The 7+ Easiest Credit Cards To Get Approved For [2025]

Struggling to get approved for a credit card? You’re not alone. Whether you’re building credit for the first time or recovering from past mistakes, several cards make it easy to get started, even with a low credit score.

It’s a precarious situation, but plenty of choices can help you easily get approved for a new credit card to start building credit or give you a second chance to improve bad credit. You may even find that you can qualify for a rewards-earning card!

This article covers why good credit matters and what it is, risk-free ways to access credit, and the easiest credit cards to get approved for. We also share next-step credit cards and alternatives to credit cards.

Let’s examine how to get started and review our choices for the easiest credit cards to get approved for.

Before You Apply for a Credit Card

Know Your Credit Score

If you don’t know your credit score, your first step on the path to good credit is to determine your starting point and find out your credit score. You don’t have to pay to secure this information.

You can access your credit score without charge by visiting Credit Karma or Credit Sesame. Chase also offers Chase Credit Journey, a free service to check your credit score.

Once you’ve determined your score, you’ll know which credit cards to consider and, if applicable, begin the improvement process.

See if You’re Prequalified or Preapproved

Many credit card issuers offer prequalification or preapproval options on their websites. You can see if the issuer has any credit offers available for you by typing in your information.

The best part of prequalification or preapproval is that it does not affect your credit score, since no hard inquiry is being done. While there is no guarantee that you will ultimately get approved, it does increase your chances.

Find out more about this risk-free way to learn whether you have offers waiting in our guide to prequalified or preapproved credit offers.

CardMatch Tool

Want to find out if there are credit card offers waiting for you without having to complete and submit a formal credit card application? These offers can be accessed risk-free through the CardMatch online tool.

The CardMatch tool is easy to use and does not affect your credit score. Just input some minimal information for a list of any available offers.

Easiest Credit Cards To Get Approved For

These easy-to-qualify credit cards strike a balance between earning rewards and ease of approval. Others offer easy access and allow you to build or rebuild your credit history.

The recommended credit scores are solely provided by Upgraded Points and not credit recommendations from issuers.

Capital One Platinum Credit Card (Credit Score: 580 or Better)

Capital One Platinum Credit Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

The Capital One Platinum card is great for those looking to build up their credit score and credit history, without paying a deposit or annual fee.

Capital One Platinum Credit Card

The Capital One Platinum card is great for those looking to build up their credit score and credit history, without paying a deposit or annual fee.

Welcome Offer

None

Annual Fee

$0

APR

Purchases: 29.49% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Fair to Good (580-739)

Why We Like This Card

If you’re ready to get serious about building or rebuilding your credit, you’ll want a credit card for which approval is probable, one that has a simple structure and is easy to manage, and ideally, has some benefits you can use. This is where the Capital One Platinum Credit Card really shines.

Pros & Cons

Pros

• No annual fee
• Free credit monitoring

Cons

• Does not earn rewards
• The high APR can be costly if you carry a balance

Read Full Review

Card Highlights

• No annual or hidden fees. See if you’re approved in seconds
• Be automatically considered for a higher credit line in as little as 6 months
• Help build your credit through responsible use of a card like this
• Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
• Monitor your credit score with CreditWise from Capital One. It’s free for everyone
• Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One’s mobile app
• Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you’re all set
• Pay by check, online or at a local branch, all with no fee – and pick the monthly due date that works best for you

Financial Snapshot

• APR: Purchases: 29.49% Variable
• Foreign Transaction Fees: None

Though it is not a rewards-earning credit card, the Capital One Platinum card*×Information collected independently. Not reviewed by Capital One. serves the purpose of building or rebuilding credit and has a high chance of initial approval. It has a simple earning structure and is relatively easy to manage. This can make it great for people who may not be approved for other cards.

Capital One QuicksilverOne Cash Rewards Credit Card (Credit Score: 580 or Better)

Capital One QuicksilverOne Cash Rewards Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

Unlimited 1.5% cash-back on all purchases while you work your way up to a higher credit line. Redeem rewards for any amount at any time.

Capital One QuicksilverOne Cash Rewards Card

Unlimited 1.5% cash-back on all purchases while you work your way up to a higher credit line. Redeem rewards for any amount at any time.

