Cards and accounts · Cards
The right card depends on what you spend , not the advertised rate.
A high reward rate in a category you barely spend in is worth nothing. And if a balance carries month to month, the interest rate wipes out every reward.
What this page covers
The points to look at
- 01Cash back or points: what the points are actually worth on redemption.
- 02Annual fee: the spending threshold where it pays for itself.
- 03Bundled insurance: travel, car rental, extended warranty.
One card, four lines to read
| Line | Why it matters | What to work out |
|---|---|---|
| Reward on your categories | A high reward only counts in the categories where you actually spend. | Last month’s spending, by category. |
| Point value | Depending on the redemption, a point is worth more or less: travel, cash back, gift cards. | The dollar value of the redemption you will use. |
| Annual fee | It pays for itself if the value received exceeds it, otherwise it is a loss. | Yearly rewards minus the fee. |
| Interest rate on the balance | A carried balance wipes out any reward earned. | The real rate on purchases and on cash advances. |
Ask before you choose
- 1.Is the reward capped per month or per year?
- 2.Do the bundled insurance benefits apply to my trip or my rental?
- 3.Is the first year free, and at what price afterward?
- 4.What happens to the reward if I pay less than the full balance?
Guides
Read next
// Credit cards
Compare a Credit Card Beyond the Reward Rate
Weigh the reward rate against your spending that actually qualifies, then subtract annual fees, interest and foreign-exchange costs.
// Credit cards
Annual Fees: Calculate a Card's Break-Even Point
Divide the annual fee by the reward-rate gap to find the minimum spending that makes the card worthwhile.
// Credit cards
Cash Back: Gross Value, Caps and Categories
Calculate net cash back after annual fees, then apply the caps and rates for each spending category.
Frequently asked
What people ask most
Because the boosted rate only applies to eligible purchases, defined by the merchant's category code, and often capped. Part of your spending falls back to the base rate. Export three months of statements and work out your real rate before you choose.
Put numbers on your decision
Open the calculatorsFor information only: not an approval, and not a rate offer.
A question about your situation?
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