4 Types of Credit Cards to Avoid at All Costs

Not all credit cards are created equal. While some offer great perks like cash back, travel rewards, or 0% intro APR periods, others are loaded with sky-high interest rates or offer little to no rewards.

Before applying for your next credit card, it's important to know which ones to avoid. Some cards make it harder to build credit, trap you in debt, or simply don't offer enough value. Here are four types of credit cards you should steer clear of.

1. Store credit cards with high interest rates

It's tempting to sign up for a store credit card when the cashier offers an instant 20% discount on your purchase. But that one-time savings could end up costing you way more in the long run.

The average store credit card interest rate is currently sky-high at 30.45%. That means if you don't pay off your balance in full, interest charges will quickly outweigh any initial discount. Plus, these cards can usually only be used at one retailer or chain of retailers, limiting their usefulness.

If you shop frequently at a certain store, look for a general rewards card that offers cash back on all purchases, not just at one retailer.

2. Credit cards that don't offer rewards

If you're using a credit card that doesn't earn rewards, you're missing out on what can essentially be free money.

A good rewards card can offer:

• Cash back on everyday purchases (like groceries, gas, and dining)
• Points or miles for travel and entertainment
• Sign-up bonuses that can be worth hundreds of dollars

Choose a cash back or travel rewards card that fits your spending habits. Even if you don't spend a lot, some cards offer 1.5% to 2% cash back across the board -- which really adds up over time.

Never pay full price for a flight again. Check out our list of best travel credit cards now.

3. Cards with extremely high APRs

If a credit card has an APR above 25%, it's probably not worth having. While it's good to get in the habit of paying your balance in full each month, falling even a little behind on high-interest debt can spiral out of control quickly.

Many people assume all credit cards have high APRs, but that's not true. Some cards offer 0% intro APR periods for a year or more, giving you time to pay off big purchases without interest. Others provide lower ongoing APRs if you have good credit.

Some of the best balance transfer cards give you up to 21 months of 0% interest to pay off debt that you transferred to your new card.

4. Cards with expensive annual fees that aren't worth it

Some premium credit cards charge annual fees as high as $695. While most high-end cards offer valuable perks, some others just aren't worth the cost.

Before getting a card with an annual fee, ask yourself:

• Do the rewards and perks outweigh the fee?
• Will I actually use the travel credits, lounge access, or other benefits?
• Is there a similar no annual fee card that offers nearly the same perks?

If you don't want to pay an annual fee, look for a no annual fee rewards card that still earns solid cash back or travel points. Many offer similar perks without the hefty price tag.

Credit cards can be a valuable tool to have in your wallet, but they're not all winners. For best results, stay away from store cards, cards lacking rewards, and cards with high ongoing APRs or annual fees that just aren't worth it.