Are you struggling to find a credit card because of your 600 credit score? Well, worry no more! This comprehensive guide by Flik Eco will help you understand the ins and outs of credit cards specifically designed for individuals with credit scores like yours.
Credit Cards For Credit Score 600 Table of Contents
Factors Impacting Your Credit Score
What is a 600 Credit Score?
A credit score of 600 is considered “fair” or “average” by most credit bureaus and financial institutions. This score is usually achieved when you have a combination of on-time payments, late payments, debt, and other factors affecting your credit history. With a 600 credit score, you might face difficulty getting approved for traditional credit cards. However, there are credit cards in the market designed for people with lower credit scores.
Factors Impacting Your Credit Score
Understanding the factors that influence your credit score is important. Here are the main factors that determine your credit score:
- Payment history (35%): Paying your bills on time is crucial for a good credit score.
- Credit utilization (30%): It’s the ratio of your outstanding balance to your credit limit. Generally, try to keep it below 30% for an ideal score.
- Length of credit history (15%): Longer credit history helps improve your credit score.
- New credit inquiries (10%): Too many hard inquiries for new credit can lower your score.
- Credit mix (10%): A variety of credit types can help improve your credit score.
Types of Credit Cards for a 600 Credit Score
If you have a credit score of 600, you still have several options when it comes to credit cards. The key is to choose cards specifically designed for average or fair credit.
1. Secured Credit Cards
Secured credit cards require a refundable security deposit which typically serves as your credit limit. These cards are available to individuals with lower credit scores and are an excellent way to build or rebuild credit history.
2. Unsecured Cards for Fair Credit
Unsecured credit cards do not require a security deposit and are available to those with average credit scores. However, they may come with high interest rates and fewer rewards compared to cards for higher credit scores.
3. Store Credit Cards
Store-branded credit cards can be easier to qualify for with a 600 credit score. These cards can only be used at the issuing store, and may offer rewards or special financing deals. But beware of high interest rates and limited usability outside the store.
How to Choose the Right Card
When selecting a credit card for a 600 credit score, consider the following:
- Interest rates
- Annual fees
- Security deposit requirements
- Rewards or benefits offered
- Reporting to major credit bureaus for credit-building
- Eligibility requirements
Credit Cards For Credit Score 600 Example:
Jane is a 30-year-old millennial with a credit score of 600. She recently discovered Flik Eco and realized she needed to take control of her finances. Jane's main goal is to improve her credit score so she can qualify for better credit cards in the future.
With her 600 credit score, Jane found the best option to be a secured credit card. She applied for a card with a $200 deposit, a low annual fee, and reported to all three major credit bureaus. Jane made sure to pay her bills on time and kept her utilization low. Over the course of a few months, Jane's credit score improved significantly and she graduated to an unsecured credit card with better rewards and benefits.
Now you're aware of the types of credit cards for a 600 credit score and how to choose the right one for you. Don't be discouraged by your current credit score, as there are options available to help you rebuild your credit. Just make sure to practice responsible credit habits, and before you know it, your score will improve.
Take control of your finances by exploring more informative articles on Flik Eco. If you found this guide helpful, don't hesitate to share it with others who might benefit as well!
