How to Compare Credit Cards to Find the Best Value

Article submitted by our partners at CardFit.

When choosing a new credit card, many people compare rewards to try to find the best value. Websites and tools that compare credit cards often emphasize cash back, points, and introductory offers more prominently than fees and interest rates (if they display those costs at all). Yet, splashy benefits could be completely wiped out by accrued interest and fees for many people.

To determine a credit card’s value, shoppers need the complete picture of rewards and costs—customized for their own spending and payment habits. They also need a more comprehensive set of options (for instance, credit union credit cards typically have lower costs, but are often excluded from credit card comparisons).

Here in the Midwest, where people value sustainability and supporting local businesses, it makes sense to choose financial tools that reflect those priorities: tools that are transparent, community-focused, and built to support long-term well-being.

Fortunately, there’s a new way to compare credit cards that can save consumers money. It’s known as Total Card Value.

Calculating Total Card Value

Calculating the total value of a credit card is a straightforward approach: subtract the costs (interest and fees) from the rewards (introductory offers, points, and cash back).

Total Card Value = Rewards - Cost

In the U.S., 60% of credit card holders carry a carry a balance month to month, making interest the largest cost associated with using a card by far. Carrying a balance—also known as "revolving credit"—means that you don’t pay off your total statement balance each month, accruing interest based on your card’s annual percentage rate (APR) on any unpaid amount. Americans’ average credit average credit card balance balance is $6,455.

Let’s explore how the Total Card Value formula works in practice using our 3Rivers Mastercard® credit card, and a hypothetical national bank credit card as examples.

Our 3Rivers Mastercard® credit card offers one (1) point for every dollar spent on all purchases. The APR ranges from 15.20% to 18% as of this writing in August 2025.

A typical national bank credit card may offer a sign-on bonus and 1% cash back. In 2025, at the time of this publication, APRs have ranged from 13% to 29% (in March 2025, the average APR was 24.2% APR was 24.2%).

In the table below, we determine the Total Card Value of our 3Rivers Mastercard® credit card, and a hypothetical national bank credit card, incorporating a $6,455 balance and $2,000 monthly spend on the cards. For simplicity, we account for spending being paid off in full each month, and the balance being carried month-to-month.

^{Disclaimer: The rates shown in the table above are for illustrative purposes only and may not reflect the actual rates available to all consumers. Your individual rate may vary based on creditworthiness and other factors. To view our current Mastercard® credit card rates, please visit 3riversfcu.org/rates.}

It’s clear that, for those who sometimes carry a balance, lower rates win Total Card Value—even for cards with fewer rewards, especially considering that any sign-on bonuses are one-time payouts.

If you absolutely never-ever carry a balance, then the card with the highest reward benefits will be the best Total Card Value for you. The value (or cost) of a credit card is dependent on how you use it. The bottom line? For consumers carrying a balance (even occasionally), rewards don’t come close to making up for the cost of a high interest rate.

Now it’s Your Turn

With a recent credit card statement that includes your balance, interest charges, and rewards earned, you can calculate your Total Card Value by subtracting the interest charges and any other fees from the rewards. Your value may be a positive or negative number.

An even easier way to calculate total card value is to use CardFit, a free tool that does the work for you. You can use CardFit to compare credit compare credit cards based on rewards and costs and get custom recommendations. All you need is your average balance, your ballpark credit score, and your typical monthly spend and payment amounts. CardFit will then show you credit card options that will maximize your Total Card Value (no math required)!

Choosing a credit card with low costs is one way to save money for a rainy day. With a Total Card Value approach, you can get the full picture of the benefits and charges associated with credit cards to make an informed decision that gets you the best deal.

Check out our tips on using credit cards wisely and see why it pays to choose a credit card from your local credit union over options from retailers.