People don't often think about their credit score until they apply for a credit card. Suddenly, that mysterious three-digit number becomes very important. A high score can mean access to the best rates and terms. A poor score might disqualify you altogether.
At GHS FCU, our top priority is helping members achieve their financial goals. We wrote the following guide to help you understand how your credit score affects card approval.
Read on to learn about the credit score for credit card requirements for various popular cards in 2024.
UNDERSTANDING CREDIT SCORES
A credit score rates your creditworthiness on a scale from 300 to 850. The higher the number, the better your standing. FICO and VantageScore are the two main scoring models with FICO being more popular among lenders.
Having excellent scores with both models improves your chances for the best loan and card terms. Regularly checking your scores is a good idea because you’ll know where you stand when applying for new credit.
THE IMPACT OF CREDIT SCORES ON CREDIT CARD ELIGIBILITY
Your credit score plays a major role in your approval odds when applying for a new card. It also determines the limit and interest rate card issuers will offer you. Generally, higher scores will qualify you for better rewards programs and lower interest rates.
Your credit history length also factors into eligibility for approval. Lenders generally prefer to see a long track record of responsible borrowing and payments. It can be challenging to get approved if you have a history of less than three years.
CREDIT CARDS FOR DIFFERENT CREDIT SCORE RANGES
You can qualify for exclusive premium rewards cards with a score between 720 and 850. These cards offer lucrative signup bonuses that can be worth hundreds of dollars. They also provide low APRs, saving you money on interest.
Additional perks like travel credits, Global Entry fee reimbursem*nt, airport lounge access privileges, and annual statement credits provide immense value.
For scores from 690 to 719, you can qualify for competitive rewards cards with strong earnings potential. While not as premier as the top-tier cards, these still offer solid points, cash back on spending, and reasonable interest rates. They also include useful benefits like rental car insurance, purchase protection, and bonus categories tailored to everyday spending.
A fair credit score ranging from 630 to 689 can get you approved for many basic credit cards. However, they tend to have higher annual fees and interest rates—and usually lack attractive reward programs. The good news is that making regular, on-time payments can help improve your score. You’ll eventually unlock access to better card options.
Poor credit scores below 630 will need a secured card. These require an upfront refundable deposit that becomes your credit limit. Making consistent and on-time payments builds a positive history to boost your score. Graduated secured card programs that eventually convert to regular cards are ideal for rebuilding credit.
Remember that your credit score is not the only factor when applying for a credit card. While it is an important part of the approval process, there are also several other factors. For example, you could get denied if you have an account in collections at GHS FCU or other financial institutions.
IMPROVING YOUR CREDIT SCORE FOR BETTER CARD OPTIONS
It’s not the end of the world if you have a poor credit score. There are several ways you can start to rebuild it:
Make on-time payments for all bills and loans
Keep card balances low
Limit new hard inquiries on your credit reports
Have a mix of credit types, such as cards and installment loans
Dispute any inaccuracies on your credit reports
Check your FICO and VantageScores from all three bureaus
Consolidate high-interest debts through programs like debt consolidation loans
Regularly review your full credit report for errors to dispute
Allow your credit history to age by using older accounts periodically
FAQS ABOUT CREDIT SCORES AND CREDIT CARDS
What credit score is needed for a credit card?
Most credit cards require a minimum score of 670 for approval. Excellent scores of 720+ give you the best approval odds and terms. Check the specific card requirements; some may approve scores as low as the 500s with restrictions. Building your credit over time opens up more options.
Will I get approved for a credit card with a 580 credit score?
A score of 580 is considered fair. Approval for a regular credit card will be challenging with this score range. However, secured cards that require an upfront deposit are commonly available with scores around 580. These help establish a positive history. Look for options marketed to those with fair credit.
What credit score is too low for a credit card?
Getting approved for an unsecured card with a score under 550 can be difficult. This is considered very poor credit. But secured cards are available for scores as low as 500. These report to the bureaus and help boost your score.
Is 700 a good credit score to get a credit card?
A score of 700 is generally good for card approval. You can qualify for most rewards cards with score requirements of around 700, which is at the lower end of the good range. Excellent scores of 720+ unlock premium cards with the best terms.
How hard is it to get a 750 credit score?
Achieving a 750 score is realistic with diligent financial habits over time. Key steps are making all payments on time, keeping balances low, and limiting hard inquiries on your credit reports. Also, ensure you have a mix of credit types. 750 is an excellent score that unlocks the top rewards programs.
Is 700 a good credit score for a 21-year-old?
Yes, a score of 700 is excellent for a 21-year-old. Most young adults either barely have a credit history or have a poor one. Paying bills responsibly and on time helps establish scores above 700 by your early 20s, which will not only unlock better card and loan rates but will help you build credit.
GET APPROVED FOR THE CARD YOU NEED
As you can see, your credit score plays an essential role in determining which credit cards you can qualify for. Now that you know the score ranges needed for different card tiers, you can apply for a card that best aligns with your credit history.
At GHS FCU, we aim to help you find and get approved for the ideal card to meet your financial needs. Click below to explore our hand-picked credit card recommendations.
SEE OUR CREDIT CARDS
