Does having a 588 credit score worry you? Don't let it hold you back from financial greatness! In this guide, we'll show you how you can still secure a credit card with a 588 credit score. Get ready to take charge of your financial journey and raise your credit score, one swipe at a time.
Credit Cards For 588 Credit Score Table of Contents
Understanding A 588 Credit Score
A 588 credit score falls within the range of 300 to 850, and it is classified as "poor" according to the FICO scale. Credit scores are essential in determining your creditworthiness, and they can impact your ability to access various financial products like loans, credit cards, and mortgages.
Having a poor credit score can limit your options, but it doesn't mean you can't get a credit card. There are credit card options designed specifically for people with lower credit scores.
Credit Builder Credit Cards
Credit builder credit cards are designed for individuals with poor credit scores or limited credit history. These cards offer lower credit limits and come with higher interest rates, but they also provide valuable opportunities to build and improve your credit score.
Some popular credit builder card options include:
- Capital One QuicksilverOne Cash Rewards Credit Card
- Discover it® Secured Credit Card
- Credit One Bank® Visa® Credit Card
Ensure you choose a credit card that reports to all three major credit bureaus, Experian, Equifax, and TransUnion. This will improve your chances of raising your credit score across the board.
Secured Credit Cards
Secured credit cards require you to provide a security deposit as collateral. The deposit amount determines your credit limit, which reduces the risks for creditors. Secured cards tend to have lower fees and interest rates compared to credit builder cards. It’s an excellent way to establish your credit history and improve your credit score.
Examples of secured credit cards include:
- OpenSky® Secured Visa® Credit Card
- Citi® Secured Mastercard®
- U.S. Bank Secured Visa® Card
Store Credit Cards
Store credit cards are another option for those with a 588 credit score. These cards are usually easier to get approved for since they are limited to specific retailers; however, they come with high interest rates.
Some popular store credit cards for consumers with poor credit scores include:
- Walmart® Store Card
- Target REDcard™
- Kohl's Charge Card
Interest rates on store credit cards can be quite high, so it's essential to pay off the balance each month to avoid accumulating debt.
Tips for Improving Your Credit Score
Use your new credit card responsibly to improve your 588 credit score by following these tips:
- Make all payments on time and in full each month
- Pay off outstanding debt
- Maintain low credit utilization by using less than 30% of your credit limit
- Monitor your credit report regularly and dispute any inaccuracies
- Be patient – building your credit takes time and consistent effort
Credit Cards For 588 Credit Score Example:
Meet Emily. She has a 588 credit score and is looking for a credit card to improve her credit. Emily decides to apply for the Discover it® Secured Credit Card. After providing a $300 security deposit, she gets her new card with a $300 credit limit.
Emily commits to a plan to improve her credit:
- She sets up automatic payments to avoid missing the due date
- Emily uses her credit card for small purchases and pays off the balance in full every month
- She keeps her credit utilization rate below 30% by spending no more than $90 of her $300 limit each month
- By monitoring her credit report, Emily stays aware of her score
In 12 months, after responsible credit card usage, Emily’s credit score increases, allowing her to explore better credit card options and financial products.
Your 588 credit score may be holding you back, but it doesn't have to be your financial downfall. Choosing the right credit card and using it responsibly can help you improve your creditworthiness and eventually graduate to better financial products. Remember, rebuilding credit takes time and a commitment to responsible spending habits. Your journey towards financial growth starts today. So, don't wait! Share this guide with friends and explore more useful tips on Flik Eco.