11 Airline Credit Cards To Get You Off The Ground

Open traveler's bag with clothing, accessories, credit card, tickets and passport

Many of us know what a credit card is and most of us know how to use them. When it comes to credit cards, it is important to remember to use them wisely so that you do not get yourself into a large amount of credit card debt. I would like to focus on the best types of credit cards and the rewards that are available with them in this article. There are many different credit cards available to you, so it is important for you to understand your needs when deciding which one is right for you. In this article, I am going to highlight the best airline credit cards, however, I will give you some information about other types of rewards that credit cards may offer to you.

Best Airline Credit Cards For Your Flight

Before I jump into the best airline credit cards, I would like to mention a few points to you. First, please keep in mind that it is very important to know to avoid any credit card mistakes. The best way to do this is to pay off your credit card balance each month. While I understand that may not be possible for everyone every month, but it should be your goal as much as possible. If you know that you will not be able to pay off your credit card this month, you should consider whether or not you should use your credit card to purchase something. Next, you should remember when you use your credit card, you have to repay that money. If you do not pay off your credit card each month, then you will be charged interest for the balance that is left on the credit card.

When looking for credit cards, you will find that there are many different types available to you. It can become overwhelming when you are trying to select the proper credit card for you at this time. You should understand that your needs may change over time and the credit card you select today may not be the same one that works for you in six months. Consider what it is that you really want from a credit card and how you plan to use it. If you plan to pay off your credit card each month, the interest rate may not be as important to you. If you plan to carry a balance, then the interest rate is incredibly important. You may be interested in the other benefits that a credit card may offer you.

11 Top Airline Credit Cards

When you are considering airline credit cards, you should be sure to check out these credit cards.

Chase Sapphire Preferred Card

One of the airline credit cards you should consider is a Chase Sapphire Preferred Card, which has an interest rate varying from 17.49 percent to 24.49 percent. You can earn 60,000 bonus points once you spend $4,000 on purchases within the first three months of having the account open. That equals about $750 towards travel when you redeem through Ultimate Rewards. You gain 2 times the points on travel and restaurants and 1 point for each dollar spent on other purchases. You can also earn 5 times the points for Lyft rides through the month of March of 2022. When you redeem your points through Chase Ultimate Rewards, you get 25 percent more value from them. This card also offers unlimited deliveries and reduced service fees with DashPass, a subscription service of DoorDash.

Discover it Miles

Discover It Miles credit card is another one of the top airline credit cards you should consider. This card gives you an unlimited bonus of matched miles at the end of your first year. If you earn 10,000 miles, Discover doubles it so you have 20,000 miles, which is equal to $200 towards your travel. You also earn 1.5 miles for every dollar you spend on purchases. The miles you can earn are unlimited and this card does not have an annual fee. There is no limit to the dates for which you can use the miles. If you do not want to use your miles for travel, you can simply get cashback.

The Discover It card has a mobile app that gives you quick access to your account, including the ability to freeze your account. This app also gives you a free credit score and reports. This card also protects you from fraud by giving your alerts if your information is used on fraudulent websites. You can activate this service for free. This card comes with a variable interest rate from 13.49 to 24.49 percent.

Capital One Venture Rewards Credit Card

The Capital One Venture Rewards is another one of the airline credit cards that you should consider. You can earn unlimited 2X miles on every purchase. You get a 50,000-mile bonus once you spend $3,000 on purchases in 3 months from opening your account, which is $500 towards travel. The miles never expire and there is no limit to how many miles you can earn. This card does not have an annual fee for the first year, but then it is $95 every year thereafter. It has a variable interest rate of 17.24 to 24.49 percent.

Delta SkyMiles Blue American Express Card

The Delta SkyMiles Blue American Express is another one of the airline credit cards for your consideration. It does not have an annual fee. You earn 2 times the miles for every dollar you spend at Delta. You also earn 2 times the miles for every dollar spent at restaurants and 1 mile for every dollar you spend on all other purchases. This Delta card gives you a bonus of 15,000 miles after you make $1,000 worth of purchases within the first three months of opening your credit card account. There are no foreign transaction fees with this card. It has a variable interest rate of 15.74 to 24.74 percent.

Delta SkyMiles Gold American Express Card

The Delta SkyMiles Gold American Express is another one of the airline credit cards for your consideration. It does not have an annual fee for the first year and then $99 after that. You earn 2 times the miles for every dollar you spend at Delta, restaurants, and grocery stores. Then you earn 1 mile for every dollar you spend on all other purchases. This Delta card gives you a bonus of 60,000 miles after you make $2,000 worth of purchases within the first three months of opening your credit card account. You also earn another 10,000 miles on your first anniversary. It has a variable interest rate of 15.74 to 24.74 percent.

