What Credit Card Can I Get With a 620 Credit Score?

Credit scores influence access to credit products like credit cards. They help lenders assess risk. Understanding your credit score is the first step toward navigating options. A 620 credit score indicates certain considerations for card availability and terms.

Understanding a 620 Credit Score

A 620 credit score falls into the “fair” category for major credit scoring models like FICO (580-669) and VantageScore (601-660). This classification suggests to lenders that while you may have some credit history, there might be past credit issues or a limited history that indicates a higher risk compared to applicants with “good” or “excellent” scores.

Lenders view a 620 score with caution, implying a greater likelihood of missed payments. This impacts the types of credit products offered and their terms, often resulting in fewer credit card options and less favorable interest rates or fees. The score acts as a predictive tool, indicating the probability of a borrower becoming at least 90 days past due on payments.

Credit Card Options for a 620 Score

Individuals with a 620 credit score still have viable credit card options, primarily those designed for credit building. Secured credit cards are a common choice because they require a cash deposit, which acts as collateral for the credit limit. This deposit minimizes risk for the issuer, making these cards more accessible to those with fair or limited credit. Using a secured card responsibly can help establish a positive payment history, which is crucial for credit improvement.

Some lenders also offer unsecured credit cards specifically for individuals in the “fair” credit range. These cards do not require a security deposit but may come with stricter eligibility criteria and potentially higher annual fees or interest rates. They serve as an option for those who prefer not to tie up funds in a deposit. Both secured and certain unsecured cards report payment activity to the major credit bureaus, aiding in credit score development.

Store credit cards represent another possibility for individuals with a 620 score. These cards are often easier to obtain than general-purpose credit cards, particularly for specific retailers. While they typically have limited use, valid only at the issuing store or a family of stores, they can provide an avenue for building credit history. Approval odds for store cards with a 620 score can vary, with some retailers being more lenient than others.

Common Terms and Features of These Cards

Annual Percentage Rates (APRs) on these cards are typically higher than for those with better scores, often ranging from 23.40% to over 28.00%. Carrying a balance can result in substantial interest charges.

Annual fees are common with cards for fair credit, ranging from no annual fee to over $99, and some have monthly maintenance fees. Secured cards require a security deposit, often starting at $200, which typically equals the initial credit limit.

Initial credit limits are generally low, often starting at $200 to $300. With responsible usage, some secured cards offer “graduation” to an unsecured card. This involves the issuer reviewing account activity; if payments are consistent and on-time, the security deposit may be returned, and the card converts to an unsecured product.

Steps to Improve Your Credit Score

Making on-time payments is the most impactful step, as payment history accounts for 35% of a FICO Score and is highly influential for VantageScore. Consistent on-time payments demonstrate reliability, while even a single 30-day late payment can significantly harm your score. Setting up automatic payments can help.

Managing your credit utilization ratio is another component, accounting for 30% of a FICO Score. This ratio measures credit used against total available credit. Experts recommend keeping it below 30% to positively impact your score. Reducing outstanding balances and avoiding maxing out credit limits are effective strategies.

Avoiding excessive new debt and being cautious with new credit applications can also help, as new credit accounts for a portion of your score. Each new application often results in a hard inquiry, which can temporarily lower your score. Regularly reviewing your credit reports from Experian, Equifax, and TransUnion is essential to identify and dispute errors. A longer credit history also contributes positively to your score, reflecting responsible management.