Best Beginners’ Tips for credit card FICO scores (Excellent/ Good/ Fair/ Poor) in 2022
It is a beginners’ guide before landing into the world of credit. If you are smart, you can make a great purchase with timely payments. If not, one loan will lead it to another, and you can never come out of it. Many folks understand just how problematic credit cards can become with one simple lapse of attention. However, the solution to this is developing sound habits that become automatic protective behaviours. Apply what you will learn from this article to make habits of protective behaviours that will help you.
17 Best practices for using a Credit card in 2022
- Everyone knows just how powerful and dangerous that credit cards can be. The temptation of massive and instant gratification is always lurking in your wallet, and it only takes one afternoon of not paying attention to slide down that slope. On the other hand, sound strategies, practised with regularity, become an effortless habit and can protect you. Free or no annual fees may not be a great idea. I will explain that in a separate section. Scroll down.
- Do not close credit card accounts until you understand the impact they may have. There are times when you close a card that can have negative effects on your next credit report. Choose to keep the accounts that you have had open the longest that make up your credit history.
- Pay your minimum payment on time each month to avoid more fees. Suppose you can afford to pay more than the minimum payment to reduce the interest fees. Just be sure to pay the minimum amount before the due date.
- Always make any credit card payments on time. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. Additionally, most companies will increase the interest rate on your credit card, which means an increase in the cost of every purchase you put on that card after that.
- One important tip for all credit card users is to make a budget. Having a budget is a great way to figure out whether or not you can afford to buy something. If you can’t afford it, charging something to your credit card is just a recipe for disaster.
- Consider unsolicited credit card offers very carefully before you accept them. If an offer that comes to you looks good, read all the fine print to make sure you understand the time limit for any introductory offers on interest rates. Also, be aware of fees that are required for transferring a balance to the account.
- It may seem unnecessary to many people, but be sure to save receipts for the purchases that you make on your credit card. Take the time each month to be sure that the receipts match up to your credit card statement. It will help you manage your charges, as well as help you catch unjust charges.
- It is important always to review the charges and credits posted to your credit card account. Whether you choose to verify your account activity online, read paper statements, or ensure that all charges and payments are reflected accurately, you can avoid costly errors or unnecessary battles with the card issuer.
- If you cannot pay your credit card balance in full, slow down how often you use it. Though it’s a problem to get on the wrong track when it comes to your credit cards, the problem will only become worse if you allow it to. Try to stop using your cards for a while, or at least slowdown, so you can avoid owing thousands and falling into financial hardship.
- Transferring a credit card balance from a high-interest credit card to a card where the rate is less can save you money every month. Credit card companies offer special introductory rates to attract new business to their credit cards. If you take advantage of one of these offers, make sure that you understand the amount of time that the introductory rate offer lasts.
- Be aware that you can still have a credit card, even if your credit is not up to par. There are two choices to pick from. You could either get yourself a secured card or sign up to be an authorized user on the credit card of a family member or partner.
- Be careful when you sign up with secured credit card companies because many of them charge high fees in exchange for issuing you a card. If you have to get this type of card, you should shop around to pay the lowest fees.
- Even if you cannot make your minimum monthly payment on a credit card, you should pay something. No matter how modest the amount, this will tell your credit card company that you are trying to deal fairly with them. If your problems continue, you will find your company more inclined to work with you if you make at least some payments.
- Try your best to use a prepaid credit card when you are making online transactions. That will help so that you do not have to worry about any thieves accessing your real credit card information. It will be much easier to bounce back if you are scammed in this type of situation.
- If your credit card is charging you a high-interest rate on your balance, consider transferring it to a lower interest rate card. That can save you a lot while you are working to pay down that balance. The key is to not charge any more on the old card once you have transferred your balance or end up in a worse financial situation.
- Be wary of signing up for credit cards for all the wrong reasons. Yes, enough miles for an incredible vacation sounds terrific, but do you need that additional card? You may find the interest you pay on that card, especially when it is maxed out, will pay for that trip multiple times over.
- Keep a list of all your credit card information in a safe place. List all of your credit cards along with the credit card number, expiration date and phone number for each of your cards. By doing this, you will always have all of your credit card information in one place should you need it.
Best credit card tips for 2022: No annual fees is not a great idea.
