How to Match the Best Credit Card to Your Credit Score
Written by Kasey Ng
Different people have different credit scores. It is not true that only high credit score people can apply for credit cards. Certain credit cards are designed for low credit score people and give them an opportunity to improve. The goal of this article is to provide a comprehensive description of all the credit cards that are designed for each of the credit score level.
Credit Cards for Starters with Limited/No Credit History
We all start somewhere. Below are card types intended for people that are new and have little or no credit history.
Student Credit Cards: Student credit cards target college students. Unlike the regular version, the student applicants do not need an income. There should be plenty of student credit cards available at the beginning of the semesters. Alternatively, you can take a look at this list of Student Credit Cards that we have reviewed and compiled. They are from reputable banks that are known to be especially receptive toward students.
Detour:Students need to be very careful with credit card expenses. A high percentage of them end up unleashed for their first time away from home for school. So this type of cards is actually a finance test for students.
Tip:If the card has an annual fee, skip it. There are tons out there that are fee free. Credit card companies hand out cards to students like candy, literally.
Beginner Cards: Unlike student cards, these are intended for people that are usually adults without a credit history. Most of the people that need cards from this category are very responsible financially and credit card issuers love to target them. Cards from this category usually start with a fairly low credit limit but do quickly adjust when you start presenting a history of prompt payments.
Tip:These cards are usually no-fee and are from prominent banks. Check out this list of credit cards for beginners.
Secured Credit Cards: It is certainly best that you qualify for the student cards or beginner cards above. In the event that you are unable to qualify for either, you can go for this option. A secured credit card is one that you have to put in a “collateral” before they issue you that card. This is usually a few hundred dollars from your bank account that they withhold in case that you cannot afford to pay your bill. This is usually issued to those of bad and limited credit and is a good way to start and start over on credit building.
Tip:You can see a list of Secured Cards from reputable banks. Again, the most important part of this is to make sure that there are NO FEES associated with the card.
Credit Cards for People with Bad Credit History
A bad history is a bad history. Now, you must focus on the present and look forward to the future. There is nothing wrong with someone who has a bad credit history, as long as he/she is presently being fiscally responsible.
Credit rebuilding is a long process and can take years before getting back to the normal status. Call it paying the dues if you may. Rebuilding credit with credit cards is a very common approach. Just remember to pay your credit bills on time every time and do not over-charge your cards. Below are the common four card types that are intended for people with a bad credit history.
Debit Cards: A debit card is something in between an ATM and a credit card. Like an ATM card, it checks against your bank balance and deducts automatically every time you use it. Like a credit card, it usually comes with the logo of Visa/Master Card so it is accepted where they accept those cards. However, this does not come with the benefit of credit cards. This option is actually preferred by people who cannot remain disciplined with credit card spending!
Tip:While debit cards are excellent to control your spending, they are the least useful in helping with your credit history building. If you are in this category, try to stick to the last 2 card types: Secured Credit Cards and Credit Card with Fees.
Prepaid Credit Cards: Prepaid credit cards are just like prepaid phone cards. You store/charge it with a certain amount and can spend until that amount is out, and then you add more money to it. This kind of cards can often come with annual/monthly fees and little to no benefits at all. However, it is still a starting point for many people with bad credit to get back in the game. Many parents will also get these for their kids that are not familiar with credit cards or are not very good at budgeting.
Tip:A similar advice to that of Debit Cards. These are good alternatives to carry cash with you but they do little to help build your credit history.
Secured Credit Cards: A secured credit card is one that you have to put in a “collateral” before they issue you that card. This is usually a few hundred dollars from your bank account that they hold on in case that you cannot afford to pay your bill. This is usually issued to those of bad and limited credit and is a good way to start and start over on credit building. These cards should be obtained without fees.
Tip:The easiest way to get a secured credit card is to ask for one from your bank. Banks have very little risk for secured credit cards so they are very likely to approve them. We highly recommend this type of credit cards for people with a bad credit history.
Credit Cards with Fees: This is just like any other credit cards out there. You spend on your credit and pay the bill at the end of the month. Credit card companies will charge you an annual fee for your membership. This kind of credit cards does usually come with the usual benefits. People that use this type of credit cards typically move to no-fee cards within a year or two.
Detour:If you are in the market for one of these cards, make sure it only comes with one annual fee only. Some credit card issuers will tag on outrageous fees for absolutely no reason at all.
Tip:This type of cards is not the same as the more prestigious cards such as the ones from American Express with an annual fee. This is for people working on the basic level of their credit history.
Credit Cards for People with Fair Credit History
Individuals with fair credit often find it difficult to get approved for a good or excellent credit card, but at the same time there is no reason for them to pay the high fees associated with most “bad credit” credit cards. If you have a fair credit history, you do not need to worry about getting a credit card. Compare with bad credit history, people with fair credit history can apply for standard credit cards, 0% APR cards and even rewards credit cards. Here are some card features that an individual with fair credit history should be able to obtain:
0% APR on all purchases under designated period, usually the first 3 to 9 months.
$0 fraud liability if your card is lost or stolen.
1% cash back on all purchases, possibility higher percentage for purchases on gas, travelling and grocery.
Unlimited cash rewards.
No annual fee.
$0 activation fee.
Note that you are not necessary to get all the features mentioned above. What features you get depend on what type of cards you apply for. However, you should be able to get a credit card with most of the above features.
Credit Cards for People with Good and Excellent Credit History
Individuals with good credit should expect to obtain a credit card that charge lower interest rate and has a longer period of 0% APR compared to people with fair credit history. Moreover, it is more likely for good credit customers to obtain instant approval credit cards.
Individuals with excellent credit history should expect to obtain credit cards with many benefits. Compare to the cards for good credit rating, cards for people with excellent credit rating have even lower interest rate, and the length of period of 0% APR is longer. In addition, the percentage rewards on your purchases is expected to be higher. Here is a table of card features comparison between good and excellent credit:
Good Credit
Excellent Credit
0% intro APR on balance transfer for the first 6-18 months, and purchases for 3 to 12 months.
0% intro APR on balance transfer for the first 6-18 months, and purchases for about 12 months.
Unlimited cash rewards.
Unlimited cash rewards.
No annual fee.
No annual fee.
$0 activation fee.
$0 activation fee.
1-2 miles compensation for every dollar purchases.*
1-2 miles compensation for every dollar purchases.*
No foreign transaction fees.*
No foreign transaction fees.*
* Features usually available in travel & airline credit cards.
Note that you are not necessary to get all the features mentioned above. What features you get depend on what type of cards you apply for. However, you should be able to get a credit card with most of the above features.
We all start somewhere. Below are card types intended for people that are new and have little or no credit history.
A bad history is a bad history. Now, you must focus on the present and look forward to the future. There is nothing wrong with someone who has a bad credit history, as long as he/she is presently being fiscally responsible. 
rate and has a longer period of 0% APR compared to people with fair credit history. Moreover, it is more likely for good credit customers to obtain instant approval credit cards. 