The Best and Worst Credit Card Offers Right Now
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There's never been a better time to get a new credit card than right now. Competition in the industry is extremely high, which has resulted in some pretty lucrative introductory offers. However, not all credit card offers are worthwhile. With that in mind, credit card website WalletHub analyzed more than 1,000 current credit card offers, and here are some of the best and worst offers they found.
Best and worst for rewards
There are currently some great rewards cards on the market, with unprecedented sign-up bonuses and reward rates. One example is the Barclaycard Arrival Plus Credit Card, which has an introductory bonus of 50,000 miles (worth $500 in travel) after spending $3,000 in the first three months and a relatively low $89 annual fee, which is waived for the first year. The card also earns rewards at an impressive rate of two miles per dollar. In addition, the card offers a 12-month 0% APR period for balance transfers.
However, don't get lured in by the MasterCard Gold Credit Card's $200 annual airfare credit and concierge service. While the card offers double value on points when redeemed for travel or a statement credit, the reward rate of one point per dollar is rather low by the current industry standard, and the $995 annual fee is among the highest in the business.
Best and worst for 0% APR financing
The Citi Diamond Preferred Card has an industry-leading 21-month 0% APR period for new purchases and balance transfers, as well as no annual fee. It also has a relatively low interest rate range of 12.24% to 22.24%, depending on your creditworthiness.
On the other hand, no matter how much of a basketball fan you are, the NBA Credit Card isn't a great choice if you want low interest. The 0% APR period lasts for just six months, and your APR can be as high as 29.49%, depending on your credit history. In fairness, the NBA card does offer the ability to earn rewards, including a rate of five points per dollar during special time periods, such as the NBA all-star weekend.
Best and worst if you have bad credit
There are several good secured credit cards on the market, which function just like a regular credit card but require the cardholder to make a deposit into a savings account to "secure" their credit line. WalletHub's favorite secured credit card offer is the Discover it Secured Credit Card, which has no annual fee and pays a cash back rate of 2% at restaurants and gas stations and 1% on everything else.
In addition, Discover will double the rewards you earn during the first year, and the card's interest rate is competitive, with most unsecured cards at 23.24%.
On the other hand, the First Premier Bank Gold Credit Card is an unsecured option designed for people with bad credit, but it is perhaps the worst credit card product on the market right now. Not only does the card have a sky-high 36% interest rate, but the fees are astronomically high, especially for a card that doesn't offer any rewards. You'll pay a $95 processing fee before the account is opened, an additional $75-$125 annual fee during the first year, even higher annual fees in subsequent years, and a 25% fee for any credit limit increase.
The bottom line
As a whole, the credit card offers available now are the best they've ever been. At the same time, this wide range of credit card offers means it's more important than ever to take your time and explore your options before you fill out your next credit card application.
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Matthew Frankel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends MasterCard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.