The Federal Government Is Trying to Help You Credit Card Shop

Credit cards may be easy to use, but finding the right one can take time and effort. With so many credit cards available, it can be challenging for consumers to know which card they might qualify for or which is best for their needs. The Consumer Financial Protection Bureau (CFPB) wants to make it easier for consumers to compare credit card product offerings. Soon, new data could help you make a more informed choice when applying for a credit card. 

Additional information will be collected from card issuers 

The CFPB collects information from credit card issuers semi-annually through its Terms of Credit Card Plans (TCCP) survey. The agency recently updated this survey to make it easier for consumers to compare cards. With these updates, the CFPB intends to create a neutral data source so consumers can find the best rates and products. 

Through the TCCP survey, the CFPB collects and publishes the product data on credit cards from the largest 25 issuers and a sample of at least 125 additional card issuers. The agency will expand the number of issuers included in the survey. This new data will be collected through April 20, 2023 and will be available to consumers at a later date. 

The new survey updates will make it easier for consumers to identify the following when comparing credit cards. 

Lower interest rates

Credit card interest rates can significantly impact your personal finances, especially if you carry a balance. For many consumers, expensive credit card interest charges make it harder to get out of credit card debt. With these updates, it will be easier for consumers to find credit cards with lower interest rates to minimize the extra fees they pay when using credit cards. 

Realistic interest rates

The updated survey will ask additional questions about annual percentage rates (APRs). Credit card issuers will need to report the minimum, maximum, and median APR offered by certain credit score tiers for credit cards that offer different APRs dependent on credit score. This change will help consumers get a better feel for the interest rates they might qualify for before applying for a new card. 

Credit cards that fit their best needs

The top 25 credit card issuers will now be asked to provide information about all their credit cards -- not just their most popular products. All other financial institutions can voluntarily provide information about multiple products. 

Issuers will also be asked to provide information about promotional terms of balance transfers, introductory rates, and cash advances. With additional data like this, consumers can more easily choose cards that meet their needs. 

Consumers can review survey findings 

Before adding a new credit card to your wallet, it's best to do thorough research to understand the card's terms, including fees that could impact your finances. It's also a good idea to spend some time comparing multiple product options.

The CFPB maintains historical data from the TCCP survey from as far back as 1990. Consumers are encouraged to review this data to make a more informed decision when shopping for a new credit card. The latest survey updates will give consumers even more information so they can settle on the right credit card for their needs.