Find the Right Credit Card by Credit Score
6 Min Read | Last updated: August 28, 2023
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Your credit score is an important part of getting approved for a credit card. Considering factors like rewards, Annual Percentage Rates (APR), and fees can help you weigh the right credit card for your credit score.
At-A-Glance
- Find your credit score, then determine the best credit card for your credit score.
- High credit score credit cards typically offer low interest rates, high credit limits, and plenty of perks.
- People with fair-to-poor scores can apply for secured cards and build credit with timely payments.
Shopping for a new credit card may seem as simple as filling out an online application – but applying is not a guarantee of approval. Credit card approvals are based largely on credit scores, so you can boost your chances of getting approved by looking for the best available credit card to match your credit score. Here are some tips and pointers.
Factors to Consider When Choosing a Credit Card Based on Your Credit Score
To start, it’s a good idea to find your credit score and see where you stand. Knowing your credit score can help you in your research and may assist you in finding credit cards that you may be eligible for.
Next, consider how you plan to use the card. Are you planning on doing a balance transfer? Would you like to earn rewards on purchases? In addition to providing financing, some credit cards come with additional benefits and perks, so find a card that aligns with your needs and preferences and will benefit you the most.
Finally, pay attention to charges and fees such as interest and annual fees. For example, some cards come with 0% introductory APR which could be an ideal option if you’re looking for a bit more flexibility. For example, if you’re planning to do a balance transfer or finance a bigger purchase, this type of card could give you some extra time to pay the full balance before the standard variable interest rate kicks in. Be sure to consider a card’s annual fee, as well as any additional charges for things like balance transfers or foreign transactions. You’ll also want to check to make sure the card you’re considering will allow balance transfers in the first place.
Best Credit Cards for High Credit Scores
A higher credit score – in the “good” “very good” or “excellent” ranges – can usually expand the variety of credit cards available to you.1 In this category, lenders see you as a less risky borrower, so you have a better chance of qualifying for a credit card with more generous rewards and benefits.
An example of some of the offerings that you might find for good, very good, or excellent credit scores could include some of the following:
- Generous Rewards: The more generous rewards cards typically require good to excellent credit.
- Welcome Offers: Cards that require good to excellent credit scores typically offer more generous welcome offers as well.
- Extra Benefits: Rewards cards that require good to excellent credit may offer some exciting additional benefits as well. Examples may include elite states in certain loyalty programs, access to airport lounges, and more.
- 0% Introductory APRs: You may need a credit score that’s on the higher side to qualify for a credit card that has a 0% introductory Annual Percentage Rate (APR).
It’s important to note that some of the most premium credit cards may require scores that are on the “very good” to “excellent” side of the spectrum. But there are plenty of options out there for people with “good” credit scores too. Card benefits and features will vary significantly from card to card, and different credit card issuers will have different eligibility requirements as well.
Annual fees for such high credit score credit cards typically range from $0 up to around $700. Before applying, consider how well your lifestyle and spending habits match a particular card’s mix of dining, grocery, travel, and general spending benefits.
Most lenders consider 670 to 739 to be a “good” FICO score,2, and Fair Isaac notes the average American credit score falls into this range. At this level, lenders may look at your earnings, level of debt, and recent payment history before issuing a credit card.
Credit scores from 740 to 799 would put your score in the “very good” category, which is above the average of U.S. consumers and shows lenders that you’re a “very dependable” borrower, according to Fair Isaac Corp., the provider of FICO.3 Although technically a level down from “excellent” in the credit score ranges, it is generally difficult to discern a significant difference between the best credit cards for very good and excellent scores – their perks are roughly the same.
Generally, the threshold for excellent credit in the most common credit scoring model – FICO – is 800 and up. A perfect score of 850 is possible, but as of the third quarter of 2021, only 1.31% of all FICO Scores in the U.S. stood at this point.4
Regardless of the perks, the credit limit you’re offered on any of these cards will take into account your income as well as your credit score.
Credit Cards for Fair Credit Scores
A credit score of 580 to 669 is considered “fair,” which is below the average score of U.S. consumers.5 Still, people with “fair” credit scores have credit card options. If your score is on the higher side of this range, you may be eligible for a credit card with a relatively low credit limit that offers about 1% or 1.5% cash back on eligible purchases, or a similar level of rewards points. And remember, credit card APRs typically go up as credit scores drop, so the main purchase APR that comes with one of these credit cards is likely to be above the average.
Building Credit With ‘Authorized User’ or Secured Credit Cards
If your score is between 300 – the lowest possible score – and 580, it falls in the “very poor” credit category. It demonstrates to lenders that the borrowers may be a risk.6 People with credit scores in this range usually have two main options: become an authorized user/additional card member on someone else’s account or apply for a secured credit card.
Additional card members are not legally responsible for the account – only the main account holder is. But an additional card member can still get a credit score benefit from the account if it remains in good standing and payments are on time.
With secured credit cards, you pay the card issuer a deposit equal to your credit limit – usually about $200 to $500 – and the card company draws from it if you miss a payment. If you make on-time payments, you may eventually qualify for a standard credit card. Some pay back the deposit or offer a higher credit limit after a set number of months. Some secured cards don’t charge an annual fee, but APRs can be high, and perks are typically rare.
Frequently Asked Questions
When used responsibly, a credit card may help your credit score in a few different ways. Making payments on time and only using a sensible amount of your available credit are two good practices that, over time, may positively impact your score. Likewise, the length of your credit history can improve your score as well.
By choosing a credit card based on your credit score, you can help to increase your chance of getting approved for the card. Credit card applications can show up on your credit report, and a high number of credit card applications over a short period of time could be a red flag to potential lenders.
You can choose to upgrade your credit card as your score improves. Over time, as you build your credit history, you may become eligible for better credit card offers.
The Takeaway
When shopping for a new credit card, you can boost your chances of approval by applying for cards that best match your credit score. When you have a high credit score, you may find that you are eligible for the best credit cards, ones that offer more generous rewards and benefits.
1 “Best Credit Cards For Excellent Credit Of June 2023,” Forbes Advisor
2,3,5,6 “What is a Credit Score?,” MyFico
4 “The Elusive 850: Experian Reveals Traits of Consumers With Perfect FICO® Scores,” Experian
Randi Gollin is a freelance writer and editor who’s covered topics including shopping, travel, dining, and food for tech and media brands and digital publications.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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