How to Compare Multipurpose Credit Cards

Multipurpose credit cards: Which one belongs in your wallet?

Comparing different multipurpose credit cards can become a harrowing experience because there are so many options to sort through. Using multipurpose cards can garner various benefits such as airline frequent flier miles, gas credit, cash-back or prizes. Once you evaluate the rewards which are most important to you, taking advantage of a multipurpose card will be a prime opportunity to get higher value from your consumer purchases with credit.

Things You'll Need

• Internet access

Instructions

1. 

   Find a website you are comfortable with.

   Search online for a website that allows you to review different cards side by side. A good website will have options for filtering cards based on what rewards you want, if you are a student or if you have poor credit.

2. 

   A high APR will take money from your pocket.

   Choose a card with a low or no annual percentage rate (APR). According to Lending Tree, high interest rate charges can steal the value of any potential benefits or points you receive from using your multipurpose credit card. Keep in mind that such credit extenders are not stupid and will get their money in some way. Read the terms very carefully, particularly if you have low or moderate credit ratings.

3. 

   Frequent flier miles are a popular reward.

   Pick which rewards are most valuable to you. If you love to travel, choosing a card with frequent flier miles is an excellent way to reduce the cost of your next trip. Choose a multipurpose card that fits your spending goals.

4. 

   Do the benefits outweigh the drawbacks?

   Evaluate your circumstances before choosing your multipurpose credit card. Perhaps you have poor credit history, do not use credit often enough to gain the rewards you want or the card you want requires a high annual fee. If any of these factors outweigh the benefits of the rewards you seek, now may not be the time for a new card.

Tips & Warnings

• Check the stores or shopping centers you frequent for affiliated multipurpose credit cards. You may be able to get rewards for purchases you already make.

• Use your credit responsibly. Charging more than you can afford to pay in order to rack up points or rewards is an easy way to land yourself in debt.

References

• Lending Tree: Choosing a Credit Card

Resources

• Federal Reserve: Guide to Credit Cards
• Card Ratings: Review, Offers, Applications