Many factors would make a credit card company a poor choice for your needs. It might be the terms of their credit cards or how they handle their customer service. Even though everyone will find different positives and negatives with any credit card company there are some that seem to be rated lower than others.
The FREE credit card chaser is a great way to find the credit cards with the best rates!
To compare other things about a credit card provider, like their financial strength, you can go to sites such as Standard and Poors.
According to consumer ratings what are the worst credit card companies?
The consumer ratings site J.D. Power and Associates lists Bank of America, Citi Cards, and HSBC as their lowest rated credit card providers. These companies scored particularly low in customer interaction, billing and payment, benefits, and rewards.
Just because these companies were rated lower than others does not mean one of their credit cards is not the perfect choice for you. Just make sure that you have a full understanding of the terms and conditions of the card before signing up for it or you could be in for a nasty shock.
What are some of the credit cards offered by these companies?
The most basic personal Bank of America credit card is the Bank of America Visa credit card. This credit card offers no annual percentage rate for purchases for the first fifteen billing cycles of the account. This fifteen-cycle zero percent interest will also apply to balance transfers that are made within the first sixty days the account is open.
While this zero percent interest period might seem like a good deal at first glance, the cardholder should be aware once this introductory period is over, their regular interest rate will be high. Depending on their credit score, the credit card interest rate could be between 10.99 and 19.99%. The interest rate for credit card cash advances is even high at 19.99 or 24.99% depending on the type of advance.
Something else the cardholder should know is that this card has a penalty annual percentage rate. Therefore, if the cardholder is late with even one payment, credit card penalty interest rate will become 29.99% permanently. This is the type of practice that makes this provider unpopular with some consumers. There are many other credit cards available with special introductory rates that have lower regular interest rates and do not have a penalty interest rate.
This card also has very high fees. There is a purchase fee for wire transfers of 5% and the balance transfer and cash advance fee is 4%. All of these fees have a minimum charge of $10. This card also has a 3% foreign transaction fee when most credit cards on the market today only have a 1% foreign transaction fee. There is also a late payment fee of $35 and a returned payment fee of $25.
What type of negative things should I look out for when choosing a credit card company?
The first thing you should look at is the interest rates. Even if you have a great credit score, you should know what the highest interest rate for the card is. If something happens that lowers your credit score, your interest rate might be raised and you should be prepared for the worst.
You should also know if your credit card has a penalty interest rate. This type of thing is what makes reading and understanding your credit card agreement so important. Many people are unaware that they have a penalty interest rate and that more often than not it will be permanent. There are so many credit cards available that have no penalty rate that there really is no reason to apply for one.
It is also important to be aware of the credit card’s fees, especially the fee for going over the credit limit. In the past, if a purchase was going to put the cardholder over their credit limit the purchase would be declined, but now credit card providers let the purchases go through so they can collect the fee. Everyone goes over their credit card limit at one time or another so choosing a card with a low over-the-limit fee is always a good choice.
The free FREE credit card finder above will show you an easy to read side-by-side credit card comparison today!
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