The Worst Credit Cards for Your Wallet

Some credit cards are better than others, but there are also some that can do more harm than good to your wallet. The Bank of America Cash Rewards credit card has a 3% cash back limit on gas and 2% on groceries, but it comes with a $95 annual fee.

This card is a good example of how some credit cards can be more expensive than they're worth. With a 22.99% to 29.99% variable APR, it's not a great choice for anyone who wants to avoid interest charges.

If you're not careful, credit card interest can add up quickly. For example, if you have a $1,000 balance and a 25% interest rate, you'll be charged $250 in interest alone.

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Credit card offers can be misleading, with some cards charging exorbitant fees and interest rates. The Capital One QuicksilverOne Cash Rewards Credit Card, for example, has a $39 annual fee and a 24.99% variable APR.

Some credit cards have low introductory APRs, but these rates can skyrocket after the promotional period ends. The Citi Simplicity Card, for instance, offers a 0% APR for 21 months, but reverts to a 26.99% variable APR after that.

Credit card rewards can be attractive, but the value may not be worth the cost. The Discover it Cash Back Card, for example, offers 5% cash back on various categories, but has a 3% foreign transaction fee.

To avoid getting stuck with a credit card that's more trouble than it's worth, it's essential to read the fine print and understand the terms and conditions. The Barclays Arrival Plus World Elite Mastercard, for example, has a $89 annual fee and a 18.24% - 25.24% variable APR.

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Rewards Credit Cards can be a trap for unsuspecting consumers. The Citi Double Cash Card has a 24.24% - 28.24% Variable APR, which is a hefty price to pay for rewards.

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If you're not careful, you might end up with a credit card that charges you more in interest than you earn in rewards. The Discover it Cash Back Card has a cashback rate of 5% on various categories throughout the year, but it also has a 14.99% - 25.99% Variable APR.

In reality, many rewards credit cards come with high interest rates that can negate the benefits of earning points or cashback.

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Credit card signup bonuses weren't always generous. There were rewards cards on the market frequently two decades ago that didn’t even offer bonuses.

I remember when I first got my Starwood Preferred Guest Credit Card from American Express 16 years ago, I didn't receive a bonus, which was the norm back then.

The worst signup bonus in history might be the stuffed animal you could get by signing up for a JAL Mileage Bank credit card, but it's not the only weak offer out there.

In fact, a commenter on a Reddit thread about the Costco cooler bag reward mentioned that they did better with their sign up for the Costco Visa and received a rotisserie chicken that would have cost $4.99.

The Costco cooler bag reward is a unique offer that's only available in-store, and it's not a guarantee that you'll get it.

Interestingly, some people are wondering if current cardholders can secure a match for the offer by asking Citi, but it's not clear if that's possible.

To give you an idea of what's out there, here are some examples of weak signup bonuses:

Amalgamated Bank's Maximum Rewards credit card offers 0% introductory rates, but the terms are poor for financing big purchases over time.

The 0% introductory rate only lasts for six months, which is relatively short for most credit cards. This means you'll have to pay the regular APR of 24.99% - 29.99% after the introductory period ends.

The card also offers 1.5 points for every dollar spent, but this can't compete with the best flat-rate cash back credit cards that offer 2% or even 3% back with no annual fee.

The card has a regular APR of 24.99% - 29.99%, which is quite high. This means you'll end up paying a lot of interest if you don't pay off your balance in full each month.

The Amalgamated Bank Maximum Rewards credit card has a $0 annual fee, which is a plus. However, the terms of the card make it not worth financing big purchases over time.

Business credit cards can be a nightmare, especially if you're not careful. Many business credit cards come with hidden fees that can add up quickly.

The Citi Business AAdvantage Card has a $95 annual fee, plus a 3% foreign transaction fee. This can be a huge burden for small business owners who travel frequently.

Some business credit cards also have high interest rates, making it difficult to pay off balances. The Capital One Spark Cash Plus Card has a 24.99% - 29.99% (Variable) APR, which can lead to a significant amount of interest paid over time.

Business credit cards can also have complex rewards structures that are hard to understand. The Chase Ink Business Preferred Card has a 3X points bonus on select categories, but the categories change every quarter, making it hard to keep track.

It's not uncommon for business credit cards to have annual spending limits, which can limit your earning potential. The American Express Business Gold Card has a $25,000 annual spending limit, which may not be enough for larger businesses.

Business credit cards can be a useful tool for managing business expenses, but it's essential to choose the right card for your needs.

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The CorTrust Bank Visa Business Card is a notable mention on our Worst Credit Cards list, and for good reason. It comes with a $0 annual fee, but doesn't offer rewards or low introductory interest rates.

This card is a stark contrast to the Ink Business Preferred Credit Card, which offers a $900 cash value welcome offer after spending $8,000 on the card in the first three months.

The Ink Business Preferred Credit Card's rewards rates are lower than some users might like, but points are worth 25% more when redeemed for travel through Chase Travel℠.

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The Indigo Platinum card is a card to avoid, as it offers super low credit limits and a high APR, along with a $99 annual fee with no perks.

Store credit cards are also a bad idea, as they only earn rewards at the stores they're tied to and can hurt your ability to get higher credit limits on good cards.

The Mastercard Black Card has a $495 annual fee with no way to make up for it, and it only offers 2 percent cash back.

Credit One cards are so sketchy that they're listed as one of the worst credit cards, with an entire marketing strategy that relies on people thinking they're Capital One.

The Citi AAdvantage Executive World Elite Mastercard has a $1,000 annual fee, but it comes with a $200 airfare credit and 2 percent cash back, which is the industry standard across cards that don't have an annual fee.

On a similar theme: Mastercard Cash Back Credit Card

The Mastercard Gold Card is a luxury credit card that comes with a hefty price tag - a $995 annual fee. This card offers a 24K gold plated card, a $200 airfare credit each year, access to a concierge, and the promise of luxury gifts.

For every dollar spent on most purchases, you'll earn one point. To put this into perspective, many other credit cards offer better rewards bonuses and higher ongoing rewards earning rates for hundreds of dollars less per year.

The card has a 0% transfer intro APR for 15 months, but be aware that there's a 5% transfer fee (minimum $5). The regular APR ranges from 20.74% to 28.74% variable.

You can earn 60,000 bonus points after spending $4,000 on purchases within the first three months of account opening. The interest rate is a variable APR of 20.74% to 27.74% for purchases and balance transfers, and 29.24% for cash advances.

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