If you have a fair credit score, it's possible to apply for a standard credit card. While this type of card does not have the best perks like no annual fee or no annual fees, it is still an option. 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
Regardless of whether your credit score is good or bad, it's still a good idea to try to improve it. Good credit scores will allow you to access better credit cards and lower rates of interest. A score of 720 or higher is better than a score of 500 or less.
Good credit scores typically range between 670 and 739, though the exact range depends on the credit scoring model you use. FICO considers scores between 580- 669 "fair," while scores 740- 799 "very good." Anything above 800 is considered exceptional. These ranges are not a guideline, but they can help you to get an idea of what to expect.
Fair credit score
A fair credit rating means you have a low credit risk to 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. These are some ways to improve your score.
First, request a duplicate of your credit history. This will enable you to see any errors in your credit report. This report will also help you protect your identity from identity thieves. American Express cards allow you to report your reference number instead of your account number to credit bureaus. Your credit score will be affected if late or missed payments are made.
Average credit score
Americans have an average credit score of 700. This is based on the FICO(r) credit score system and VantageScore, which are both used by ninety percent of lenders. People with fair credit are considered to have a medium to high risk for delinquency. FICO reports that 28% consumers with good credit are likely to become delinquent. This can make it hard to get credit and could result in high interest rate.
Understanding how your credit score works can be a crucial first step in improving your credit. To start with, it is important to not take out more credit than you are able to afford. Also, keep your credit utilization below 30%. In addition, it would be helpful to balance your credit by taking out a variety of types of loans. Also, avoid too many inquiries on credit reports and reduce the average age your accounts.
Experian Boost
Experian Boost is a great option if you want to increase your credit score. You can add up to 24 month's worth of payment history to credit reports with this service. This service works by scanning your checking accounts and reporting on-time payment history. You must have active credit files to avail this service.
Experian Boost is completely legal. The entire company's business model is based upon the principle of consumer report. Experian gathers all information only from those who have granted it permission. This permission is granted when you apply for credit and loans. The company has also been granted access to your bank account.
VantageScore
VantageScore reflects your creditworthiness. This score is based on the information contained in your credit reports, such as your payment history. Your score will not be affected by information outside your credit reports. FICO is the most popular model that calculates credit scores. VantageScore is the other. Both must meet specific criteria, including compliance with Equal Credit Opportunity Act.
FICO and VantageScore scores look similar, however each model assigns different weights on credit report elements. For instance, a delinquency-free credit report may earn 150 points on a FICO score, but 155 points on a VantageScore. Although the scores fall within the same 300-850 range of points, their point values are different. Nevertheless, both models indicate that a higher score translates to less risk for lenders.