A few weeks ago, I had a little moment of enlightenment when I was researching what credit card I should write about next. I thought to myself, what If I was able to score every credit card using a rating system that relies on measurable attributes.
Let me explain further.
I wrote down the categories that are the most important when signing up for a credit. Below are the 5 main categories. (Now it might get a little nerdy so feel free to skip all of this if it bores you). I then broke down each category into measurable data points and assigned it a score value.
- Signup Bonus
- Reward Rates
- Perks and Benefits
- Annual Fee
- Points Flexibility
For example, for the signup bonus I looked at the 3-month historical high. Is the signup bonus 90% percent of the historical 3 month high? Is it the highest it’s ever been? Once I found this data, I assigned a value and plugged it into my formula.
Also, I have made this score a weighted average. This essentially means I have assigned a designated weight to each category. So, for example, a signup bonus is valued more than perks and benefits (the boring part is officially over).
Other Thoughts.
Let me make it very clear that this is just my formula. It’s a work in progress and my ultimate goal is to do some sort of market survey in the future when I have more followers so I have a better idea of how these categories rank for the audience and then adjust the formula accordingly.
Basics of the scoring
I have tried to make this as simple as possible, here is the Scoring System.
Below 6: not a great card at the moment
6 – 7: Good Card but definitely better options out there
7 – 8: Great card with great value and signup If you are in the market for a card
8 – 9: Excellent Card and should be one of the 5 cards in your wallet
9 – 10: Perfect Card and should be your go to card on everyday purchases!
