As a person with a credit score of 600, you may have had trouble getting approved for credit cards in the past. However, there are options available that cater to individuals with lower credit scores. In this guide, we will cover everything you need to know about 600 credit score credit cards.
What is a 600 Credit Score?
Before we dive into the specifics of credit cards for individuals with a 600 credit score, let’s first take a look at what it means to have a 600 credit score.
Credit scores range from 300 to 850, with higher scores indicating better creditworthiness. A score of 600 is considered fair and falls below the average of around 680. This means that lenders may consider you a higher risk borrower and may be hesitant to extend you loan or credit card offerings.
Can You Get Approved for a Credit Card with a 600 Credit Score?
Yes, it is definitely possible to get approved for a credit card with a score of 600. However, there are some things to keep in mind when applying for these types of cards:
- You may not qualify for premium rewards cards or those with high limits.
- You may need to pay an annual fee.
- Your interest rates may be higher than someone with excellent credit.
Despite these potential downsides, having and using responsible low limit credit cards can improve your overall financial wellness as well as your score over time.
Best Credit Cards for Those With A Score Of 600
Now that we’ve established that you can get approved for a card even if your FICO score is right at the edge, let’s take look at some specific options that could benefit consumers looking for their next or first card.
Discover it Secured
Discover it Secured Card has no fee attached and offers cashback reward points on purchases made using it. It is a great option for those looking to rebuild their credit history and raise their scores. It requires a minimum refundable deposit of $200 depending on your creditworthiness.
OpenSky Secured Visa Credit Card
OpenSky Secured Visa Credit Card has no credit check, allowing more people with poor or lacking credit histories to apply – and get approved. It also reports usage to the major credit bureaus, which can help build or rebuild a credit score over time.
Capital One QuicksilverOne Cash Rewards Credit Card
This card does come with an annual fee but offers unlimited cashback rewards on every purchase made using it. For applicants who are able to pay off their balance in full every month, earning cashback rewards will offset that cost while potentially making purchases more affordable.
Credit One Bank Visa Credit Card
Credit One Bank Visa Credit Card is a flexible option for those with less-than-perfect credit. It also provides free access to one’s Experian credit score each month as well.
As you can see, there are plenty of options for individuals with lower credit scores when it comes to choosing a credit card.
How Can You Improve Your Credit Score?
In order to improve your score and become eligible for better rewards cards, it’s important that you take steps towards responsible financial behavior including:
- Paying bills on time
- Keeping balances low
- Reducing the amount of debt you carry overall
- Checking your report regularly and fixing any errors
Making payments on time is the most heavily-weighted factor in determining your FICO Score – accounting for around 35% of what constitutes your score – so it’s very important that you do not miss any payments. Reducing overall debt is another metric creditors use to assess risk as they want borrowers who aren’t overextended financially and are likely able to repay loans or other lines of credit extended over time.
Conclusion
Credit cards can be a great way to build credit, but it’s important to choose the right one for your needs. If you have a credit score of 600 or below, you may need to consider secured or other types of credit cards that aren’t as competitive rewards wise, but can still help you improve your overall score.
Keep in mind that responsible use of these cards and actions like paying bills on time and reducing debt are key if you want to improve your credit score over time. By following the tips we’ve outlined above, you can take steps towards improving your finances, expanding your purchasing power, and ultimately – in turn – vastly increasing your options when it comes to choosing premium rewards cards with supercharged cashback offers or luxury perks.
FAQs
What is a 600 credit score?
A 600 credit score is considered fair credit. It means you may have some negative items on your credit report and lenders may see you as a higher risk.
Can I get approved for a credit card with a 600 credit score?
Yes, you can get approved for a credit card with a 600 credit score, but it might be harder to get approved for the best cards with low interest rates or rewards.
What types of credit cards are available to people with a 600 credit score?
There are several types of credit cards available to people with a 600 credit score, including secured cards, unsecured cards meant for fair/average/limited/no-credit applicants, and subprime cards designed specifically for those with poor or limited history.
What should I look for in a 600 credit score credit card?
When looking for a 600 credit score credit card, you should consider factors such as the interest rate, annual fee (if any), rewards program (if any), and any other benefits offered by the card.
How can I improve my chances of getting approved for better cards with my current 600 score?
To improve your chances of getting approved for better cards at your current 600 score level, try paying down outstanding debts, lowering your overall debt-to-income ratio, or seek out opportunities to add positive information to your report such as making on-time rent payments visible on your report through Experian Boost.
Should I choose an unsecured or secured card if I have a 600 credit score?
You could go either way based on personal preference — an unsecured option could mean less upfront cost versus security deposit requirements present in many secured offers. Though keep mind that often the best offers with low fees, rates or access to rewards will require higher scores than a 600.
What are some of the best credit card offers for a 600 credit score?
Some great options for people with a 600 credit score include Discover it Secured, Capital One QuicksilverOne Rewards, and Indigo Platinum Mastercard for less-than-perfect-credit individuals.
How can I increase my credit score to qualify for better cards in the future?
To increase your credit score overtime, make sure you’re making on-time payments and keeping balances low. Credit utilization is the second most important factor in scoring models after payment history so staying under 30% of available limit can also help improve scores. Building diverse types of credit like an installment loan can also help diversify your portfolio and lead to more competitive offers down the line.
What should I avoid doing when using a 600 credit score credit card?
When using your 600-credit card, it’s important to avoid missing payments or going over your available credit limit as these negative marks can further lower scores beyond what they already are while also impacting the terms and benefits of being a cardholder.
Can having multiple 600 credit score cards negatively impact my overall credit rating?
It depends on several factors such as overall utilization rates with all accounts considered (both individual and joint), payment history across those accounts and the age of those lines relative to one another — adding more unsecured cards could become overwhelming if you’re struggling with debt management leading to missed due dates which would definitely hurt your profile negatively but there’s no fixed rule that having multiple lines will do either way alone without considering other metrics within scoring models.