Reviewed by Joseph Hellman-Benjamin, Founder and CEO. Last reviewed: October 10, 2026. Editorial Policy
“Credit card broker” is not a licensed profession in the United States. The term is used for two different businesses. One is the comparison site that shows you card offers and is paid by the card issuer. The other is the business funding broker that opens several credit cards in your name and charges a percentage of the credit it obtains. They carry very different costs and risks.
Neither is the same as a mileage broker such as The Points King, which buys airline miles and credit card points for cash and does not arrange credit.
The Two Kinds at a Glance
| Comparison site | Card stacking broker | |
|---|---|---|
| What it does | Shows card offers and links to the issuer’s application | Applies for several cards on your behalf, usually business cards |
| Who pays it | The card issuer | You |
| Typical cost to you | Nothing | 8% to 12% of the credit obtained |
| Main risk | You see only partner offers, in an order that payment can influence | A large fee, several hard inquiries and personal liability for the debt |
Comparison Sites: Free to You, Paid by the Issuer
Credit Karma, NerdWallet, Bankrate, LendingTree and Experian all run card marketplaces, and all say in their own disclosures that issuers pay them.
- Credit Karma: “Credit Karma gets paid by the banks and lenders we work with.” (source)
- NerdWallet: “Our partners compensate us for advertisements that appear on our site.” (source)
- Bankrate: “This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories.” (source)
That model is legal and disclosed. It has two consequences worth knowing. The cards you see are the ones whose issuers pay the site, not the whole market. And the order they appear in can reflect what the site earns.
“Pre-approved” does not always mean approved
In 2022 the Federal Trade Commission alleged that Credit Karma told users they were “pre-approved” for cards when, for many offers, almost a third of those who applied were denied. Credit Karma was ordered to pay $3 million, and the FTC later sent more than $2.5 million to 50,994 consumers (FTC, September 2022; FTC, October 2024). A denied application still leaves a hard inquiry on your credit report.
What the regulator has said
In February 2024 the Consumer Financial Protection Bureau issued a circular saying comparison tools can break the law if they steer people toward products because of what the operator is paid. The Bureau withdrew that circular on May 12, 2025, along with other guidance. Its own card comparison tool, launched in December 2024, has also been retired.
Card Stacking Brokers: You Pay, and You Carry the Debt
Credit card stacking means opening several cards in a short period to reach a large combined credit limit. NerdWallet describes it as “a type of alternative financing in which you ‘stack’ multiple business credit cards to increase the total amount of capital you can access.” You can do it yourself, or pay a company to do it.
- The fee. NerdWallet puts it at 8% to 12% of the total, and Nav at 9% to 11%. Fit Small Business notes that it is charged on the approved limit, not on what you borrow: $120,000 in approved credit at 9% costs $10,800.
- What you need. Good to excellent personal credit, a score of 690 or higher by NerdWallet’s figure, and in most cases a personal guarantee.
- What can go wrong. Several hard inquiries at once, personal liability if the business cannot pay, and introductory 0% rates that end. Nav says those typically last six to 18 months. NerdWallet gives the range of ordinary rates as 16% to 34%.
Two FTC cases to know
Seek Capital. The FTC sued in November 2024, alleging the company advertised business loans but instead applied for credit cards, most of them personal cards that customers could have applied for themselves, and charged 10% of the approved limits. In October 2025 a court permanently banned Seek Capital and its chief executive from providing business financing and entered a judgment of $48,280,328, partly suspended (FTC, November 2024; FTC, November 2025).
Seed Consulting. In January 2021 the FTC said the company charged $3,000 to $4,000 to open cards with combined limits above $50,000. The settlement banned it from obtaining credit cards for consumers for a fee and imposed a $2.1 million judgment (FTC, January 2021).
Is Anyone Licensed?
There is no federal license for this work. NerdWallet’s guide to business loan brokers states: “No federal licensing requirement exists for business loan brokers, and only a handful of states require licensing or certain legal disclosures.” Ask any broker which state rules it follows, and get the answer in writing.
On fees paid in advance, the FTC is blunt: “Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away.” (FTC consumer advice)
Questions to Ask Before You Use One
- How are you paid, and by whom?
- Do you show every card on the market, or only your partners’?
- Is this “pre-approved” offer a firm offer of credit?
- For a funding broker: what is the fee, is it charged on the approved limit or on what I use, and when is it due?
- Will the cards be business cards or personal cards, and will I see each application before it is sent?
How to Compare Cards Without a Broker
Read the issuer’s own page for any card you are considering: it is the only place the current terms are guaranteed to be right. The CFPB still publishes its database of credit card agreements and the raw data from its card terms survey, which covers more than 150 issuers.
Whatever you choose, pay the balance in full. US credit card balances rose $21 billion in the second quarter of 2026 to about $1.26 trillion, and 6.97% of card balances moved into serious delinquency, according to the Federal Reserve Bank of New York. Interest outweighs rewards.
How a Mileage Broker Is Different
A mileage broker does not find you a card or lend you money. The Points King buys airline miles and credit card points you already hold and pays cash for them. Selling points is against the rules of most loyalty programs, so read the risks of selling miles and points before you do. For what points fetch, see selling credit card points, what Amex points are worth and our guide to Chase transfer partners.
Frequently Asked Questions
Is a credit card broker licensed?
There is no federal license for credit card or business loan brokers, and only a handful of states require licensing or disclosures, according to NerdWallet.
Do comparison sites charge me?
No. The card issuers pay them, and the sites disclose that this can affect which offers appear and in what order.
What does a credit card stacking broker charge?
Typically 8% to 12% of the credit obtained, charged on the approved limit whether or not you use it.
Is credit card stacking safe?
It carries real risk: several hard inquiries, personal liability under a personal guarantee, and high interest once introductory rates end. The FTC has won court orders against two stacking companies since 2021.
Sources
- FTC: action against Credit Karma over “pre-approved” offers, September 1, 2022
- FTC: Seek Capital and its CEO permanently banned, November 17, 2025
- FTC: Seed Consulting settlement, January 29, 2021
- CFPB: withdrawn guidance
- CFPB: Terms of Credit Card Plans survey, last modified June 9, 2026
- NerdWallet: credit card stacking, updated March 2, 2026
- Nav: is credit card stacking worth it?, January 30, 2026
- Fit Small Business: credit card stacking
- NerdWallet: business loan brokers, updated August 11, 2026
Update Log
- October 10, 2026: rewritten. Now covers both meanings of the term, with broker fees, FTC cases and the status of CFPB guidance.