Choosing a credit card is a major decision. Having the right card can also affect your ability to get a home loan from a bank or mortgage company. So if you’re looking for a credit card, keep the following tips in mind. 

How to Decide on a Credit Card

1. Choose Based on Your Credit Score

Every time a financial institution — like a bank or credit card issuer — pulls your credit report to check your eligibility for a loan or card, you’ll get a hard inquiry on your credit. While this process is necessary and beneficial in the long run, it will lower your credit score slightly and stays on your credit report for two years.

Getting the right credit card can help you build credit, but applying for highly selective cards can result in many hard inquiries. Not only can this negatively impact your credit, but it could also signal to banks and lenders that you’re a high-risk customer. As such, you should be familiar with your credit score so you can apply for cards that you have a good chance of being approved for.

2. Know Your Spending Habits

Different cards have different features. If you know that you’re going to be paying your balance in full every month, you can prioritize other aspects of the card besides the interest rate. However, if you’re planning on keeping a balance on your card, you’ll want to choose one that has a lower interest rate. 

3. Consider the Perks

Choosing the right card with the right rewards for you can help you save money. Some cards offer cashback rewards, where you will get a certain percentage of your money back from purchases you’ve made. Others offer travel rewards where you receive points instead of cash, which can then be redeemed for airfare, cruises, and other travel expenses. Consider what you would find more beneficial — if you plan to travel or value direct reimbursement — to see what card is right for you.

Talbot State Bank is a locally owned, community-based bank based in Fayetteville, GA. Offering a wide range of personal and commercial banking services, from checking accounts to mortgage loans, they will take care of all your banking needs. For personalized service, call (770) 692-0900, or visit their website for more information.