When people ask what the worst credit card companies are, they’re usually not talking about a single bad experience. They’re talking about patterns. Ongoing issues with hidden fees, confusing terms, weak customer service, aggressive interest rate hikes, and billing disputes that seem to go nowhere. I’ve looked at long-term complaint trends, regulatory actions, cardholder reviews, and how these issuers handle everyday problems like chargebacks, late payments, and balance adjustments.
This article isn’t about fringe lenders or fly-by-night operations. Every company listed here is legitimate, widely used, and regulated. That’s exactly why expectations are higher. When a large issuer consistently frustrates customers, it deserves closer scrutiny.
If you’re trying to avoid surprise charges, credit score damage, or long disputes over simple billing errors, understanding these companies and their patterns can save you real money and stress.
10 Poorly Rated Credit Card Companies Based on Consumer Complaints and Practices
Below is a quick overview of the ten issuers that receive the most consistent negative feedback across customer complaints, regulatory filings, and long-term cardholder reviews.
| Credit Card Company | Primary Issues Reported | Common Customer Complaints |
| Credit One Bank | High fees, confusing terms | Annual fees on low limits, poor service |
| Indigo Card Services | Costly subprime cards | Monthly fees, low credit limits |
| First Premier Bank | Fee-heavy starter cards | Upfront fees, expensive maintenance |
| Continental Finance | Aggressive fee structures | Add-on fees, unclear billing |
| OpenSky | Limited flexibility | Security deposit delays |
| Fortiva Retail Credit | Retail-only restrictions | High interest, narrow use |
| Total Visa | Expensive credit building | Processing and annual fees |
| Milestone Mastercard | Weak customer support | Billing disputes, slow responses |
| Destiny Credit Card | Costly for rebuilding credit | High APR, account fees |
| Reflex Mastercard | Unpredictable pricing | Credit limit changes, fees |
Each of these companies targets specific consumer segments, often people with limited or damaged credit histories. That makes transparency and fair treatment even more important.
Credit One Bank
Credit One Bank frequently appears in consumer complaint databases, especially among people rebuilding credit. While it markets itself as a second-chance option, many cardholders report feeling misled once the account is open.
A common issue is the annual fee structure. Some cards charge an annual fee that’s deducted immediately, reducing available credit before the card is even used. For someone with a $300 limit, losing $75 or more upfront can push utilization high from day one, which hurts credit scores.
Customer service complaints also stand out. Cardholders often report long hold times, inconsistent answers, and difficulty resolving billing disputes. Autopay issues are another recurring problem, with payments sometimes processing late even when scheduled correctly, leading to late fees and penalty APRs.
Many users say the card works fine if you never need help. The moment something goes wrong, resolving it can feel exhausting.
Indigo Card Services
Indigo primarily issues unsecured cards for consumers with poor or limited credit. On paper, the approval process looks simple. In practice, the cost structure surprises many cardholders.
Annual fees are common, and in some cases, additional monthly maintenance fees apply. These charges can add up quickly, especially given the low credit limits typically offered. It’s not unusual for half the available credit to be consumed by fees within the first year.
Another concern is limited product growth. Even after consistent on-time payments, many users report that credit limits rarely increase. That limits long-term usefulness and makes it harder to improve credit utilization ratios.
For someone desperate to rebuild credit, Indigo may feel like the only option. Over time, many cardholders feel trapped paying fees for minimal benefit.
First Premier Bank
First Premier Bank is well known in the subprime credit card market. It has also faced regulatory scrutiny over its fee practices, which gives important context to ongoing complaints.
One major issue is upfront costs. Application fees, program fees, and annual fees may all apply, sometimes before the card is activated. This means you can start with a balance already owed, even if you haven’t made a purchase.
Interest rates are also high, which isn’t unusual for subprime cards, but the combination of interest and recurring fees makes balances grow fast. Some users report struggling to pay down small balances because fees offset their payments.
Customer support reviews are mixed, but many complaints focus on difficulty understanding billing statements and fee timing.
Continental Finance
Continental Finance issues cards like the Surge and Verve Mastercard. These products are marketed toward consumers rebuilding credit, but many cardholders report feeling overwhelmed by add-on fees.
Beyond annual fees, some cards include monthly maintenance charges and optional services that are easy to miss during signup. If you’re not reading every line of the agreement, costs can escalate quietly.
Another issue is credit limit volatility. Some users report sudden reductions in available credit without clear explanations. That can spike credit utilization and negatively affect credit scores overnight.
While some customers successfully use these cards short-term, long-term satisfaction remains low due to cost creep.
OpenSky
OpenSky operates differently from most issuers on this list. It offers secured credit cards that don’t require a credit check, making them accessible to many consumers.
