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TheStreet Open House

3 Worst Credit Cards On The Market

Stocks in this article: VAXPJPMWFCBACCOF

The Wells Fargo (WFC) Business Platinum Credit Card
This is the worst business credit card you can get. Most business credit cards provide some sort of rewards. The Wells Fargo Business Platinum offers its rewards program for a $50 fee (waived for the first year).

Many business credit cards have 0% APR introductory periods on purchases and/or balance transfers. The Wells Fargo Business Platinum has neither, just a regular rate of 9.24% to 18.24% -- although the bank notes that a 0% APR is offered frequently on a promotional basis for new customers. A communications official with the company said about half the cards issued this month were likely to have 0% on purchases for six months and 0% on balance transfers, although as of this writing someone shopping for the card can't go to the bank's website and find such an offer.

Bank of America (BAC) business credit cards protect consumers against interest rates being applied to existing balances unless account holders are 60 or more days delinquent. The communications official, Sarah Toffoli, says Wells Fargo bumps up interest rates for customers with multiple delinquencies, those "30 days delinquent twice or more in a rolling 12-month period," but also vows automatic reductions when one or both delinquencies age out. "It can take as little as one month for the customer to achieve the reduction," Toffoli says.

Wells Fargo could also be called less transparent than some other major issuers, choosing to explain its personal guarantee or potential reporting of charge-offs to credit bureaus on business card applications and customer agreements, but not on its website. The bank declined taking part in Card Hub's small-business credit card study, later citing concerns that past studies had been "misleading."

Replace this card with the Cash Rewards for Business Visa, which has a 0% APR on purchases for nine months; 3% cash back on purchases made at gas stations, office supply stores and for computer network services; 1% cash back on everything else; and the business credit card debt stability only Bank of America currently provides.

The First Premier Secured Credit Card
This is a partially secured credit card, meaning you are required to place a $95 refundable security deposit to get a $300 credit line. The explanation for why it's one of the worst credit cards on the market is simple: It has an astounding 49.9% APR, an annual fee of $75 the first year and $123 in membership fees for each subsequent year. If you want a partially secured card, why not apply for the Capital One Secured MasterCard, which has a $29 annual fee and a 22.9% APR? All of Capital One's (COF) credit cards can also be used abroad at no extra cost while the First Premier card has 3% foreign transaction fees.

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Odysseas Papadimitriou is CEO of CardHub.com, an online marketplace for credit card offers.
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