Card is specifically designed for those with average credit. It offers 1.5% cash back on all purchases, with no limit to the amount you can earn. There is an annual fee of $39, but this card can help you build your credit while earning rewards at the same time. Once your credit score improves, you can upgrade to a more lucrative rewards card.
Another option for those with subprime credit is a store credit card. While these cards typically have lower credit limits and higher interest rates, they can be a good way to start rebuilding your credit. Just be sure to pay off your balance in full each month to avoid high interest charges.
Fair credit (FICO score of 620-680)
If you fall into the fair credit range, you have more options when it comes to rewards cards. You may be able to qualify for a traditional rewards credit card, but with a lower credit limit and higher interest rates. It’s important to be diligent about paying off your balance each month to avoid high interest charges.
One option for those with fair credit is the Discover it® Secured Credit Card. This card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. Plus, Discover will match all the cash back you’ve earned at the end of your first year.
Another option is the Petal® 2 “Cash Back, No Fees” Visa® Credit Card. This card is designed for those with limited or no credit history, and offers up to 1.5% cash back on all purchases. There are no annual fees, late fees or foreign transaction fees, making it a great option for those looking to build credit while earning rewards.
Good credit (FICO score of 680-740)
If you have good credit, you have a wide range of rewards cards to choose from. You may qualify for cards with higher sign-up bonuses, lower interest rates, and better rewards rates. Some popular options for those with good credit include the Chase Sapphire Preferred® Card, the American Express® Gold Card, and the Capital One Venture Rewards Credit Card.
The Chase Sapphire Preferred® Card offers 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. These points can be transferred to several airline and hotel partners, or redeemed for travel through the Chase Ultimate Rewards portal.
The American Express® Gold Card offers 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months. This card also offers 4X Membership Rewards® points at restaurants worldwide, 4X Membership Rewards® points at US supermarkets (on up to $25,000 per year in purchases, then 1X), and 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
The Capital One Venture Rewards Credit Card offers 60,000 miles after spending $3,000 within the first 3 months. This card earns 2X miles on every purchase, and miles can be redeemed for travel expenses at a rate of 1 cent per mile.
Excellent credit (FICO score of 740+)
If you have excellent credit, you have access to some of the best rewards cards on the market. These cards offer high sign-up bonuses, generous rewards rates, and valuable perks such as airport lounge access, travel credits, and elite status with airlines and hotels.
Some popular options for those with excellent credit include the Platinum Card® from American Express, the Chase Sapphire Reserve® Card, and the Citi Prestige® Card.
The Platinum Card® from American Express offers 100,000 Membership Rewards® points after you spend $6,000 on purchases in the first 6 months. This card also offers 5X Membership Rewards® points on flights booked directly with airlines or with amextravel.com, and 5X Membership Rewards® points on prepaid hotels booked on amextravel.com.
The Chase Sapphire Reserve® Card offers 50,000 bonus points after you spend $4,000 on purchases in the first 3 months. This card also offers 3X points on travel and dining, a $300 annual travel credit, and Priority Pass™ Select lounge access.
The Citi Prestige® Card offers 50,000 bonus points after you spend $4,000 in the first 3 months. This card also offers 5X points on air travel and restaurants, a $250 travel credit, and a complimentary fourth night stay at any hotel of your choice.
In conclusion, while having excellent credit certainly opens up a world of rewards possibilities, there are still options available for those with less-than-perfect credit. By understanding how your credit score is calculated and choosing the right card for your financial situation, you can start earning points and miles while building or rebuilding your credit. Just remember to use your rewards wisely, pay off your balance in full each month, and avoid carrying high balances to ensure you come out ahead in the long run.