What's in your wallet? It could hold one of the worst credit cards if you haven't been paying attention. The terms of rewards credit cards change over time; that card that seemed great a few years ago could now be a dog. While nabbing a card with a big bonus for new customers is tempting, you must also be sure it's the right card for the long haul. And with interest rates soaring and annual fees trending up over the past few years, you should take a close look at your cards. Here, we have rounded up a list of the Worst Credit Cards of the year thanks to a WalletHub study.
As a first step, cull any of these cards from your wallet, and then shop for a card with better terms or a compelling bonus offer. But if you have more than one lousy card, don't close them all at once. Canceling a card will lower your credit score — albeit temporarily. You can protect your score by closing bad cards and opening a new card over time. The goal is to hold on to the best cards and, even if you don't use them daily, keep your credit cards active to protect your credit score.
We're pairing the worst credit cards with our picks for the best cards in four categories: overall rewards, long-term financing, balance transfer and small business. If you haven't applied for a new card in a while, you should review how to pick a rewards credit card.
Four worst credit cards of 2024
The worst credit cards typically charge high interest rates and fees, but offer few (if any) rewards or other perks in return. So, if you’re one of the 57% of Americans who say their finances are a horror show, check out these credit cards that the experts at WalletHub consider among the worst. If you’re holding one in your pocket right now, we also offer alternatives.
1. Mastercard® Gold Card: worst for rewards
The Mastercard® Gold Card comes with an astounding $995 annual fee. For that, you get a 24K gold plated card, a $200 airfare credit each year, access to a concierge, the promise of luxury gifts and one point for each $1 spent on most purchases. Many other credit cards (like the alternative below) offer better rewards bonuses and higher ongoing rewards earning rates for hundreds of dollars less per year.
Card details. Transfer intro APR: 0% for 15 months Transfer Fee: 5% (min $5) Regular APR: 20.74% - 28.74% (V) Annual Fee: $995 Rewards Rate: 1 point for each $1 spent.
Best alternative credit card: The Chase Sapphire Preferred® card has an annual fee of only a tenth of the Mastercard® Gold Card but with a great sign-up bonus and rewards.
2. Amalgamated Bank Maximum Rewards: worst for financing
Although the Amalgamated Bank Maximum Rewards® World Mastercard® offers 0% introductory rates, the terms are poor if you hope to finance a big purchase over time. You only get 0% for six months, which is relatively short for most credit cards. And for a cash back card, Amalgamated's 1.5 points for every dollar spent can't compete with the best flat-rate cash back credit cards. These cards offer between 2% and even 3% back (for a limited time) with no annual fee.
Card details. Purchase intro APR: 0% for 6 months Transfer intro APR: 0% for 6 months Transfer Fee: 5% (min $10) Regular APR: 24.99% - 29.99% (V) Annual Fee: $0
Many customers are drawn to Amalgamated Bank because of its progressive banking policies. The bank is a recognized B Corp-certified business, meaning it adheres to transparency and sustainability beyond legal requirements for banks. For example, almost a third of its loan portfolio is dedicated to climate solutions. It's too bad that its maximum rewards credit card doesn't have better terms.
Best alternative credit card for long-term financing. The Wells Fargo Reflect® Card offers 21 months of 0% interest.
3. Community Bank Maximum Rewards: worst for balance transfer
The Community Bank Maximum Rewards® Visa Signature® Card made WalletHub's list of the worst cards this year (for the first time) because it is expensive for people who want to reduce the burden of existing debt. The card charges a 5% (min $10) balance transfer fee and a regular APR of 24.99% - 29.99%, which kicks in after an introductory offer of just 0% for 6 months. It does offer 1.5 points for every $1 spent to be redeemed on cash back, gift cards, travel or merchandise, but the short intro rate makes it an expensive option to use long-term.
Card details. Purchase intro APR: 0% for 6 months Transfer intro APR: 0% for 6 months Transfer Fee: 5% (min $10) Regular APR: 24.99% - 29.99% Annual Fee: $0 Rewards Rate: 1.5 points / $1 Bonus Offer: 10,000 points.
Best alternative credit card: Citi Simplicity Card.
4. CorTrust Bank Visa Business Card - worst for business cards
The CorTrust Bank Visa Business card comes with a $0 annual fee, but doesn’t offer rewards or low introductory interest rates. Since many (probably most) small business cards come with business-oriented rewards programs, if you opt for this card, you are leaving a lot of money on the table. By the way, this is the 10th year this card made it on the Worst Credit Cards list.
Card details. Regular APR: 19.49% Annual Fee: $0.
Best alternative credit card: Chase Ink Business Preferred® Credit Card.
Other key findings from the study
- Credit card debt hit a record $1.14 trillion in August of this year.
- 64% of people have nightmares about money
- Some of the worst credit cards charge fees up to $995 and have APRs as high as 36%.
- 46% of people are very fearful of this economy.
- 28% of Americans say an unplanned emergency is their biggest financial fear, 20% say it's not having enough retirement savings and 17% say it’s job loss.