The main frustration isn’t hidden fees, but rigidity. Security deposit refunds can take longer than expected after account closure. Some users report waiting months to get their deposit back, even with a clean payment history.
Another limitation is the lack of product upgrades. Graduating to an unsecured card isn’t always smooth, which makes OpenSky less appealing as a long-term credit-building tool.
It works for a narrow purpose, but many users feel stuck once their credit improves.
Fortiva Retail Credit
Fortiva focuses heavily on retail credit cards rather than general-purpose cards. These are often offered at checkout for financing furniture, electronics, or medical expenses.
The biggest issue is interest. Retail cards issued by Fortiva can carry extremely high APRs, especially once promotional periods end. Many cardholders don’t realize how quickly interest accrues if balances aren’t paid off in full.
Because these cards can only be used at specific merchants, flexibility is limited. Customer service complaints often involve billing disputes related to returns or canceled services.
For one-time purchases, these cards can be useful. For ongoing credit use, they often disappoint.
Total Visa
Total Visa is another issuer aimed at consumers with poor credit. Approval odds are high, but costs are too.
Processing fees and annual fees can significantly reduce available credit early on. Like many similar cards, limits are low and rarely increase, even with good payment history.
Users also report challenges closing accounts. Some say fees continue to post even after requesting cancellation, leading to frustration and additional charges.
It can serve as a temporary credit bridge, but few cardholders view it as a long-term solution.
Milestone Mastercard
Milestone cards are issued by The Bank of Missouri and managed by Genesis FS Card Services. They target people rebuilding credit without requiring a security deposit.
While this sounds appealing, customer complaints often focus on support quality. Billing disputes and fraud claims can take longer than expected to resolve.
Another issue is rate variability. Some cardholders receive versions with no annual fee, while others pay significantly more for similar limits. This inconsistency creates confusion and dissatisfaction.
Milestone can work for some users, but expectations should be realistic.
Destiny Credit Card
The Destiny card markets itself as a simple unsecured option for credit rebuilding. In reality, fees and interest rates make it expensive to maintain.
Annual fees are common, and APRs are high. Combined, this makes carrying a balance costly. Many users say the card helps establish payment history but offers little beyond that.
Customer support reviews vary, though complaints about slow responses appear frequently. For people who need quick issue resolution, this can be frustrating.
It’s often seen as a stepping stone rather than a permanent card.
Reflex Mastercard
Reflex cards are issued by Continental Finance, but they receive enough distinct complaints to warrant separate mention.
The most common issue is unpredictability. Cardholders report changes to credit limits and fees with little notice. Some see limits reduced after months of on-time payments, which feels counterintuitive.
Billing clarity is another concern. Statements can be hard to understand, especially when multiple fees apply in a single cycle.
Reflex may meet short-term needs, but long-term trust is a challenge.
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Conclusion
The worst credit card companies aren’t always the ones with the highest interest rates. They’re the ones that combine high costs with poor communication, limited flexibility, and weak customer support. Most of the issuers listed here target consumers with fewer options, which makes transparency and fairness even more important.
I’ve seen many people use these cards successfully for a short time, strictly to rebuild payment history. Problems usually arise when cardholders expect more than the product was designed to offer, or when fees quietly erode available credit.
If you’re considering any of these companies, read every fee disclosure, avoid carrying balances, and plan an exit strategy once your credit improves. Credit cards should help you move forward, not keep you stuck paying for access.
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Frequently Asked Questions
Can a poorly rated credit card company hurt my credit score even if I pay on time
Yes, it can. Even with on-time payments, high annual fees and low credit limits can push your credit utilization ratio up. If a card starts with most of the limit already used due to fees, your score may drop despite responsible behavior.
Why do some credit cards for bad credit have so many fees
Cards aimed at people with damaged or thin credit profiles carry higher risk for issuers. To offset that risk, some companies rely on application fees, monthly charges, and annual fees instead of relying only on interest. This shifts more cost onto the cardholder from the start.
Is it better to close a high-fee credit card or keep it open
It depends on your overall credit profile. Closing a card can reduce available credit and shorten account history, but keeping a costly card open may drain money each month. Many people keep it open temporarily while securing a better option, then close it once a replacement account is active.
How long should I keep a subprime credit card before upgrading
In most cases, six to twelve months of on-time payments is enough to qualify for better cards from mainstream issuers. Once you have alternatives with lower fees and better terms, keeping a high-cost card usually stops making sense.
What warning signs should I look for before applying for a credit card
Watch for upfront fees charged before activation, vague language around monthly maintenance costs, unclear interest rate triggers, and limited customer support access. If the agreement feels hard to follow, that’s often a sign of future frustration.
