If youâ€™re someone with good credit you should be able to qualify for aÂ variety of credit cards. There are cards ifÂ you want to earn cash back, earn travel rewards or complete a balance transfer. MagnifyMoney has reviewed our database of overÂ 2,000 credit cards to find cards you can qualify for with good credit. Here areÂ ourÂ favorite cards for people with good credit.
Cash back credit cards can be great tools to boost your financial position. They basically make your life just a few percentage points cheaper â€” who wouldnâ€™t want that?
Watch out for the pitfalls with these rewards cards, though. Donâ€™t talk yourself into spending more because youâ€™ll receive cash back. If you opt for a cash back card that offers you up to 5X more points on certain categories, make sure you understand that you often have to activate the bonus categories and set up reminders for yourself if necessary.
This card is a great choice for forgetful people who want cash back rewards. Itâ€™s one of the only cards offering revolving categories each quarter that you donâ€™t have to opt in for; you will get these rewards automatically. This card would also be a great choice for those who want cash back rewards and donâ€™t mind working with a credit union.
Commuting can be a huge cost, especially if you live far away from your work and donâ€™t use public transportation. If you spend a lot of money on gas each month, consider getting a cash back rewards card that gives you higher rates of return for these purchases. Itâ€™s like having an instant coupon for gas with you all the time.
Groceries can be one of your biggest budget-busters, especially if you have a large family, a specialized diet, or live in certain parts of the country. The good news is there are certain credit cards that offer great rewards for grocery purchases. Hereâ€™s our top pick for a credit card to maximize your grocery cash back rewards.
Travel can seem like a pipe dream to a lot of people. Even if you do have the cash, it still stings to see that much hard-won money leaving your bank account. But with a travel rewards credit card, you can have a sort of de facto savings account specifically for travel. And with a sign-on bonus like the one for our top pick, you can be jet-setting somewhere fun and interesting as soon as a few months from now.
The information related to Chase Sapphire PreferredÂ® Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.
One of the biggest travel expenses is airfare. Even if you donâ€™t have specific goals to travel regularly, surprises like cross-country family emergencies or get-togethers can take a big bite out of your budget.
Before signing up for an airline-specific card, itâ€™s helpful to know what airline options you have near you. Different airlines tend to congregate more in different parts of the country; you wonâ€™t see any Alaska Airlines planes if you live in Maine, for example.
The information related to Southwest Rapid RewardsÂ® Plus Credit Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.
The information related to UnitedSM Explorer Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.
Even though traveling is fun, it can still be a stressful experience. In between fighting throngs of crowds and cramming into airline seats, it can be enough to drive even the most ardent travel-lover insane sometimes.
The good news is you can avoid all of that with a luxury credit card. These credit cards will give you an across-the-board better travel experience, from the moment you arrive at the airport until you make it back home. Here is our top pick for a luxury credit card.
If you really need to buy something moderately expensive but donâ€™t have the cash for it yet, 0% APR purchase cards can be a great way to go. Theyâ€™re basically like free short-term loans. These cards are similar to 0% balance transfer cards, but not all of them also offer you the ability to make new purchases with the free promo rates.
Itâ€™s recommended to only use these cards to buy things that you absolutely need rather than a new big-screen TV. For example, I used a 0% APR card to purchase the very computer Iâ€™m typing this on. I didnâ€™t have $800 to spend at the time, but within a couple of months I had made enough money to pay it off in full â€” without having to pay a penny of interest. These cards offer great opportunities to better your life, without the extra cost â€” if you can pay off the card before the promo period is over.
You donâ€™t need a perfect credit score to qualify for the best financial products. Youâ€™ll still get access to virtually all of the things an 850 credit score would unlock as long as you have a credit score of at least 760.
Good credit scores donâ€™t happen by accident. Whether you deliberately aimed for your score or not, you have good financial management skills. However, this isnâ€™t enough to guarantee your approval for a large number of financial products.
Itâ€™s actually possible to have a good credit score yet still be a high financial risk. For example, your credit score doesnâ€™t take your salary into account. You could have a perfect credit score yet be unemployed with no income, in some cases.
When you apply for financial products, banks will look at your entire situation beyond just your credit score. Each bank will have their own approval criteria, and you might not pass one of them even if you have a good credit score.
Take heart, however; in general, you will be approved for most good financial products and services if you have a good credit score. But if the bank is very picky or something uncommon has happened to you (such as a recent job loss), itâ€™s not surprising to be rejected.
Potential creditors donâ€™t like to see a string of recent credit inquiries on your report because it might be a sign that youâ€™re going on an out-of-control credit binge. Your score will be docked a few points per credit inquiry. This is a relatively small cut compared to more major transgressions like late payments and foreclosures, however.
When you have a poor credit score (600-648), you need every point you can get. The difference between a poor and a fair credit score is just 48 points; you need to do everything you can to gain those points and move up into the next bracket. Having a hard credit pull on your credit report will set you back even longer.
If youâ€™ve got good credit, though, you donâ€™t need to worry as much. You have 150 points between 700 and the maximum score of 850. Thatâ€™s plenty of room to pay for small dings on your credit. You can have a hard inquiry on your credit report and still have a good credit score, unless youâ€™re starting with a borderline good score of 700-705.
Youâ€™ve worked hard getting your score to this point, now how do you keep it there? Luckily, itâ€™s not hard; basically, continue doing the good things youâ€™re already doing.
Paying all of your statements on time and in full is one of the best things you can do to maintain your high credit score. A single late payment on your mortgage could set you back 60 points or more, downgrading you from good credit to average. Make sure all of your debt accounts are set up on autopay to avoid this potentially costly error.
Credit utilization (the percentage of available credit youâ€™re using) is also one of the biggest factors in determining your credit score. The less available credit youâ€™re using, the better. In general, a credit utilization ratio of 10% or less will boost your score the most. This means that youâ€™ll have a credit card balance of $1,000 or less for each $10,000 of credit you have available to you.
A few minor factors will also boost your credit score, but not as much as having a good payment history and a low credit utilization ratio. Keep credit inquiries to a minimum. In order to avoid a slew of inquiries that will be reflected in your credit score, make sure companies use soft pulls if you need to shop around for the best interest rates.
Also consider keeping your oldest credit cards open and closing any newer ones youâ€™re not using. This will increase your average credit age. In general, an average credit age of five years or more is considered best and will boost your credit score.
You donâ€™t want to be juggling around a ton of cards youâ€™re not using. Closing old cards sounds like a good idea until you consider one factor: It may ding your credit score.
Creditors like to see that you can effectively handle credit accounts over long periods of time. Thatâ€™s why average credit age is one factor included in credit scoring models.
If you close out an old card, your average credit age might drop. This would cause a corresponding dip in your score. The effect wouldnâ€™t be huge (not as large as a late payment, for example), but it could be there nonetheless, especially if your average credit age is five years or less (over five years is the optimal average credit age).
Thatâ€™s why most experts recommend keeping your oldest credit card open. If you want to juggle fewer accounts, close any newer ones that youâ€™re not using. Of course, if your oldest credit card charges an annual fee and youâ€™re not using it, then go ahead and close it anyway. Paying an annual fee for a card youâ€™re not using likely outweighs any benefits from keeping the card open for the sake of boosting your average credit age.
Furthermore, if you close your old credit card before you apply for a new card, itâ€™s possible that your credit score will drop enough that your application will be rejected, especially if you have a borderline good credit score. In this case, itâ€™s better to wait until after youâ€™ve applied and been approved for the new credit card before closing your old card, if you decide to do so.
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