United Explorer Card

The United Explorer Card is another one of the airline credit cards for your consideration. It does not have an annual fee for the first year and then $95 after that. You earn 2 times the miles for every dollar you spend at restaurants and hotels. You earn 2 miles for every dollar you spend with United and 1 mile for every dollar you spend on all other purchases. This United Explorer card gives you a bonus of 60,000 miles. You also earn another 10,000 miles on your first anniversary. It has a variable interest rate of 17.99 to 24.99 percent.

Alaska Airlines Visa Signature Credit Card

The Alaska Airlines Visa Signature Card is another one of the airline credit cards for your consideration. It has an annual fee of $75. You earn 3 times the miles for every dollar you spend on Alaska Airlines purchases. You earn 1 mile for every dollar you spend on all other purchases. This Alaska Airlines Visa Signature Card gives you a bonus of 40,000 miles and a $100 credit on your statement. It has a variable interest rate of 17.49 to 25.49 percent.

American Airlines AAdvantage MileUp Card

The American Airlines AAdvantage MileUp Card has no annual fee. You earn 2 times the miles for every dollar you spend on American Airlines purchases. You earn 2 miles for every grocery store purchase and 1 mile for every dollar you spend on all other purchases. This American Airlines AAdvantage MileUp Card gives you a bonus of 10,000 miles and a $50 credit on your statement after $500 of purchases within the first 3 months of having your credit card open. It has a variable interest rate of 15.99 to 24.99 percent.

Southwest Rapid Rewards Plus Credit Card

The Southwest Rapid Rewards Plus Card offers you 2 times the points for every dollar you spend on Southwest purchases. You earn 1 point for every dollar you spend on all other purchases. This Southwest Rapid Rewards Plus Card gives you a bonus of 40,000 points after $1,000 of purchases within the first 3 months of having your credit card open. You receive 3,000 points on your anniversary. It has a variable interest rate of 17.49 to 24.49 percent.

Southwest Rapid Rewards Priority Credit Card

The Southwest Rapid Rewards Priority Credit Card offers you 2 times the points for every dollar you spend on Southwest purchases. You earn 1 point for every dollar you spend on all other purchases. This Southwest Rapid Rewards Priority Credit Card gives you a bonus of 40,000 points after $1,000 of purchases within the first 3 months of having your credit card open. You receive 7,500 points on your anniversary. You also get $75 travel credit with Southwest each year. It has a variable interest rate of 17.49 to 24.49 percent.

Delta SkyMiles Reserve American Express Card

The Delta SkyMiles Reserve American Express Card offers you 3 times the miles for every dollar you spend on Delta purchases. You earn 1 mile for every dollar you spend on all other purchases. It does have an annual fee of $550. This Delta SkyMiles Reserve American Express Card gives you a bonus of 100,000 miles and then another 80,000 miles after $5,000 of purchases within the first 3 months of having your credit card open. You receive 20,000 points on your anniversary. You also get $75 travel credit with Southwest each year. It has a variable interest rate of 15.74 to 24.74 percent.

How Should I Compare Credit Cards?

When looking at the various credit cards, you should consider all airline credit cards as well as compare credit cards for good credit. You may also want to consider using a credit card comparison chart when deciding which card is right for you.

Some Points to Consider When Comparing Credit Cards

Make sure that you know the bank that is offering the credit card to you. It should be one that is reputable and with whom you are familiar. You want to make sure the offer is not fraudulent, or someone just trying to take your money. You should make sure that any credit card you select matches your expectations and needs. If you want to transfer a balance, it does not make sense for you to select a card that does not allow them. You should not sign up for a credit card that you do not need. This may hurt your credit score. You want to make sure that you understand the fee schedule with the card. All credit cards must disclose all of the fees that they charge and the rate of the fee.

You should make sure you pick a card that does not have an annual fee. This is a fee the credit card company charges you simply to use their card. Unless they are offering some major perks that more than pay for the fee, you should avoid annual fees. You should understand that interest associated with any card you are considering. If you are confident that you will pay off your card every month, this may not be as important to you. However, there may come a month or two with unexpected expenses and you cannot pay off your credit card, so you should be aware of the interest. If you already know you are only going to make the minimum payment, you need a card with a low interest rate.

Look at all the programs and rewards that the credit cards offer. You want to make sure you have a complete understanding of the credit card and what it can provide for you. You may have two credit cards that seem very similar and it may come down to the rewards and protections they offer. Also, you want to understand when the points expire and when you can redeem them. If there are any limitations, you want to be aware of those, also. Always read the fine print. Credit card companies must disclose everything to you, but they do not have to do it in the largest font available. It is your responsibility to read all the documents and understand what you are agreeing to.