The most wonderful things in life don’t always come free, even in the case of credit cards. Annual fees can be quite a hassle, but there are occasions that it’s worth the cost to get a host of cash-saving benefits and perks. Does the benefit of an individual card outweigh the cost of its own?
It would be best if you build credit or FICO score.
There are many reasons for someone to have a bad credit score. There’s just one reason for anyone in this category to select a credit card with an annual cost: it’s the best choice for them.
“Sometimes it is the case that a credit card that charges an annual cost could be the best choice.”
A few cards do not charge an annual fee that targets those with damaged or weak credit scores. Based on your financial situation (or absence of it), it is possible that you will not be eligible. Here are a few examples of instances where it may be a good idea to purchase this card.
If you don’t have a bank account, This card OpenSky(r) Secured Visa(r) Credit Card is a $35 annual fee and requires a 200 minimum initial deposit. It doesn’t need the opening of a bank account or credit check, which makes it among the most suitable alternatives for people whose credit scores may not be eligible for other credit cards. There are security-based credit cards, which don’t have annual fees. However, they will require a credit check and not allow you to apply if you’re not banked.
Your credit score is fair.
Capital One QuicksilverOne Cash Rewards Credit Card is a rewards credit card that offers 1.5 per cent cashback. It is also open to people who have fair credit scores, making it a viable option for people who may not have the opportunity to get a rewards card. It has an annual cost of $39. If you make more than $2,600 annually to the credit card, you’ll break the annual cost of $39.
You’re looking for better cashback rewards.
For people who are spending a lot of money in certain categories, it may be beneficial to pay an annual fee on a credit card if the amount you’ll earn exceeds the price of the charge. There are a few scenarios in which this is a more profitable choice is:
“It could be logical to pay the annual fee if the money you’ll earn back is greater than the cost of this fee.”
Your family consumes a lot of groceries. The card Blue Cash Preferred(r) Card from American Express has an annual cost ($0 initial for the first year, and then $95 after that) So, why would you pick it over the no-annual-fee version that is the Blue Cash every day (r) Card from American Express? It’s because this Blue Cash Preferred(r) Card from American Express earns 6% cashback in U.S. supermarkets (on up to $6,000 in purchases, and then at 1%.) Conditions will apply (see rates and charges). There are fees and rates. American Express offers blue Cash every day (r) Card. By contrast, it earns just cashback of 3% at U.S. supermarkets (on up to $6,000 annually in purchases, and then the rate is 1%.) The terms and conditions must be met (see rates and charges). Even with the annual cost, you’ll get more with the Blue Cash Preferred(r) Card from American Express if you spend a minimum of $61 per week on food. Additionally, you can earn Blue Cash Preferred(r) Card from American Express also earns 6 per cent back on selected U.S. streaming subscriptions and 3 per cent back on purchases at U.S. gas stations and the bus, as opposed to other cards like the Blue Cash every day (r) Card that comes from American Express’ 2% cashback in U.S. gas stations and some U.S. department stores (no limits for the cards for those categories). Conditions apply.
You’re a high-spending consumer who is looking for a cashback credit card that has a flat rate. People with large credit cards may be better off using this cashback Alliant Visa(r) Signature Credit Card instead of similar options with no annual fees. The card comes with an annual cost of $0. However, it earns 2.5 per cent, up to $10,000 worth of qualifying transactions per billing cycle. After the first year, when you’ve spent more than $9,900 in a calendar year, you’ll be ahead of the flat-rate 1.5 per cent card that has no annual fees. If you make more than $19,800 per year, you’ll qualify with a no-annual fee card of 2.
You’re looking at travel benefits or a massive sign-up offer.
Hotel cards
It doesn’t matter if you’re loyal to a specific brand or aim to achieve elite status and the benefits that come with it. A co-branded hotel card could be worth more than what you spend for it. Below are some instances this could be true:
“If the hotel credit card includes an annually free stay, that benefit by itself will probably equal or surpass the annual fee of the card.”
You’re sure to stay in a hotel at least once a year for a night. One of the best benefits of this World of Hyatt Credit card is it comes with an award of a free night every year following your account’s anniversary (at an eligible Category 1 to 4 Hyatt hotel). If you’re certain that you’ll be using the card, the free night could be worth more than or even exceed the annual fee of $95.
