How RichRupees Rates Credit Cards

Our ratings philosophy

What’s helpful to know about our ratings:

• Different categories of cards are rated using different formulas. The factors that make something a great cash-back card, for instance, are different from the factors that make for a great balance transfer card. A 10.0-point airline card, for example, would generally be considered superior to a 9.0-point airline card, but not necessarily to a 9.0-point cash-back card or a 9.0-point balance transfer card, as those cards are designed for different consumers with different needs.
• The base rating is then subject to adjustments based on the card’s features and benefits, such as purchase protection, travel insurance, cell phone protection and more. These adjustments can increase or decrease the rating by up to 0.5 points.
• The final rating is rounded to the nearest 0.5 point and displayed as a whole number or a half point (for example, 8.0 or 8.5).

Cash-back and general-purpose travel cards

The base rating for cash-back cards and general-purpose travel credit cards — those that are not branded with an airline or hotel name — is calculated this way:

• Cash value (70% of the base rating): This is our estimate of the dollar value a typical cardholder can realize by using the card as their primary method of payment for the first three years their account is open. Factors used in the cash value formula include, but are not limited to:
  • Base rewards rate (rewards earned for spending outside any bonus categories).
  • Bonus category rewards (including the nature of the categories and the rewards rates in those categories).
  • New-cardholder bonus offers.
  • Anniversary or other bonuses (taking into account the likelihood that a typical cardholder will earn those bonuses).
  • The cash-equivalent value of perks, credits or discounts that come with the card (taking into account the likelihood that a typical cardholder will use those perks).
  • The cash value calculation incorporates federal data on consumer spending to determine the relative weight of bonus categories. For example, the typical household spends far more on groceries and at restaurants than it does on streaming media, so 3% cash back at supermarkets carries more value in our calculations than 3% cash back on streaming.
• Simplicity (30% of the base rating): This reflects how easy or difficult it is to use the card — both in opening and managing the account, and in understanding, earning and redeeming rewards. Factors affecting the simplicity score include, but are not limited to:
  • Complexity of the rewards structure, such as:
    • Flat-rate rewards versus bonus categories.
    • Static bonus categories versus categories that change periodically.
    • Bonus categories that require active management (such as by selecting categories or by opting in or “activating” the categories).
    • Limits on how much spending is eligible for rewards in a bonus category.
    • A limit on total rewards that can be earned.
    • Rewards values that vary based on how the cardholder redeems.
  • Obstacles to getting or using the card (beyond credit score qualifications), such as:
    • Membership requirements that must be met in order to apply.
    • Requirements that purchases be made a certain way to qualify for a certain rewards rate (through a specific digital wallet, for example, or online versus in-store).
    • Burdensome restrictions on redeeming rewards.

NOTE: The cash-back ratings formula also applies to: store credit cards, whose rewards typically function like cash back; general-purpose “points” cards whose rewards aren’t specifically earmarked for travel; and non-rewards cards that don’t fall into any other category, such as student, balance transfer or secured.

Co-branded travel cards

The base rating for co-branded travel credit cards — those that are affiliated with an airline or hotel brand — is calculated this way:

• Cash value (50% of the base rating): This is our estimate of the dollar value a typical cardholder can realize by using the card as their primary method of payment for the first three years their account is open. Factors used in the cash value formula include, but are not limited to:
  • Base rewards rate (rewards earned for spending outside any bonus categories).
  • Bonus category rewards (including the nature of the categories and the rewards rates in those categories).
  • New-cardholder bonus offers.
  • Anniversary or other bonuses (taking into account the likelihood that a typical cardholder will earn those bonuses).
  • The cash-equivalent value of perks, credits or discounts that come with the card (taking into account the likelihood that a typical cardholder will use those perks).
  • The cash value calculation incorporates federal data on consumer spending to determine the relative weight of bonus categories. For example, the typical household spends far more on groceries and at restaurants than it does on streaming media, so 3% cash back at supermarkets carries more value in our calculations than 3% cash back on streaming.
  • The cash value calculation also takes into account the value of the rewards currency (miles or points) based on RichRupees’s analysis of redemption options and availability. For example, a card that earns 2 miles per dollar spent may have a higher cash value than a card that earns 3 points per dollar spent, if the miles are worth more than the points when redeemed for travel.
• Simplicity (20% of the base rating): This reflects how easy or difficult it is to use the card — both in opening and managing the account, and in understanding, earning and redeeming rewards. Factors affecting the simplicity score include, but are not limited to:
  • Complexity of the rewards structure, such as:
    • Flat-rate rewards versus bonus categories.
    • Static bonus categories versus categories that change periodically.
    • Bonus categories that require active management (such as by selecting categories or by opting in or “activating” the categories).
    • Limits on how much spending is eligible for rewards in a bonus category.
    • A limit on total rewards that can be earned.
    • Rewards values that vary based on how the cardholder redeems.
  • Obstacles to getting or using the card (beyond credit score qualifications), such as:
    • Membership requirements that must be met in order to apply.
    • Requirements that purchases be made a certain way to qualify for a certain rewards rate (through a specific digital wallet, for example, or online versus in-store).
    • Burdensome restrictions on redeeming rewards.
• Flexibility (30% of the base rating): This reflects how versatile and convenient the card is for travel purposes. Factors affecting the flexibility score include, but are not limited to:
  • The size and reach of the airline or hotel network, including partners and alliances.
  • The availability and variety of redemption options, including flights, hotels, car rentals, gift cards, merchandise and more.
  • The ease and cost of transferring rewards to other loyalty programs or partners.
  • The presence or absence of blackout dates, expiration dates, award charts, peak pricing and other limitations on using rewards.
  • The ability to combine rewards with other discounts or promotions.