Popular finance and automotive expert Seth Godwin (@seth.godwin) has caused a stir with yet another self-help video on the five worst credit cards a person can get.
Godwin has become something of a TikTok advice guru since the pandemic began, and now boasts more than 1.8 million followers, with popular videos like “5 Things You Should Never Say at a Car Dealership,” “The 5 Most Dangerous SUVs” and “The 3 Worst Banks” racking up millions of views.
In his latest viral video, which has been viewed 1.7 million times as of publication, Godwin advises viewers on which cards to avoid if they want to apply for a higher credit limit and improve their credit.
Godwin starts off his list with categories of cards, rather than specific cards to avoid. Unfortunately for those who later give in to the temptation to apply for and pay off a store credit card when making a big purchase, Godwin warns viewers not to do so. Instead, he advises viewers to get a “general cash-back or points-earning card.”
“[Store credit cards] “Credit card companies have horribly low credit limits, which actually hurts your ability to get a higher credit limit on a good card,” Godwin argues. “And you can only earn points (usually cash back) at participating merchants.”
Number four on the list is also a broad category, but this time it’s a bank: Credit One, to be exact. To Godwin, the bank is so shady that “Credit One cards” are listed as one of the worst banks. He further claims that Credit One’s “entire marketing strategy relies heavily on convincing people that it’s Capital One.”
Next on the list is Indigo Platinum, which he says has “a very low credit limit, a high APR, a $99 annual fee, and absolutely no perks.”
Godwin’s runner-up is the Mastercard Black Card. He warns viewers that the card “relies on people thinking it’s a premium card like the American Express Black Card.” Unfortunately, he says, the card comes with a $495 annual fee and “there’s really no way to make up for that annual fee.” He also notes that the Black Card offers customers 2 percent cash back, “which is the industry standard for cards with no annual fee.”
The winner of Godwin’s ranking is the MasterCard Gold Card.
“It has a $1,000 annual fee, a $200 airfare credit and the same paltry 2 percent cashback rate as the black card, but don’t worry, this card is heavy metal and gold plated. Give me a break,” Godwin concludes.
Seth Godwin The 5 worst credit cards
Many viewers agreed with his choice.
“Credit One was the worst mistake of my life financially. This is amazing,” one person said.
“I have 5 credit cards and unfortunately they’re all on this list,” another user commented.
Other viewers also asked for advice.
“I’ve heard that canceling a card can hurt your credit, how can I cancel my Indigo card without it hurting my credit?” a viewer asked.
“Are there any cards you’d recommend for someone trying to repair their credit? My credit score is around 500,” a second person added.
Surprisingly, many viewers defended the card.
“I love CC at Old Navy. They have amazing sales and I have clothes for 5 people that I want to wear and then I just pay them back when I’m done,” one viewer said.
“I think a store card like the one for Ulta would be worth it if you shop there often!” a second agreed.
“Credit One really helped me rebuild my credit,” said another.
Mastercard is the No. 1 and No. 2 on Godwin’s list, but the company CNBCis a “50+ year old credit card network” known for its reliability. MasterCard is primarily offered by banks such as Citi and Capital One. The rewards for these cards vary depending on the level you qualify for, and if you want better rewards, you’ll have to pay a higher annual fee.
Nerd Wallet He advises prospective cardholders to “narrow your options by asking the right questions,” from types of cards like secured, low-interest, and rewards cards to whether they can help you build credit and earn points quickly.
The Daily Dot reached out to Seth Godwin via email and through comments on TikTok.
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Parks-Kugle
Parks Koogle is a San Antonio-based author and reporter. His work has appeared in Lumina Literary Journal, Wicked Local Newspapers, and various publications across the U.S. He enjoys cartooning and gardening.