What Are The Benefits To An Airline Card?

Airline credit cards offer some additional perks. The most common perk being the miles a card offers. The more you spend with your credit, the more miles you accrue. Typically, the credit card company and the airlines create a partnership to determine the value of a mile. The airline determines how many miles you need for a flight and when you have enough you can redeem your miles for a plane ticket, or you can reduce the cost of a ticket. You may also qualify for extra perks such as seating upgrade, early boarding, or additional tickets at a discounted price. It is important to know that if you purchase an item and gain miles, but then return the item, you may have the miles associated with that purchase removed. If you are behind in paying your credit card bill, you may not be able to use your miles.

Your miles are reflected in your statements or in your credit card account, so you should always be able to see how many miles you have. The credit card may have a mileage requirement, which means you need to accrue a certain number of miles before you can redeem your miles. You should always read the fine print to make sure you understand exactly how you can use your miles.

Conclusion

There are a large number of airline credit cards available to you today. It is important that you read all of the fine print and understand all of the details around the credit card in which you are interested. You always want to pay attention to the annual fee and any other fees that the credit card company charges. You want to make sure you make the right choice for you.

Credit Cards for Good Credit: Insert Chip Here

I have noticed that the better your credit is, the more credit card offers seem to head your way. Also, I can always tell my credit score has risen when I get a mailbox full of “pre-approved” credit card offers. I do monitor my credit, but I do not watch it 24/7. Credit card companies must though because these companies always seem to know my credit score long before I do. Those offers are always tempting, too. They really are. It is so easy to fool yourself into thinking, “Oh, this could take care of these bills and I could breathe”, especially when it seems like you work more than you sleep or see your family.

While it is true that those credit cards can offer some relief, it is only temporary relief and it comes at a price. Like most things in life, there will be a trade-off. However, credit cards can be utilized to make your situation better than ever if you use them wisely. To do so, it is important that you know what to do, what to expect, and how to choose the best credit cards for good credit. We have you covered with the 411 on credit cards for good credit.

Should I Apply for Credit Cards with Good Credit?

The first question to ask yourself to figure this out is what exactly are you getting the card for? Do you want it to build your credit? Help out with gas in between paychecks? Have it available for emergencies? Or do you simply want to spend money you do not yet have? If the last scenario is the case, back away now. Do not add that temptation to your life. There is enough trouble already- do not add more willingly.

On the other hand, if your intentions are honorable, such as the first three scenarios, credit cards for good credit just might be a good thing for you. Do not just start applying, though. Learn what you can about them first, look for the best one, then remember and live by the reason you want the card.

Types of Credit Cards for Good Credit

You typically find two types of credit cards: secured cards and unsecured cards. Each has different requirements and different benefits.

Secured Credit Cards

Secured credit cards require that you put some type of deposit down. This might be as low as $39. Some, though, require that you put deposit your entire credit limit. Over time as you make timely payments, your deposit will usually be refunded to you.

People with good credit usually do not have to put down a deposit. In some cases, like perhaps if you do not have much credit history, you might still be required to get a secured card.  You might also be required to pay a deposit if you want a higher credit limit than they approve you for.

Unsecured Credit Cards

An unsecured card is the most likely option of credit cards for good credit. This is one area that all of your hard work to build your credit comes in handy. Many cards will still start you out on a smaller limit and increase that as you show your creditworthiness.

Remember, compare credit cards for good credit in order to find the best one for you. Everyone is different, so do not go with the first option. Shop around, see what is out there and then decide.

Understanding Credit Scores

You may be wondering what exactly your credit score means and how it is determined. There are five parts to it:

1. Payment History- 35%- This depends on how well you have paid your debts in the past and if you made the payments on time. As you can see, this accounts for a great deal of your credit.

2. Amounts Owed- 30%- How much of your available credit are you using?

3. New Credit- 10%- Opening new accounts affects your score, but not as much as other things listed here.

4. Length of Credit History- 15%- How long have you had credit?

5. Credit Mix- 10%- You should have more than one type of debt. Mix up installment loans and revolving credit, but try to have more installment loans as they have a more positive effect.

These five factors tell the lender whether it is safe to lend money to you or too risky, though they also consider other factors, such as income. The higher your credit score and better your income, the better chance you have to get credit cards for good credit. Typically, good credit is considered to be a score that ranges between 680 and 720.

