Credit scores play a vital role in your financial journey, and a score of 650 can be a make or break point when it comes to applying for loans, mortgages, and — you guessed it — credit cards. Fortunately, we at Flik Eco have got the information you need to choose the best credit card to maximize your benefits while building your credit score. So buckle up and get ready to dive in!
Credit Cards For Score Of 650 Table of Contents
Understanding Your Credit Score of 650
Understanding Your Credit Score of 650
A credit score of 650 is considered fair and falls in the middle of the FICO credit scoring range, which goes from 300 to 850. This score means that you are relatively responsible with credit; however, there is still room for improvement. Because of this, it's essential to choose a credit card that can help boost your credit score while offering you some additional benefits.
Credit Cards for a 650 Credit Score
While a score of 650 won't give you immediate access to top-tier credit cards, there are still plenty of options available that cater to people in your credit range. Here are the main types of credit cards you should consider:
Secured Credit Cards
- Require a security deposit, often equal to the credit limit
- Lower fees and interest rates than unsecured cards for bad credit
- Good for building credit, as most report to the three major credit bureaus
Unsecured Credit Cards for Fair Credit
- No security deposit required
- Higher interest rates and fees than secured cards and cards for good credit
- Limited rewards programs, if any
Store Credit Cards
- Easier to qualify for than traditional credit cards
- Typically only allowed to use at specific retailers
- Higher interest rates than traditional cards
Choosing the Right Credit Card
To select the best credit card for your credit score of 650, consider the following factors:
- Interest rates: Look for a card with the lowest interest rate possible.
- Fees: Some cards charge annual fees, while others might have hidden fees. Compare the fees before you apply for a particular card.
- Perks: Some cards offer cashback or other rewards, even for those with fair credit.
- Payment reporting: Make sure the card issuer reports your payments to the three major credit bureaus (Experian, TransUnion, and Equifax) to help build your credit score.
Credit Cards For Score Of 650 Example:
Jane has a credit score of 650 and wants to improve her credit score while also getting some cashback on her purchases. She applies for a secured credit card with a low interest rate and an annual fee of $35. The card offers 1% cashback on all her purchases and reports her payments to all three major credit bureaus. By using this card responsibly, Jane can gradually build her credit score and potentially qualify for better credit cards in the future.
Building a strong credit score is essential in today's financial landscape, and a credit card can be a fantastic tool to help you achieve that goal. Even with a credit score of 650, you still have plenty of options to choose from, so take the time to evaluate your needs, compare cards, and make an informed decision. And remember, Flik Eco is here to support you every step of the way with personal finance tips and advice suited for millennials like you. If you found this article helpful, don't forget to share it with friends and explore our other guides on credit cards, investing, and more!
