What FICO Scores Do Credit Cards Look for?

FICO Score

Most credit card companies do not state what FICO score is acceptable for them to issue a credit card. According to Consumer Reports magazine, many banks have reset their cutoff credit score for subprime credit to 680 as of 2010. A FICO score of 600 had been the common subprime cutoff before the recession of 2008. The FICO score formula incorporates factors such as amounts of outstanding debt, whether payments are made on time, length of credit history and mix of credit types to arrive at a number. The higher the number, the less credit risk.

Application Scoring

Most credit card companies require you to complete an application before extending credit. Many use their own scoring grid that considers information you provide, such as employment history, income and how long you have lived at your current address. The credit card company may combine this information with the FICO score or other scores to make their determination of risk. Most credit card companies do not state how much weight they assign to each factor in making their decisions.

Behavior Scoring

Credit card companies may use behavior scoring on existing accounts to predict risk, and they may adjust interest rates and credit limits based on that information as necessary. Behavior scoring may be based on factors such as payment history, uses of the card and the types of purchases made. Behavior scoring may indicate higher risk for a customer who suddenly changes his purchasing habbits or uses the card for certain type of purchases. ACS and TRIAD are two examples of behavior scores.

Types of Credit Cards

Some credit card companies only lend to people with prime credit, such as American Express. Many local banks who issue credit cards also look for borrowers representing the least risk. If your FICO score is below 680, some credit card companies may issue you credit, but these subprime cards may come with high interest rates and fees and may have low credit limits. You also might consider obtaining a secured credit card, which uses a monetary deposit as collateral for the card.