There are different types of credit cards available, each designed for specific credit score ranges. The terms and benefits associated with these cards can vary greatly based on your credit score. Here’s a general breakdown of the various credit card options based on different credit score ranges:
1. Excellent Credit (FICO Score: 720 and above) – Individuals with excellent credit scores generally qualify for the best credit card offers, which include low interest rates, high credit limits and attractive rewards. They may even be eligible for premium travel cards, cashback cards with high rewards rates and cards offering luxury perks.
2. Good Credit (FICO Score: 680 – 719) – People with good credit can still access a wide range of credit cards that offer reasonable interest rates and decent rewards. While they may not qualify for the absolute best offers, they can still find cards that provide cashback benefits, travel rewards and other useful perks.
3. Fair Credit (FICO Score: 580 – 679) – Individuals with fair credit might have somewhat limited options when it comes to choosing a suitable card. Cards in this range could have higher interest rates and fewer rewards. However, they can be a valuable tool for building or rebuilding one’s credit history. Secured credit cards, which typically require a deposit as collateral, are quite common in this particular category.
4. Poor Credit (FICO Score: Below 580) – For individuals with poor credit scores falling below 580, their choices become more limited. They may need to start their journey of rebuilding credit with secured credit cards. These types of cards mandate a deposit as collateral and usually come with lower credit limits.
It’s worth noting that the specific credit score ranges mentioned here can slightly vary depending on the lender’s chosen credit scoring model. Additionally, lenders take into account factors beyond just your credit score, such as your income and existing debts when assessing your eligibility for a credit card.
When searching for a suitable credit card, it is essential to pay attention to various aspects like interest rates, annual fees, rewards programs and any additional perks that align with your spending habits and financial objectives. Before applying for any specific card, it is highly recommended to carefully review the terms and conditions. In case you’re uncertain about which cards you might qualify for, there are online tools available to check pre-qualified offers without impacting your existing credit score.