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NerdWallet.com Launches: Cheap Nerds Re-Invent Credit Card Search
Mar 10, 2010 (04:03 PM EST)
NEW YORK, March 10 /PRNewswire/ -- NerdWallet, a site that helps you find the best credit card, launched this week with 5 times as many search results as other sites.
Access to a larger search universe often drives savings for users: the company estimates over 75% of the site's beta users found a better credit card than the one they already have, saving them an average of $200 per year.
The following tables show how key metrics stack up against 3 well-regarded sites:
Low APR Credit Card Search Results NerdWallet Mint CreditCards BillShrink Number of Results 262 38 20 42 Average Min APR, Top 10 Results 7.5% 9.7% 13.1% 12.2% Table 1 – Low APR Credit Card Search Results, Excellent Credit. Source: NerdWallet.com analysis, as of March 5, 2010. Table image available at nerdwallet.com/pressroom.
Rewards Credit Card Search Results NerdWallet Mint CreditCards BillShrink Number of Results 273 42 27 57 Average Reward Rate, Top 10 Results 1.8% 1.3% 1.0% 1.1% Table 2 – Rewards Credit Card Search Results, Excellent Credit. Source: NerdWallet.com analysis, as of March 5, 2010. Table image available at nerdwallet.com/pressroom.
The start-up differs from established credit card sites because cards are ranked based on financial merit to the user, rather than financial merit to the website owner. In fact, out of the 500 cards in the company's database, less than 10% are sponsored results, explaining why NerdWallet has so many more search results.
A hypothetical search for a user with excellent credit demonstrates the content's substantial depth:
"The first time I used NerdWallet, I found 11 rewards credit cards that pay more than the one I got from a personal finance management website," says Eric Ogren, a beta tester.
NerdWallet understands that each user's optimal credit card depends on their financial habits, so results are customized to each customer.
For rewards credit cards, the ranking formula takes into account annual fees, signing bonuses, and common bonus rewards categories like gas and groceries.
And for low APR credit cards, the ranking formula takes into account balance transfer fees and promotional APR periods. Alternatively, users can sort cards by lowest balance transfer fees, best intro APR, or best ongoing APR.
"With over 1,000 credit cards available in the US today, it's impossible for a consumer to personally research each card," says Tim Chen, Founder. "There is usually one card that is unequivocally the best, whether you are searching for a rewards card, a low APR card, or a pre-approved card. We do the homework for you, by asking you the right questions, then objectively ranking the results."
NerdWallet is a credit card search and site, and seeks to become the best source for unbiased credit card information. The company was founded by a financial industry veteran in the wake of the financial crisis in August 2009, and officially launched in March 2010. NerdWallet is privately held, and is based in New York, NY.