Rewards credit cards can help you save money by earning cash back, points, and miles on every purchase. But rewards credit cards are also some of the hardest cards to qualify for. That’s because the best rewards credit cards are aimed at consumers with good to excellent credit or a FICO score of 670 or higher. If your credit score isn’t that great, it can be hard to get approved.
Ideally, you should think strategically before applying and choose cards that you think you can apply for with your credit score. Every time you apply for new credit, a hard query is recorded on your credit report, so it’s best to minimize rejected applications and focus on cards that are within your reach.
Luckily, if you’re still working toward great credit, rewards credit card options are available. And if you start improving your score today, you’ll be more likely to qualify for higher-value cards in the future. Read on to learn how you can earn rewards on credit card purchases, even if you don’t have great credit right now.
Know the credit score you need for rewards cards
Before you apply for a new card, it’s important to check your credit score to see where you stand and what types of credit cards you can apply for. Taking this step will help you better understand your options.
For the FICO score, the most common consumer credit score, the ranges are as follows:
- Excellent creditworthiness: 800+
- Very good credit: 740 to 799
- Good credit: 670 to 739
- Fair Credit: 580 to 669
- Low credibility: 579 and below
Checking your credit score can be a reality check if it’s lower than you’d like, but rest assured that rewards credit cards are available for all credit levels.
That doesn’t mean you’ll get exactly the card you want, and if you have good or excellent credit, you probably won’t qualify for the best rewards cards. You may, however, qualify for lower-level rewards credit cards that earn you points as you spend. These cards may have fewer perks and cardholder benefits. But they’re a good starting point, and you can use the cards you qualify for today to build a good score that will help you qualify for even more rewarding cards in the future.
Choose a qualifying card
Your credit score can tell you a lot about the types of cards you can qualify for.
If the credit rating is high
If you have a moderate credit score (a FICO score between 580 and 669), there are some rewards cards you may be approved for quickly: Even if you have a moderate credit score, you may be able to find a decent travel rewards card.
The Capital One QuicksilverOne Rewards Credit Card is a good option in this category because it offers 1.5% cash back on all purchases, and while it does have a $39 annual fee, it’s a reasonable amount considering the perks and the fact that the card doesn’t require a great credit score.
If your credit rating is low
If you need to improve your credit score, you may want to consider a different type of card, such as a secured credit card, which requires you to put down a cash deposit as collateral, or a store credit card, which allows you to earn points at certain retailers. Both secured and store credit cards are much easier to qualify for than traditional unsecured credit cards from issuers like Chase and American Express.
If you don’t have trust
Even if you have no credit history at all, there are some rewards credit card options that can help you learn to use credit responsibly while earning rewards for your spending. With these cards, you can start building the credit foundation you need to move onto a more rewards-rich credit card. In fact, rewards cards for people with no credit history often build their rewards structure around on-time payments and other good habits.
For example, the Discover it® Secured Credit Card is marketed as an option for consumers who haven’t taken any steps to build credit, making it available to just about anyone. The card has a $0 annual fee and gives users cash back for every dollar spent. However, because it’s a secured credit card, you’ll need a refundable cash deposit as collateral to get started.
Be flexible about the type of compensation
You’ll need to be flexible about the types of rewards you earn, especially if you have fair or bad credit. You might not be able to earn air miles with your preferred frequent flyer program, or earn points with top flexible rewards programs like Chase Ultimate Rewards or American Express Membership Rewards.
With rewards credit cards for fair or bad credit, you might only get cash back, but it’s certainly better than nothing.
Check if you can get pre-screened
Some credit cards for fair and low credit can help you determine whether you qualify before you even fill out an application. This allows you to see if you might be able to get the card without affecting your credit score and can prevent extra inquiries that could lower your score.
Most cards that have this option allow you to check your chances of approval by entering your name, address, email address, and the last four digits of your Social Security number (SSN). Prequalification doesn’t guarantee that you’ll be approved if you apply, but it helps ensure that you meet basic eligibility requirements.
Build your credit and earn better rewards
If you want to take advantage of the best rewards credit cards, it’s worth taking the time to build up your credit score before you apply. Here are some steps you can take to build your credit:
- Check the status of an approved userYou can be an authorized user on a trusted friend or family member’s credit card, provided that they practice good credit habits and already have a good credit history.
- Find a credit-building appUse credit-building tools like Experian Boost to build credit by using rent and utility payments.
- Never miss a paymentTo improve your payment history, make sure all invoices are paid on time or early.
- Pay off revolving debtPaying off existing debt and lowering your credit utilization ratio can help improve your score.
- Keep an eye on your credit reportMonitor your credit report from the three credit bureaus for errors, which you can do for free using AnnualCreditReport.com.
Conclusion
Even if your credit score has room for improvement, you can still earn credit card rewards. Be flexible when it comes to the types of rewards you earn and the cards you apply for. Even if you don’t qualify for the highest-end rewards cards, you can still build good credit over time by finding a card you like and using it responsibly.
Over time, practicing responsible spending and building a history of making on-time credit card payments could help you qualify for the best rewards cards available today and get the most out of your points and cash back.
