The invention of credit has been both a blessing and a curse for millions of people throughout its existence. Without credit, most average people couldn’t afford the things in life we often take for granted, like cars, college, and even your home.
The problem is, sometimes the temptation is too much. We all enjoy buying things and making purchases that make us feel good, but the use of credit often has numerous drawbacks. The biggest drawback to having a credit card is its cost.
According to the National Foundation for Credit Counseling, seven out of 10 adults used their credit cards for everyday purchases. This is a major issue with a lot of people who can’t even afford to buy the things they’re using credit to buy.
The banks don’t make it easy…or cheap. Fees, interest, charges, overdraft, and so much more can suck the dollars and sense out of your bank account and your peace of mind. This is where the Catch-22 comes into play.
We NEED credit. Without it, most of us are just out of luck. But if you’re one of many Americans who are currently searching for ways to get out of debt while improving their credit, here are several credit cards you should stay away from:
1) The Visa Black Card
One of the more popular cards on the market, the Visa Black Card will cost you $500 per year just to use it. That’s not bad enough, you be sucked dry with 14.99% APR. While it’s quite an expensive card to own, it also doesn’t really come with any benefits either. If you have debt, the last thing you want to do is pay this kind of money use a card with little benefit.
2) Wells Fargo Business Platinum Credit Card
Here’s another card was very little reward. You must pay an extra annual fee is to receive any benefit at all. Not to mention, this card has zero protection on it comes to arbitrary interest rates being increased. If you’re in debt, you shouldn’t be willing to subject yourself to higher and higher levels of interest.
3) First Premier Bank Platinum MasterCard
This card is another dozy. No wonder people are in a lot of debt! But if you don’t mind paying a $223 annual fee PLUS 36% APR, I’m sure you will be in line to get this one.
4) Centennial Classic Credit Card
This is another card issues by the same bank as #3. Just to open an account, you’ll need to dish out nearly $100. Fees will total around $120 per year with the same wonderful 35% APR.
5) Best Buy Reward Zone Credit Card
Sometimes people like to ‘invest’ in credit cards that offer a lot of rewards. For example, if you’re a fan of technology, games, and entertainment, then it would only be natural to have a credit card that offers you those rewards.
The problem is, the card is exceptionally expensive to own. Not only are you paying nearly 30% APR, but any interest fees you didn’t manage to pay will roll over into the next year, adding to your debt. Is that really worth the rewards you can only use at their store? This is why most themed reward cards are never good investments.