Credit card companies are battering consumers across the board with monstrous fees, high interest rates and disappearing rewards. If you signed up for a credit card in the past year, the chances are – you’ve been ripped off. Your interest rate might have gone up, had your credit limit reduced, or your credit card issuer gutted your rewards.
Bank of America told thousands of its cardholders in recent weeks — even those with good payment histories — that they faced a rate hike from 9 per cent to as high as 28 per cent if they didn’t pay off their balances at the old rate and stop using their cards. The bank, the largest credit card issuer, since its 2006 acquisition of MBNA, says it’s all part of its “periodic” review of customer credit risk, according to Forbes.
Analysts say: it’s only going to get worse. Still, you may be able to get a good deal, as long as you don’t chose these cards singled out by experts for being the world’s worst credit cards:
Cards offered by retailers and specialty stores hardly offer a good deal, but Macy’s stand outs out the most.Many people apply for retail cards to get a discount on their purchases, typically 10% to 20% off. But you can often get the same benefits and a better overall deal by applying for a store card that’s affiliated with a major credit card brand.
“Almost without fail, (retail) cards charge exorbitant interest rates. The worst offender I know of is the Macy’s credit card, with its 23.99% interest rate,” McHenry said, “but cards from J.C. Penney, American Eagle Outfitters, Gap, Brooks Brothers, J. Crew and Dillard’s all come in at rates over 20%.”
Read the rest of this post with infographics and video on EconomyWatch: The World’s Worst Credit Cards