Should I get a low rate or rewards card?

If you ALWAYS pay in full: rewards card. If you EVER carry a balance: low rate card. The interest on rewards cards (20%+) destroys any points value.

Are rewards points worth the annual fee?

Calculate: (monthly spend × 12 × points per $) × point value. If this exceeds the annual fee, yes. Example: $2,000/month × 1pt/$ = 24,000 points × $0.01 = $240 value vs $150 fee = worth it.

What about sign-up bonuses?

Sign-up bonuses can be worth $200-$500+ in the first year. Factor them in, but also calculate the card's ongoing value for year 2+.

Credit Card Comparison Calculator

Calculator

Compare credit cards by rates, fees, rewards, and find the best match

Free to useNo data storedAI insightsUpdated: February 2026

Not all credit cards are equal. The best card depends on how you use it - low rate cards save money if you carry a balance, while rewards cards pay off if you always pay in full.

Enter Your Details

Real-World Examples

Low Rate vs Rewards Card

$2,000/month spend. Card A: $0 fee, 13.5% rate, no rewards. Card B: $150 fee, 20% rate, 1.5 points/$.

Inputs Used:

spend:2,000feeA:0rateA:13.5feeB:150rateB:20

If you pay in full: Card B costs $150/year but earns ~$180 in rewards. Winner: Card B (+$30). If you carry $2,000 balance: Card A saves ~$130/year in interest. Winner: Card A.

Frequently Asked Questions

Glossary

Purchase Rate

Interest charged on purchases if balance isn't paid in full.

Rewards Rate

Points or cashback earned per dollar spent, e.g., 1 point per $1.

Point Value

What each reward point is worth - typically $0.005-0.01 depending on redemption.

Related Tools

Rewards Calculator

Calculate actual rewards value

Interest Calculator

See interest cost if carrying balance

Annual Fee Calculator

Is your annual fee worth it?

How to Use

1Enter your typical monthly spending
2Indicate if you pay in full or carry a balance
3Add details for each card you're comparing
4Include annual fees, rates, and rewards
5See which card costs less overall

Key Information

Low rate cards: best if you carry a balance
Rewards cards: best if you always pay in full
Annual fee cards often offset by rewards value
Balance transfer offers can save thousands short-term

Pro Tips

If you carry any balance, low rate beats rewards every time
Calculate rewards value: points ÷ point value (usually $0.005-0.01)
Watch for first-year fee waivers then reassess
Consider sign-up bonuses in your first year calculation

Avoid These Mistakes

Choosing rewards card but carrying a balance (interest kills rewards)
Ignoring annual fees when comparing
Chasing points without calculating actual value
Not reviewing card annually as needs change

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026