How to choose a credit card: fewer cards, more control

Israel’s credit-card market can look confusing because of the many logos printed on that piece of plastic. To make sense of it, as of 2026 three major credit-card companies operate in Israel: Isracard (ישראכרט), MAX, and CAL (כאל).

An entire network of brands, banks, and consumer clubs has been built around these three companies. That is why you may find four different names on a single card:

• The consumer-club logo > provides the discounts
• Your bank’s name > the institution from which the money is withdrawn
• The credit-card company > the company that operates and clears the card—CAL, MAX, or Isracard
• The payment network > the international network that accepts the card—Visa or Mastercard

Credit cards are sold to us like consumer products, through attractive sign-up gifts such as “Receive ₪100 to spend at chain X.” But a one-time benefit is a very poor reason to hold a card for the long term.

Many investors and consumers fall into the “card-fee exemption” trap. They are certain the card is free but forget to read the fine print:

• Is the exemption permanent, or does it expire after a year and turn into a fixed monthly charge of ₪15–₪20?
• Is the exemption conditional on a “minimum spending volume,” such as a requirement to spend at least ₪5,000 a month to avoid the card fee?

Before rushing to see which card gives you more points, put it through a strict screening process based on four financial parameters:

• Card fees: A fixed cost that can reach hundreds of shekels a year without justification.
• Foreign-currency fee: Credit-card companies charge a fee—usually between 1% and 3%—on every purchase from an overseas website or while travelling. People who buy frequently on AliExpress or Amazon, or travel abroad, can pay very large amounts here.
• Cost of credit: If you do not pay the entire amount in one monthly payment, the interest on your credit matters a thousand times more than any small benefit.
• Conditions for receiving benefits: To receive cashback or a club discount, are you required to spend more than your normal budget?

Costs vary among cards, and you should also compare their foreign-currency fees.

Suppose a particular 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 makes you shop there more often, or travel there especially to “take advantage of the offer,” the card may actually be causing you to spend more money.

The same applies to cashback cards. Always read the fine print: is there a monthly cashback cap? 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

A bank-issued card is issued through your bank. Its credit limit is an integral part of the account’s general credit limit. The advantage is that everything is concentrated in one place. The disadvantage is that the bank has full control over the card’s terms.

Non-bank card

A non-bank card is issued directly by a credit-card company or consumer club. The card comes with a separate, additional credit limit that is not connected to the bank.

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

More credit 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 one more charge waiting on the third.

Some cards are marketed under shiny names such as “revolving credit card,” or offer “fixed monthly payment” mechanisms and automatic credit instalments. Do not be confused: a payment method is one thing; credit is another.

With revolving credit, you choose to pay only part of the amount you spent that month—for example, only ₪2,000 out of ₪5,000. The remaining ₪3,000 does not disappear. It rolls over to the next month and carries very high interest, which can often reach double-digit rates.

Credit instalment transactions and deferring credit-card payments are loans in every practical sense. A card that offers 1% cashback but charges 12% interest for postponing payments is a financial pit.

The Bank of Israel provides a dedicated tool for comparing interest rates, and you can also see the data on our comparison page.

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

1. One main card (the driver)

This is the card used for most of your routine financial activity.

• It should cost nothing or offer a permanent exemption from card fees.
• It should suit the places where you actually spend most of your money—for example, your regular supermarket or fuel station.

2. One secondary card—only if it has a defined purpose (the specialist)

You should hold an additional card only if you can complete this sentence: “I keep this card specifically because…”

• Example A: A backup non-bank card from a different company, in case the main card is blocked or lost.
• Example B: A card with no foreign-currency fee, or a particularly low one—for example, 1% rather than 3%—used only for purchases abroad and on international websites.

1. Bank of Israel—Fees guide — A practical guide that recommends comparing credit-card costs, monitoring charges, and checking whether it is truly worthwhile to hold more than one card.
2. Bank of Israel—Payment cards: questions and answers — A short explanation of the difference between bank-issued and non-bank credit cards and their credit limits.
3. Bank of Israel Equator—Credit cards — A tool for comparing interest rates on credit instalments and revolving credit.