Statement: CFPB launches first-of-its-kind credit card shopping tool

Comparison tool could help save consumers money

WASHINGTON — The Consumer Financial Protection Bureau (CFPB) launched on Wednesday its new Explore Credit Cards comparison tool. The tool uses unbiased, public data the CFPB has collected from all major credit card companies and some smaller companies that have voluntarily provided it. It allows consumers to compare the annual percentage rates (APRs), fees, and rewards of more than 500 credit cards from 150 companies, by different credit tiers.

In addition to unveiling the tool, the CFPB took two other actions related to credit cards. The bureau published new research showing higher interest rates for retail credit cards compared to traditional cards. The agency also issued a circular to other law enforcement agencies warning that certain credit card rewards practices, such as devaluing rewards that have been earned or denying rewards based on hidden requirements, could violate the law. 

In response to the launch of the tool, PIRG’s Consumer Campaign Director Mike Litt released the following statement:

“The CFPB has just made shopping for credit cards easier and better. 

“A consumer with an average $5,000 credit card balance can save $400-500 in interest a year by using a credit union’s or small bank’s credit card. But when you visit credit card comparison sites, the results you get are mainly for the top issuers, who are competing on rewards, not APR. And the CFPB says some of these sites might be getting kickbacks for manipulating the results consumers get.

“Now, consumers have an unbiased, comprehensive tool that allows them to make informed decisions. The Explore Credit Cards tool is yet another way the CFPB is working to save consumers money.”