Various types of credit cards match various credit scores. Depending on your credit scores, you can either have a bad credit card or a good credit card. Going deeper, FICO classifies credit scores into five categories which are; very poor, fair, good, very good, and excellent. Very poor have the lowest number of credit scores while excellent has the highest. In this article, I will take you through the best credit cards for excellent credit.
It takes a strong sense of responsibility for credit card users to attain excellent credit scores. Remember that everyone begins from zero credit history until they reach a point whereby they can qualify for an excellent credit card with a high credit limit and low-interest rates. People with poor credit scores find themselves in that mess due to poor utilization of credit cards and loans.
Credit cards for excellent credit scores do not require any deposit to acquire them. Your financial institution already has enough trust in you to allow you to borrow large amounts of money since they know that you will pay in due course. Most bad credit cards require you to deposit money to act as security. However, there are issuers offering credit cards for bad credit no deposit although not easy to find them.
How do you attain excellent credit scores?
You might be wondering how you can attain an excellent credit score. Well, as I mentioned earlier, it requires a lot of determination and responsibility to reach the top. The journey begins the moment you get your first credit card.
If you have no credit history, you begin by applying for a secured credit card whereby you borrow against the deposit you make. With time, you can gain some credit scores and your bank can promote you to the next level by giving you an unsecured credit card that matches your credit scores. Most banks review customersâ€™ accounts every year and you are likely to climb slowly until you reach the top.
Again, if you fall into the bad credit category by any chance, you have an opportunity to regain your credit scores to excellent with time. You can get a personal or small business credit card for bad credit to begin building your credit scores. A business credit card will help you grow your business in the future once you qualify for larger credit limits. You can either apply for a secured or unsecured credit card depending on your personal preference.
What is the difference between secured and unsecured credit cards?
Secured credit cards are the ones that require you to deposit an amount of money to act as security. You borrow against your deposit. If you deposit $500, your issuer may give you a credit card of 500 or a percentage of the amount.
On the other hand, an unsecured credit card does not require any deposit and is for people with some sort of credit history. It does not matter which kind of credit history you have as you can get an unsecured credit card for people with bad or good credit scores.
Who does the credit rating?
A credit rating is done by three major companies. These include Equifax, Experian, and TransUnion. The three companies are known as credit bureaus and receive information from financial institutions regarding credit usage by credit cardholders and save them in their database. Positive card usage reports by financial institutions lead to good credit history while negative reports lead to bad credit history and bad scores.
Which are the different classes of credit scores?
There are five main classes of credit scores. These include; 300- 579, 580-669, 670- 739, 740- 799 and 800- 850. 300- 579 is considered as very poor. Credit cards for fair credit with high limits require the 580-669 score range. People with 670-739 have good scores while 740-799 represents very good credit scores. 800- 850 represent excellent credit scores.
Which type of credit card is easy to get?
While most credit cards are difficult to get, secured credit cards are easy to get if you want a guaranteed approval credit card for bad credit since they do not need any credit scores to get. All you need to do is to deposit some amount of money to act as security for the borrowed amount.
Which are the 7 best credit cards for excellent credit?
The following are the best credit cards for excellent credit.
1) Citi® Diamond Preferred® Card
The card does not charge any annual fee. However, it does not have any intro bonus for the new customers and doesn’t offer cash back, miles, or points. The regular APR for the card is 14.74% – 24.74% variable. Once you get the card, you will have free access to your FICO Score online.
The cardâ€™s intro purchase APR is 0% for 18 months on purchases. Again, it has 0% balance transfer fees for 18 months. Furthermore, you will enjoy zero liability on any unauthorized usage of the card. Learn more.
2) Discover it® Cash Back
Get the card and enjoy 5% cash back on everyday purchases at different areas such as Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal, up to the quarterly maximum upon activating. You will also automatically earn 1% unlimited cash back on all other purchases.
The card has zero annual fees and thus makes it economical to have. You can activate alerts to be notified if your Social Security number is on any dark web site. You can use your rewards at Amazon.com during check out. Learn more.
3) Blue Cash Preferred® Card from American Express
This is a card with a lot of benefits. You will earn 6% cash back at U.S. supermarkets and streaming services on up to $6,000 per year in purchases and then earn 1% on the next purchases. You will also earn 3% cash back at U.S. gas stations on transit including taxis, parking, tolls, trains, buses, and more. Again, you get 1% cash back on other purchases.
The card charges an annual fee of $95. Its regular APR is 13.99% – 23.99% variable while the intro bonus is $250 after you spend $1,000 in purchases on your new Card within the first 3 months. Learn more.
4) Blue Cash Everyday® Card from American Express
The card has zero annual fees. It also has 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, and thereafter a 1%. Also, you will be able to get a 2% cash back at U.S. gas stations as well as at select U.S. department stores. Also, get 1% back on other purchases.
In addition, the card has a Regular APR of 11.99% – 22.99% which is variable. You will also get 0% for 14 months of intro purchase APR. Also, benefit from free score checks. If your Social Security Number is on any of the dark websites, you will get an alert about it. Use the card to transfer money using the routing number and account number to other account holders of other banks. Learn more.
5) Citi® Double Cash Card
Currently, the card has no bonus offer. Moreover, it does not charge any annual fee. Furthermore, you will earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. You have to pay at least the minimum due on time if you want to enjoy the cash backs.
Again, the standard variable APR for the card is 13.99% – 23.99% which is based on your creditworthiness. In addition, the card has a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. Learn more.
6) Discover it® chrome
Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Furthermore, automatically earn 1% unlimited cash back on all other purchases. The Regular APR for the card is 11.99% – 22.99% which is variable. You will also enjoy an Intro Purchase APR of 0% for 14 months.
The card charges zero annual fees. You will also have a chance to check your credit scores as well as the recent inquiries for free. If your Social Security Number gets into any of the dark websites, you will get notified immediately. Learn more.
7) American Express® Gold Card
If you are looking for a 0% interest credit card with no balance transfer fee, then American ExpressÂ® Gold Card may be a good option for you. You will be able to earn 4X Membership RewardsÂ® Points on restaurants worldwide. This includes takeout and delivery. Also, earn 4X Membership RewardsÂ® points at U.S. supermarkets on up to $25,000 per calendar year in purchases, and then earn 1X thereafter.
You will also earn 3X Membership RewardsÂ® points on flights you book directly with airlines or on amextravel.com. Again, the card has an intro bonus of 35,000 points after you spend $4,000 on eligible purchases. It charges an annual fee of $250 and does not have any foreign transaction fees. Learn more
Credit cards for excellent credit scores have various advantages such as cashbacks, points, high credit limits, and low-interest rates. You have to be responsible for your startup cards to attain excellent credit scores. Credit cards excluding fees such as annual and foreign transaction fees are the best since you incur less while using them. Interestingly, you are not liable for any misuse of a credit card by a fraudster.