Credit Score Needed for a Credit Card in 2012

There are a number of factors credit card companies take into consideration when deciding whether or not to approve you for a credit card: how long you have been employed, the amount of your income or household income, and your FICO credit score. The FICO score is calculated based on information found in your credit history. What credit score is needed for a credit card? It all depends on the type of credit card. Here is what you need to know about your FICO score and credit card approvals:

FICO Credit Score Ratings and Credit Cards

Each credit card will have a different FICO score requirement for an individual’s approval. The problem is when you are looking for a credit card online or through a brochure you’ve received in the mail, the information will rarely (if ever) tell you what the minimum FICO score for approval is. You can estimate what score is required for each type of credit card, however.

• If you have a credit score of 720 or more, you have “excellent” credit.
• If you have a score between 670 and 719, you have “good” credit.
• If you have a credit score of 600 to 669, you have “average” credit.
• If your score is 599 or lower, you have “bad” credit, or “no credit”.

When reviewing credit card offers, you can guess your chance of approval based on these ratings. Most credit card offers will say something like: “If you have excellent credit, you will qualify for this rewards credit card.” This tells you if your credit score falls in the average range, that you shouldn’t apply because you are not likely to get approved.

Credit Score Needed for Credit Cards

The credit score needed for a credit card will always depend on the type of credit card you are looking at. Credit cards come in different “varieties”, but the best offers and deals generally go to people with credit scores in the excellent FICO score ranges.

The lower your credit score rating, the higher the interest rate you will pay on credit card purchases, so it is in your best interest to work at increasing your credit score to get the very best offers and lowest interest rates.
Exceptions to Credit Score and Credit Card Approvals

Sometimes someone may have a FICO score below 670 but show an on-time payment history for 12 months or more. In this situation, it is clear you have been working toward improving your credit and making your payments on time, but there are other factors contributing to a lower FICO credit score. Some credit cards normally reserved for people with “good” credit scores may still be available to you, provided you have a satisfactory employment history and sufficient income.

What to Do If You Apply for Credit and Get Denied

If you find a credit card you like but get denied, you can ask for a copy of your credit report for free to see why they denied you. When you get your report, make sure there are no errors on it causing your score to be lower than it should be. It will also give you ideas for what to do to start increasing your score, so you can get better credit scores needed for credit cards.