Welcome Offer

None

Annual Fee

$39

APR

Purchases: 29.49% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Fair to Good (580-739)

Why We Like This Card

If you’re looking to build your credit, and earn cash-back rewards while doing so, then the Capital One QuicksilverOne Cash Rewards Credit Card is a fantastic option. You can increase your credit line just paying your bill on time every month and you’ll earn an unlimited 1.5% cash-back on all of your purchases.

Pros & Cons

Pros

• 1.5% cash-back on all purchases
• Automatic credit line review after 6 months of on-time payments
• Unlimited access to your credit score via CreditWise

Cons

• $39 annual fee

Read Full Review

Card Highlights

• Earn unlimited 1.5% cash back on every purchase, every day
• No rotating categories or limits to how much you can earn, and cash back doesn’t expire for the life of the account. It’s that simple
• Be automatically considered for a higher credit line in as little as 6 months
• Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
• Help strengthen your credit for the future with responsible card use
• Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
• Monitor your credit score with CreditWise from Capital One. It’s free for everyone
• Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you’re all set

Financial Snapshot

• APR: Purchases: 29.49% Variable
• Foreign Transaction Fees: None

No need to keep track of special spending categories here — the Capital One QuicksilverOne card*×Information collected independently. Not reviewed by Capital One. earns 1.5% cash-back on every purchase. And after 6 months of on-time payments, you receive an automatic credit line review. That may help you gradually increase your credit limit, which can help boost your credit score even more. Note that this card does come with an annual fee, so make sure you account for that in deciding which card to apply for.

The Indigo^® Platinum Mastercard^® (No Credit Check Needed)

Indigo^® Platinum Mastercard^®

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

Apply Now(at Indigo's secure site)

Indigo^® Platinum Mastercard^®

Welcome Offer

None

Annual Fee

$0-$99

APR

24.90%

Why We Like This Card

The Indigo® Platinum Mastercard® can be a good option for people with no credit or bad credit, including students and people who have previously declared bankruptcy. Not only does it not require a credit check to get prequalified, but it also helps build (or rebuild) credit by making regular payments.

On the downside, it does have a lower credit limit, may charge an annual fee based on your creditworthiness, and has a high APR that can mean big fees if you miss a payment. This article will look into some of the reasons why the Indigo Platinum card can be a good card for you and also discusses some alternative options.

Card Highlights

• No security deposit required so you can keep more money in your pocket
• Pre-qualify without impacting your credit score
• Shine brighter with a credit card as unique as you
• Get access to a credit card you can use online, in store and in app where ever you see the Mastercard logo
• Build on your credit history with style
• Worry free spending with $0 liability on unauthorized charges!
• More credit for your everyday needs

Financial Snapshot

• APR: 24.90%
• Foreign Transaction Fees: 1% of each transaction

We also recommend the Indigo Mastercard, as there’s no impact on your credit score and you can get instantly approved for the card. However, depending on your application, you may have an annual fee $0-$99, and the credit limit on the card only goes up to $300. This means that it can be easy to have a high credit utilization, which might hurt your credit score.

Chase Freedom Rise^® (1% Cash-Back)

Chase Freedom Rise^®

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

The Chase Freedom Rise card is the perfect option for those starting their credit journey that also want to earn cash-back rewards.

Chase Freedom Rise^®

The Chase Freedom Rise card is the perfect option for those starting their credit journey that also want to earn cash-back rewards.

Welcome Offer

No offer available

Annual Fee

$0

APR

25.74%

Pros & Cons

Pros

• 1.5% cash-back on all purchases
• 5% cash-back on Lyft rides (through March 31, 2025)
• No annual fee

Cons

• High APR
• Charges foreign transaction fees

Read Full Review

Card Highlights

• Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise^®
• Earn Cash Back - With Chase Freedom Rise^®, you can establish credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
• Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
• Credit Limit Increase - As a Freedom Rise^® cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise^® Card
• Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
• No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise^® Card.
• Member FDIC

Financial Snapshot

• APR: 25.74%
• Foreign Transaction Fees: 3% of each transaction in U.S. dollars.

