What Credit Score Do You Need to Have a Credit Card?

What's In a Credit Score?

Credit scores are measured on a scale of 300 to 850. According to Experian, most consumers have a credit score between 600 and 750. However, a good credit score is 700 and above. To achieve a good credit score, you must have a positive payment history with your creditors, keep your credit account balances low and maintain your good credit habits over time. The type of credit card offers you receive are based on your current credit score.

No Credit

Credit cards exist for consumers at all stages of their credit history. Before you have a credit score, you can apply to receive a secure credit card to begin your credit history. Secure credit cards work by allowing you to place money in a bank account in exchange for a credit card. The amount of money you add to your account is equal to your credit card limit. The money in your account cannot be removed unless you default on your credit card account. This is a safe option as the money in your bank account guarantees the debt on your credit card can always be repaid.

Bad Credit

Having bad credit has a range of disadvantages. One of the major disadvantages is the increased cost to borrow money. Credit cards for consumers with bad credit often have high fees, excessive interest rates and low credit limits. For example, First Premier Bank created a credit card for consumers with bad credit that started at 79.9 percent interest. After consumer complaints and a large number of customer defaults, the bank lowered the interest rate to 59.9 percent in February 2011. The average credit line for the First Premier Bank credit card is $300, though cardholders are charged more than $100 per year in fees.

Good Credit

With a good credit score, the sky is the limit when it comes to credit card offers. As you build your score, credit card companies begin sending offers for cards with low introductory and fixed interest rates. Many cards for people with good credit offer incentives such as frequent flier miles, cash back and prizes. The major benefit of having a card for consumers with good credit is that there is no cap on your credit limit.