Credit cards, judged by what they cost you
Rewards look like the point. For most people carrying a balance, the interest rate and the fee structure decide everything else.
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There are really only three reasons to open a credit card: to move expensive debt somewhere cheaper, to earn something back on spending you were doing anyway, or to build a credit file. Those goals pull in different directions, and a card that is excellent for one is often mediocre at the others.
If you carry a balance from month to month, rewards are a distraction. A card paying 2% back while charging 24% interest on a revolving balance is a card that costs you money. Sort out the interest first; optimise rewards only once you are clearing the statement in full.
The three questions worth asking
Will I clear this in full every month? If yes, the APR is almost irrelevant and you should optimise for rewards and perks. If no, the APR is the only number that matters.
What is the fee, in cash, per year? An annual fee is worth paying only if the benefits you will genuinely use are worth more than the fee. Count the benefits you will actually redeem, not the ones listed on the marketing page.
What happens when the promotional period ends? Introductory 0% APR offers revert to a standard rate. Know that rate and the exact end date before you transfer anything.
Compare your options
Before you publish: replace the rows below with real, verified products and current rates from your affiliate dashboard. Never publish placeholder figures as if they were live offers.
| Provider | Intro APR | Ongoing APR | Annual fee | Best for |
|---|---|---|---|---|
| [Card name 1]Issuer name | 0% for XX mo | XX.XX%–XX.XX% | $0 | Balance transfers |
| [Card name 2]Issuer name | 0% for XX mo | XX.XX%–XX.XX% | $0 | Everyday cashback |
| [Card name 3]Issuer name | None | XX.XX%–XX.XX% | $XX | Travel rewards |
| [Card name 4]Issuer name | 0% for XX mo | XX.XX%–XX.XX% | $0 | Building credit |
Choosing a card without regretting it
- Decide whether you are a payer or a carrier. Look at the last six statements. If any of them carried a balance, treat yourself as a carrier and shop on rate.
- Check your credit standing first. The advertised rate is the best case. Most issuers publish a range, and the range is wide.
- Use pre-qualification where it is offered. A soft check tells you your likely terms without leaving a hard enquiry on your file.
- Price the fee against real use. Write down what you would actually redeem in a year. If it is less than the fee, the card is a loss.
- Read the reversion terms. Note the day the intro rate ends and set a calendar reminder six weeks before it.
Common questions
Does applying for a card hurt my credit score?
A formal application creates a hard enquiry, which usually causes a small, temporary dip. Several applications in a short window have a larger effect than one. Pre-qualification tools use a soft check and do not affect your score.
Should I close an old card I no longer use?
Closing a card reduces your total available credit, which can raise your utilisation ratio and lower your score. It also shortens your average account age over time. If the card has no fee, leaving it open and using it occasionally is usually the simpler option.
Is a cashback card better than a points card?
Cashback is predictable and needs no effort to redeem. Points can be worth more per dollar, but only if you redeem them well and consistently. If you would not enjoy managing redemptions, cashback almost always wins in practice.
Read next
How 0% balance transfer offers really work
The fee, the clock and the reversion rate, worked through with numbers.
When a loan beats a balance transfer
Above a certain balance, a fixed-rate loan usually costs less than rolling transfers.