You’re an avid business traveller. You’re so used to staying in hotels that you’ve got the menu for room service memorized. If you’re frequently travelling, it’s a good idea to be a brand loyalist and have a compatible card. Hilton Honors American Express Surpass(r) Card Hilton Honors American Express Surpass(r) Card offers perks on the platter, an annual cost of $95. At this rate, you can enjoy 10 free visits to lounges in airports that are part of the Priority Pass Select network each year, making your wait time at the airport pleasant. You’ll need to register in Priority Pass before the deadline. This Hilton Honors American Express Surpass(r) Card also provides the status of Gold, which entitles you to advantages like breakfast at no cost, as well as other perks.
Airline cards
Co-branded airline cards usually offer benefits equal to or greater than the cost of ownership per year. The more flights you take and the more frequent you travel, the more valuable the advantages will be to you. The scenarios that could make a co-branded airline credit card worth it:
“Co-branded airline cards typically provide rewards that are greater or equal to the cost of ownership per year. The more flights you take and the more frequent you travel, the more valuable the benefits will be for you.”
If you fly at a minimum once per year with a companion, you must ensure you have your luggage checked and carry your bags. The United(sm) Explorer Card offers one bag for free for the passenger with your reservation. That can save you up to $35 for each direction which is a $140 round journey. With an annual cost of zero for the first year, and then at $95, you’ll be with a profit after only the first flight.
If you’re looking to make an annual trip with a partner If your travel plans are in Alaska Airlines’ routes, the Alaska Airlines Visa Signature(r) credit card grants you the Companion Fare every year on the anniversary of your account. It can cover the cost of a guest’s ticket for the Alaska Airlines coach flight for just $121 ($99 in addition to taxes and charges that can be as low as $22 for the entire trip). Based on the route, it could help you save hundreds or even thousands of dollars, far exceeding the card’s annual charge of $75.
General travel cards
There is no reason to be a fan of a particular airline or hotel and prefer to choose which one is best for your particular trip. Some cards could be worth the out-of-pocket cost, particularly when they offer huge bonus offers for signing up. Some of the people who may consider an annual fee to be worth it on these kinds of cards are:
“Some bonus sign-up bonuses for credit cards will cover the costs of owning a card for a number of years.”
It is a good idea to earn free travel by spending money on the Capital One Venture Rewards Credit Card earns you 2 miles per $1 spent on the most expensive purchases. Rewards can be converted into an account credit towards the cost of any hotel or flight. Additionally, the card comes with an impressive sign-up bonus. Get a one-off bonus of 60,000 miles after you have spent $3,000 in purchases within 3 months of the date of account opening. The annual cost for the card is $95. However, the bonus is enough to pay to cover ownership costs for several years. That is without even taking into account the card’s rewards regularly and flexibility.
There is a great deal of travel via plane, car or ferry, commuter train etc. A monthly charge of $550 might appear as a high price to be paid for the privilege of owning Chase Sapphire Reserve(r). However, take a look at the complete package. It comes with an annual travel credit of $300, which substantially reduces the total cost of the ownership. There are also perks, such as free Priority Pass Select lounge membership, primary coverage for rental cars, and a long list of travel partners that you can transfer points to at a 1:1 ratio.
Additionally, you’ll receive 50 per cent more value from the points you earn when you use them for travel with the Chase Ultimate Rewards(r). The card also has a significant initial bonus that gives you an additional 50,000 bonus points once you’ve spent $4,000 on purchases within the first three months after the time of account opening. It is a total of $750 towards travel expenses when you use the Chase Ultimate Rewards(r).
Why do you need to understand the concept of FICO score in 2022 as a beginner?
A score in the range of 300 to 800 is an average credit score. Again 700 or more is generally considered good. A score of over 800 on the same scale is thought to be exceptional. A majority of people possess credit scores that range between 600 to 700. In 2020 it was reported that the median FICO(r) Score for the U.S. reached 710–an increase by seven points over last year. Higher scores can make creditors more certain that you will pay off your debts in terms of your agreement. Creditors may also have their criteria of what they believe as good or bad credit scores when they evaluate customers for credit and loans cards.
