Most credit cards require a very good credit score of 700 or higher. And cards with many benefits, such as travel and cash back rewards, often ask for excellent scores of more than 750. But that doesn't mean you can't qualify for a lower-scoring credit card, you just need to apply for the right one. A good FICO score is between 670 and 739, according to the company's website.
FICO states that scores between 580 and 669 are considered fair and those between 740 and 799 are considered very good. Anything above 800 is considered exceptional. Retail stores tend to have more relaxed credit rating requirements, but they usually come with high annual percentage rates (APRs) to offset the risk. If you have a specific card in mind, you can check its credit rating requirements to see if you think you can qualify.
And if you're not sure if you have good credit, you can also check your latest credit score for free on WalletHub. A credit score is a three-digit number, usually on a scale of 300 to 850, that estimates the likelihood that you will repay the borrowed money and pay the bills. The annual fees, if any, for these cards tend to be lower than average, but the APR is usually higher than those for credit cards for people with established credit. To maintain a good credit score, it is essential to make payments on time and maintain credit utilization below 30%.The better your credit score, the more options you have to get a credit card with a low APR and an annual fee, as well as benefits such as cash back or travel points.
FICO, the best-known credit rating system, and its competitor VantageScore use the 300-850 range. If you're not sure if a particular credit card can be approved for you, look for pre-qualified credit card offers on the lender's website. There are a number of products to help customers who may be new to credit or who are trying to rebuild their credit. But after 12 one-off monthly payments, that increases to 1.5% cash back, which competes with cash-back credit cards for good credit. If your past payment history includes late or late payments, bankruptcies, or foreclosures, you may have a low credit score.
With a low credit score, you may also qualify for a retail credit card designed for large purchases, such as furniture, bedding, or appliances. Many people start with a secured credit card, student credit card, credit building loan, or student loan. The two main credit rating models, FICO and VantageScore, consider the same factors but weigh them somewhat differently. In conclusion, it's important to understand what kind of credit score is needed in order to get approved for a particular type of credit card. Generally speaking, most cards require at least a good FICO score of 700 or higher in order to be approved. However, there are some cards that require lower scores and some that require higher scores depending on the type of card and its benefits.