Rewards Center

Chase Ultimate Rewards

The Chase Freedom Rise card has a $0 annual fee and gives unlimited 1% cash-back on all purchases. You also get a $25 statement credit when you sign up for automatic payments for at least 90 days after opening your account. Chase notes that having at least $250 in a Chase checking or savings account can increase your chances of being approved. The Freedom Rise card also offers a path to having your card converted to a Chase Freedom Unlimited^® card, as your account is reviewed each year to see if Chase will convert your card.

Capital One Platinum Secured Credit Card (No Credit History)

Capital One Platinum Secured Credit Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

The Capital One Platinum Secured card helps you build or rebuild your credit score with tis credit builder perks.

Capital One Platinum Secured Credit Card

The Capital One Platinum Secured card helps you build or rebuild your credit score with tis credit builder perks.

Welcome Offer

None

Annual Fee

$0

APR

Purchases: 29.49% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Bad (300-579)

Why We Like This Card

The Capital One Platinum Secured Credit Card gives you the tools to control and build your credit with responsible use.

Pros & Cons

Pros

• Automatic credit line reviews
• Raise your credit limit with a larger deposit
• No foreign transaction fees

Cons

• Does not earn rewards
• Requires a security deposit

Read Full Review

Card Highlights

• No annual or hidden fees. See if you’re approved in seconds
• Building your credit? Using the Capital One Platinum Secured card responsibly could help
• Put down a refundable security deposit starting at $49 to get a $200 initial credit line
• You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
• Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
• Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
• Monitor your credit score with CreditWise from Capital One. It’s free for everyone
• Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One’s mobile app

Financial Snapshot

• APR: Purchases: 29.49% Variable
• Foreign Transaction Fees: None

The Capital One Platinum Secured card*×Information collected independently. Not reviewed by Capital One. is a secured credit card, which often allows you to be approved with no credit history or even bad credit. It reports to all 3 credit bureaus, meaning that you build a positive credit history when you manage your card well. You have an initial credit line upon making the minimum required security deposit, which can be $49, $99 or $200. And you get access to a higher credit limit after the first 6 months of on-time payments with no additional deposits needed.

This card does have a $0 annual fee.

Capital One Spark Classic for Business* (No Annual Fee)

The Capital One Spark Classic card gives unlimited 1% cash-back on all purchases and comes with no annual fee. You also get 5% cash-back on hotels and rental cars booked through Capital One Business Travel. This can be a great way for owners of small businesses to work on building their credit and their business.

Bank of America^® Business Advantage Unlimited Cash Rewards Secured Credit Card (1.5% Cash-Back)

The Bank of America Business Advantage Unlimited Cash Secured card is another option for business owners establishing or rebuilding credit. You get an unlimited 1.5% cash-back on every purchase, and your rewards don’t expire. Although there is no annual fee, a $1,000 minimum security deposit is required with the card. Once you make the initial deposit, your credit line is equal to that amount. Bank of America regularly reviews your account to possibly transition you to an unsecured card if your credit history improves.

Hot Tip:

Secured credit cards can be an excellent alternative for building or rebuilding credit, but there’s more you need to know. Our complete guide to secured credit cards offers tips on what you should look for, how to apply, and our recommendations for the best secured cards. 

Best Entry-Level Store Credit Cards

Store-branded credit cards are designed to reward the loyalty of frequent retail customers, encourage additional purchases, and generate interest income for the card issuer.

Perhaps you’ve been approached when checking out at your favorite retail store with a comment such as, “Want to save 10% on today’s purchase?” You may also be offered a store-branded credit card during checkout when making a purchase online.

Characteristics of store-branded credit cards can include:

• Accessible to customers with fair or better credit scores (some do not even pull your credit score)
• Quite high approval chances
• Most often come with no annual fee
• Help improve credit because they report to credit bureaus
• Possibly instant approval
• Merchant rewards and discounts

Check out our guides to store-branded credit cards and learn more about these easy-approval credit cards. Our Comenity Bank store credit card guide and Synchrony Bank store credit card guide tell you everything you need to know.

Bottom Line:

Store-branded credit cards provide easy access to credit with certain retailers. Most store credit cards require only fair or better credit scores, and some do not even pull credit scores.

Credit Card Alternative: Credit Builder Account

Establishing an account with Self is the best option for easy access to credit and a positive impact on your credit history.

