What are 3 ways to compare credit cards?

Three ways to compare credit cards are by their approval requirements, their cost, and their rewards value. By comparing the money-saving features and costs associated with cards you have a realistic chance of getting approved for, you can maximize your chances of getting the best deal. 

There are hundreds of credit card offers to choose from. Whichever strategies you use to compare them, credit card comparison websites such as WalletHub can help make it easier to narrow down your options and find the best one.

3 Ways to Compare Credit Cards

Approval requirements

There are credit cards available for every type of credit history, and the best options for you will depend on your credit score and ability to pay.

You can sort credit cards based on the minimum credit score they require, and check for other requirements with the issuers to narrow down which cards you’ll qualify for. If you have less-than-good credit, you’ll have fewer options and won’t qualify for the most attractive offers yet, which means you should focus on finding a low-cost card.

Annual cost

Credit cards can charge a variety of fees, but the most important one to compare is the annual fee. This should make for a pretty straightforward comparison, as you can easily see which cards charge a lower annual fee or no annual fee at all. Some cards also have monthly fees or one-time fees that add to the total cost of the card.

Fees aren’t the only cost to consider, though. Unless you plan to pay the bill in full every month, you’ll also need to think about interest. If you have a major expense coming up that will take months to pay off, you should consider cards with 0% interest for a period of time. Or, look for a low regular rate if you plan on carrying a balance over a longer period. You can figure out how much it’ll cost to pay off a particular credit card with WalletHub’s free credit card payoff calculator.

In addition, if you want to use your card for balance transfers or cash advances, issuers often charge additional fees and different interest rates for these transactions. Don’t forget to take those costs into account.

Value of rewards

Many cards offer attractive rewards, which come in the form of cash back, points, or miles. Subtracting any annual fees you’ll have to pay from the dollar value you expect to get from each card’s rewards and benefits is the best way to do an apples-to-apples comparison.

Cash back is the easiest to determine the value of, since it’s a straightforward percentage of the money you spend. Points and miles can be more difficult to compare, since their dollar value is not always clear and varies by reward program. Look for where and how your rewards can be redeemed to ensure they offer value that you’ll actually use. It’s also worth looking at what perks travel cards offer, such as travel credits, trip insurance, and airport lounge access.  

What’s most important to look for in a card ultimately depends on your credit history, how you plan to use the card, and your general spending habits. You can narrow down your options with  recommendations from WalletHub editors and personalized suggestions based on your credit profile.