How do you compare credit cards?

The best way to compare credit cards is to focus on a few key features and determine which cards provide the best deals in those areas. You should also check your credit score early in the process, so you can exclude cards you’re unlikely to qualify for from your comparison. 

There are more than 1,500 credit card offers available right now, and you won’t be able to effectively compare your options until you have a shorter list of contenders. Plus, no credit card is perfect, and only some of a card’s rates, fees and rewards will actually affect you. As a result, trying to find a card that does everything well may actually lead to you getting worse terms in the categories you care about the most. For example, if you plan to pay your bill in full every month, the APR won’t affect you and should be excluded from your comparison. 

Now that you know the overall approach to credit card comparison, you can take the next step and try it out. We’ll run through the steps below. 

How to Compare Credit Cards Side by Side

1. Go to the credit card comparison tool on WalletHub.
2. Use the filters to limit your search to the credit cards that best match your needs.
3. Check the “Compare” box next to each credit card you want to compare.
4. Click on “Compare” at the bottom of the page, and you will be greeted with an intuitive side-by-side overview of the selected cards.
5. Compare and contrast the cards’ terms and policies in the categories most important to you.

After you compare your options and find the best card for your needs, you can click the “Apply Now” button to begin your online application.

Learning how to compare credit cards and find the best one for your needs takes practice. Hundreds of cards are available, and there’s a lot of terminology to learn and keep track of. But it becomes easier once you figure out what you’re really looking for in a card. For your convenience, we’ll summarize the main features to compare below.

Credit Card Features to Compare

Credit Required

Once you check your credit score, you can narrow down your options to the cards you’re most likely to qualify for. If your score is at least 700, for example, you can get cards for good credit and below but you shouldn’t try to apply for cards for excellent credit (750+ credit score recommended).

Annual Fee 

There are credit cards with no annual fee for people of all credit levels. But credit cards for bad credit and premium rewards cards often charge annual fees. Make sure the annual fee, if there is one, is worth paying considering what you get in return and what other options you have.

Rewards 

You should focus on rewards if you plan to pay your bill in full each month. In that case, interest won’t be a factor. You can take your pick of cards with cash back, points, or miles. Cash back is the most straightforward, flexible option since it can be used for anything. Points are often worth the most when redeemed for travel, but you can also get gift cards, cash, merchandise and more. Similarly, miles are typically redeemed for flights or other travel expenses, but you can use them for things like cash, merchandise or gift cards.

Annual Percentage Rate (APR) 

The interest rate should be one of your top considerations when comparing credit cards if you think you’ll carry a balance from month to month. When you review a card’s terms, it will show the APR range you can expect when approved. For comparison purposes, the average APR among new credit card offers right now is 22.77%. You should aim for a rate much lower than average.

Promotional Financing 

Many cards offer low or 0% introductory APRs for purchases and/or balance transfers. The average intro 0% APR lasts for around 12 months but can be as long as 21 months. So if you are planning a large purchase or want to save on interest with a balance transfer, definitely take advantage of a low-interest promotion.

Bonuses 

Many credit cards offer an initial rewards bonus for spending a certain amount within the first few months your account is open. If you’re planning to use your card for several years, an initial bonus can be more of a tie-breaker between offers with equally attractive ongoing rewards. If you have a shorter time frame, a bonus is a bigger deal. Either way, it’s not a good idea to overspend just to get a bonus.

Other Fees 

Seek out cards with no foreign transaction fees if you want to bypass surcharges of up to 3% on each purchase from foreign-based merchants. In addition, when comparing balance transfer credit cards, consider the total cost of the transaction given the balance transfer fee, annual fee, introductory APR, and regular APR, along with your payoff period. Cards with $0 transfer fees won’t always be the cheapest. People with bad credit also need to watch out for pesky one-time setup fees. And it’s best to avoid cash advances whenever possible, as the fee can be up to 5% of the advance.

It’s wise to have a strategy for how to compare credit cards, or else you risk signing up for a card that doesn’t ultimately serve your financial goals. 

For more information, check out our guide on the most important things to look for when comparing credit cards and our latest picks for the best credit cards on the market.

In addition to the steps mentioned above, take a close look at the interest rate, service charges, and any additional fee associated with the cards. If you're planning to clear your balance every month, choose a card with lower service charges and annual fee. 

Choose a card that offers sufficient credit limit. When it comes to rewards, choose one that aligns with your spending habits. If you're a frequent shopper, choose a card that offers great cashback on shopping. You may seek expert help before finalizing the card.