Self, formerly Self Lender, is a secured loan that doesn’t require any credit history or a hard pull on your credit.

Here’s how it works.

• Apply for the loan with no hard credit pull on your credit.
• On approval, the loan is deposited into a certificate of deposit for collateral.
• You make scheduled monthly payments on the loan.
• You receive back the principal you’ve paid into the loan.

The loan charges interest, but no security deposit is required, and no hard inquiry is made on your credit report.

Bottom Line:

A Self account is a great alternative way to start building a positive credit history when you have bad credit or no credit. You can find out more in our in-depth Self guide! 

Next Step: Rewards-Earning Credit Cards

Let’s look into the near future, when you’ve managed your entry-level credit card well, improved your credit score, and are ready for a premium rewards-earning credit card.

These credit cards require a good to excellent credit score.

Don’t let an annual fee keep you from selecting a particular credit card, either — the increased earnings may far offset the cost of an annual fee.

For example, if your business spent $50,000 a year, your net earnings would be $850 on the Capital One Spark Cash Plus Card*×Information collected independently. Not reviewed by Capital One. (2% cash-back minus the $150 annual fee).

Spending $50,000 on the Capital One Spark Cash Select*×Information collected independently. Not reviewed by Capital One. with a $0 annual fee would result in $750 cash-back.

Hot Tip:

Looking for a credit card that is easy to qualify for? Capital One offers several accessible cards that earn rewards. Plus, Capital One allows you to see if you’re prequalified for their credit cards. 

Chase Sapphire Preferred^® Card

Our favorite first-time travel rewards card is the Chase Sapphire Preferred card, which earns 2x valuable and transferable Ultimate Rewards Points on travel and dining purchases.

NEW OFFER

Terms Apply / Rates & Fees

Chase Sapphire Preferred^® Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Apply Now(at Chase's secure site)

Chase Sapphire Preferred^® Card

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Welcome Offer

Earn 60,000 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.

60,000 75,000 points

UP's Offer Valuation*:

$1,500

Annual Fee

$95

APR

19.74% - 27.99% Variable

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Good to Excellent

Why We Like This Card

The Chase Sapphire Preferred^® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

Pros & Cons

Pros

• 5x points on all travel booked via the Chase Travel portal
• 3x points on dining purchases, online grocery purchases, and select streaming services
• 2x points on all other travel worldwide

Cons

• $95 annual fee
• No elite benefits like airport lounge access or hotel elite status

Read Full Review

Card Highlights

• Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
• Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
• Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
• 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
• Member FDIC

Financial Snapshot

• APR: 19.74% - 27.99% Variable
• Foreign Transaction Fees: None

Rewards Center

Chase Ultimate Rewards

When it comes time to use your points for travel, you get up to 75% more value booking via the Chase Travel portal with Points Boost offers.

American Express^® Gold Card

If you spend a lot at restaurants and U.S. supermarkets, the Amex Gold card can be an everyday rewards workhorse.

The card functions well as a travel rewards card, too, earning big on airline tickets and at AmexTravel.com.

NEW OFFER

Terms Apply / Rates & Fees

American Express^® Gold Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

This is the best card for food lovers who dine out at restaurants (worldwide), order take-out and want big rewards at U.S. supermarkets!

Apply Now(at Amex's secure site)

Apply With Confidence

Know if you're approved with no credit score impact

If you're approved and accept this Card, your credit score may be impacted.

American Express^® Gold Card

This is the best card for food lovers who dine out at restaurants (worldwide), order take-out and want big rewards at U.S. supermarkets!

Welcome Offer

You may be eligible for as high as 100,000 Membership Rewards^® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.

As High As 100,000 Points. Find Out Your Offer.

UP's Offer Valuation*:

Up to $2,200

Annual Fee

$325

APR

See Pay Over Time APR

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Good to Excellent

Why We Like This Card

The American Express^® Gold Card is a game-changer.

With this card, you can earn 4x Membership Rewards points at restaurants, up to $50,000 per calendar year, and you’ll also earn 4x Membership Rewards points at U.S. supermarkets on up to $25,000 per calendar year, then 1x.

