Consumer Reports rates the best and worst of credit cards

The October 2008 issue of Consumer Reports hit newsstands this week with the best -- and worst -- credit cards on the market.

The magazine analyzed hundreds of credit cards and published a list of the best 12 and worst three. The cards were selected after CR researchers reviewed the terms and conditions disclosed by issuers.

According to CR Associate Editor Chris Fichera, the best cards were those that carried no annual fees, no balance transfer fees or offered the greatest cash back incentives. The worst cards were those that carried hidden fees, account set-up fees, monthly servicing fees similar to subprime (or fee harvesting credit cards) or those that asked applicants for too much personal information or carried no grace period for monthly payments.

Here are some of the listings:

The best
For low-rate, low-fee credit cards, CR recommends:

• Capital One Platinum Prestige.
• Clear from American Express.
• Iberiabank Visa Classic.

For cash-back cards:

• Capital One No Hassle Cash Rewards.
• Chase Freedom Visa.
• Discover More.

For gas cards, they recommend:

• Chase PerfectCard MasterCard.
• Discover Open Road.
• Hess Platinum Visa.

The worst
The magazine says steer clear of the following cards:

• First Premier Bank card.
• HSBC American DreamCard.
• New Millennium Visa or MasterCard.

Get regular card checkups
CR recommends consumers check the terms and conditions of their credit card accounts regularly to look for changes such as interest rate increase, lowered credit limits or fees.

"Whether you have good credit or bad, you should check your account terms with your credit cards," CR Executive Editor Greg Daugherty, said in a press release. "Several card issuers have doubled or tripled interest rates for some customers in recent months, even though many were current on their bills and have good credit."