A standard credit card is possible for those with good credit scores. This card is not the best option, as it does not charge an annual fee. Another option is to apply secure credit card. In this case, you will have to pay a security deposit equaling the credit limit.
Excellent credit score
No matter what credit score you have, it's worth working to improve. You will be able to get better credit cards with lower interest rates if you have a high credit score. A score of at least 720 is better that a score of 500.
Good credit scores typically range between 670 and 739, though the exact range depends on the credit scoring model you use. FICO rates scores between 580-669 as "fair" and scores between 740-799 as "very good." Anything above 800 is considered excellent. There are many credit scores. These ranges can be used as a guideline to what you should expect.
Fair credit score
A fair credit score indicates that you are at a moderate credit risk for financial institutions. This indicates that you have potential to improve and may still qualify for certain financial products. If your score is below a fair level, you might have trouble getting a loan. Here are some ways you can improve your score.
First, request a duplicate of your credit history. This will help you identify any blemishes on your report. This report will help you to protect your identity from identity theft. If you have an American Express card, this company reports your reference number to the credit bureaus instead of your account number. Your credit score can be reduced if you fail to make your payments on time or pay late.
Average credit score
The average credit score for individuals in the U.S. is around 700. This number is calculated using the VantageScore and FICO (r) credit scoring systems, which are used by ninety-percent of lenders. People with fair credit are considered to have a medium to high risk for delinquency. FICO says that 28% will become delinquent if they have fair credit. This can make it hard to get credit and could result in high interest rate.
Understanding your credit score is an important step in improving your credit. You should limit your credit usage to 30% and avoid borrowing more than you can afford. You can also balance your credit by getting a variety loans. Another important thing to do is to avoid making too many inquiries on your credit report and to decrease the average age of your accounts.
Experian Boost
Experian Boost may be a good option if your goal is to improve credit scores. This service will add up 24-months of payment history into your credit score. This service scans your checking account to report on-time payments. However, you will need an active credit file in order to use it.
Experian Boost is completely legal. Experian Boost's entire business model was built on the principle that consumers can be reported. Experian gathers all information only from those who have granted it permission. This permission is granted when you apply for credit and loans. You have also given the company access to your bank account, so they have this information on file.
VantageScore
VantageScore reflects your creditworthiness. This score is calculated using information from your credit reports such as payment history. Scores will not be affected if you have information that isn't in your credit reports. FICO and VantageScore can be used to calculate credit scores. Both must meet specific criteria, including compliance with Equal Credit Opportunity Act.
FICO and VantageScore scores may be similar, but each model assigns credit report items different weights. A VantageScore score may give 150 points for a credit report that is free from delinquency, but only 155 points for a FICO score. Both scores have a 300-850 range but differ in the point values. Both models show that a higher score is associated with less risk for lenders.