Credit Card Shopping: Don't Get Scammed - Get the Facts

Why you need to stop "Shopping around" for a new credit card: Do this instead

Hey, hey, hey! It's Pepper, the quirky finance pro who's here to give you the lowdown on the latest buzz in the credit card world. And boy, do I have some exciting news for you.

We all know that credit card shopping can be a real pain in the you-know-where. It's like trying to navigate a maze blindfolded, hoping you don't step on a landmine (aka high-interest rates).

Well, the Consumer Financial Protection Bureau (CFPB) has come to the rescue with an updated version of their trusty credit card plans (TCCP) survey. Let’s get to the details.

Salt & Pepper's 60-Second Summary

Short on time? No worries – Here are the key touchpoints of this post:

• 🚫 Many credit card comparison sites are scams, promoting only the products that benefit them.
• 🆕 The updated Federal Tool for Credit Card Comparison offers transparent and unbiased information to help consumers make informed choices.
• 📊 Credit card approval is largely based on your credit score, so it's important to build and maintain good credit.
• 💰 Credit card companies often only advertise their most profitable products, rather than the best products for consumers.
• 🤔 Be wary of flashy marketing tactics and do your research before signing up for a credit card.

What is The TCCP Survey?

The Terms of credit card plans (TCCP) survey is a federal tool for credit card comparison that brings transparency and (finally) some clarity to the game.

Now, I know what you're thinking: "Pepper, what's so special about this survey? Isn't it just another boring government tool?" Nope – This survey is a game-changer, bringing legibility to the murky world of credit card offers.

For too long, the TCCP survey has been gathering dust in some forgotten corner of the internet, with outdated data that's about as useful as a chocolate teapot (or a credit card with a 25% interest rate - yikes!).

But the new and improved version launched just a few weeks ago (March 21, 2023), is a breath of fresh air. It's like the survey went on a spa retreat and came back all zen and rejuvenated.

So, what's so great about the new survey?

Well, for starters, it's more detailed than ever before. You'll get the nitty-gritty on interest rates, including minimum and maximum APR, APR based on credit score, and median APR for different credit scores. That means no more guessing games or squinting at the fine print to figure out what you're really signing up for.

But wait, there's more! (I sound like a cheesy infomercial, don't I?)

The top 25 credit card issuers will now have to spill the beans on all their credit card offerings, not just the ones that make them the most dough. And smaller financial institutions can also join in the fun by voluntarily submitting their information to be displayed alongside the big dogs.

The survey responses are due on or before April 20, 2023, and once they're made public, you'll finally be able to compare credit cards with some actual data (imagine that!). And with interest rates on the rise, this survey couldn't have come at a better time.

The Truth About Credit Card Comparison Sites

Let's be real here: a lot of these credit card review sites are pay-to-play, meaning they're only going to show you credit cards that they can make money off of.

They'll push products that are not necessarily the best for you but are the best for their bottom line.

It's like going to a restaurant and only being offered the dishes that the waiter gets a commission on - not exactly a recipe for a satisfying meal (or a satisfying credit card).

And even if these comparison tools do offer a wider range of credit cards, they're often vague on the details. You'll get some basic information on interest rates and rewards, but not much else. It's like trying to buy a car based solely on the color and the number of cup holders - there's a lot more to consider than that.

That's why this Federal Tool for Credit Card Comparison is such a great resource. This tool is unbiased and transparent (hallelujah🙌), offering a comprehensive view of the credit card landscape.

So, say goodbye to the shady comparison tools of the past and hello to a brighter (and less biased) future.

Looking for Unbiased Credit Card Reviews? Here's Where to Shop.

Alright, now that we've exposed the pitfalls of many credit card comparison tools, you might be wondering where to turn for unbiased reviews and recommendations. Well,  I've got some insider tips for you.

1. First up, consider checking out personal finance blogs and websites that specialize in credit cards. These sites are often run by experts in the field who have no vested interest in promoting one credit card over another. They'll offer detailed reviews and comparisons based on a wide range of criteria, so you can get a fuller picture of what's out there.
2. Another option is to check out customer reviews on credit card issuer websites. While these reviews might not be as comprehensive as those from personal finance experts, they can still give you a good sense of how other consumers have fared with a particular credit card. Plus, these reviews are often unfiltered, so you'll get a sense of the pros and cons straight from the horse's mouth.
3. And of course, don't forget the power of word of mouth. Ask your friends and family members what credit cards they use and what they like (or don't like) about them. Chances are, you'll get some honest and insightful feedback that you won't find anywhere else.

Maximizing the Benefits of the Federal Tool for Credit Card Comparison

Now that you know about the updated Federal Tool for Credit Card Comparison, it's important to understand how to use it effectively.

First and foremost, take the time to thoroughly read and understand the information provided in the survey. Look beyond just the interest rates and rewards programs to consider fees, credit limits, and other important factors.

Compare multiple credit cards side-by-side to get a sense of how they stack up against each other.

Next, consider your own individual needs and spending habits when making a decision. Do you carry a balance from month to month? Look for credit cards with low-interest rates or 0% APR introductory offers. Do you travel frequently? Look for credit cards with rewards programs that offer points or miles that can be redeemed for flights, hotels, or other travel expenses.

Building and Maintaining Good Credit

Great Credit = Great Opportunities. No matter how much of a super sleuth you think you are, you will not find a great credit card offering that’s willing to overlook your bad credit. The best offers are reserved for those who have great credit.

So an in-depth credit card tool is only going to get you part of the way, it's important to focus on building and maintaining good credit. This will not only help you get approved for credit cards with favorable terms, but it will also put you in a better position for other financial goals like buying a car or a home.

I won’t go into the weeds here, that’s for another post. But to build good credit;

• Pay your bills on time every month. Late payments can have a negative impact on your credit score and stay on your credit report for up to seven years.
• Keep your credit utilization low by using only a small percentage of your available credit. Aim for a utilization rate of 30% or less.
• Monitor your credit report regularly to check for errors or fraudulent activity. You can’t fix what you don’t know about.

Peppers Takeaways

Although this wasn’t the topic I thought I’d be covering today I am so happy to have the opportunity to stumble across it and convey it to anyone willing to listen. Credit card debt is a plague on society and needs to be reigned in. I’ve seen so many of my peers fall prey to the exploitation of these review sites and marketing ploys.

Not today, satan!

But if you skimmed around here are the main points I want to drive home:

• Don’t trust everything you see on review sites for credit cards (or any banking product)
• Look for “editorial independence” to prove they are writing an UNBIASED REVIEW
• Dig deeper than the front page of Google
• Use tools like The TCCP to get a holistic view of the best offers for your credit range

Keep reading Salt & Pepper Finance for your no-BS financial insight.