Credit score ranges
| FICO | VantageScore |
|---|---|
| Poor: 300 to 579 | Very Poor: 300 to 499 |
| Fair: 580 to 669 | Poor: 500 to 600 |
| Good: 670 to 739 | Fair: 601 to 660 |
| Very good: 740 to 799 | Good: 661 to 780 |
| Exceptional: 800 to 850 | Excellent: 781 to 850 |
In order to qualify for good credit, your credit scores need to be at least 670 for FICO and 661 for VantageScore.
Benefits of a good credit card
Credit cards that require a higher credit score generally offer higher reward rates, larger welcome bonuses and more benefits. Your credit score tells lenders how good you are at managing debt, so typically the better your score, the better features the lender will be willing to offer you.
Annual fees -- are they worth it?
Many top-tier credit cards charge an annual fee. While no-annual-fee cards are still a good choice, if you're looking for a travel credit card with annual statement credits or a rewards card with a larger welcome bonus, you may have to pay an annual fee.
How to choose the best credit card for good credit
Always make sure the card matches your budget. If it has an annual fee, be sure that you can generate enough rewards through normal spending to cover it and then some. Also, take a look at the card benefits. Consider how often you can use them, and if the value you get from them covers what the card charges.
If it offers a welcome bonus, try to reach it with your typical spending. Don't get enticed into spending on unnecessary purchases to reach it. Or, have the required spending amount saved up before you apply for the card. That way, you can reach the bonus and pay it off right away without having to spend anything on interest charges.
For travel cards, make sure you can take advantage of any benefits it offers, whether that be annual statement credits or loyalty programs with hotel or airline brands.
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To get the most from your card, avoid carrying a balance from month to month so you won't have to pay interest charges. Try to use your card perks every year they're available -- meaning things like annual travel credits or airport lounge access -- and redeem your rewards in the most lucrative way.
Point redemptions become more important for travel credit cards rather than cash-back rewards credit cards. For example, rather than redeeming for statement credits, you can transfer your points or miles to the card issuer's travel partners where they might be worth more.
With a cash-back rewards card, your best bet is typically to use your rewards for statement credits or to deposit your rewards directly into your bank account. The value of most rewards sits at 1 cent per point, whereas with a travel rewards card, there's more variance in how much the points or miles are worth.
It's also important that you don't overspend for the sake of earning more rewards or to reach the card's welcome bonus. Any extra spending you do outside of your budget could take away from the value you'd get from the card's rewards.
How to apply for a credit card
When you’re ready, applying for a credit card is fairly simple:
- Choose the card that best matches your spending habits and lifestyle.
- Apply on the card issuer's site by filling out an application. You'll need to provide personal and financial information like your full name, address, Social Security number, income and monthly rent or mortgage payment.
- You'll likely hear back instantly with the card issuer's decision. If not, they may reach out to you for clarification or for more information.
FAQs
A fair FICO credit score is 580 to 669 while good credit is 670 to 739. To qualify as fair credit with VantageScore, you’ll need to be 601 to 660. For good credit, it’s 661 to 780.
Excellent credit is the most difficult to reach. Avoid missing a payment, properly manage your credit utilization, keep an eye on your credit reports for any discrepancies and use your credit card responsibly to have the best chance of reaching excellent credit.
Depending on your habits, it could take three to six months to reach good credit from scratch.
Getting a good credit score takes time. Everyone starts with no credit history and works their way up. You can start with a credit-building card or personal loan with a low credit limit and make payments on time. You can continue building credit by adding other credit cards or loans. Some of the factors that are used to rate your credit include payment history, overall credit available, utilization and age of your accounts. The longer you make thoughtful spending choices and keep your current accounts in good standing, the better your chances of achieving good credit.
Applying for a credit card is a bit of a gamble. There is no guarantee you’ll be approved, even if you have good credit. Your credit score could dip after a card application due to the hard inquiry on your credit report — even if you’re denied after applying.
The easiest card to get with a good credit score is an instant approval card that makes an immediate decision. Another option is a preapproved or prequalified credit card. Online prequalification lets you see whether you could be approved if you formally apply — without any commitment. Best of all, a prequalification won’t affect your credit score, so you can check risk-free to see if it’s worth applying.
