How to Choose a Credit Card: Fewer Cards, More Control

Israel’s credit card market may seem confusing because of the many logos on your piece of plastic. To clarify matters, as of 2026, three major credit card companies operate in Israel: Isracard, MAX, and CAL.

A whole network of brands, banks, and consumer clubs has been built around these three companies. Therefore, you may find four different names on a single card:

• Consumer club logo > provides the discounts
• Your bank’s name > the entity from which the money is debited
• Credit card company > the operating and acquiring entity (CAL, MAX, Isracard)
• Payment network > the international card acceptance network (Visa/Mastercard)

Credit cards are sold to us like consumer products: through attractive sign-up gifts ("Get 100 NIS for purchases at chain X"). However, a one-time benefit is a very poor reason to keep a card long-term.

Many investors and consumers fall into the “card fee waiver” trap. They are convinced the card is free, but forget to check the fine print:

• Is the waiver permanent, or does it expire after one year and become a fixed monthly charge of 15–20 NIS?
• Is the waiver conditional on a “minimum spending volume” (for example, must you spend at least 5,000 NIS per month to avoid card fees)?

Before rushing to check which card gives you more points back, put it through a strict filtering system based on four financial parameters:

• Card fees: a fixed cost that can reach hundreds of NIS per year without justification.
• Foreign currency fee: Credit card companies charge a fee (usually between 1% and 3%) on every purchase on foreign websites or for flights. Those who shop frequently on AliExpress or Amazon, or fly abroad, will pay enormous sums here.
• Cost of credit: If you do not pay everything in one monthly payment, the InterestThe "price of money" – the amount paid for the use of someone else’s money, as income to the depositor or as a cost to the borrower. on your credit matters a thousand times more than any small benefit.
• Conditions for receiving benefits: Are you required to spend amounts beyond your normal budget to receive the cashback or club discount?

Costs vary between cards, so it is also advisable to compare foreign currency fees.

Suppose a certain card gives you a discount at a particular chain.

If you shop there anyway, the benefit can be worth real money.

But if the benefit causes you to shop there more, or make a special trip to “take advantage of the deal,” the card may actually be causing you to spend more money.

The same applies to cashback cards. Always check the fine print: Is there a monthly cap on the refund? Do the points expire after a certain period? A discount on a product you did not plan to buy is never a saving.

There is no single answer that is right for everyone.

Bank-issued card

Bank-issued card: issued through your bank. Its credit limit is an integral part of the account’s overall credit limit. The advantage: everything is centralized in one place. The disadvantage: the bank has full control over the card’s terms.

Non-bank card

Non-bank card: issued directly through the credit card company or a consumer club. The card comes with a separate, additional credit limit that is unrelated to the bank.

An additional limit can be useful in certain cases — but it is not necessarily an advantage.

More limits can also make it harder to understand how much money you have already spent. You may see one amount on the first card, another amount on the second, and another charge pending on the third card.

Some cards are marketed under flashy names such as “revolving credit card” or offer “fixed monthly charge” mechanisms and automatic credit installment plans. Do not get confused: a payment method and credit are two separate things.

With revolving credit, you choose to pay only part of what you purchased this month (for example, only 2,000 NIS out of spending of 5,000 NIS). The balance (3,000 NIS) does not disappear—it carries over to the next month and bears very high Interest (often reaching double-digit percentages).

Credit transactions and deferred credit card payments are loans in every respect. A card that offers you 1% in cashback but charges you 12% Interest on deferred payments is a financial pitfall.

The Bank of Israel operates a dedicated tool for comparing Interest rates, and you can also view the data on our comparison page.

The best consumer approach to maintaining financial control is based on a model of no more than two cards:

1. One primary card (The Driver)

The card used for most of your routine financial activity.

• It must have negligible cost or a permanent waiver of card fees.
• It should suit the places where you actually spend most of your money (for example, your main grocery chain or regular gas station).

2. One secondary card — only if it has a defined role (The Specialist)

You may hold an additional card only if you can complete the following sentence: “I hold this specific card because...”

• Example A: A non-bank backup card from another company (in case the primary card is blocked or lost).
• Example B: A card offering zero or especially low foreign currency fees (for example, 1% instead of 3%), used solely for purchases abroad and on international websites.

1. Bank of Israel — Fee Guide — A practical guide recommending that you compare credit card costs, track charges, and check whether it is really worthwhile to hold more than one card.
2. Bank of Israel — Debit Cards: Questions and Answers — A brief explanation of the difference between bank-issued and non-bank-issued cards, and of credit limits.
3. Bank of Israel Comparison Line — Credit Cards — A tool for comparing interest rates on credit transactions and revolving credit.