Benefits of Good Credit

There is one major benefit to having good credit that all other benefits fit into. And that benefit can be summed up in one word: freedom. While you might not be able to buy anything and everything you want, good credit affords you many opportunities.

You can much more easily get a loan than those with fair or poor credit, so buying a house, car, or other desires is going to be very attainable for you. You also have a better chance of being approved for good credit cards, take better vacations, and so on. Good credit may also help your children during college years if they ever need to take out private loans. This is because good credit can get you much better interest rates than those without it.

Obviously, perfect credit- if it actually exists- is what we should strive for. However, good credit can provide you a lot more financial freedom than fair or poor credit.

But….

Though good credit opens up a lot of doors, there is a caveat. Maybe two. First, it does not matter if you have perfect credit- if you do not have an income or you have a low income, you will still face restrictions. Having a great credit score is just part of it. Lenders and credit card companies are not going to want to lend you anything if you do not have the means to repay them. Additionally, some creditors care a lot more about what is on your credit report than your score. Keep these factors in mind as you apply for credit cards.

Compare Credit Cards for Good Credit

Even if a card seems like a great one, you should never simply go with the first one you find or are offered. You should compare credit cards online to ensure that you are getting the best credit cards for good credit. Interest rates and how they are calculated are the biggest factors to consider. As you search for credit cards for good credit, you should find that you get pretty good interest rates- at least better interest rates than those with lower credit.

Still, you want to be sure you are getting the lowest interest rate possible, so compare multiple cards. You should also look for credit cards for good credit that do not charge interest until the end of the month. This gives you the chance to pay off your balance or pay it down before interest hits. Compare options here on Loanry:


What to Do If You Have Good Credit But Get Turned Down

I mentioned above that lenders want you to have more than a good credit score, so it is still possible to get turned down for credit cards and loans. It is likely that you have worked hard to achieve that credit score, so a rejection is a stab in the chest. With it comes the confusion of what you could have possibly done “wrong”. Fret not as it is actually pretty easy to figure out.

First off, you will likely receive a letter from the lender. It is an “official” rejection that will often list two or three (or more) things that likely affected the decision. You might see things such as not enough credit history, too many open accounts, and so on. With this letter comes the opportunity to request a free copy of your credit report. It is important to know that you can get a free credit report from all three major credit bureaus once a year, and every time you get rejected for credit. You do, however, have to request that copy within the specified time period. Having your credit report in hand can help you figure out what exactly is going on if you have any delinquent accounts.

Or…

As this is the digital age, though, there is a much easier and more helpful way to do this. Sign up for a free Credit Karma account or Credit Sesame account. I am most familiar with Credit Karma and love it, so I personally recommend it, though you can decide for yourself. Through Credit Karma, you can monitor your credit. It alerts you if there are any changes, giving you the opportunity to watch out for any fraudulent activity. While I love this fact, there is an aspect I love more. It is the fact that it tells you what, if any, changes you should make.

For instance, if you do not have a good credit mix, it lets you know that and tells you how to fix it. If you are using too much credit, it lets you know. This can be used as an excellent tool to build and monitor your credit. So, if you get turned down for a credit card, Credit Karma can help you figure out why.

How to Keep Good Credit

You should work as hard to keep good credit as you did to attain good credit- maybe even harder. I can say with absolute certainty that it is easier to keep good credit than to get it in the first place. Once that score goes down, it takes a lot of work to get it back up. Since you are applying for credit cards for good credit, here are some ways to make sure you keep that good credit:

Pay Your Bill Early or on Time

The early you can make a payment, the better off you are. If you charge something Tuesday on your card and get paid Friday, it is in your best interest to pay off what you charged with your Friday check. This is true for three reasons. The first is that if your credit card does not charge interest until the end of the billing cycle, you avoid that interest. Yay! The second is that doing say prevents you from being late with a payment (Score 1 for preemptive action). And the third reason is that the less you owe on your card at any given time, the lower your credit utilization (which you always want to keep under 30%).

If you cannot pay your bill early, at least pay it on time. Late payments will hurt your credit score in a heartbeat. Also, try to pay more than the minimum payment. Make every effort to pay your balance down every month so that you can keep your credit utilization where it needs to be. Again, that is less than 30%. For example, if your credit limit is $500, you should keep your balance at or below $150.

Tips for Paying Your Credit Card Bill on Time Every Month

Do Not Charge More Than You Can Afford

One of the biggest mistakes made with credit card use is charging more than you can afford to repay. This tends to be because people view credit cards as a way to buy all of that expensive stuff they want. They forget, though, that the money has to be repaid, and the balance can get out of hand very quickly.

