Every single credit card provider has a card for people with good credit standing. These cards allow the cardholder a lot of different perks, as opposed to regular or refinancing cards. Most people don’t even know the sheer amount of benefits that come with this card.
One of the main reasons people opt for these credit cards is to maintain and develop good credit.
The benefits are crystal clear. If you’re responsible with your credit, and your credit score is there to prove it, you’re entitled to some exclusive benefits. Yet, to get approved for this prestigious card – you have to fulfill some requirements.
Proving yourself is as easy as establishing a good credit score, which is done by always paying your debts on time.
But with so many different credit card companies around, how are you supposed to know which one is going to best suit all your needs? Well, there are quite a lot of different things to consider when you’re applying for a credit card for good credit.
Charges, bonuses, rewards, loan options, mortgage options, insurance options – these are all very important things that not all credit cards offer, at least not equally.
Insider knowledge on this topic is not always easy to get. False reviews are all around the internet. In this comprehensive review, we’re going to explain everything you need to know about cards for good credit scores – what they are, how to get them, and what the benefits are compared to regular cards. (See Credit Report & Score)
What are Cards For Good Credit?
Credit cards are an important piece of the financial infrastructure that every single adult in the world functions on. Credit cards are simply that good at what they do – this provides loan options and rate payment to cardholders.
Now, some people tend to miss out on paying these loans on time. This reflects itself on their credit score, which later prohibits them from using the numerous benefits of a good credit score standing.
One of which is applying for and receiving a credit card for good credit standing. Cards for good credit are all around the place, yet not many people seem to have them. This is because people aren’t sure of how to apply, and don’t want to get rejected.
There are a couple of preset rules and requirements you must fulfill before applying for a credit card of this caliber. As banks aren’t in the business of losing money, they need to make sure that you’re responsible enough for this credit card.
After all, you can expect to gain quite a lot from it – better mortgage options, better insurance, increased loans, and sometimes even rewards and bonuses.
Cards for good credit are also useful for maintaining and further developing your good credit. With more rate options and increased spending limits, you’re both given more purchasing power and a chance to improve your already good credit standing.
Cards for good credit report to all three of the major credit bureaus, which can also damage your credit score if you’re not careful. After you’ve been approved for your good credit card, you’re not only gaining a myriad of benefits – but responsibilities as well.
Related: Cards Reporting Credit
Utilize Your Good Credit – And Then Some
Having a good credit score is a good thing in itself, but it can always be better. Improving your credit score up to a good standing might be a tough task in itself, and requires a strategy, even a month by month program.
Improving your credit from good to better is actually quite simple. You can utilize your new credit card for good credit in this strategy. It’s actually as simple as pie.
Credit cards for repairing bad credit don’t come with many benefits – you can’t expect any when you’re trying to dig yourself out of the dirt.
But if you’re the owner of a good credit card, you’re not only going to see an increase in purchasing power but in bonuses, rewards and, most importantly, opportunities.
Some of these rewards are refinancing rewards and cashback from purchases. Now, cashback is usually offered by merchants and retailers, but the lender offers them as well. Combine the two and you’re getting more than your money’s worth, literally!
You can use your new credit card for good credit to improve your credit to the extent that you didn’t think was possible. As your credit improves, you’re far more likely to get an increase in spending power, insurance and mortgage options, bonuses, rewards, and much more!
The sky’s the limit when you have the best credit around. If your credit score is impeccable, you can apply for a no limits card – which doesn’t limit your spending power at all. This might sound like a dream come true, but be wary.
When people are given an unlimited spending credit card, they tend to get a bit carried away. Always be careful in your spending, and prepare for any upcoming loan rate.
What is Considered a Good Credit Score?
There are a couple of factors that determine your credit score. The most important of which is paying all your debts and loans off on time. Paying them on time will improve your credit score.
Related: Fixing Credit Score
Different banks and lenders have different approval standards. There is no general good credit score rule, but everything over 670 is considered excellent.
The credit score scale goes from 300 to 850. The former being considered abhorrent, while the latter is deemed to be excellent.
This three-digit score will determine if you’re going to get approved for a credit card, insurance, or personal loan. Your credit score is determined by the three major credit bureaus, which most cards report to. (See: Cards Reporting Credit Explained)
Having a good credit score is integral to proper financial health and a better quality of life. Good credit scores have a substantial impact on numerous approval ratings and overall economic well-being. All that information can be used to get loans, mortgage approvals, and many insurance options. It also increases your chances of getting approved for more credit cards.
The Pros and Cons of Good Credit Credit Cards
The pros of credit cards for Good credit are vast. You’re given the ability to pay your purchases over a more extended period, at minimal interest rates for starters.
