Compare cards side-by-side

What should you compare when it comes to credit cards?

Time and time again, you'll see us recommend different cards based on earning categories. These are unique to each card and can vary depending on what you're looking for. The best card will vary from person to person; for example, if you're a foodie, you might get more from a card offering bonus points for every dollar you spend on dining. On the other hand, some cards have solid reward rates on everyday purchases.

If you have an idea of how you'll primarily use this card — whether at the grocery store, for booking travel, or even on Uber — find a card that rewards that spending.

Some cards will come with a welcome offer outside the regular earning categories. A welcome offer is a bonus — normally a one-time deposit of points, miles or cash-back rewards — earned after you meet a spend minimum within a designated period of time. These welcome offers are great opportunities to maximize your reward earnings, and some cards will also have limited-time bonuses that can give you even bigger hauls.

APRs

An annual percentage rate (APR) is the rate at which interest will be charged on unpaid balances. We always recommend paying off your card every month, but if you see yourself carrying a balance from month to month, you'll want to make sure the APR is something you can handle. Choosing a card with a lower APR (or even an introductory offer for 0% APR) might be good if you're starting your credit journey or your income is on an irregular schedule.

Annual fees

The annual fee is the cost you pay to maintain a card account each year. This varies greatly from card to card, ranging from $0 to more than $600. Still, plenty of cards feature no annual fee, while others waive the annual fee for the first year. Even those that impose a high annual fee typically offer perks, benefits, or earning rates that allow you to recoup that cost — and then some if you maximize spending across bonus categories. Just make sure you're getting enough value to justify any annual fee you're paying on a card.

Required credit scores

You'll need a high credit score if you have your eye on certain cards, especially premium ones with hefty annual fees and luxury perks. Always get an idea of what the card requires before applying. This can save you a credit check and a possible hard inquiry on your credit report.

Many banks now offer insight into your credit scores with FICO and VantageScore. Checking with your bank can give you an idea of what cards you should look for. Here is a breakdown of score tiers from FICO and VantageScore:

FICO score tiers

• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very good: 740-799
• Excellent: 800-850

VantageScore tiers

• Very poor: 300-499
• Poor: 500-600
• Fair: 601-660
• Good: 661-780
• Excellent: 781-850

Building up your score can help you access cards with better rewards and ultimately enable you to travel more frequently or in greater luxury.

Additional fees

It's not just annual fees and APRs you need to consider before applying for a card. Cards and financial institutions can impose fees for late payments, cash advances, balance transfers, and even foreign transactions.

Many of these fees are avoidable if you spend within your budget and make on-time payments. That said, if you're looking to travel more with your new credit card, you'll want to watch out for foreign transaction fees. It might not seem like much, but many cards impose fees of around 3% when you use the card internationally. Choosing a travel card that waives these fees can keep money in your pocket when traveling abroad.