There isn’t another card on the market that offers a 1-2 punch like this. Of course, there are several other benefits of the Gold Card as well, including extra monthly dining rewards and more.

Pros & Cons

Pros

• 4x points per dollar at restaurants worldwide, up to $50,000 per calendar year; then 1x thereafter
• 4x points per dollar at U.S. supermarkets, up to $25,000 per calendar year; then 1x thereafter
• 3x points per dollar on flights purchased directly from airlines or at AmexTravel.com

Cons

• $325 annual fee (rates and fees)
• No lounge access

Read Full Review

Card Highlights

• You may be eligible for as high as 100,000 Membership Rewards^® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
• Earn 4X Membership Rewards^® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
• Earn 4X Membership Rewards^® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
• Earn 3X Membership Rewards^® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
• Earn 2X Membership Rewards^® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
• Earn 1X Membership Rewards^® point per dollar spent on all other eligible purchases.
• $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards^® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
• $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express^® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
• $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express^® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
• $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express^® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
• Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
• No Foreign Transaction Fees.
• Annual Fee is $325.
• Terms Apply.

Financial Snapshot

• APR: See Pay Over Time APR
• Foreign Transaction Fees: None

Rewards Center

American Express Membership Rewards

Check out our recommendations for the best first-time credit cards for earning rewards and cash-back.

Value of Good Credit (and Why You Want It)

Having bad credit affects your life in so many ways. Here are some examples of what you might experience if you have bad credit:

• Not being able to rent an apartment or buy a home
• Difficulty qualifying for certain jobs
• Not being able to finance a vehicle
• High-interest rates if you can get a loan
• Higher insurance premiums in certain states
• Not being able to put utilities in your name, or the requirement of a large deposit
• Difficulties securing a cell phone

Good credit changes your life in a positive way.

Not only can you do all the important things we just mentioned, but could qualify for credit cards that earn valuable rewards.

Sometimes things happen out of your control and your credit is affected. Or perhaps you just made a few mistakes. Many of us have been there. The critical thing to know is that there is a path back to good credit.

If you’re just starting out, there’s also a path to securing new credit that is totally within your control.

Bottom Line:

Bad credit can cost you plenty and present financial boundaries to securing housing, transportation, and communication. There are, however, many options for securing new credit without a credit history and improving your credit score regardless of your history. 

Definitions of Good Credit and Bad Credit

There are 3 major credit reporting agencies: Experian, TransUnion, and Equifax. Credit card issuers use 1 or more of these reporting agencies to access your credit score and history and determine if granting credit to you is warranted.

While definitions and calculations vary, credit scores generally range from 300 to 850.

Experian defines poor credit as a credit score between 300 to 579 and a fair credit score as 580 to 669.

Equifax considers a credit score of 700 to 749 as good and 750 or more as excellent.

Knowing your credit score range is a critical first step in securing a credit card.

Bottom Line:

Though you will need an excellent credit score to secure the best premium rewards-earning credit cards, you can still qualify for rewards-earning credit cards with a fair credit score or above. 

Managing Your Credit Card Account Well

If you want to have your own place to live, a vehicle to drive, a cell phone, and be able to afford insurance, you need good credit! Here’s where to start:

• No credit history? Start with a student credit card, secured credit card, or Self.
• Poor credit? Start with a store-branded credit card, secured credit card, or Self.

Regardless of which credit card you secure, follow these tips for managing it well:

1. Don’t spend more than you can pay off each statement period.
2. If you can’t pay off your balance, pay more than the minimum due.
3. Make extra payments when you have the money.
4. Make all payments on time.
5. Check your online account to make sure payments have posted.
6. Call the credit card company if you have a problem.
7. Keep the card active with small purchases.
8. Track your spending with your online account.
9. Don’t lend your card to others.

Bottom Line:

Securing a new credit card alone won’t help improve your credit score. You have to manage the card well. Over time, you will develop a positive credit history and see improvement if you have bad credit. 

Final Thoughts

There’s always a path to securing new credit or rebuilding your past bad credit history, starting with knowing where you currently stand. Once you’ve determined your credit score, reviewed your credit report, and selected a credit card that is easy to get approved for, your journey begins.

It’s not easy to improve your credit — you have to manage your new credit well — but the rewards are life-changing.