for business.

WalletHub analyzed more than 1,500 credit options to find the ones you definitely want to avoid. It found the worst offerings for rebuilding credit, rewards, financing new purchases, balance transfers, student spending, and small business.

Check out the six worst cards and the alternatives Wallet Hub suggests instead.

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WalletHub advises staying clear of the First PREMIER Bank Mastercard (MA) Credit Card, with a 36% interest rate, an opening fee of $55 to $95, an annual fee, and a monthly fee. A version of the card has been on Wallet Hub’s worst list for 13 years. It suggested the Discover (DFS) it Secured Credit Card instead.

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If you want good rewards, WalletHub suggests staying away from the Mastercard Gold Card. It has an insane $995 annual fee and only gives 1 point per $1 spent. Instead, Wallet Hub suggests checking out the Chase (JPM) Sapphire Preferred Card.

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Looking to finance a new purchase? Don’t get the Amalgamated Bank (AMAL) Maximum Rewards World Mastercard, WalletHub says. Sure, it has 0% intro rates, but only for six months. After that, your APR could rise to 29.99%. Wallet Hub suggests trying the Wells Fargo (WFC) Reflect Card, which has 0% interest for 21 months. Then, APRs could range between 17.74% and 29.49%.

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If you’re looking to transfer balances, WalletHub thinks you should avoid the Community Bank Maximum Reward Signature Card, which has a 5% balance transfer fee plus high APR. The Citi (C) Simplicity Card is a better option.

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Students beware: The Provident Credit Union College Visa Credit Card is not for you, WalletHub says. That’s because the card doesn’t have reduced intro rates or rewards. Check out the Discover it Student Chrome instead.

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Small Business cards usually have good rewards, but not the CorTrust Bank Visa Business Credit Card, which offers no rewards or low interest rates at the start. WalletHub advises business owners to open up the Capital One (COF) Spark Cash Plus instead.

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