There is a certain class of credit cards that are marketed towards consumers of limited financial means or those with bad credit history, and such cards are often laden with hidden fees.
According to Consumer Reports, the worst offender in this category of credit cards this year was the First Premier Bank Mastercard.
The processing charge of the card varies from $25 to $95, and like many the fees associated with the card, what First Premier claims them to be depends on when a consumer accesses the website. Furthermore, the card carries an annual fee of $75 and annual percentage rates as high as 50 percent, according to the news source. The card also carries a credit-limit increase fee of half the value of the increase, so $50 would be charged for a credit limit increase of $100. This may be particularly problematic considering that the starting credit limit the card carries is only $300.
Cards like the First Premier Bank Mastercard should be avoided by consumers trying to rebuild their credit history, as they can do more harm than good, according to Consumer Reports.