Thursday, October 14, 2010

The Worst Credit Cards in America

Consumer Reports recently announced its choices for the two worst credit cards in America. While it's unlikely that you've got either one in your wallet, their more horrific aspects can provide lessons in what to look for - or not look for - in a credit card.

The First Premier Bank Mastercard advertises that it charges a one-time $75 "first-year annual fee." What it doesn't advertise as boldly is that it also charges a subsequent-year annual fee of $75 as well. There's also a processing fee, ranging from $25 to $95, and a fee just for raising your credit limit.

That card is aimed specifically at people with poor credit, so you're not very likely to end up with one. But you might stumble into something like the Platinum Zero Visa from Applied Bank, which claims it has zero interest, zero application fees, and zero annual fees. But after six months, the card starts charging $9.95 per month - which means you end up paying over a hundred bucks a year for something with "zero" fees.

For more, see the latest issue of Consumer Reports.

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