If you have a credit card, chances are pretty good that your deal got worse in the past year.
Maybe your rate went up or your credit limit went down, or the issuer gutted the rewards program. It's just going to get uglier, as I told you in "Banks have declared war -- on you."
Still, it may make you feel a little better to know there are much, much worse credit card deals out there than the one you have.
Unless, of course, your card is one of those singled out by the three experts I consulted -- Curtis Arnold of CardRatings.com, Justin McHenry of Index Credit Cards and Bill Hardekopf of LowCards.com -- to find the worst of the worst.
Here are their nominations:
The worst retail card
Macy's CardCards offered by retailers and specialty stores are usually a bad deal, but Macy's still manages to stand out.
"Almost without fail, (retail) cards charge exorbitant interest rates. The worst offender I know of is the Macy's credit card, with its 23.99% interest rate," McHenry said, "but cards from J.C. Penney, American Eagle Outfitters, Gap, Brooks Brothers, J. Crew and Dillard's all come in at rates over 20%."
More from MSN Money
Many people apply for retail cards to get a discount on their purchases, typically 10% to 20% off. But you can often get the same benefits and a better overall deal by applying for a store card that's affiliated with a major credit card brand.
"If you really want a store credit card, try to get a store card associated with Visa, MasterCard or American Express -- those cards generally have interest rates lower than the store-only credit cards," McHenry said. "For example, I just got a Banana Republic Visa with an interest rate of 14.24%. Compare that to Banana Republic's store-only card, which charges a rate of 21.9%."
If you don't carry a balance -- and you shouldn't -- the interest rate doesn't matter, but you'll still benefit from a card you can use in more places.
The worst cash-back card
Money Return Platinum Plus Visa from Bank of AmericaIf you pay your balance in full, cards that offer cash rebates are usually a terrific deal, as I wrote in "20 credit cards that pay you back."
Not this one.
Oh, the terms look sweet at first: no annual fee, 0% for six months on balance transfers and a whopping 10% cash rebate.
- Facebook users: Become a fan of Liz Pulliam Weston
You get the 10% cash back, however, only if you carry a balance. And the annual percentage rate for carrying a balance ranges from 9.99% to 19.99%.
"So you pay up to almost a 20% APR to earn (back) only 10% of your interest that you pay out of your pocket," said Arnold, of CardRatings.com. "Doesn't take a math genius to figure out that this is a lose-lose proposition."
Video on MSN Money
The new landscape of credit cardsConsumers will gain more rights when more-favorable rules kick in next year.
The worst subprime card
Centennial Gold MasterCard from First Premier BankOnce again, there are plenty of awful options in this category that caters to folks with bad credit, but the Centennial Gold MasterCard distinguishes itself in a crowded field.
"This subprime card boasts a 9.9% fixed rate, an amazing rate for any subprime offer," Arnold said. But when you look under the hood, you find a nest of fees:
- A one-time account set-up fee of $29.
- A one-time program fee of $95.
- An annual fee of $48.
- A $7-a-month servicing fee, which equals an additional $84 per year.
"So, if you get approved for a $250 line (of credit), you are out $256 in fees during your first year of card membership and only have $71 available credit your first month," Arnold noted. "What a rip!"
It's cards like this that caused Congress to rewrite the rules on fees as part of the new credit card reform bill, McHenry noted. After February 2010, issuers won't be able to charge fees equal to more than 25% of a card's limit. (See "What the new credit card law means for you.")
Continued: The worst secured cards