What credit score is needed for a cash back card?

Quick insights

• Cash back credit cards offer cash back rewards to cardmembers for eligible dollars spent on that card.
• Cash back credit cards may require you to meet certain credit criteria.
• With responsible management, your cash back credit card may help contribute to an improvement in your overall financial wellness.

If you find that you make regular purchases on a credit card, you might want to consider using a card that will reward you for doing so. A cash back credit card may be a good option for you if you manage your credit wisely and make your credit card payments on time and in full. Let’s explore in more detail below.

How cash back credit cards work

Cash back credit cards are a type of credit card that offer rewards in the form of cash back on eligible purchases. These cash back rewards are typically a percentage of the purchase amount and, depending on the issuer, can be redeemed as statement credits, checks or direct deposits. For example, you may find a credit card that comes with a rate of 1.5% cash back on all eligible purchases. That means you could earn 1.5% back on the total amount you spent in a billing cycle on those eligible purchases—so if you spent $1,000 on eligible purchases in a billing cycle, you’d earn $15 of cash back. Note that you may need to make payments on time to be eligible for rewards.

Cash back credit cards can help you earn money back on everyday spending. For some, this can be an incentive to use your card to make eligible purchases and a way to reward you for responsible credit card usage.

Are there minimum credit score requirements for cash back credit cards?

Lenders use credit scores (among other factors) to assess your creditworthiness, which is your ability to pay back debts on time. Credit scores help lenders determine your eligibility for credit cards, including cash back cards. They also help to determine your annual percentage rate (APR) and credit limit.

The minimum credit score needed for a cash back credit card varies—for example, you may be able to qualify for some cash back credit cards with a poor credit score. However, rewards credit cards may require at least a “good” credit score for approval.

For many credit cards, you need to have a “good” or “fair” credit score to qualify for a card. To help you understand what is considered “good” and “fair” and where your credit score falls, let’s review the credit score categories for the major credit scoring models below.

As of May 2024, VantageScore^® ranges areexperian-blog-vantage-score:

• Excellent: 781 to 850
• Good: 661 to 780
• Fair: 601 to 660
• Poor: 500 to 600
• Very Poor: 300 to 499

As of May 2024, FICO^® score ranges aremy_fico_crd_score:

• Exceptional: 800+
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 and below 

Consider checking your credit score to help you determine your odds of getting approved for the card you plan to apply for. One way to do this is by enrolling in Chase Credit Journey^®, a free online tool anyone can use to see their credit score without impacting it.

Considerations before applying for a cash back credit card

Before you apply for a cash back credit card, it can be helpful to look at your income, expenses and ability to manage credit responsibly. You may want to think about the reasons why you want to get this card and if it could complement your current financial situation, not complicate it. For example, if you’re currently in a lot of debt, perhaps focus on lowering your debt-to-income ratio first.

It can also be helpful to understand the terms and conditions of cash back credit cards. Review the card's APR, annual fees, cash back categories and redemption options to help you determine if it aligns with your financial goals, budget and lifestyle.

Researching and comparing multiple cash back credit cards may also help you find the one that offers the most suitable rewards and benefits for your spending habits. For example, if you spend a lot on dining out and travel each month, you may want to look for a card that offers bonus rewards in those purchase categories.

What to do if your application has been denied

There could be several reasons why you’ve been denied a cash back credit card. These can include, but are not limited to:

• A low credit score
• A high debt-to-income ratio
• Limited credit history
• Negative marks on your credit report

There are some steps you can take that may help increase your odds of approval for a cash back card. These include:

• Reviewing your credit report for errors and reporting any findings to the credit bureaus
• Working towards improving your credit score before applying for the next cash back credit card, such as by lowering your credit utilization ratio and paying down debts

Improving your credit score after a denied application

An application for a credit card may have a temporary negative impact on your credit score due to the hard credit check required by the lender—no matter if you get approved or denied—but it can be improved over time.

Some strategies that may help raise your credit score include, but are not limited to, the following:

• Continue to pay your bills on time, as payment history is a major factor affecting your credit score
• Reduce your credit utilization ratio to 30% or less
• Monitor your credit report and spending habits
• Address any inaccuracies on your credit report by contacting the credit bureaus
• Avoid applying for different lines of credit at the same time
• Try to avoid closing any old lines of credit, as age of credit history is important

Additional tips and information for cash back credit card users

With responsible credit usage, you may be able to maximize your cash back rewards by understanding bonus categories, utilizing promotional offers and exploring different redemption methods. For example, you may have a card that comes with additional offers on specific purchase categories.

Additionally, it’s important to pay your credit card balances on time each month. This can help you avoid late fees, accumulating debt and hefty interest charges.

To help keep your spending on track, consider setting a realistic budget to help avoid overspending. You should monitor your spending by reviewing your credit card statements and credit reports, which are healthy financial habits to build.

It can be beneficial to ensure that you are not spending just for the sake of earning cash back. While cash back can help offset the cost of purchases, you may want to make sure any purchases made are within your budget.

In conclusion

Cash back credit cards can complement your current financial situation if you’re responsible with your credit and use a card that matches your spending habits and lifestyle. Your credit score might help the issuer have a snapshot of your creditworthiness when reviewing your application.

As you continue to improve your credit score and financial situation, you could find that you might be able to unlock more opportunities for cards that come with additional perks and rewards.