Many are often left wondering what options are available when their credit rating is smack dab in the middle - not too good, not too bad. But fear not, credit cards for those with an average credit rating do exist! And we're here to guide you through the process of choosing the right one. In this article, we'll dive into the world of credit cards for people with an average credit score, shedding some light on the best options and how to make the most out of them.
Credit Cards For Average Credit Rating Table of Contents
Understanding Average Credit Scores
Before we explore the different credit card options for those with average credit in more detail, it's important to understand what we mean by an "average" credit score. Generally, credit scores range from 300 to 850 and are influenced by factors such as payment history, credit utilization ratio, and type of credit accounts held.
In the context of credit cards, what is considered an average credit score varies depending on the scoring model. The most widely used scoring models are FICO and VantageScore which categorize scores as follows:
- Poor: 300-579 (FICO), 300-601(VantageScore)
- Fair or Average: 580-669 (FICO), 602-660 (VantageScore)
- Good: 670-739 (FICO), 661-780 (VantageScore)
- Very Good: 740-799 (FICO)
- Excellent: 800-850 (FICO), 781-850 (VantageScore)
For the purposes of this article, we'll be focusing on those with a credit score in the fair or average range.
Best Credit Cards for Average Credit Scores
When you have an average credit score, your credit card options might not be as plentiful as they would be for someone with a higher credit score. However, there are still some excellent choices available. Below are some reputable credit cards tailored toward individuals with average credit ratings:
1. Capital One QuicksilverOne Cash Rewards Credit Card
- No foreign transaction fees
- 1.5% cashback on every purchase
- $39 annual fee
- Potential credit line increase after six months of on-time payments
2. Discover it Secured Credit Card
- Earn 2% cashback at gas stations and restaurants, and 1% on all other purchases
- No annual fee
- Reports to all three major credit bureaus, enabling you to build credit
- Opportunity to transition to an unsecured card after consistent on-time payments
3. OpenSky Secured Visa Credit Card
- No credit check required, ensuring approval for those with average credit
- $35 annual fee
- Reports to all three major credit bureaus
- Credit limit determined by security deposit ($200-3000)
Credit Cards For Average Credit Rating Example:
Imagine you are an individual with a credit score of 625, placing you firmly in the average range. You're in the market for a credit card and are interested in rewards programs. The Capital One QuicksilverOne Cash Rewards Credit Card could be an excellent fit for you, as it offers a 1.5% cashback on all purchases, and since it reports to the major credit bureaus, the potential to build your credit score is promising.
Having an average credit rating doesn't mean you're left out in the cold when it comes to finding a great credit card! There are plenty of viable options available that cater to individuals in the "fair" range. By doing your research and finding the right card to fit your needs, you'll be on your way to better financial management and possibly even improving your credit rating. So, don't hesitate to share this article with friends and family who may also find themselves in the same situation and let's help each other achieve financial success. Remember to explore other guides on Flik Eco for more personal finance and investing tips!