NerdWallet Credit Cards – What Ive Actually Learned Using Them
Ill be upfront: I spend way too much time on NerdWallet. Like, probably an embarrassing amount of time. Comparing credit cards, running the numbers on rewards programs, figuring out which card makes sense for which purchase. My wife thinks Im weird. Shes probably right.
But after years of obsessing over this stuff, Ive learned a few things about credit cards that I wish someone had told me earlier. So heres my honest take.
Credit Cards Arent Evil (But They Can Be)
Look, I know some people have a “credit cards are the devil” mentality. And honestly? I get it. Ive seen friends dig themselves into serious debt. Its not pretty.
But used responsibly – and I mean actually responsibly, not “I promise Ill pay it off eventually” responsibly – credit cards can be pretty useful. Free flights, cash back on groceries, purchase protection when that online order never shows up. These are real benefits.
The key word is responsibly. If you cant pay your balance in full every month, stop reading and go work on that first. Seriously. Interest charges will eat any rewards alive.
The Types of Cards That Actually Matter
Theres like a million credit cards out there. But really, they mostly fall into a few categories:
Cash back cards – The simplest option. You spend money, you get a percentage back. Usually 1-2% on everything, sometimes more on specific categories. I use these for everyday stuff because theyre easy to understand.
Travel cards – These earn points or miles you can use for flights, hotels, that kind of thing. Worth it if you travel a lot. Not worth it if that “trip youre definitely taking next year” never actually happens. (Ask me how I know.)
Balance transfer cards – If youve got credit card debt at high interest, these let you move it to a new card with 0% interest for a while. Can be a lifesaver if youre strategic about it. Can also be a trap if you just run up more debt.
Secured cards – For people building or rebuilding credit. You put down a deposit, thats your credit limit. Not glamorous, but effective. I had one of these in college.
What I Actually Look For
When I compare cards (which, again, I do way too often), heres what matters to me:
Annual fee vs benefits: Some cards charge $95 or even $500+ per year. Is that crazy? Depends on what you get. My main travel card has a $95 fee but comes with a $100 travel credit and lounge access that Id actually use. Math checks out. But a lot of cards have fees that just arent worth it unless youre spending a ton.
The rewards rate on stuff I actually buy: Getting 5x points on office supplies sounds great until you realize you spend like $50 a year on office supplies. I care about groceries, gas, and restaurants. Thats where most of my spending goes.
Sign-up bonuses: These can be huge – sometimes worth $500-1000 in rewards. But you usually have to spend a certain amount in the first few months to get them. Make sure you can hit that spend naturally. Dont buy a bunch of crap just to get a bonus.
The interest rate: “But you said pay it off every month!” Yeah, I did. But life happens. Having a lower APR as a safety net isnt the worst idea. (Also, if youre doing a balance transfer, the promotional APR is the whole point.)
Building Credit – The Boring But Important Part
I got my first credit card at 18 – a secured card with a $300 limit. Felt kind of silly at the time. Now I have excellent credit and can get pretty much any card I want. That boring start paid off.
Heres what actually builds credit:
- Paying on time: This is like 35% of your score. Set up autopay. Seriously. One late payment can hurt for years.
- Not maxing out your cards: Try to keep your balance under 30% of your limit. Under 10% is even better. I actually pay mine down mid-month sometimes to keep the reported balance low.
- Having accounts for a while: Length of credit history matters. Dont close your oldest card even if you dont use it much anymore.
- Not applying for everything: Each application dings your score a little. Not a big deal for one or two, but going on an application spree is a bad look.
Where NerdWallet Is Actually Helpful
Okay, so why do I keep going back to NerdWallet? A few reasons:
Their comparison tools are genuinely good. You can filter by what matters to you and get a pretty reasonable list of options.
The reviews are decent. Not perfect – they make money when you apply through their links, so theres some inherent conflict – but theyre generally balanced about pros and cons.
The calculators help you figure out if a cards actually worth it for your spending patterns. Like, will that sign-up bonus and ongoing rewards actually beat what youre getting from your current card?
My Actual Strategy
For what its worth, heres what I do:
I have one main card that I use for most purchases. Gets 2% back on everything, no annual fee. Simple, hard to mess up.
I have a travel card I use specifically for flights and hotels. Better rewards in those categories, and the perks (lounge access, free checked bags) make flying less miserable.
I have my old no-annual-fee card that I basically never use but keep open for the credit history.
Thats it. Three cards. Some people do way more “card churning” – constantly opening new cards for bonuses, then closing them. You can make good money doing that, but its basically a part-time job. Not for me.
Mistakes Ive Made
Since were being honest here:
I once paid an annual fee for a card I wasnt getting enough value from. Took me a year to realize it. Dumb.
I carried a balance for a few months in my 20s because I “needed” some stuff. That interest was painful. Learned that lesson.
I applied for like four cards in one month once. My score dropped 30 points. It recovered, but I was stressed for no good reason.
Learn from my mistakes. Or dont, I guess – making your own mistakes is pretty effective too.
The Bottom Line
Credit cards are tools. Theyre not inherently good or bad. The question is whether youre using them in a way that benefits you or the credit card company.
If youre paying interest, the company wins. If youre paying your balance in full and collecting rewards, you win. Its really that simple.
Sites like NerdWallet can help you find the right card for your situation. But no article or comparison tool can substitute for actually paying attention to your spending and making sure youre not digging yourself into a hole.
Good luck out there. And maybe dont spend as much time on credit card comparison sites as I do. Theres probably better uses of your time. (Do as I say, not as I do.)
