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What Credit Score Do You Need for a Credit Card?

If you have perfect credit? It is not required to apply for a credit card. It is better to apply for the best credit cards if you have a good credit score. However, you don't need a perfect score to get a good card.

You're about to apply for a credit card, but you're concerned that your three-digit credit score isn't high enough?.

Don't do it. True, you'll need a higher credit score to apply for cards with lucrative bonus plans and low interest rates, but you can still get a credit card even though your credit score isn't perfect.

The relationship between credit cards and credit scores isn't enigmatic, according to Juan Carlos Cruz, founder of Britewater Financial Group in Brooklyn, New York. “The higher your credit score, the more favorable credit cards you’ll receive,” Cruz said. “If you have missed payments or you are using most of the credit available to you already, those are signs that you are not using your trade lines responsibly. You won’t qualify for the better cards because of that.”

Here are the credit ratings you'll use to apply for anything from no-frills standard credit cards to those with generous sign-up incentives and cash back.

What is a credit score?

Your credit report is a snapshot of how well you've handled your credit and paid your bills. The less blemishes on your financial report – such as late fees, missed payments, or heavy credit card balances – the better.

When it comes to applying for credit or loans, FICO credit scores are the most relevant because they are the ones that lenders and banks look at when judging borrowers. The range of these ratings is from 300 to 850. FICO ratings of 740 or better are considered outstanding by most lenders, and if your score is that good, you should have no trouble applying for the best credit cards.

Your credit score is based on the details included in your three credit reports, one each from Experian, Equifax, and TransUnion, the three major national credit bureaus. Several topics are included in these reports:
  • Your credit card and loan balances
  • Any charges received to your credit card or loan cards that were 30 days or more past due in the previous seven years
  • Any recent bankruptcies (within the past seven to ten years)
  • Have you had any foreclosures in the past seven years?

If you will get a free copy of any of your credit reports from once a year, you won't be able to get your official FICO ranking. MyFICO, on the other hand, sells it.

Free credit scores are still available, but they aren't quite the same FICO scores that lenders or credit card firms see when you apply. These credit ratings are normally available from the credit card companies, bank, or credit union. While these aren't "real" FICO ratings, they'll give you a decent sense of your credit's power.

What credit score is needed for a credit card?

To apply for a standard, no-frills credit card, customers normally need a FICO score in the low 600s, according to Tom Giancola, chief credit risk officer at Mercury Financial, which has offices in Austin, Texas, and Wilmington, Delaware. A score in the mid 600s to low 700s is needed for a standard rewards card. And to be eligible for premium credit cards with the best rewards programs? According to Giancola, this normally necessitates a FICO score of 740 or higher. “Those rewards are expensive,” Giancola said. “The banks can’t tolerate high loss levels if they are paying out that much in rewards expense. So they reserve these cards for the safest of applicants.”

How to improve your score for better cards

Taking two key moves if you want to increase your credit score. To begin, pay your credit card bills and any debts on time per month, such as student loans or a mortgage.

Next, pay down as much of your credit card balance as you can. Your credit score will improve if you use fewer of your credit limits. Just make sure not to close any credit cards that you have paid off, as this will reduce your unused credit and lower your credit usage level, which will hurt your credit score.

Another trick to raising your credit score, according to Andrea Woroch, a consumer-savings specialist in Bakersfield, California, is to eliminate the poor spending patterns that lead to credit card debt. “Identifying and removing causes that contribute to impulse purchases is critical to maintaining good credit,” Woroch said. To further eradicate the urge to overspend, Woroch advises that those who struggle with impulse shopping uninstall sale applications from their phones and unsubscribe from store newsletters.

What credit card can I get with bad credit?

Experian describes a really low FICO score as one that falls between 300 and 579. If your credit score is in this category, you'll most likely apply for protected credit cards. These work similarly to conventional credit cards, with the exception that their credit caps are tied to a payment you make before you apply for the card. For instance, you might put down $500 with the card issuer and obtain a protected credit card with a $500 credit limit.

Since banks are insured, it is easier to register for these cards. If you don't make the deposits, the bank will use your deposit to pay them off.

