What Credit Score Is Needed for a Credit Card?

If you’d like to get a credit card with the best rewards and perks to meet your needs, then having a strong credit score can help. Generally speaking, the better your credit score, the more credit card options will be available to you – typically, with better interest rates, too.

Let’s explore more about credit scores and the scores that may be needed to qualify for different credit card options. 

Please note that the following is intended to inform and to raise awareness, it is not intended to provide advice on qualifying for a specific credit card. Different credit card issuers have different requirements.

Your credit score is a three-digit number representing your creditworthiness and ability to repay your loans. Lenders typically use two main types of credit scoring models to calculate your credit score and evaluate your credit risk: FICO^® and VantageScore^®. Both scoring models use credit score ranges between 300-850.¹

The FICO score is a credit score developed by the Fair Isaac Corporation (FICO), and it’s the most widely used credit scoring model among lenders. Your FICO score is based on multiple factors, including payment history, amounts owed, credit history length, new credit, and credit mix. 

The credit score ranges for a FICO Score are:

• Poor: 300-579
• Fair: 580-669
  
• Good: 670-739
  
• Very Good: 740-799
• Exceptional: 800-850

VantageScore is a credit scoring model developed by the three major credit bureaus: Equifax, Experian, and TransUnion. Credit monitoring services may use this scoring model. It uses a slightly different formula to calculate your credit score, emphasizing factors such as credit utilization and balances. 

The credit score ranges for VantageScore are:

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

Both FICO and VantageScore scoring models consider various types of loans, including credit cards, mortgages, auto loans, and personal loans, to evaluate your creditworthiness. However, the weightage given to each type of credit may vary between the two scoring models.

If you’re a young adult or have never used credit before, you may not have a solid credit history yet. Although options may be limited, you can still get a credit card with no established credit. Three first-time credit card options are:

 
Authorized User

As an authorized user, you’re an additional card member on another person’s credit card account. You get a card with your name on it and the ability to charge purchases. This option helps improve your credit score over time, provided that the main card holder makes on-time payments.

 
Secured Credit Card

A secured card uses your deposit as a credit limit. With a secured credit card, the card issuer offsets its risks by requiring you to pay a deposit, usually between $200 and $3,000.² The deposit amount becomes your credit limit.

The annual fees, if any, on these cards are usually lower than average, but the Annual Percentage Rate (APR) is usually higher than credit cards for people with established credit.

As you use the card for purchases, you’re obligated to pay at least the minimum payment each month. If you miss a payment, the card issuer may use the deposit to pay the amount you owe. With good credit habits and by using the card responsibly, in time, you may see your credit score improve. 

Student Credit Card

Another category of credit cards is designed specifically for, and may be limited to, college students. Student credit cards generally have good perks but may come with lower credit limits. Because many credit card companies no longer accept co-signers, you must have sufficient income to qualify for a student credit card. The income can typically be from a job, scholarship, or grant.

You may have a low credit score if your past payment history includes missed or late payments, bankruptcies, or foreclosures. You may not yet qualify for credit cards with the most valuable benefits and lucrative rewards. You may, however, be eligible for a no annual fee credit card with limited rewards, in addition to the secured card and authorized user approach described above.

With a low credit score, you may also qualify for a retail credit card designed for large purchases, such as furniture, bedding, or appliances. Retail stores tend to have more relaxed credit score requirements but high APRs. You might be able to avoid interest charges by paying the balance in full within a promotional period. However, if the balance isn’t fully paid by the deadline, you’ll usually owe the full amount of deferred interest.

The types of credit cards you’re eligible for increase as your credit score improves; the better your credit score, the more favorable the card terms will typically be.

With good or very good credit, you could find a card with no annual fee and a 0% introductory APR. You’ll want to check how long the introductory period lasts and what the APR will be after the introductory period ends.

If you plan to pay the balance in full each month, the APR may be less important than the perks. Examples of perks offered at this level are cards that offer more generous cash back or rewards points on purchases, along with additional card holder benefits. However, this will vary considerably from card to card.

If you’re uncertain whether you could be approved for a particular credit card, look for pre-qualified credit card offers on the lender’s site. For a pre-qualification, the lender only completes a “soft check” on your credit, which does not affect your credit score the way a “hard” credit check does. With American Express, you can apply for a U.S. personal credit card with confidence. Simply submitting an application will not impact your credit file. A hard check will only happen once you’ve been approved and have formally accepted the card.

With exceptional credit – a rating of 800 or above – you’re considered the lowest risk and will have access to some of the best credit cards on the market. Your choice may boil down to which perks are most important to you. Some card companies offer elite-level cards to those with an excellent level of credit. These cards can carry higher annual fees, however, the perks, benefits, and rewards may be substantial. Typically, excellent credit score can help you to qualify for a better APR as well.