Your purchasing power increases exponentially, as good credit cards have a higher spending limit (or none at all). This power allows you to purchase big-ticket purchases you wouldn’t otherwise be able to afford. Paying during extensive periods can damage your credit score with other credit cards.
Not only do credit cards for good credit come at laughably low introductory rates, but they also come with many bonuses and rewards. While these rewards can sometimes be in cashback form, they are also given in gift cards, miles on airlines, and complimentary inclusion in events. The possibilities are endless and vary from card to card.
The only drawback that these cards come with is their sheer power. They are powerful tools, yet people don’t tend to take them as seriously as they should.
When you’re given such perks and purchasing power, people tend to get a little carried away. These purchases can ruin your credit score and make a dent in your personal finance if you’re not careful.
As long as you are responsible for your purchasing habits, you’re going to be okay.
The APR Aspect
APR is an annual rate you pay for borrowing money from your card provider, usually a bank. APR is presented as a percentage of your yearly spending over the term of a loan. This takes all the fees and transactions into consideration, aside from compounding.
Since it’s expressed on a yearly basis, a 10% APR rating would take 1% off of each month in the year, with the combined spending, of course. So if you spent 120$ in 2019, the yearly APR would come out to 12$.
When it comes to regular credit cards, APR is not always the most pleasant thing around. The usual APR on credit cards ranges from 16%-25%, which is the industry standard. If you’re a big spender, the total yearly APR could be outrageous.
Perhaps the biggest benefit when it comes to cards for good credit is their APR. Some don’t even have an APR for the initial period, while others come with a symbolic APR rating of a mere 1%-5%. If you’re a big spender and have just recently been given a lot of spending power, the low APR rate on a credit card for good credit can be a real life-saver.
To summarize all above, Good Credit Credit Cards are right for you if you have the credit score for them. They come with a lot of different benefits which you can employ to make your life better.
Good credit cards do come with a couple of cons, but most of them can be resolved by paying all your loans off on time and using common sense.
It would help if you were responsible with your credit and your spending. Being responsible with your credit is sure to grant you numerous different benefits, and set you on the road to financial bliss.
Good Credit Credit Cards Frequently Asked Questions
Being financially responsible with your credit cards, having a constant flow of money through them, and maintaining a good credit score comes with a lot of different benefits.
Some benefits of having a high-end, sound credit card include perks, bonuses, lower APR, increased or infinite spending power, insurance options, more extensive fee options, little or no penalty rates, and others.
Most of the benefits circle, helping you enjoy your financial well being and maintaining a good credit score.
Credit history is all the information about your financial activities. To make sure you have a good credit history, you will have to demonstrate responsibility for a longer period. At the same time, this kind of behavior will directly lead to an increase in your credit score.
Several things are good for your credit history:
- Steady income
- Using the same mailing address over a longer period
- Making all of your payments regularly
- Using a minimum number of credit accounts
On top of that, make sure to check your credit report regularly. Sometimes the credit bureaus or lenders will make mistakes when reporting information. If you notice mistakes on your credit, you need to contact them and make it right to avoid further dents in your score.
Some credit cards are only applicable to individual stores and e-commerce websites. These cards have the potential to be used not only for international transactions (sometimes with no foreign transaction fees) but for cash withdrawals from ATMs. This rule applies as long as the contract specifically states it doesn’t.
This answer depends on your credit score, and on the loan provider you’ve chosen. There is no universal good credit score. If your credit score is over 670, you’re most likely to get approved with any sound credit card you’ve chosen. If it’s below, you can try to apply.
If you get rejected, though, and your credit score is not far from 670, you can work to improve your credit score. This score is preferable, as good credit cards come with many benefits.
Good credit is crucial for anyone who is looking to have a good financial life. Good credit scores are preferred and come with quite a lot of different benefits. If you have made a mistake and not paid your debt on time, you’re going to find that your credit score has decreased. (Related: Check Your Credit Score)
If you’re looking to improve your credit score to get accepted into one of the higher-end cards, you need to start lower. There are credit cards that are used to improve credit scores, called Credit Repair Cards (aka: Secured Credit Cards, Credit Reporting Cards, etc). These aren’t the only thing you need, though.
To improve your score, you need to be responsible with your purchases, and pay off your loans on time. Building up and repairing credit takes a strategy. If you’re careful, you’re going to improve it in no time at all.
This depends on what you’re looking to get out of your credit card. If you’re looking to get good cashback rewards, both will offer that. Good Credit cards also give a wide range of rewards, depending on the card itself.
While rewards credit cards don’t offer nearly as much insurance or other benefits that good to excellent credit cards do. Overall, the Good Credit Card is a better option if you have the credit score for it.