Let’s say you purchase a $300 TV on your credit card that charges 20% interest. That would make this purchase cost you $360 to repay it, but only if you repay the full amount that month. If you do not, you will get charged an additional 20% interest on your full balance the next month, and the next, until you pay it off. If you let it continue, you could end up paying $3,000 for that $300. You probably wish you would have saved your cash for that purchase at this point, but it is too late.

A rule of thumb, I suggest- and attempt to follow- is to only charge each month what you can pay back in a month. I say attempt because there are times that it simply cannot be helped. Sometimes an illness keeps you out of work and you need to pay a bill, or there is some type of emergency.

Sometimes you have to do whatever it takes, including getting into more debt than you can afford at that moment. To be clear, though, keeping your power on is one thing. Go into ridiculous amounts of debt over a TV is a whole other ball game, and I cannot think of one reason that would justify such debt.

The only exception to this rule, in my opinion, is if you are in a 0% introductory interest rate period. Some companies offer these periods for six or twelve months as an incentive to sign up for their card. During this time, you could purchase that $300 TV without worry. As long as you paid a minimum of $50 per month on your credit card, you would have the TV paid off prior to interest being charged.

The rule still applies though: do not purchase anything with a credit card that you cannot afford to repay. In other words, a 0% interest rate period is not an excuse to go out and spend $5,000 unless you know you can pay off that $5,000 during that period.

Use Only When Necessary

In truth, it is best to only use your credit card when you actually need to. If you can only swipe it when there is no other choice, you will save yourself a ton of interest. Again, shopping sprees are not  necessary. Necessary means that you will somehow suffer in an intolerable way if it does not happen, like going hungry or not having running water. Even when it does not seem like it, I promise that you can tolerate going without impulse purchases or splurges.

Protect Your Credit Card Information

A very important way to protect your credit score is to protect your credit card information. Nothing can destroy your credit as quickly as an identity thief can. How, though, can we do this? I will be honest and tell you that your information is never 100% safe online. There are some very talented hackers out there that put their skills to bad use and can find whatever they want. While this is true, there is something else to consider.  If you were hungry and standing in front of two refrigerators, one locked down like Fort Knox and the other standing wide open, which would you choose to find some food?

Unless you are a renegade, Robert Frost facing the road less traveled, or Pocahontas wondering what’s around the river bend, you will probably take the path of least resistance and choose the unlocked fridge. That’s kind of how identity thieves roll. Yes, they could put the effort into breaking into locked down accounts, but why would they want to? There are so many accounts wide open for the taking. Obviously, nothing is a guarantee. But I have found that the more protection you put into place, the less likely the chance of theft. Here are a few very simple ways to add tons of protection:

1. Watch the Websites You Purchase From

First and foremost, be careful with which sites you make purchases on. Here is a scary fact: hackers can actually mirror other websites and set up fraudulent ones. This means that when you put your card information into those sites, you have literally just given them free access. So how do you know if a site is safe? Take a look at the web address bar. If you see a little lock there, you are good to go. Also, do not purchase from websites that you are not familiar with or that you cannot check out for customer reviews and such.

2. Use Prepaid Cards

Another very safe way to make online purchases is to use a prepaid card to do so, and by this I mean one of those that does not require you to load it from your bank account. If you wish to make a purchase or pay a bill, load the cash onto the card. This one does require a little more work, but if you do not do much business online, you should be okay.

3. Use a VPN

If you have never heard of a VPN, or virtual private network, you are about to get some incredibly valuable information. Have you seen the movie Black Panther? If not, what are you waiting for? Marvel movies are awesome (yes, I am a big fan).

Anyway, in the very exciting Black Panther movie, Wakanda has a shield. And it is covered to the extent that if you do not know it is there, you are not going to find it. Between the reflective dome and the dense foliage, I am not sure that even if I lived there I could find it. It is that well hidden.

This is kind of what a VPN does for your online presence. It shields you, your activity, your information, and more from everyone- even your cable provider. Can a hacker bypass it? Sure, but, like Wakanda visitors, hackers would have to know that the information is there to hack it.

There are a lot of VPN options, but my favorite is SurfShark. I am not going to go into a sales pitch- you can check out their website to compare it to others. But I will say though that the benefit of the SurfShark VPN is that for about $2 per month, you can download it to an unlimited number of devices, so you can cover your entire family. I have yet to find another that covers that much for such a low price.

4. Monitor Your Credit

Monitoring your credit usually means seeing a charge after it is made, so you are not really preventing the fraud. However, the quicker you spot issues, the quicker you can get the ball rolling and fix it.

