Are you feeling stuck with a 640 credit score and wondering what credit cards you can qualify for? Worry no more! We've compiled a list of the best credit cards you can get with a 640 credit score. In this guide, we'll go over the top options, their benefits, and some tips to help you kickstart your journey to better creditworthiness. Let's dive in and get your credit card game on track.
Best Credit Cards For A 640 Credit Score Table of Contents
Why a 640 Credit Score Matters
A credit score of 640 is considered a "fair" score. While it may not be ideal, it's actually not that bad when it comes to qualifying for credit cards. It's important to note, though, that each issuer has its own criteria when it comes to determining your creditworthiness. So, a higher score will most likely result in better credit card options. But don't lose hope – a fair credit range can still land you some decent card options.
Best 640 Credit Score Card Options
1. Capital One QuicksilverOne Cash Rewards Card
- Unlimited 1.5% cashback on all purchases
- Annual fee: $39
- Access to a higher credit limit after making on-time payments for the first five months
The Capital One QuicksilverOne Cash Rewards Card is one of the best options for people with a 640 credit score. While it has an annual fee, the unlimited cashback and potential for a higher credit limit can make it a valuable choice.
2. Discover it Security Propel Cards
- No annual or foreign transaction fees
- Start with a $200 credit limit
- Earn 1% cashback on all purchases, up to $2,500 per year
With no annual or foreign transaction fees, the Discover it Security Propel Card offers great value and flexibility. The consistent cashback feature allows you to maximize your rewards while building your credit score.
3. Credit One Bank Visa Credit Card
- 1% cash back rewards on eligible purchases
- Monthly updates to major credit bureaus
- Annual fee: $35-$99, based on creditworthiness
The Credit One Bank Visa Credit Card provides a simple way to earn cashback on everyday purchases while still working on your credit score. The annual fee varies based on your creditworthiness, so keep that in mind when considering this option.
How to Improve Your 640 Credit Score
Now that you know which credit cards to consider, here are some tips to help you improve your 640 credit score:
- Make timely payments: Making payments on time is critical in improving your credit score.
- Maintain a low balance: Keep your credit utilization low by not maxing out your card and paying off the balance as much as possible.
- Don't apply for too many cards: Each time you apply for a card, your credit score may dip slightly, so be selective when choosing your cards.
Best Credit Cards For A 640 Credit Score Example
Imagine you opted for the Capital One QuicksilverOne Cash Rewards Card. You start by paying the $39 annual fee and using the card responsibly, making timely payments and maintaining a low balance. After five months of consistent on-time payments, your credit limit gets increased. This not only gives you more spending flexibility but also positively affects your credit utilization, resulting in an improved credit score.
Best Credit Cards For A 640 Credit Score Frequently Asked Questions
Why is a 640 credit score significant?
A 640 credit score is often viewed as the threshold between fair and good credit. While it's not the highest score, it indicates a reasonably good history of credit management. This score opens up options for credit cards that offer decent benefits, without necessarily delving into the premium cards reserved for those with excellent credit scores.
What types of credit cards can I expect to qualify for with a 640 score?
With a 640 score, you're looking at credit cards designed for individuals with fair to good credit. These might include cash back cards, rewards cards, and some travel cards. They won't be the most luxurious cards on the market, but they can still offer substantial value.
Will applying for a credit card impact my credit score?
Yes, every time you apply for a credit card, the issuer will usually conduct a "hard pull" or hard inquiry on your credit report. This can temporarily lower your score by a few points. However, with responsible use, your score can recover and even improve over time.
How do I increase my chances of approval?
Improving your credit utilization ratio, ensuring you have no recent late payments, and reducing your overall debt can all enhance your chances of approval. Additionally, make sure you apply for cards tailored for your credit range.
Are there annual fees associated with these cards?
It varies. Some cards for people with a 640 credit score might have annual fees, while others may not. Always check the card's terms and conditions.
What's the difference between a secured and an unsecured card?
A secured card requires a deposit, which acts as your credit limit. This deposit reduces the risk for the issuer. An unsecured card, on the other hand, does not require a deposit and offers a credit limit based on your creditworthiness.
Can I get a card with rewards?
Absolutely! Even with a 640 credit score, there are cards available that offer cash back, points, or travel rewards. However, the rate might not be as high as cards designed for those with excellent credit.
How can a credit card help improve my score?
Responsible credit card use, such as paying off the full balance each month and keeping the credit utilization low, can boost your credit score over time.
What should I watch out for when choosing a card?
Look for cards with low interest rates, minimal fees, and positive reviews from other cardholders with similar credit scores. Be wary of cards with high annual fees unless the rewards substantially offset that cost.
Are there cards designed specifically for rebuilding credit?
Yes, there are cards tailored for those looking to rebuild or improve their credit. These might include secured cards or cards that offer credit education tools and resources.
How can I avoid high-interest charges?
Always strive to pay off your full balance each month. If you can't, pay as much as possible. This will minimize the interest you accrue.
Is it possible to get a credit limit increase?
Many card issuers review accounts periodically for credit limit increases. Consistent on-time payments and low credit utilization can boost your chances of receiving an increase.
Can I transfer balances to these cards?
Some cards might offer balance transfer options. Check the card's terms to see if it offers this feature and what the associated fees might be.
How do I know which card is right for me?
Assess your spending habits, needs, and credit goals. If you travel frequently, maybe a travel rewards card is best. If you primarily want to rebuild credit, a secured card or a card designed specifically for credit building might be the best fit.
Can I get a card with a 0% introductory APR?
Some cards might offer a 0% introductory APR, especially if they are targeting those looking to transfer balances. Always read the terms to understand the length of the introductory period and what the APR will be afterward.
What if I get denied?
If you're denied, the card issuer will provide a reason. Use this feedback to understand areas of improvement and consider alternative cards or strategies to boost your credit.
Can I have multiple cards?
Yes, you can have multiple cards. However, each application can temporarily impact your credit score. It's essential to manage all your accounts responsibly.
How do I manage my credit card once I get it?
Set up automatic payments, monitor your spending, and regularly check your account for any suspicious activity. Utilize online tools and apps provided by the card issuer to stay on top of your account.
Can I upgrade my card in the future?
Many issuers allow cardholders to upgrade to a card with better rewards or terms once they've demonstrated responsible use and improved their credit score.
Why is it important to read the fine print?
The fine print contains essential details about interest rates, fees, rewards, and other card features. Understanding these terms ensures you use your card effectively and avoid unexpected fees or charges.
So there you have it – the best credit cards for a 640 credit score. Don't let a "fair" score limit you from taking advantage of valuable credit card options. Use these cards as tools to improve your credit score while benefiting from cashback rewards and other perks. If you found this guide helpful, don't forget to share it with your friends and explore other articles on Flik Eco to further your personal finance knowledge!