What comes to your mind when you hear the phrase credit score? Maybe you have your own understanding of what a credit score is. In general, a credit score is the creditworthiness of an individual that is expressed in numerals. Each credit score range has suitable credit cards. For instance, the best credit cards for 700 credit score will give you a higher credit limit accompanied by various rewards to make your card usage exciting.
Credit scores range from 300 – 850. A score of 300 – 579 is very poor while a score of between 580-669 is considered bad fair. A credit score of between 670-739 is rated as good. Moreover, a score of between 740-799 is termed as very good. The 800-850 is just excellent. In our case, the 700 scores will enable the holder to quickly get a credit card with excellent terms and higher credit limits.
A crucial thing to note is that even people with bad credit scores can get credit cards for bad credit. Various financial institutions can give credit cards with 5000 limits with bad credit to help you improve your credit score. The only problem with bad credit cards is that they charge high-interest rates. Moreover, most bad credit cards have low limits. These are the unsecured credit cards. Secured credit cards give you a limit depending on your deposit amount.
Who calculates credit scores?
You have probably heard of FICO scores. When you hear about credit scores of 500, 650, 700, etc. there is a company that deals with those calculations by the name FICO. In full, FICO stands for Fair Isaac Corporation. Initially, the company was called Fair, Isaac, and Company.
The company was founded in 1956 by William R. Fair and Earl Isaac. The headquarters of the company are at San Jose, California. The company operates worldwide, and many financial institutions in the world rely on the company’s credit score calculation formula.
FICO score is a measure of consumer credit risk. Data on people’s history on loan payments helps financial institutions to make informed decisions when giving loans and credit cards to their customers. It is from this data that people can get small business credit cards for bad credit or even a credit card of excellent credit card scores.
How is the credit score (FICO) calculated?
Various factors determine the outcome of anyone’s scores. The following are the things that dictate someone’s credit score.
i) Payment history
The way you have been paying your debts contributes a lot to your overall credit score. Out of the 100% covering all factors, 35% comes from your payment history. Paying your debts on time boosts your scores significantly. People with late payment history tend to generally score low.
ii) Current debts
The amount of money you owe determines your credit score by 30%. Small balances increase your scores while large debts lower your credit scores. You should ensure that you do not have a lot of debts to avoid low credit scores.
In the event that you find yourself in a mix of many debts to the extent that your scores fall badly to the poor category, do not worry as you can still regain back your scores. The credit cards for bad credit and no deposit can be of great help I’m such a situation.
iii) Length of your credit history
For how long have you been using credit services? The length of your credit history contributes up to 15% of your credit score. If you started utilizing credit services many years ago, then you are probably going to score higher as compared to someone who started recently.
iv) Number of credits
Mixing various credits such as credit cards, mortgage loans, personal loans, and so on contributes up to 10% of your overall score. The more you have different kinds of credits, the more your score.
v) Recent credit activities
If in any case, you opened various accounts in the recent past, it shows that you are having financial difficulties and your scores may fall greatly. However, if you open those accounts and pay all debts on time, then your score goes up.
You can get credit cards for fair credit with a high limit quickly if you have a credit score of above 600. Recent credit activities contribute up to 10% of your overall credit score.
Can you get a credit card if you do not have a credit history?
Not all credit cards require you to have credit scores. Secured credit cards can accept applications from previous bankruptcies or zero credit scores for those who have never used credit services. However, unsecured credit cards require you to have some credit scores.
Scores ranging from 300 -850 qualify for various credit types. Unsecured credit cards for 500 credit score are termed as bad credit cards and help poor credit holders raise their scores.
Credit cards can be tangible or virtual. Virtual credit cards are disposable so that you cannot use them again. Free virtual credit cards with no deposit are easy to get if you have good credit scores.
How can you improve credit scores?
There are various ways you can improve your credit scores to a favorable numerical. It happens if you have fallen into a bad credit score category due to unavoidable circumstances. The first thing you should do is to settle all outstanding debts.
Also, check whether you have any active collection account and request for it to be closed. Moreover, check for issues such as identity thefts as some criminals may have used your identity document to take a loan or credit card and disappeared without paying.
Another strategy is to apply for a credit card to help you increase your score. It does not matter how many scores you have, as there are credit cards for bad scores. There are credits cards for a 550 credit score or even lower than that. They give you low limits but help you greatly to rectify your credit scores.
Which are the nine best credit cards for a 700 credit score?
They include the following.
1) Chase Sapphire Preferred Card
The card comes with numerous benefits. The most notable one is the 60,000 bonus points you get after spending $4,000 in the first three months. It is a wonderful appreciation by the card issuer. Also, you get 2x points $1 spent on all travel as well as dining at restaurants.
The card requires a credit score of 750 although credit scores of 700 may qualify since the holders are in an excellent position to make payments on time. The card is favorable for the people who often travel as they can use the card in airlines and restaurants. The card charges zero for foreign transactions. Learn more.