5. Freeze Your Credit and Your Card

Again, there are no guarantees, but freezing your stuff is as close to perfect identity protection as you can get. For a few years now, many banks and credit card companies have allowed their users to freeze their cards through their apps and websites if the card is lost. This is great because you do not have to immediately cancel the card. (A major frustration when you find the card at the bottom of your purse or in the wrong pocket of your wallet the next day.) You can just as easily unlock the card if you find it.

Lately, though, thanks to all of the website hacks and data breaches that have been going on, you can actually freeze your entire credit. This means that no one, including you, can apply for credit or run a hard check on it. You have to go back in with your password to unfreeze it first.

I decided to do this recently because I did not want anything unauthorized to show up on my account. Not only have I not had any alerts of suspicious activities, but it has actually helped my credit score. When I consider applying for something, I know that I have to go through a process to unfreeze my credit. It gives me time to think through what I am doing. For about three months now, I have not found a thing worth that effort. Since no one has been running hard checks on my credit, my credit score has improved.

Check For Free Identity Theft Protection

Some banks and credit card companies actually provide free identity theft protection. If you are looking for credit cards for good credit, or if you have one already, check with your company to see if you have this.

Conclusion

If you are ready to take the plunge and shop for credit cards for good credit, be sure you are ready to commit some time to compare a few. For those considering a credit card simply to pay off other credit cards, consider a personal installment loan instead as they typically have lower interest and better repayment terms. Regardless of the direction you choose to take, be sure to understand the terms and conditions you are signing up for and make a plan to keep yourself from racking up too much credit card.

What Credit Score Do Credit Card Companies Require?

Deciding to apply for a credit card requires a proper thought process. It is not something that you rush into, and that is why you must take your time to get the right one for you.  There are very many options available in the market, all offering different benefits. Are credit cards based on credit score? If you are applying for a credit card, you may have heard that your credit score will matter. And yes, this is a very important thing you should be aware of. You, however, do not have a very good idea about what this score should be, and do not know how to go about it. But if your curious and want to learn, we will explain everything in more detail for you right now.

Credit Card Basics Spelled Out: Credit 101

Credit Cards Based On Credit Scores – Understanding Credit Score Impact

If the credit card companies give credit cards based on credit score, you should take note of the following.

Excellent Credit Rating

You have a fico score above 800, and the odds of getting an approval are high.  What it means is that your credit history dating back to almost ten years is good. You also have an excellent credit mix meaning you may have different credit cards, and installment loans. It shows that you can handle your debt portfolio well.

The credit cards you will get with an excellent credit score come with a host of bonuses and rewards. You may, for example, get special introductory offers and larger bonuses depending on your spending.  You can apply for cards like the platinum card from American Express, Sapphire reserve from Chase, among others.

Very Good Credit Score

If you have a very good credit score, it means your ratings for between 740- 799.  You enjoy almost all the benefits of those who have an excellent credit card rating.

A Good Credit Score

A good credit score means that your rating is in the range of 670- 739. Your credit history probably dates back three years, and you have no late payments.  You can apply for credit cards from most of the major lenders, and you have a better chance if your income can comfortably take care of the payments.  The lenders will also look at other factors like your monthly expenditure to determine your creditworthiness.  The lenders may also check to see how much debt you have in other credit accounts.

Proper use of the credit card may sway the lender to give you some decent rewards. Making your payments on time will also have a positive impact on your credit rating.

credit score factors

Average or Fair Credit

If your credit score is between 580- 669, you have an average credit rating. You can apply for the credit cards, but you may face some challenges getting approval. Even if you get consent, you will not enjoy the rewards that those with good credit receive.

If you fall within this range, you may have missed a few payments in the past year or two.  You may have also just started the process of rebuilding your credit.  If you have high balances when compared to your credit limit, it will also act as a red flag for any credit card issuer.

While getting a credit card may help you improve your credit score, be careful about the common credit card mistakes people make. Do not give in to the temptation of applying for too many cards; every time you make an application, there will be a hard inquiry. Credit cards based on credit score look at the number of queries; too many may ruin your chances of getting financial approval of up to two years in the future.

You will find credit card companies that have products four people within this credit score range. What you get is an opportunity to rebuild your credit score while enjoying the benefits of having a credit card. The lender may, however, not be comfortable giving you an unsecured credit card.  You can apply for the secured card that will require a deposit.  The deposit will help the company recover some of its money if you’re not able to pay your bills.  You also have the option of applying for retail store cards; the terms are not very favorable, but you stand a higher chance of getting approval.

Some of the companies you can approach include, Capital One, MasterCard, Discover it, among others.

