Is your credit score hovering around the 620 mark, and are you looking to get a new credit card? Don't worry! While your options might be limited compared to those with higher scores, there are credit cards available for people just like you. In this guide, we'll introduce you to some of the best credit cards for a 620 credit score, and show you how to use them responsibly to improve your credit over time. Get ready to join the world of credit cardholders and enjoy the benefits that come with it!
Credit Cards For 620 Table of Contents
Understanding Your 620 Credit Score
First, let's clarify what a 620 credit score represents. It is typically considered a "fair" or "average" credit score. This means that your credit score is neither good nor bad, but you may have had a few missteps in your financial past that are holding you back.
What affects your credit score?
- Payment history: Your history of on-time payments plays a significant role in your credit score.
- Credit utilization: The percentage of your credit limit you're using at any given time impacts your score.
- Length of credit history: Having a longer credit history generally works in your favor.
- New credit inquiries: Applying for too many credit cards or loans, especially in a short period, can lower your score.
- Credit mix: A diverse mix of credit accounts, such as loans, credit cards, and mortgages, can contribute positively to your score.
Best Credit Cards for a 620 Credit Score
Here's a list of some of the top credit cards available for those with a 620 credit score:
Secured Credit Cards
Secured credit cards are an excellent option for people with a fair credit score looking to build credit responsibly. These cards require a cash deposit, typically equal to your credit limit, which acts as collateral for the card issuer. Popular secured cards that cater to fair credit scores include:
- Discover it® Secured Credit Card - Offers cash back rewards and matches your cashback at the end of the first year.
- OpenSky® Secured Visa® Credit Card - No credit check is required, making it easy for everyone to qualify.
Store Credit Cards
Store credit cards typically have more lenient credit requirements and could be a solid choice for someone with a 620 credit score. However, keep in mind that these cards often come with higher interest rates than traditional credit cards:
- Capital One® Walmart Rewards® Card - Offers rewards for Walmart purchases and a lower APR compared to other store credit cards.
- Target RedCard™ - Provides 5% off on every purchase at Target and free shipping on most items.
Unsecured Credit Cards for Fair Credit
Unsecured credit cards do not require a deposit, but options for those with a 620 credit score may come with higher interest rates or annual fees:
- Capital One® Platinum Credit Card - Designed for people seeking to improve their credit with responsible use.
- Credit One Bank® Platinum Visa® - Offers cashback rewards and a chance to increase your credit line after making timely payments.
Credit Cards For 620 Example:
Imagine that you want to apply for the Discover it® Secured Credit Card. To get started, you submit your application and deposit $300. This deposit secures your credit line, which means you have a credit limit of $300.
Throughout the month, you use the card wisely, never exceeding 30% of your credit limit (an essential factor in credit utilization). You make purchases totaling $90 and pay off your entire balance before the due date. By making on-time payments and maintaining low credit utilization, your new credit card helps you demonstrate responsible credit behavior, which leads to an improved credit score over time.
Congratulations on taking this essential step toward building better credit with a 620 credit score! Welcome to the world of credit card users, where you'll be able to enjoy the benefits and protections that come with credit cards while improving your financial future. Don't forget to share this helpful guide with your friends and family, and explore more personal finance tips and advice from the Flik Eco blog. Together, we could create a financially savvy community one millennial at a time!