Friday, October 19, 2007

Worst Credit Card Ever!

Ok, there's bad, there's bad, and then there's the Worst Credit Card in the history of mankind.

Let me get this straight... they charge you:

$99 Set up Fee
$49 Annual Fee
$89 Program Participation Fee
$120 Account Maintenance Fee


357??? for a card that starts at $300. Oh, and it also charges 20% interest. Wow... just wow... No wonder the Rich get Richer and the Poor get Angry. What "grinds my gears" is that they also charge $25 to up the credit limit $100 at a time at their discretion without requiring customer permission! I think you'd be much better off with a cash secured credit card than this monstrosity...

Some words of wisdom that I learned from Frank Abagnale a world renowned expert on Identity Theft were thoughts on credit.

  1. Never use Debit Cards. They contain the information used to get into your bank account, and if stolen alongside your PIN - any losses that you take due to theft are placed in your own liability.
  2. Use Credit Cards and simply pay them off before interest is charged. With the insurance of credit card companies - just calling into them alerting them of the stolen card allows you to stop the withdrawals and purchases, alongside limited liability to the client for the stolen monies.
  3. When your children go to post secondary, instead of giving them cash - create supplementary cards in their names with credit limits. This allows you to monitor their spending habits, while at the same time building their credit history.

I hope that people get educated enough to realize that they could potentially be ripped off if they don't add up the fees that are stacking up... I'm also very much looking forward to Patrick Evangelista's future research notes on a GOOD Canadian credit card - and a breakdown of the points systems (airmiles, aeroplan, 1% cashback, etc)

Until next time.



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