Five credit cards named to Hall of Shame
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There are so many credit cards out there, it's not possible that you picked the worst one.
Or is it?
The credit card-tracking website Cardratings.com this week unveiled its Hall of Shame picks for the five worst card offers for 2011 based on terms, fees and overall value.
If you have one of these cards in your wallet, don't tell your friends:
• First Premier Gold. This partially secured card, designed for people trying to rebuild their credit, captures one of the top slots for its eye-popping annual interest rate of 49.9 percent. (Let's just call it 50). Besides the high rate, cardholders must keep $95 on deposit for a $300 credit line, pay a first-year fee of $75, plus $6.50 per month.
• Applied Bank Platinum Zero. This secured card, which requires an initial deposit that matches the credit limit, stands out for its deceptive marketing by promising no interest charges on purchases for life.
"Digging into the fine print tells a different story: Service charges on this account can cost nearly $120 per year," Cardratings.com said. "Carry a $500 balance, and that's just like paying a 24 percent APR to use your own money."
• Visa Black Card. Cardratings.com calls this card the least "premium" premium card for carrying a $495 annual fee but offering run-of-the mill perks.
• Applied Bank Gold Visa. This card got the nod as the worst secured card, even worse than the Platinum Zero from the same bank. Although it charges a reasonable $50 annual fee with a 9.99 percent fixed rate -- not bad for a secured card -- it has no grace period. That means cardholders start accruing interest the moment they swipe.
• World of Warcraft Visa. Cardratings.com calls this the most embarrassing credit card, edging out the Hooters MasterCard. Enough said.
Ending on a bright note, Cardratings.com identified one credit card that on its face should get a bum rating but instead deserves a second look: the J.C. Penney rewards card.
Normally, experts recommend that people skip retailer cards because they generally carry the highest interest rates.
Although the J.C. Penney card also has a high rate (currently advertised at 26.99 percent), extra rewards that include discounts of up to 30 percent make it a winner, Cardratings.com said, as long as cardholders avoid carrying a balance.
This card "beats other retailers hands-down for the unexpected perks and bonus coupons" that come on top of points earned on purchases, the website said.
"At least two of our credit card expert panel members admit to carrying this card."
First Published January 13, 2012 12:00 am
