What credit score do you need to get a credit card?
If you’re looking to get a credit card, you may already know that having a good credit score may help you get approved for one. Having a good credit score can help improve your chances for approval as well as the terms that come with the credit card.
You may be wondering how it is that you can have a credit score even if you don’t have a credit card and what score you need to get a credit card. In this article, you will learn:
- What credit score you need to get approved for a credit card
- VantageScore® vs. FICO® score ranges
- How your credit score affects your credit card approval
- Different cards you can get depending on your credit score
What credit score do you need to get approved for a credit card?
The specific credit score you'll need depends on the type of credit card you're applying for. First, let’s understand what the ranges are for credit scores. Knowing this can help determine the kind of card you may receive.
There are two main models that lenders, issuers and credit bureaus often use to calculate your credit score—the VantageScore model and the FICO score model. Both models use a few key factors when generating your score, including payment history, credit utilization ratio and credit mix. However, they differ in their credit score ranges and in the weight they apply to these categories.
VantageScore
The VantageScore model—specifically Version 3.0, which is the most widely used model—weighs factors similar to those in the FICO score model. However, these factors are treated and weighed differently.
This model considers the following factors when generating a score:
- Total credit usage, balance and available credit (extremely influential)
- Credit mix and experience (highly influential)
- Payment history (moderately influential)
- Age of credit history (less influential)
- New credit (less influential)
The credit score ranges for the VantageScore scoring model are:
- Excellent: 781-850
- Good: 661-780
- Fair: 601-660
- Poor: 500-600
- Very Poor: 300-499
FICO credit score
A FICO score is generated using the Fair Isaac Corporation (FICO) software. It breaks down your score into a few categories, including:
- Payment history (highly influential)
- Amounts owed: (highly influential)
- Length of credit history (moderately influential)
- Credit mix (less influential)
- New credit (less influential)
The credit score ranges using the FICO scoring model are:
- Exceptional: 800-850
- Very good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 579 and below
What credit score is needed for a credit card?
Now that we know what the different credit score ranges are and what they mean, let’s dive into what credit score is needed for a credit card.
In general, the better your credit score, the better your chances are of getting approved for a card.
A credit score of about 700+ could help qualify you for many credit cards, including those with cash back rewards and more. However, there are plenty of cards you may be able to get with a score lower than this (more on that later).
As mentioned above, the credit score that you need for card approval depends on the kind of credit card you’re applying for. Below, we break down the cards that may be available depending on your credit score.
How your credit score affects your credit card approval
Your credit score is an essential factor in determining credit card approval. A good score can help you get a better mortgage rate, opportunities to open new cards and the ability to get approved for other loans. When a lender sees a good credit score, they may be reassured that you are financially responsible and will make timely payments. Responsible management of this card can open up the door for you to build an even better credit score and continue to enhance your financial wellness.
Remember that your payment history is a more significant factor in determining your credit score than your credit mix. Making regular payments on your loans on time can have a greater impact on your approval odds than having different types of credit—otherwise known as credit mix.
Types of credit cards
There are several kinds of credit cards you can apply for depending on your credit score. Understanding the underlying details of these cards can help you determine your eligibility and whether you’d be a good fit for what they offer. Let’s explore them more below.
Cards for those with no credit history
Credit history allows you to establish a good credit score, putting you in a position to demonstrate creditworthiness, which is what a lender looks at to determine your eligibility for things like credit card approvals and loans. However, not everyone has a credit history. Having little to no credit history can lead to higher interest rates.
You may not have the kind of credit history or score you need to apply for certain cards, but don’t worry, there are still options. For example, you can apply for a starter card, or your very first credit card. This is a great way to start to build your credit history. Overtime, your credit will age and you will have more of a payment history—two big factors that go into calculating your credit score.
Cards for those with an average credit score
If you have an average credit score (around 650), you may have more options than someone with no credit history. You may be able to get approval for premium cards—which have additional perks and benefits—but these could come with a lower credit limit and higher interest rates.
Cards for those with a high credit score
If you have an exceptional FICO or VantageScore (760+) you are likely able to apply for just about any credit card, including premium travel rewards. Depending on the card, you can also earn cash back and additional points that you can use toward miles for flights. These cards could come with high annual fees, however.
Cards for those with a low credit score
If you have a low credit score, there are still some options available to you. Below, we break these lower credit scores down by range.
Credit cards for those with a 600 credit score
With a score in this range, you may be able to get some access to cards (including student credit cards) but you will start to see limitations to what those cards offer. For example, your APR could be higher and you might not get as many rewards or cash back opportunities.
Credit cards for those with a 500 credit score
If your credit score lands around 500 or lower, you may want to consider improving your score to help improve your chances of getting the card of your choice.
In conclusion
When it comes to applying for a credit card, it's helpful to have an understanding of what credit score will likely be needed to get approved as well as how credit scores are determined. The additional knowledge can help you choose which credit card to apply for based on eligibility. In the end, the better your credit score, the better your chances could be of getting approved for the credit card of your choice.
