Side by Side Credit Card Comparison - NerdWallet (2024)

The features of a credit card don’t matter much if your application is rejected. So when comparing credit cards, start by looking at the credit scores recommended by the issuer. That gives you an idea of whether you’re likely to be approved. You’ll find the recommended score ranges at the top of our side-by-side comparison once you select cards to compare.

The higher your credit score, the more cards you’re likely to qualify for. Cards with lucrative rewards, generous perks and 0% promotional interest rates tend to require higher credit scores; secured credit cards are available to people looking to build credit.

Among ways to check your score:

Credit scores are expressed on a scale from 300 to 850. Terms such as “excellent,” “good,” “average” and “poor” correlate directly with credit scores. In general:

When comparing credit cards, the first big decision concerns the type of card you’re looking for. What do you want that card to do for you? Our card comparison tool identifies the things each card is great for, such as rewards, balance transfers or bad credit.

In general, there are three types of credit cards:

The best card for you is one with features that meet your specific needs. If you don't travel much, for example, then the best travel card in the world isn't going to do you a lot of good. Compare cards within their own type.

The annual fee is a fundamental consideration when comparing credit cards. In effect, it offsets the value of the rewards and perks on the card. However, in comparing cards, you’ll find that rewards and benefits tend to be significantly better on cards that charge an annual fee. A card with a $95 fee will often deliver far more rewards than a $0 alternative, even after factoring in the fee.

The calculus on whether an annual fee is “worth it” is fairly simple: The value of the card to you should easily outweigh the fee. The rewards rate might be high enough and the perks extensive enough that the fee becomes a bargain — even if the fee is hundreds of dollars a year. If you’re building or rebuilding credit, an annual fee might unlock features that would otherwise be unavailable, such as rewards or the ability to qualify without a credit check.

For those who don’t want to worry about it, there are plenty of choices that charge no annual fee. Just don’t expect top-of-the-line rewards or benefits.

A credit card bonus offer is a promotional incentive to get you to apply for the card and use it regularly. Typically, it’s cash, points or airline miles you can earn if you spend a certain dollar amount on the card in the first few months of card ownership. These incentives go by various names, including “sign-up bonuses,” “welcome offers” and “new cardholder offers.”

When comparing similar credit cards, the bonus offer can be a decisive factor. Compare:

The potential to earn a bonus is always a consideration, but even cards that don’t offer one can be worthwhile because their rewards over the long run can make up for the lack of a bonus.

When comparing rewards credit cards, the rewards rate matters. Compare:

When comparing credit cards with bonus categories, look at the categories and rates together. After all, a 5X rewards rate at, say, restaurants is worthless if you never eat out. Similarly, a rewards rate of 3X points at supermarkets is probably more valuable than 4X points on streaming services because most people spend far more on groceries than on streaming.

Some bonus rewards rates remain in effect for the life of the card while others change periodically or are limited-time offers. And some cards limit how much spending is eligible for the elevated rates. Keep those limitations in mind when comparing credit cards side by side.

The “APR” is the interest rate on a credit card. Many credit cards start you out at 0% interest, or at least with a lower rate, for a number of months after you open the account. That can save you money compared with keeping a balance on a high-interest credit card.

When comparing credit cards with promotional interest rates, check whether the introductory rates apply to new purchases, balance transfers or both.

Here’s what to look for:

Not all cards have intro APRs. Our side-by-side credit card comparisons show “N/A” for those that don’t.

If you expect to be carrying debt regularly from month to month, the ongoing APR is important. The ongoing APR is the “regular” interest rate on a card — the rate that applies when there isn’t a promotional rate in effect. Lower is better.

Credit cards often list their rates within a range of percentages — say, 14.99% to 22.99%. The lower percentages typically apply to cardholders with better credit. You’ll often see the word “variable,” which means the APR will go up or down when the prime rate does.

In comparing cards, you might see other interest rates listed, such as a “penalty” APR imposed if you pay late, or a higher APR for taking a cash advance.

Some cards don’t have an ongoing APR because they require you to pay off your balance in full every month. These are known as charge cards. Our side-by-side comparison tool shows “N/A” for such cards.

Features beyond those discussed above might be called out in the pros and cons section of our card comparison tool. Other factors to consider when comparing credit cards include:

Look for a card identified as great for “Rewards,” “Travel” or “Cash back”

A rewards credit card gives you points, miles or cash back on every dollar you spend. Some give you the same rewards on everything — maybe 1.5% cash back, or 2 travel miles per dollar. Others pay higher rewards rates in specific categories, making them great for flying on a particular airline or buying gas. Many rewards cards allow new cardholders to earn a bonus by spending a certain amount of money early on. (In our side-by-side card comparison tool, those cards are marked as great for “Bonus offers.”)

Rewards cards typically have higher interest rates, so they’re best for people who pay their balance in full every month. Otherwise, high interest can easily offset the value of the rewards you earn.

Look for a card identified as great for “Low interest,” “Balance transfer” or “Zero percent”

A card with an introductory 0% APR or ongoing low interest could be a good match for you if you need to finance a large purchase or if you have irregular income and need to carry a balance from time to time. A balance transfer offer can help you pay off high-interest debt interest-free.

Look for a card identified as great for “Student” or “Secured”

Student credit cards are designed for college students who are new to credit. They’re easier to qualify for than other types of credit cards.

Non-students looking to build credit, or people with bad credit, can take a look at secured credit cards, which generally require a security deposit of $200 or more. Your deposit is usually equal to the credit limit on the card — the more you deposit, the higher your limit. The deposit is returned to you when the account is upgraded or closed in good standing.