The newest Consumer Report is in and their agenda was the dozen or so cards that consumers should be seeking out, and the several to stay away from. So, without further adieu, here’s an abbreviated list of them.

The Best of the Best

The best of the best category includes those with low rates and low fees. Given that so many people in the U.S. are seriously in debt, it was believed that this category trumped the rewards category.

1.) Capital One Platinum Prestige
2.) Clear – American Express
3.) Iberiabank Visa Classic (I have no idea what this one is…I’m in the process of researching it)

The Best for Cash-Back

These cards are pretty self-explanatory. They offer the best options for cash-back, usually somewhere in the neighborhood of 3-5% for certain purchases with 1-2% on others. Just be sure to read the disclosures to make sure it’s a card you can use!

1.) Capital One No Hassle Cash Rewards
2.) Chase Freedom Visa (one of my favorites)
3.) Discover More

Top Gas Cards

There were several on this list, but the top three are as follows:

1.) Chase PerfectCard MasterCard ( I believe this is a business credit card…I don’t remember this one from when I worked at Chase)
2.) Discover Open Road
3.) Hess Platinum Visa (this is another Chase card – though again, one I don’t remember…but, Chase has over 900 credit cards and I didn’t know them all)

Top 3 Credit Cards To Avoid

Consumer Reports has spent a good deal of time looking into which credit cards are considered the best, and which are worthy of the round file ( i.e. the trash). To that end, here are the top three credit cards to stay away from, per Consumer Reports:

1.) First Premier Bank

If I’m not mistaken, this is one of those “repair bad credit” type of cards, which means there’s likely an annual fee, a monthly maintenance fee, and a pretty low limit to start with, all of which is then eaten by the aforementioned fees. And, from personal experience, the customer service on these kinds of cards suck!

2.) HSBC American Dream Card

I’ve never had the American Dream card, but I have dealt with HSBC personally and through helping my clients. They’re a nightmare! Avoid them if you can. One thing I truly hate about this company is that you call in to fix something minor and they bombard you with sales pitches. I called to have them correct my address; something minor, it was missing the apartment number so I wasn’t receiving my statements, and had been locked out of my online account because they had received returned mail. When I finally got to a live person I couldn’t understand a word she was saying – she sounded like my three year old nephew (I don’t speak baby very well) and every other sentence out of her mouth was a sales pitch. It was enough to make me want to rip my hair out.

3.) New Millennium Visa or MasterCard

I don’t know much about this card, which is to say that I don’t know anything. But, if it’s among these other two then I’m willing to bet it’s just as annoying as its predecessors.

Tips to Navigate the Waters

Consumer Reports offers a bevy of tips on how to make sure you get the most bang for your buck when it comes to using your credit card. Most of these you probably know, but just in case, it’s worth mentioning again.

Tip # 1 – Use credit responsibly

Make a budget and stick to it, don’t rely on your credit cards to fill the gap. In addition, if you have a lot of high interest debt that’s sitting there, skip the rewards and go for the low rate/low fee cards, preferably one with 0% balance transfers.

Tip # 2 – Choose your card carefully

Make sure you choose a card based on your current needs. If you carry balances, then a rewards card may not be for you. On the other hand, if you pay your card in full every month, then it’s best to take advantage of the rewards – unless you’re stoozing, in which case, stick with the low rate cards.

Tip # 3 – Avoid the pitfalls

We all know the industry is changing, but until the laws come to pass, things like double billing and the universal clause are still in affect. Check the fine print carefully before deciding to use a card.

Tip # 4 – Don’t be afraid to contact the lender

If your rate has suddenly jumped into double digits from a very low one digit, you have every right to call the lender and demand to know what’s going on. Pick your battles, but if you feel you’ve been treated unfairly, don’t be afraid to use your loyalty as leverage to lower your rate. Still, some companies are being stubborn, so if you make any threats, be prepared to follow through on them.

Tell us, have you used any of the cards on the list? What were your experiences? Any that should be here that aren’t?

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1. Top 10 Worst Credit Card Practices
2. Calling Bulls*t on the Credit Industry
3. Consumer Reports’ Credit Cards Worth Holding
4. Is Outsourcing of the Financial Industry Feasible?
5. Credit Card Reward Programs: How To Make The Most Of Them