Bad CreditРезултат слика за credit card with bad credit infographic

You fall within the bad credit range if you have a score of 580 and below.  Your chances of getting approval for a credit card with bad credit are very low. You will land within this range if you get many adverse reports on your credit history.  The Credit Bureaus will consider information such as bankruptcies, several late payments, and adverse reports from collection accounts, among others.  The impact of poor credit history are numerous, and you need to get yourself out of that range as soon as possible.

Most lenders will see you as a credit risk because all indicators point to the fact that you may not be able to pay off the debts. There are, however, certain products that credit card companies have for people in this range.  You will qualify for a secured card because the deposit is a buffer for the lender.  There is no 100% guarantee that you will get an approval, even with a deposit.

Good credit cards based on credit score may not be within your reach at this point, but you need to be careful about what you apply for.    Be watchful about some of the unsecured credit cards for people with bad credit.   The terms are usually very unfavorable.   Take time to read customer reviews before signing on.  Doing your research well will save you a lot of heartache in the future.

No Credit

Some people do not have any established credit, for instance, students.  You can qualify for certain credit cards, especially those within the fair credit range.

Getting Approved for a Credit Card

There are many factors credit card companies consider before you get an approval.  It will also depend on the types of credit card you are applying for.   That is why you need to take your time to compare credit cards for good credit. , different credit card companies have different requirements which you will need to fulfill.  Some companies will give credit cards based on credit score, others who look at a whole other range of factors.  Do note that you may face some challenges if your credit rating is below 580.

The good news is there is no actual credit score number that will determine whether or not you get a credit card.  Even those with excellent credit scores may, depending on other factors, not get approval. Credit card companies will take into consideration some of the following.

1. Credit Cards Based On Credit Scores

The lender may depend on your credit score to determine whether or not you are creditworthy. An individual who has a poor credit rating may have difficulty making the credit card payments. An individual can have more than one credit score. You also have the option of checking out some of the best credit card to get with bad credit.  Some lenders will take on the risk of giving someone with a poor payment history a credit card but will take into consideration certain factors.  Such credit cards have a higher interest to protect the lender if you are not able to make the payments.

2. Credit History

Lenders will look at your history with regard to credit to determine whether you make your payments on time or not.  Some lenders will insist on seeing your payment history dating back years.  It will allow them to get a clearer picture of your financial standing.  A credit history check will yield more information than the lender can get from a single credit score.

3.Income Level

Credit card companies will want to know your income level before they can give you an approval for a credit card.  While it will not factor into your credit score, the lenders will want to know that you have a steady source of income.  You should be ready to give additional information, such as tax returns.  Your income level will have a huge role to play on the credit limit the lender will provide you with.  It does not matter how good your payment history is, a low income may result in a low credit limit.

4. Monthly Housing Expenses

The credit card company may express an interest in your monthly housing expenses. They may also ask whether you own or rent the house, and how much you spend on running it. The lender will be trying to determine whether you are living within your income bracket.  If your expenses are higher than your income, it may negatively impact on your credit card application.

 Understanding Credit Scoring and Credit Reports

Резултат слика за credit report infographic

Understanding credit cards is the key when you are applying for a one. So here are some basics you need to know. Credit scoring looks at the number of hard inquiries over the past year. Credit reports will include any inquiries over the past two years.  If the lender finds that you have so many queries, they may not grant you an approval for a credit card.  You may also have a good credit score, but a single late payment will go to your credit report, leading to a denial for a credit card.  Missing one payment will reflect on your credit report for seven years, and credit cards based on credit scores take this very seriously.

 Understanding Credit Scores

Many people assume that you only need one credit score. The reality is that you have the option of getting several scores.  There are many scoring components and models, including FICO score Vantage score, among others.  These are the models that the three major credit bureaus; Equifax, Experian, and Transunion use in determining your credit score. You will, however, find that most of them will rate you a range of 300 to 850.  The higher the rating, the better your credit scores.

Another thing to note is that the different agencies may give you different ratings.  You need to be aware of the model they are using to calculate your credit score, and which credit card report they are using as a data source. You will also find some free resources online, which can give you a free credit score.  Such include websites for credit card issuance and those that offer credit monitoring services.  The three agencies will also give you a report once a year.

What You Need To Know When Applying For a Credit Card

Different credit card companies have their requirements, which they use to determine whether or not to give someone a credit card.  However, most of them will look at your history with debt and how you handle payments. Some of the advantages of having a good credit history include lower interest rate, higher credit limits, and rewards that come with the cards.  Retail store credit cards do not require much to get approval; even those with bad credit can apply.  Good credit cards based on credit score are usually higher-end, have higher limits, and come with some of the best offerings.  They, however, require that you have an excellent credit history to qualify.

