Many people who are long time customers of Citibank might consider any Citi credit card to be the worst credit card of 2009. However, the victims of the Citi interest rate increases are long-term customers. People who became Citi credit card holders in the second half of this year are likely exempt from the rate increases, as Citi cards offered during the summer and early fall featured language stating that rates would not be changed until cards expired.
Overall, Citi may have proven to be the worst credit card company this year as hundreds of visitors have shared horror stories about interest rate increases of up to 29.99%. And these are customers with good credit. Despite these increases, there are worse credit cards than those offered by Citi. So while I’d love to crown Citi the worst credit card company, the (dis)honor ultimately goes to First Premier Bank.
If you have good credit, you’ve probably never heard of this company or taken a look at their credit card offerings. However, if you have searched for a credit card for bad credit, you’ve probably come across these offers. And believe me, these cards make Citibank look as good as Discover Card, which is likely the best credit card company of the year.
What makes First Premier so bad? First, the account set up fee. It clocks in at $29. Then, there is a one time program fee (not entirely sure what this fee is, but its there). This fee will cost you $95. Of course, there’s an annual fee. That comes in at $48. And to make things interesting, there is a $7 monthly serving fee which adds up to $84 a year. Want to see your account online? Add another $3.95. And if you want to pay online or by phone, expect to pay between $7 and $11.
When you add these fees up, you get $256 which accounts for 50-85% of the credit limit provided to most customers. Now, the interest rate puts Citi rates to shame. Its only 9.99%. However, the $256 annual fee is higher than that of the American Express Gold and Green cards put together. And those are great credit cards with rewards programs.
Were it not for this fee trap aimed at consumers with bad credit, Citi would have easily won my vote as the worst credit card company. But until they tack on absurd fees, the honors go to First Premier. Now, as to the most unfair, unreasonable, and irresponsible credit card company, that’s honor Citi takes with ease.
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