Minimum Credit Score for Credit Card in 2023: Credit Card Score Requirements
Renting an apartment? Applying for an auto loan?
You’ll need a good credit score!
If you’re not applying for a credit card from fear of having a low credit score, don’t worry!
Credit cards aren’t reserved for those with perfect credit scores.
In fact, companies are releasing credit cards for consumers with low credit.
So if you want to join the 191 million Americans who already have a credit card, read on. I’ll explain, in detail, the minimum credit score for credit card and more!
What Credit Score is Required for a Credit Card?
Are you wondering what the minimum credit score for credit card is?
You’ll be glad to know that there is no minimum credit score requirement to get a credit card.
Although with a higher credit score, your chances of qualifying will go up, interest rates will come down, and you’ll be eligible for cards with better perks.
On the other hand, if you have ‘fair’ or ‘poor’ credit, you may have the option of a secured credit card.
A secured credit card lets you pay a deposit and use it as your spending limit. Some lenders may even limit your spending to lower than your deposited amount.
For example, if you deposit $300 as collateral, your lender will give you a $300 line of credit. You can use this to shop around, and if you’re making payments on time every month, you’ll build good credit.
Some credit card companies also have specialized credit card plans for consumers with low or no credit. But do be aware these credit cards typically come with higher interest rates.
So, while a higher credit score makes you eligible for a wider range of credit cards, it is still possible to get a credit card with little to no credit.
What is a Good Credit Score?
You’re probably thinking, “What is a good credit score?”
According to many sources, anything above 670 is considered ‘good’ and will qualify you for a credit card with reasonable interest rates and benefits.
Below are the FICO credit ranges to give you an idea of what category your credit score falls into.
|FICO Score Ranges|
|Poor: 350 to 579|
|Fair: 580 to 669|
|Good: 670 to 739|
|Very Good: 740 to 799|
|Excellent: 800 to 850|
How Are Credit Scores Calculated?
The FICO scoring method uses these five factors to determine your credit score:
- Payment history – 35%
- Credit utilization – 30%
- Credit history length – 15%
- Type of credit – 10%
- Credit inquiries – 10%
1 – Payment History
The biggest contributing factor is your payment history, which makes up 35% of your credit score.
So if you want to build good credit, always settle your accounts on time, whether it’s credit cards, personal loans, mortgages, or utilities.
Late payments will lower your credit score and can stay on your credit report for up to seven years.
This is because lenders want assurance of knowing you’ll pay your credit card balance on time. If you have a history of late payments, lenders will be more hesitant to give you a credit card.
Pro tip: Most lenders and service providers are compatible with autopay, and I highly suggest using it as a tool to help you build a good payment history. Autopay allows the lender to collect money directly from your bank account, so you won’t have to make monthly payments manually. This reduces the likelihood of late payments.
2 – Credit Utilization
The second most important factor is your credit utilization. This makes up 30% of your credit score.
Credit utilization compares your available spending limit to your current balance.
For example, if your limit is $10,000 and you only spend $1,000, your credit utilization is 10%.
As a rule of thumb, you should keep your credit utilization below 30% to improve your credit score.
This indicates creditworthiness because you’re handling credit responsibly. You’re not maxing out credit cards as soon as you get them.
3 – Credit History Length
Your credit history makes up 15% of your credit score, and it simply refers to the length of time you’ve been using credit.
The longer you’ve been borrowing money and paying it back on time, the better your credit score.
For example, a consumer with a good credit history dating back ten years will naturally be seen as a less risky borrower than someone who received their first credit card three months ago.
Unfortunately, there’s not much you can do about this factor. You’ll just have to make timely payments, keep below 30% credit utilization, and be patient.
4 – Type Of Credit
Believe it or not, the type of credit you access contributes 10% to your credit score.
This factor looks at the variety of credit you have, such as installment credit, revolving loans, and secured loans.
If you have a healthy variety of credit, maybe you have a mortgage, car loan, and credit card, and you manage it responsibly, it’ll boost your credit score.
5 – Credit Inquiries
When applying for new credit, lenders typically run a hard credit check, which temporarily lowers your credit score.
This is why I suggest keeping your credit card applications to a minimum.
If you apply for ten credit cards at once, for example, all these hard credit inquiries will count against you.
Not to mention, it looks bad. It might seem like you’re in desperate need of cash, and lenders will view you as a high-risk borrower.
But as long as you’re not applying for several credit cards within a short timeframe, you won’t have to worry about credit inquiries hurting your credit.
It’s one of the least influential factors out of the five. Plus, you can quickly give your credit a boost by making timely payments!
How Your Credit Score Affects Your Approval Odds
The higher your credit score, the better chance you have of getting approved for a credit card.
However, a good credit score isn’t necessary to qualify for a credit card.
If you have a low or zero credit score, you’ll be happy to know that some credit card providers offer credit card plans for consumers with bad credit.
The interest rates will be higher than usual, but these credit cards give you an opportunity to make timely payments and build a good credit history.
If you do have excellent credit, I have good news!
You’ll be able to qualify for higher credit card limits at lower interest rates.
But before you apply, I always recommend checking if there’s an option for pre-approval.
This is an easy way to see if you’re likely to be approved for the card, and pre-qualification usually only requires a soft credit check. So, you can use it as an indicator for approval without any impact on your credit score!
Commonly Asked Questions About Minimum Credit Score for Credit Card
Why is a Good Credit Score Important?
A good credit score is important because it is what many lenders use as a benchmark for approval. Not only can a good credit score help you apply for credit cards, but also personal loans, lower mortgage rates, auto loans, and more!
What Other Factors Affect Your Credit Card Approval Odds?
Besides a credit score, a few other factors affecting your credit card approval odds include your employment status, annual income, existing debt, and debt-to-income (DTI) ratio.
Can I Get a Credit Card with a 524 Credit Score?
Although a credit score of 524 is on the low end, it’s still possible to qualify for a credit card. For instance, Credit One Bank offers a platinum credit card that’s meant for people with low credit scores who want to focus on rebuilding their credit.
Can I Get a Discover Card with a 600 Credit Score?
Discover doesn’t list a minimum credit score needed on its official website. However, many sources claim you need a ‘good’ credit score of around 670 for approval. Fortunately, Discover offers pre-qualification, so you can use this as an indicator for approval without a hard inquiry added to your credit report.
Can You Get a Credit Card with a 650 Credit Score?
It’s 100% possible to qualify for a credit card with a 650 credit score! 650 is considered a ‘fair’ credit score, and many lenders offer unsecured lines of credit for these consumers. Be aware you may get hit with higher interest rates or annual fees than if you had a ‘good’ or ‘excellent’ credit score.
Is A 600 A Good Credit Score?
According to the FICO credit ranges, a 600 score is considered ‘fair.’ This means that you’ll still qualify for credit cards, but you may not be eligible for the lower interest rates or fees as you would with a ‘good’ or ‘excellent’ credit score.
Low Credit Score Credit Cards?
If you have a low credit score, you’ll be glad to know that there are options like the Credit One Platinum Visa for rebuilding credit. It’s designed for consumers with low credit scores and aims to help you build good credit.
What Credit Score Do You Need For a Chase Credit Card?
A credit score of 700 and above will allow you to qualify for almost any Chase credit card. These include credit cards with travel rewards, cashback, and other perks.
Credit Cards for a 580 Credit Score?
If you have a 580 credit score, I recommend signing up for the Credit One Platinum Visa for Rebuilding Credit. This credit card is targeted toward anyone with subpar credit. You can qualify, even with a 580 credit score, and you won’t have to make a security deposit.