Credit Score for Credit cards
Credit Score

Credit Score for Credit cards

Banks approve credit cards based on the creditworthiness of an individual. If you are looking to get a credit card, then you would need to satisfy all the eligibility criteria.

Banks will generally see to it that you have satisfied the following aspects,

  • Have a Good Credit History
  • Payment history of two years at least with proper repayments
  • A Stable Income
  • A good credit score
  • Existing debt obligations
Best Credit Score for Credit Card

Though there is no minimum credit score requirement to get a credit card, banks do expect a customer to have good credit score for cards with good features and benefits. Proper usage and repayment of credit cards can increase your credit score.. As with other credit types, cards that you can get with a good credit score has better features such as better interest rates, better rewards program and cash back offers. Many lenders also offer credit cards for individuals with bad credit score. Users can consider these kinds of cards as a score builder. With a demonstrated credit score of 750+, lenders will be willing to offer you the best credit cards.

Apply for Card that fits your score

Always apply for credit cards that fit your credit score. You can access the credit score for free. Also do check your credit report for any inconsistencies or wrong updation. As you review your credit report, you can identify errors and increase your score.

Broadly, the lenders mainly consider the two factors mentioned below to approve credit card.

  • Your Income
  • Your debt levels

Even if you do not have a great credit score, if your income level is high, then the lender might approve the credit card as your repayment strength is high. On the other hand, if you have too many existing debts, lenders might reject your application, Make sure you apply for the card that fits your needs; hard inquiries reduce the credit score.

Factors to keep in mind

Understand that there are four bureaus calculating the credit score of individuals and the score vary from one bureau to other. Scores from CIBIL may vary from Equifax score, and Equifax score may vary from Experian Credit score. The lenders may use any of these credit score bureaus

Credit history – Payment history is an important factor that the lender considers. If you have been consistently making payments, then you will have a good credit history. Lenders also expect their potential customers to have a long credit history as it would give them idea on how they manage their finances. Your credit history will give a much clear picture than the credit score.

Can People with low credit score get a credit card?

Yes, people with low credit score can also get credit cards. There are several lenders that offer credit cards to individuals with lower credit score. However, you do not get attractive features like lower interest charges, higher credit limit, and offers like zero annual fees, life time free credit card, and charges. You have to settle with the card providers’ terms in such cases. At times, there is also a chance for your application to get rejected. Make sure you do not apply for one too many credit cards at a time

Keep checking your credit score periodically to know your credit standing. At Fincover, we give you options to check your credit score for free. A free credit score check counts as a soft inquiry, so it does not have a great deal of impact on your credit score.

Conclusion  

Your credit score is a crucial factor when applying for credit cards, shaping your access to credit and the terms you receive. Make sure you are aware of your credit score and make sure you take steps to improve it to avoid the ignominy of rejection. Multiple rejections might further reduce your credit score closing all the doors for future credit. Select cards that align with your creditworthiness, and cultivate a strong foundation for a healthier financial future.

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