The Chime Credit Builder Visa card is a safe option. There is no monthly fee or security deposit on this card. It also doesn't charge interest. While this is also a protected credit card, it was designed to be used in conjunction with the Chime Spending Account. You must first open a spending account and then pass funds from that account to your Credit Builder credit card in order to use this card. Your credit balance is determined by the amount of money you've turned over.

And if your credit is weak, you could be eligible for other credit cards, such as Capital One's Indigo® Platinum Mastercard® or Secured Mastercard®. Only keep in mind that most of these cards come with an annual bill.

The Discover It® Secured Credit

Card is one of the few secured credit cards that offers incentives. At gas stations and bars, you can collect 2% cash back (up to $1,000 a quarter) and 1% cash back on all other transactions. There is no monthly fee on this card, but you must make a security deposit.

What credit card can I get with fair credit?

A decent FICO credit score, according to Experian, ranges from 580 to 669. If your credit score is in the fair category, you'll be eligible for a wider range of credit cards, including those with no monthly fees or security deposits.

If your credit score is on the lower end of the equal scale, the Capital One Platinum Credit Card is a decent choice. This is a simple credit card with no benefits. It does not, however, charge an annual fee, so you can simply use this card to help you create credit.

The Credit One Bank® Visa® for Rebuilding Credit is an opportunity if your score is on the higher end of the equal scale. This card has a loyalty scheme that gives you 1% back on petrol, grocery, and phone services transactions. You will, though, be charged an annual fee of $0–$95 the first year and $0–$99 the following years.

What credit card can I get with good or excellent credit?

A FICO score of 670 or higher indicates that you have good credit. If it's between 740 and 799, it's in the really strong range. Finally, any score of 800 or higher is deemed outstanding, according to Experian. With these kinds of ratings, you can get almost every credit card on the market.

The American Express Blue Cash Preferred® Card is a clear example. This card offers 6% cash back at U.S. stores (up to $6,000 in sales a year, then 1% ) and 1% cash back on select U.S. streaming platforms. You'll also get 3% back at gas stations in the United States, as well as for taxis, rideshare systems, parking, trains, tolls, and buses. For any other orders, you will get 1% cash back. If you charge at least $3,000 in the first six months of getting your card, you'll get a $300 statement discount.

Another good card is the Discover it® Cash Back. When you unlock the wallet, you'll get 5% cash back on incentive categories that rotate every quarter (up to $1,500 of combined quarterly spending, then it's 1%), as well as 1% cash back on all other transactions.

How to get a credit card with no credit

Some individuals don't have positive or poor credit and they don't have enough credit background to qualify for a credit score. Building a credit history can be daunting for those who do not have loans or credit cards. Those with no credit scores can find it difficult to obtain most credit cards.

A protected credit card is a safe choice for those who have no credit background. Banks are more likely to accept you for a protected card if you have a low credit score and the security deposit you put down reduces the risk to the bank.

Use the encrypted card every month after you've received it. You'll gradually create a good credit score by paying your bills in full and on time each month.

Consumers who need to establish credit can also accept private-label cards, according to Giancola. There are credit cards sold by department stores, wholesale clubs, and other outlets that can only be used at a single location and seldom come with attractive perks. However, Giancola claims that these cards are better to apply for and they are less expensive than standard credit cards.

And, if customers use them responsibly, spending just what they can afford to pay off in full per month and paying their bills on time, they will establish a strong credit profile that would enable them to apply for more conventional credit cards in the future.

To help create a credit history, Giancola suggests signing up as a registered user on someone else's credit card account if you don't have one. You become a dependent of someone else's credit card account when you do this. The primary cardholder is responsible for paying the bill each month, but the payment is posted to the credit bureaus under both the person's and your names, which lets you establish a good credit background. To avoid ruining your friendship with the primary cardholder, just use the card as agreed upon with that individual.

Bottom line

You should choose the best card for your credit score, whether it's a secured card, a top-tier rewards or travel card. If you have a poor (or no) credit score, you can improve your credit score over time by being careful with your money and potentially apply for the credit cards you desire.

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