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Credit scores are an important part of financial life that affects your ability to own or rent assets, buy cars, access credits, and influence premiums set by insurers. Financial institutions use this number to decide whether or not to lend money and how much interest they will charge on it.
If you are refraining from applying for a credit card, don’t worry about your credit score being too low. A high credit score means you qualify for the best credit card, but a low score does not mean that all credit cards are out of reach.
What credit score do I need for my credit card?
It depends on the card. Some credit cards are made specifically for people with non-perfect credits. Before comparing a particular card, check your credit score and understand what that number means.
The two main scoring models are FICO and VantagesCore.
FICO ranks scores from poor to exceptions on a scale of 300 to 850.
- Poor: 300-579
- Fair: 580-669
- Good: 670-739
- Very good: 740-799
- Exceptions: 800-850
VantagesCores has a similar ranking system for scales ranging from 300 to 850.
- Very poor: 300-499
- Poor: 500-600
- Fair: 601-660
- Good: 661-780
- Excellent: 780-850
However, when applying for a credit card, it should be noted that not only is the FICO score model commonly used, but also the FICO Bank Card score.
FICO BankCard Score is a credit scoring model specifically designed to evaluate credit card applications, highlighting factors related to credit card usage and behavior. It differs from FICO’s usual scoring model by focusing on credit card balances, payment history, and other credit card-related behaviors.
You can want to know your FICO Bank Card Score or FICO Score 8 to understand how credit card issuers evaluate their creditworthiness. These are the score versions that many credit card issuers commonly use.
Fair or Average Credit Cards
Even with a fair FICO credit score of 580-669, you can still find plenty of solid fair credit cards to choose from.
- Capital One Platinum Credit Card is a credit card with no annual fees that allows cardholders to automatically consider with a higher credit limit on monthly payments six months after opening an account. While no rewards or notable cardholder perks are offered, this is a highly rated option if you have fair or average credits.
- Capital One Quicksilverone Cash Rewards Credit Card We offer reward programs in a $39 Annual fee. Cardholders will earn an unlimited 1.5% cashback on all purchases. This is an option for those working to build creditworthiness while earning cash rewards.
Cards for good credit to good credit
- Chase Sapphire Reserve® It has great reward potential and comes with multiple perks. However, the annual fee for this card is $795and it is generally available only to people with excellent trust. On the other hand, a typical cashback card with no annual fees could be accessed by anyone with good or very good credit.
- Discover IT® Cashback Credit cards are one of the best annual fee credit cards on the market. Cardholders earn 5% cashback on purchases up to $1,500 for each quarter purchase in the post-activation spin category, followed by 1%. And DiscoverIT® Cashback Cards only require a good credit score to apply.
How does your credit score affect credit card approval?
Your credit score plays an important role in determining whether you want to receive credit card approval. Your lender will use this to assess your creditworthiness and ability to take responsibility for your responsibility.
Typically, a high credit score increases the likelihood of credit card approval, lower interest rates, and higher credit limits. On the other hand, a low credit score can lead to the rejection or approval of a low-condition card.
Can I get a credit card that has no credit history restricted or has no credit card?
If your credit history is limited, you have no luck. There are several ways to get a credit card without credit, or you may need some form of collateral. But everyone has to start somewhere, right?
Here’s how to establish a credit history and generate a credit score:
- Apply for a student credit card. Student credit cards are designed with students who do not have credit in mind. They provide a great way for young adults to begin building trust while learning strong economic habits. Student cards often come with notable perks, such as student-centric rewards and no annual fees. However, regular APRs can be very high.
- Apply for a secure credit card. A secure credit card provides inadequate or inadequate or inadequate or inadequate credit access to your credit line in exchange for a one-time security deposit. Credit limits are often equal to the amount of your initial deposit. This route may be ideal if your main goal is to build trust rather than borrowing money.
What will affect your credit score?
The two major credit scoring models are FICO and VantagesCore. Think of these models as equations. Each has its own way of generating numerical scores using information.
Understanding how these scores are calculated will help you reach the desired score.
How to score FICO
FICO scores are grouped into five categories, each donating a different percentage than what constitutes a credit score.
VantagesCore Scoring Method
The latest version of VantagesCore uses a “influence” scale to determine the importance of each factor, resulting in a slightly different score.
- Very influential credit usage, balance, credit available.
- What’s very influential is the credit mix and experience.
- A reasonable influence is your payment history.
- It is the age of credit history that has a low impact.
There are other important differences between FICO and VantagesCore. While FICO requires you to open and update at least one account in six months to generate a score, VantagesCore can calculate your scores, even if you are under six months old, and you only have one account in your credit report.
The latest versions of FICO (10T) and VantagesCore 4.0 use trend data, but it can take a while for publishers to switch to it and it may take some time for the data to be reflected in the score.
Conclusion
If you have a specific card that you are interested in applying, please check the minimum credit score requirements to see if you are eligible. A good score from fairness may not get you the best card, but you still have solid options.
If you don’t qualify for the required cards, a starter card may help you build a score. And with patience and good scoring habits, you will soon be eligible for the best credit card of today.
