Released: April 04, 2023

A federal tool could soon make it easier to compare credit cards

The Consumer Financial Protection Bureau is asking banks for more information about who qualifies for which credit cards. Banks will be asked more questions about a card’s terms, like its interest rate, known as the annual percentage rate, or A.P.R. If a card’s rate depends on the applicant’s credit score — as most do — banks must report the lowest and highest rates charged, as well as the median A.P.R.

Pay close attention to the wording in promotions for credit cards, said Ruth Susswein, director of consumer protection at Consumer Action, an advocacy group. If the promotion says the rate is “as low as” 15 percent, she said, it may well be — but perhaps only if your credit score is 800 or above. “Otherwise, it doesn’t apply to you.”

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