Are you struggling to find a credit card that accepts low 600s credit scores? Don't worry, we've got you covered! This comprehensive guide will discuss the best options for people with lower credit scores and show you the steps to boost your credit while making the most out of your new credit card.
Credit Cards For Low 600s Table of Contents
Understanding Credit Scores: Exactly Where You Stand
Understanding Credit Scores: Exactly Where You Stand
Before diving into the specific credit cards available, it's essential to understand what a low 600s credit score means. Credit scores range from 300 to 850, with anything above 670 considered good. Therefore, low 600s scores are viewed as fair or mediocre in the eyes of lenders.
Having a low credit score may limit your options, but that doesn't mean you're out of the game. There are plenty of credit cards designed for people with fair-to-poor credit, and these cards can help you rebuild your credit over time if used responsibly.
Best Credit Cards for Low 600s Credit Scores
1. Secured Credit Cards
Secured credit cards are often the best choice for people with lower credit scores. These cards require a cash deposit that acts as collateral and serves as your credit limit. By diligently making payments on-time, your credit will improve, and you may be able to upgrade to an unsecured card in the future.
- Discover it® Secured - A good choice that offers cash back rewards and no annual fee.
- Capital One Platinum Secured - Requires a lower deposit than most secured cards and offers a potentially higher credit limit.
2. Unsecured Credit Cards for Fair Credit
Although harder to qualify for with a low 600s credit score, unsecured credit cards for fair credit may still be available. These cards do not require a security deposit, but often come with higher interest rates and fees.
- Capital One QuicksilverOne - Offers 1.5% cash back on all purchases, but with a $39 annual fee.
- Petal® 2 Visa® Credit Card - A unique card that considers banking history and creditworthiness, with no annual or foreign transaction fees.
3. Store Credit Cards
Store credit cards, such as those from popular retailers like Target or Macy's, may provide a more accessible option for individuals with less-than-stellar credit. While these cards often come with high-interest rates and limited use, they can help you rebuild your credit if used responsibly.
- Target REDcard™ - Offers 5% off Target purchases, free shipping, and no annual fee.
- Macy's Credit Card - Provides exclusive discounts and rewards for Macy's shoppers.
Steps to Build Credit with a Low 600s Credit Score Card
- Pay your balance in full and on time each month.
- Maintain a low credit utilization ratio (ideally below 30%).
- Monitor your credit score and report regularly for changes or errors.
- Consider adding a mixed portfolio of credit, such as a loan or an additional credit card over time.
- Consider credit repair services if necessary.
Credit Cards For Low 600s Example:
Imagine you're a millennial with a credit score of 610 and looking to build up your credit. After researching the best options, you decide to apply for the Discover it® Secured credit card, which offers cash back rewards and no annual fee.
After being approved, you provide a $200 deposit, which now serves as your credit limit. Each month, you spend only $60 on the card (keeping your credit utilization below 30%), and pay off the balance in full and on time.
By consistently following these responsible credit habits and tracking your credit score, you notice steady improvements over time. Eventually, you may qualify for an unsecured credit card with better terms and rewards.
With this guide, you can now confidently navigate the world of credit cards for low 600s credit scores. Remember, the key to unlocking better credit and greater financial opportunities relies on responsible credit habits and patience. Don't forget to share this article with fellow millennials in need and explore other Flik Eco articles to continue improving your personal finance knowledge!
