Worst Credit Cards of 2018

Hey I'm Adam Jusko from ProudMoneycom and in this video we're gonna do something a little different and look at the worst credit cards on the market

Now not every one of these credit cards is gonna be the actual worst, but we are gonna talk about some that are really bad, we're going to talk about some that are a little disappointing and some that are sort of non-competitive in their space and makes you wonder why those cards are sort of still being offered So before I go into all that, I would ask you to please subscribe to our YouTube channel if you have not already, and if you have I thank you for doing so So we're gonna look at a few different types of credit cards here When we look at the worst credit cards on the market now the obvious first place to look when you're looking at the worst credit cards are gonna be the cards that are offered to bad credit customers So if you do have bad credit, you already know probably that the credit cards that you are being offered are cards that probably have annual fees, they probably have higher interest rates, they probably don't have rewards, and if they do they're probably pretty paltry

So there's not great cards in general in the card market for people that have bad credit histories Obviously the banks don't completely trust you because of your bad credit history so that is why those cards are as they are That being said there is one card in the sort of bad credit space that is absolutely the worst and pretty much any issuer that you would choose over this one would be a better option for you And that worst credit card is the First Premier credit card So if you get something from First Premier Bank wanting you to sign up, the answer should be no

They are gonna charge you the highest fees, they're going to give you the smallest credit lines, you're gonna have the highest interest rates — they really just are the worst in the bad credit space So if you do have bad credit and you're trying to get kind of back in the credit game you you may get emails or you may get mail at home from them but there are other options out there, some of which we've talked about in other video

First premier is the one that we would say to stay away from Now another part of the credit card market that often has credit cards that are not so great is the retail store credit card space And it's not so much that the cards are all terrible in terms of what they offer they usually just offer really terrible interest rates So if you're someone that ever carries a balance you are going to you're gonna be paying an awful lot of interest

So you might get some sort of decent rewards in some cases but you're probably going to pay a lot of interest that is essentially going to wipe out the gains you make from those cards I'm not going to go into so much what a lot of the bad individual cards are, but there are a couple that are sort of disappointing to us because they're from major retailers that I would hope would maybe offer a little bit more when they get into the credit card market themselves, when they're trying to promote their credit cards and get people to sign up for them And one of them is the Home Depot credit card Home Depot is obviously a major retailer but they don't have a credit card reward program, it's basically just a credit card with not great interest rates and occasionally has some financing offers when you make big purchases Which is fine but there's no ongoing rewards program, it's not a whole lot going on with the Home Depot credit card which is kind of a bummer

You look at their competitor Lowe's — Lowe's has a credit card that gives you five percent off everything that you buy at Lowe's So if you were looking at the two of those from the credit card angle, you'd see that Lowe's is kind of working harder to get their customers than Home Depot is So that's a little disappointing The other one that I find disappointing in the retail space is the Walmart credit card So Walmart offers you 3% back on your Walmart

com purchases but they don't offer you anything more than their standard 1% cashback rate that they give on all purchases when you actually purchase inside of a Walmart store So if you're someone that goes into Walmart and makes purchases all the time, getting the credit card is not really gonna seem very good to you And in a way it's gonna feel like the people that buy online at Walmartcom are valued more because Walmart is competing with Amazon and in a way they are more trying to get people to come online and buy from them than really caring as much — at least in the credit card space — about the people that are actually making their purchases at Walmart stores So that's a little disappointing to us

Walmart does give 2% off the Walmart gas and Murphy USA gas as well, so that's a little bit of a perk, but it's overall just not, you know, as much as we would hope for and it is a little disappointing to see the in-store customers treated a little worse than the online customers as far as that card goes So now getting into the general market cards, I'm going to name some names here when we talk about some of the major credit card issuers That doesn't necessarily mean that I think all these cards are terrible, but when I say they're the worst I think it's more that, you know, they aren't as good as the best They are the ones that kind of offer sort of a sometimes a strange mix or maybe their cards were introduced a while back but they've sort of fallen behind the times They no longer are sort of sitting up at that upper

that upper echelon in terms of the rewards they offer when compared to the best credit cards on the market So the first card I will talk about is the Amex Everyday card This is card that gives you two points per dollar on supermarket purchases and it gives you one point per dollar on everything else

