How to Find the Best Credit Cards Based on Your Credit Score

Understanding Your Credit Score

Credit cards offer a convenient way to pay for goods and services, and higher credit limits allow cardholders to handle emergencies when necessary. It can be challenging to get approved if you have bad credit, but with a good credit score, you should be able to find cards offering low rates and valuable perks.

Once you know your credit score, you can shop for the type of card that best meets your needs. If you’re trying to rebuild your credit, you’ll want to find a bank that will approve you for a card so you can start rebuilding your credit. If you have a good credit score, you’ll want to find the lowest possible interest rates and perhaps other benefits like points or miles.

Finding the Right Card

Whether you have good or bad credit, or fall somewhere in between, Financial Globe’s “Score Match” provides a list of credit cards based on your credit score. The site also indicates the approval rate for each credit card, giving you a better idea of whether your application will be approved.

Some credit card issuers may perform what is called a “soft pull” on your credit report to determine if you’re eligible for any of their cards. This is also known as pre-qualification and does not affect your credit score, unlike a full credit inquiry. This helps when trying to determine if you are eligible for a card or not. If you do not meet the pre-qualification criteria, you can be assured that your application will be denied.

However, pre-qualification is not a guarantee that you will be approved. Once you submit your application, the credit card issuer will conduct a more detailed review of your credit history and income to determine if you meet their requirements. If you are denied, you will receive a letter in the mail within a few days explaining the reason for the denial of your application.

Among the well-known credit card issuers that will allow you to check your pre-qualification status include Bank of America, Capital One, Citi, Discover, and U.S. Bank.

Secured Cards and Credit Improvement

If your credit score is too low to qualify for a standard credit card, it may be worthwhile to try a secured credit card. With this type of account, you will be required to make a deposit to secure your credit limit. After several months of responsible use, you may be able to convert your secured credit card into an unsecured credit card, or your new credit status may put you in a better position to qualify for another unsecured credit card.

Once you obtain an unsecured card, you may have a low limit. The best way to help improve your credit score is to use the card for one or two small purchases each month, then pay off the bill in full. After several months of using and paying off the card, you should see an improvement in your credit score.

Good Credit Score

If your credit rating is in the mid to upper 700s or higher than 800, there are many cards available with low-interest rates, cash back, points, or other perks for cardholders. Benefits come in various shapes and forms. Some cards are specifically related to airline miles or rewards for staying at certain hotels, while others offer cash back, and some come with a points system that allows you to use your points for specific goods or services. For example, Chase offers a card that provides double points on travel-related purchases, while Discover offers a card that provides 5% cash back on certain purchases.

Most major credit card providers have several versions of reward systems. The best way is to analyze the types of purchases you typically put on your credit card, and then look for reward programs related to those purchases. If you dine out frequently, search for cards that offer extra points for dining at restaurants. If you drive a lot, look for cards that provide extra points for use at gas stations. Doing so is a great way to take advantage of your good credit and get a small discount on some of your common expenses.

Source: https://www.thebalancemoney.com/find-credit-cards-based-on-your-credit-score-960371

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