Can You Get a Credit Card With a 600 Score?

A 600 credit score, considered “fair” by models like FICO, is below the national average (around 716). Lenders often view this score as indicating a higher risk of not repaying debts.

Despite this classification, a 600 credit score does not prevent individuals from obtaining credit cards. While top-tier cards with the most favorable terms may be out of reach, specific credit products are designed for those working to establish or rebuild their credit. This article explores available credit card options, guidance on securing them, and strategies for improving a credit profile.

Credit Card Options for a 600 Score

Individuals with a 600 credit score typically find several credit card options available, serving as tools for credit improvement. Secured credit cards are common and accessible, requiring a security deposit that usually determines the credit limit. For example, a $200 deposit typically results in a $200 credit limit. This deposit minimizes issuer risk, making them more willing to approve applicants with lower scores.

Secured cards function similarly to traditional credit cards, allowing purchases up to the credit limit. The key difference is the refundable deposit, returned when the account is closed in good standing or upgraded. When considering a secured card, check for annual fees and ensure the issuer reports payment activity to all three major credit bureaus (Equifax, Experian, and TransUnion). Consistent on-time payments on a secured card can significantly help improve a credit score.

Another option includes unsecured starter cards. These cards do not require a security deposit but are designed for individuals with limited or fair credit histories. They often come with higher interest rates and lower credit limits compared to cards for those with excellent credit. Some may also have annual fees. These cards can be a good stepping stone if a security deposit is not feasible.

Beyond secured and unsecured starter cards, other alternatives exist, such as store credit cards or co-signed cards. Store cards are often easier to obtain but typically have lower credit limits and can only be used at specific retailers. Co-signed cards involve another individual with better credit history taking on joint responsibility for the debt, which can offer access to better terms but also places the co-signer at risk.

Applying for a Credit Card

Once a suitable credit card option has been identified, the application process requires providing specific personal and financial information. This includes full name, address, date of birth, and Social Security Number. Lenders also require details about employment status and income to assess repayment ability.

Before submitting a full application, many card issuers offer a pre-qualification process. This involves a soft inquiry on a credit report, which does not impact the credit score. Pre-qualification provides an indication of approval likelihood and potential card offers without committing to a full application. This helps gauge eligibility and avoid unnecessary hard inquiries that can temporarily lower a credit score.

If pre-qualified or confident in eligibility, the next step is to complete the full application, which usually results in a hard inquiry on the credit report. Applications can be submitted online, by mail, or in person at a bank branch. Online applications often provide an instant decision, while others may take a few business days.

Upon approval, the credit card is typically mailed within 7-10 business days. After receiving the card, activate it and set up online account access. Review the cardholder agreement for interest rates, fees, and payment due dates.

Building a Stronger Credit Profile

Building a stronger credit profile after obtaining a credit card involves consistent responsible financial behaviors. Making all payments on time is most important, as payment history is the most significant factor influencing a credit score, accounting for as much as 35% of a FICO Score. Even a single late payment exceeding 30 days past due can negatively impact a score.

Managing credit utilization is another important aspect of improving a credit score. Credit utilization refers to the amount of credit used relative to the total available credit. Keeping this ratio below 30% is generally recommended for responsible credit management. For example, if the credit limit is $1,000, keeping the balance below $300 is advisable.

The length of credit history also contributes to a stronger credit profile. A longer history of responsible credit use generally reflects positively on a credit score. This factor considers the age of the oldest account, the age of the newest account, and the average age of all accounts. Maintaining older accounts in good standing can be beneficial.

A healthy credit mix and careful consideration of new credit applications play a role. Having a variety of credit types, such as revolving credit (like credit cards) and installment loans (like car loans), demonstrates responsible debt management. However, opening too many new accounts in a short period can be viewed as risky by lenders and may negatively affect a score due to multiple hard inquiries.

Regularly monitoring credit reports for accuracy is an important practice. Individuals are entitled to a free copy of their credit report from each of the three major credit bureaus annually. Reviewing these reports helps identify and dispute any errors, which could otherwise hinder credit improvement efforts.