How to compare credit cards

Using our comparison tool is simple: Browse the credit card carousel to find the cards you’d like to compare. You can search for specific cards or view by category.

Not sure where to start? Get a closer look at our top-rated credit cards in each category below:

• Best 0% APR credit cards

• Best balance transfer credit cards

• Best cash-back credit cards

• Best travel credit cards

• Best rewards credit cards

• Best business credit cards

• Best student credit cards

• Best airline credit cards

• Best hotel credit cards

• Best credit cards to build credit

• Best secured credit cards

When you’re ready to compare, click on up to three choice cards to add them to the comparison tool. You can view card details like annual fee, APR, rewards, benefits, welcome offer, and more. If you’d like to replace a card, click the “x” in the upper right corner to deselect it, and choose another card from the carousel.

What to look for in a new credit card

Here are some of the main card details to note when you’re looking for your next credit card:

Annual fee

Credit cards charge a range of annual fees, from $0 up to $800. As you compare cards, make sure you get enough value to make up the annual fee cost in rewards or benefits every year.

A no annual fee credit card can be a good idea if you’re not looking for big annual credits or a long list of perks. Many cards that earn cash-back rewards or have introductory 0% APRs charge no annual fee. Some cards designed for building credit also carry no annual fee.

APR

Credit card APRs are usually variable and assigned within a range set by the issuer. Your specific APR depends on the details in your application, but you can get an idea of what your interest rate may be by comparing current APR ranges.

You should know your card’s APR (annual percentage rate) even if you don’t plan to carry a balance. On average, credit card APRs today are very high. If you do carry a balance, it can quickly lead to lasting high-interest debt, which is a major risk of using a credit card.

Introductory APR offer

Some credit cards offer an introductory 0% APR for new purchases, balance transfers, or both. The introductory period typically lasts between 12 and 18 months. You can use an intro APR offer to finance a large purchase and pay it off over time without interest or to pay down existing debt accrued on another card.

Keep in mind, any remaining balance left when the intro period ends take on interest at the card’s regular ongoing APR. To best take advantage of a 0% intro period, commit to paying down as much of your balance as you can before interest kicks in.

Even if a 0% APR is your priority when opening a new card, it pays to compare different cards’ ongoing rewards and benefits, too. Then, you can find a great 0% APR card that also works with your spending long-term.

Welcome offer

Rewards credit cards typically have welcome bonuses for new cardholders. A great welcome bonus might be worth hundreds of dollars in bonus cash back. For cards that earn points or miles, some of the best welcome offers are worth 100,000 points or more.

To earn a welcome bonus, you’ll need to meet a specific spending minimum within a given time period after opening your account. For example, you may earn 75,000 welcome bonus points when you spend at least $4,000 within the first three months.

A welcome bonus is a one-time bonus for new cardholders, so it won’t increase your new card’s long-term value. But it can help increase your return over the first year. Before you apply, make sure you read the details of your card’s welcome offer to ensure the spending threshold is within your budget. If you have to take on debt to earn a bonus, you’ll owe a lot more in interest charges over time than you get back in rewards.

Rewards

Rewards are one of the best perks of using a credit card to make purchases. Popular credit card rewards categories can range from travel (airfare, hotels, etc.) to everyday expenses like groceries, gas stations, and dining out.

The best way to choose a rewards credit card is by looking at your regular spending. If you spend the majority of your monthly budget on groceries and rarely eat out, you won’t get much use from a card with dining rewards. If you live in a city and rely on public transit to get to most places, you probably won’t be able to maximize gas station spending.

You may also find that your regular spending habits don’t fit neatly into common rewards categories. Then, you can opt for a rewards card that earns flat cash back or flat points and miles on every purchase, and maximize your spending no matter where you buy.

Benefits

Benefits are another way to ensure you’re getting the most value from your card over time. Generally speaking, the cards with the most valuable benefits also carry the highest annual fees. Premium travel cards with high fees, for example, often come with annual travel credits, airport lounge access, and more.

As you compare credit card benefits, look for perks that align with how you already spend money. Even the best credits won’t put much money back into your pocket if you don’t use them. You also don’t want to risk overspending simply to take advantage of a credit card benefit. Like rewards, the best credit card benefits help you save money on purchases you would make anyway.

Make sure to compare different credit card protections, too. Most cards today should offer zero liability for fraudulent transactions, for example, and many offer ways for you to view and track your credit score. Other common protections include price protection and extended warranties, travel insurance, secondary coverage for rental cars, emergency assistance, and more.

Credit score

Credit card issuers often give a credit score range for different cards. This range can help you determine how likely you are to get approved for the card. For example, if you’re just starting to build your credit and have little to no credit history, you probably aren’t going to get approved for a card with a recommended credit score in the excellent range (740-850).

Instead, make sure you know your credit score and check for cards with a corresponding credit score range. Having the right credit score alone isn’t a guarantee that you’ll get approved, but it can help you narrow down your credit card options to those you’re most likely to qualify for.

How to apply for a new credit card

When you find the card that’s best suited for your financial goals, it only takes a few more steps to apply.

Once you navigate to the card application, you’ll need to provide personal information like your full name, date of birth, home address, Social Security number or individual taxpayer identification number, and more. You’ll typically also be asked about your employment status and income.

Some issuers process new card applications automatically and will let you know instantly if you’re approved. You’ll usually receive your card by mail a few days later but may be able to access a digital card instantly.

Read more: How to apply for a credit card

---

Editorial Disclosure: The information on this page has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.