Now if you use this card at least 20 times in the month you get a 20% bonus on your points that you earn, so that sounds pretty good because that means you would end up with a 24 percent rebate on your supermarket purchases, a 12 percent on your other purchases But when you look at other credit cards on the market, you have to look at two percent that sort of two percent flat rate being sort of the standard, because there are now multiple cards on the market that offer that And this card really is asking you to use it an awful lot to get a 24% rate only on your supermarket purchases where your everyday purchases otherwise aren't really getting you very high at all only 12%

So it's kind of hard to understand who this card really appeals to In some ways it seems like if you're not paying a lot of attention to the credit card market, that's going to appeal to you more than someone that's really looking around and seeing what other deals there are Citi has a ThankYou Preferred Card which gives you two points per dollar on dining and entertainment, one point per dollar on anything else Again, those aren't really super generous rewards Look, a couple of years back, maybe that would have seemed a lot more generous, but that's not necessarily what we think of as anywhere near the top of the

top of the market these days Capital One offers the VentureOne Rewards card which is a travel card It gives you 1

25 "miles" per dollar on the purchases that you make with the card Now there's no annual fee with this card, but essentially that 125 means it's essentially equal to 125% cash back if you compare it to other cards So you basically getting 1

25% cash back to use towards travel rewards with this card Well, obviously there are a lot of other cards on the market that are going to give you two percent or at least up there close to two percent So to get a card that is essentially a 125% cash back rate doesn't make a whole lot of sense So we're not a big fan of that one

The discover It Chrome Card is a card that gives you 2 percent on gas and restaurants, one percent cash back everywhere else Again, you're getting your 2 percent only on gas and restaurants, you're not getting it anywhere else, so that obviously is not as competitive as some other cards on the market and this is a card we wouldn't be too surprised if it went away in the future The United TravelBank Card now this is a card that is only was only introduced in 2017 and it's sort of a strange card It was introduced as a no annual fee card to get rewards through United Airlines, but the way it is structured, you get 2% on your united purchases and you get 1

5% on all the other purchases that you make with this card Now it has nothing to do with the MileagePlus program These are only their TravelBank points and rebates that you can use toward your United purchases So essentially you're getting a card that doesn't give you a whole lot more than the 15% cash back that you could get a lot of other places and you can only use it, you know, use what you've earned on United flights

So it's not really that great of a rebate and you have limited usage of it and it's not like there are a lot of other great United benefits to this that would make it very desirable It gives you 25% off your in-flight food and beverage purchases but other than that, there's not a whole lot of perks here It's sort of a strange card and another one that we will not be surprised if it disappears in the future The next one is the Starbucks Visa, another card that came out in within the last year or so This is a card that has a $49 annual fee And I'm not going to go into all the details, we've actually done a separate video on it but essentially we don't think that the rewards you get here are good enough to justify an annual fee of that size, there's just not enough enough going on here to make it worth your while So those are some of the worst cards

Like I said, some of them are really bad cards, some of them are more like disappointing or not as good as the best cards on the market One caveat that I would make to all of this, especially when we're talking about the the major credit card lenders, is that some of these cards may be cards that are sort of offered to someone that doesn't have quite the high, excellent credit scores, so they might not qualify for those very top cards So these may be cards that are more often offered to someone that isn't going to qualify elsewhere, so that's possible that that is why some of these cards exist But if you are someone that does have good credit, these are cards you don't need to go for, you should be looking at the best best credit cards on the market and looking at least for either a two percent flat cash back or looking at one of the, you know, either cash back or travel cards that are going to give you a lot more for your spending So that is it

Thanks for watching Please go to ProudMoneycom for other credit card reviews and other personal finance news and good stuff there too Thanks for watching Bye