2) Capital One Venture Rewards Credit Card
The card’s annual fee is $0 for the introduction in the first year. Afterwards, you will be paying $95 as the yearly fee. The APR ranges between 17.24% – 24.49% of which it is variable. Again, there is a 0% introductory APR on this card.
Also, you will receive 50,000 bonus miles when you spend $3,000 on purchases in the first three months. The points will be worth $500, which can be useful for travel expenses. Another benefit is unlimited 2X miles per dollar on every purchase you make every day. Lastly, enjoy free foreign transactions. Note that the card is basically for travel and benefits come upon using it as you travel. Learn more.
3) Bank of America Travel Rewards credit card
The card has a $0 annual fee. Moreover, you benefit from a sign-up bonus whereby you get 25,000 online bonus points after you spend at least $1,000 in purchases in the first 90 days. The points are worthy of $250 statement credit toward travel purchases. Also, you will get unlimited 1.5 points for every $1 spent on all purchases.
The points are redeemable for travel purchases. Bank of America customers get enhanced bonus points. Due to the attractive bonuses, you may find yourself spending a lot. Spending too much and failing to pay online can lead to subjection to the interest rate. Learn more
4) Discover it Miles
The annual fee is zero. Again, the card issuer will match all miles earned at the end of your first year to determine how much to reward you. Moreover, you will get unlimited 1.5X miles for $1 you spent on purchases, airline or hotel. There are no blackout dates. You can initiate mile redemption as a statement credit toward travel purchases.
Interestingly, there is no foreign transaction fee. You will also benefit from a credit scorecard with your FICO Credit score. Other benefits include social security alerts. Furthermore, late payments will not raise your APR, and you will not pay late payment fee on your first late payment. Learn more
5) Discover it Balance Transfer
The card is best for doing a balance transfer. The annual fee is zero. Again, Discover will determine all cash back earned at the end of the first year. You will be able to earn 5% cash back at different places each quarter of the year up to $1,500 max spend per quarter whereby activation for the benefit is needed.
These include gas stations, grocery stores, restaurants, and many more. Furthermore, you will be able to earn unlimited 1% cashback on all other purchases. You will also be able to know your FICO score periodically as well as receiving Social Security alerts. Try the card today, and you will never regret it. Learn more
6) Capital One Savor Cash Rewards Credit Card
You will benefit from a $0 introduction for the first year. After that, you will start paying $95 every year as the annual fee. The APR range is 15.99% – 24.99%, which is variable. The card does not offer a 0% introductory APR. Again, you will benefit from a sign-on bonus offer of $300 in cash rewards after spending $3,000 on purchases within the first three months of account opening.
Rewards include 4% on all dining expenditures, 2 % cashback on groceries, and 1 % on all other purchases. In addition, you will become a member of the World Elite MasterCard Club. Learn more
7) Wells Fargo Cash Wise Visa card
The card does not have an annual fee. The APR ranges between 13.99%-25.99%, which are variable. The Intro rate on purchases and balance transfers is 0% for 15 months. Again, you will earn a $150 cash rewards bonus when you spend $500 in the first three months.
The card’s rewards include unlimited 1.5% cash rewards on all purchases. Moreover, you get 1.8% cash rewards on qualified digital wallet purchases such as Apple Pay and Google Pay during the first year of account opening. Lastly, enjoy up to $600 cell phone protection which is subject to a $25 deductible. Learn more
8) Chase Freedom
The annual fee is $0. The APR range is 16.49% – 25.24%, which is variable. Again, you get 0% Intro APR on all purchases for 15 months and 0% Intro APR on Balance Transfers for around 15 months. Also, get a $150 bonus after spending $500 on purchases in the first three months.
Moreover, get 5% cash back on purchases of up to $1,500 in combined purchases for each quarter you activate. You also get unlimited 1 % cashback on all other purchases. Other features include free credit score check, purchase protection for up to $500 per claim within 100 days of purchase in case of death or theft. Learn more
9) Chase Freedom Unlimited
Enjoy a $0 annual fee. The APR range is 16.49% – 25.24%, which is variable. You also benefit from 0% introductory APR for 15 months on balance transfers as well as purchases. The sign-on bonus is $200, which comes after spending $500 in the first three months of account opening.
Also, you will get 1.5% cashback on all purchases. That is so beneficial. Also, the cash rewards do not expire, and you can utilize them at any time. It means you can accumulate as many points as possible to redeem at once for big money. Learn more
A 700 credit score is convenient to get credit cards with reasonable offers for utilization. Cards with cash backs and zero annual fees are very beneficial to have since they help you to save a lot of money. People with bad credits can still get credit cards to increase their credit scores. Also, using credit cards ensures that your money is safe as you do not have to walk around with large sums of money.