There is no way of knowing whether the companies will deny your credit card application unless you apply.  Most companies will revert within 7-10 days.  If you do not qualify, they will tell you why.

If you’re interested in getting a new card, make sure you consider all your possibilities. With the help of our partner Fiona, you can find a list of credit cards you should definitely check out below. If you find something interesting, fill out the form and we’ll get back to you with offers from companies.


Impact of Debt Consolidation on the Credit Score

If you hope to get good credit cards based on credit score, you will need to apply specific strategies. One such approach is debt consolidation. It allows you to lower monthly payments, thus making it possible for you to stick to the repayment schedule. It can be tough to manage the high interest on your credit cards if you have multiple accounts. But if you bring them together, you have a better opportunity of managing them. Let us explore how debt consolidation can affect your credit scores and how you can do it effectively.

  • Balance transfer credit cards will offer you introductory periods, where you do not have to pay any interest on a balance on the cards within a specified period. By making savings, you will be able to pay off your debt quicker.
  • You can apply for personal loans, but make sure you only go for those with low-interest rates.  You get the benefit of getting to pay off the higher interest credit card balances faster.
  • Taking a loan from your retirement account will help you pay off any debts you have consolidated. Be careful about penalties and taxes that apply to retirement accounts so that you do not end up paying more than you expected.
  •  Home equity loans or lines of credit will use your home as collateral.  The interest rates are lower, but you need to know that the lender can auction off your home if you do not meet the repayment terms.

But beware…

Debt consolidation is an excellent way of paying off your debt in a more comfortable manner.  You, however, need to be watchful of the following:-

  • When you apply for new credit applications, the lender will make a hard inquiry.  The more the inquiries, the more significant the impact on your credit scores.
  • Opening a new credit account may temporarily lower your credit score.  The lender will view you as a high-risk borrower because they are not sure about your ability to pay the debt.
  •  The more you make your payments promptly, the better the impact on your credit score.  It, therefore, means that the older credit accounts will have a positive effect, but a new account will lower your count temporarily.
  •  Credit utilization ratio measures how you are using the available credit.  Opening a debt consolidation account will increase your available credit, thus having a positive impact on your credit score.
  •  Make sure you keep up with your payments because this is one of the most significant factors when it comes to determining your credit rating.

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What Can Hurt Your Credit Score

We have looked at some of the things that can hurt your credit score. With a low rating, you will face a challenge, if you are applying for credit cards based on credit score.  You need to be careful about the following;-

    • Missing out on payments;   your payment history accounts for up to 35% of your FICO score. it will also stay on your credit report for up to seven years
    • Credit utilization takes up to 30% of your fico score.  you must, therefore, be watchful that you do not max out your credit cards
    • Hard inquiries when applying for a credit card will impact on your credit score. The inquiries will stay on your credit report for two years, but will only  have an impact on your score for one year
    • Do not apply for too multiple credit cards within a short time.  It may give the impression that you are desperate for credit, and the hard inquiries will show up on your credit report.
    • Declaring bankruptcy can cost you up to 240 points on your FICO score. It also stays on your credit report for up to 10 years.
    • A foreclosure report will be on your credit report for up to seven years and can cost you up to 160 points
    • Deed-in-lieu or turning your property over to the mortgage lender can cost you up to 125 points if the lender sells the property to recover his money.
    • A short sale has the same impact on your credit score as a foreclosure.
    • Negotiating to settle a debt at less than what you had initially agreed with the creditor, can cost you up to 125 points
    • We have talked about debt consolidation above.  The hard inquiry will temporarily lower your credit score, but if you keep up with the payments, you will significantly improve your credit rating.
    • Refinancing a loan can impact due to a hard inquiry,  or a report that it is the same loan, but with slight changes
    • You may need to close a credit card account, but note that you will reduce your credit utilization ratio.  it will also impact on the age of the credit history by shortening it
    • You may be an authorized user on someone else’s credit card account, meaning that you inherit their payment history.  If the initial user had discipline about making payments, it would boost your score. The reverse is that if the person was delinquent, it harms your credit score
    • Having the right credit mix is crucial for a good score.  It accounts for up to 10% of your FICO score
    • You may think that not having a credit card will be good for your credit rating. the truth is, you need to have at least one account to qualify for a FICO score
    • Pay attention to the reports you get from the bureaus, because they could contain errors.  Report any irregularities so that the credit Bureaus can correct them as soon as possible.

Final Thoughts

Applying for credit cards based on credit score can be challenging if you have a poor credit rating.  However, there are measures you can take to improve your credit score. You must keep up with your payments so that you do not damage your credit history.