In part, this is contingent on the type of borrower they wish to attract. Creditors might consider the effects of current events on their customers’ credit scores and alter their requirements to reflect this. Some lenders develop their own customized credit scoring models, but the two most frequently used credit scoring programs are those developed through FICO(r) along with VantageScore(r).
What is a good FICO(r) score?
FICO(r) produces various types of consumer credit scores for consumers. It has “base” FICO(r) scores that the company creates for lenders from a variety of sectors to use and also specific credit scores that are tailored to the industry for credit card issuers as well as auto lenders.
The basic FICO(r) scores range between 300 and 850. In addition, FICO determines a “good” score as 670-739. FICO(r)’s industry-specific credit scores come with an additional range of 250 to 900. The middle categories share similar groupings, and a “good” sector-specific FICO(r) score remains 670-739.
What is a good Vantage Score?
The two first credit scoring models used ranges of 501-990. The two most recent VantageScore credit score models (VantageScore 3.0 and 4.0) utilize an 850-300 range — identical to the original FICO(r) score. In the most current versions, VantageScore sets 661 to 780 as its acceptable range.
What affects your credit scores?
Common factors can impact your credit score in all ways. They are typically divided into five categories:
History of payments: Making on-time payments to your credit account can boost your scores. However, missing payments, having accounts transferred to collections or declaring bankruptcy can hurt your score.
Credit utilization What percentage of your accounts are in balance and how much you owe, and the amount in your credit limits you’re using for revolving accounts all factor into this.
The length of your credit history The category comprises your average credit history for your credit accounts, as well as the age and status of both your newest and oldest accounts.
Account types: Also known as “credit mixture,” the concept is to consider whether or not you’re managing instalments (such as an auto loan, personal loan, mortgage or personal loan) and Revolving accounts (such as credit cards and various types of credit lines). Being able to manage both kinds of accounts responsibly generally improves your score.
Recently-occurring activity will determine whether you’ve recently applied to or opened a new account.
FICO(r) and VantageScore have different ways of explaining the importance and relative value of both categorical categories.
FICO(r) Score Factors
FICO(r) employs percentages to show the importance of each category; however, the exact breakdown of percentages used to calculate your credit score will be contingent on the specifics of your credit report. FICO(r) evaluates score factors in this order:
- History of payment The payment history is 35 per cent
- Sums due: 30%
- Credit history length The length of credit history
- A mix of credit: 10%
- New credit Credit: 10 10%
- VantageScore Factors
Vantage Score provides the various factors based on their influence in determining your credit score. However, this is also based on the specifics of your credit report. VantageScore examines the variables as follows:
- Credit utilization, available credit and balance Highly impactful
- Experience and mix of credit Influential
- Pay history: moderately influential
- The age of the history of credit: less significant
- New accounts open: More insignificant
What are the details that credit scores do Not Take into Account
FICO(r), as well as VantageScore, don’t look at the following data when calculating credit scores
Your race, color, religion, ethnicity, gender, or marital situation. (U.S. law forbids credit scoring formulas to consider these factors and also any public assistance received or exercising any rights of a consumer according to the Consumer Credit Protection Act.)
Your salary, job title, employer date of employment or work background. (Keep in mind that lenders might use this information to make their final decision to approve.)
The place you reside.
Soft inquiries. Other people typically initiate these inquiries, such as businesses that offer promotional offers of credit or your lender performing regular reviews of credit accounts. Also, soft inquiries can occur when you look up your credit report or utilize credit monitoring services offered by companies such as Experian. These inquiries do not impact your credit scores.
Why Do We Have Different Credit Scores?
Credit scores are a method that lenders employ to help make lending decisions. FICO(r), as well as Vantage Score, provide different credit scoring models to lenders. Both firms regularly make updated versions of their respective credit score models, similar to how other software companies can provide the latest operating system versions. The most recent versions could incorporate new technology or modifications in the behaviour of consumers or be more in line with the latest regulations.
For instance, Vantage Score creates a tri-bureau scoring model, which means that the same model can examine your credit report using all three main Consumer credit reporting bureaus (Experian, TransUnion and Equifax). The initial Version (VantageScore 1.0) came out in 2006 and was created in 2006. The most recent version, called VantageScore 4.0, was released in 2017 and was based in 2014-2016. The first general credit score incorporated trended information, or how people manage their credit accounts over time.
Two popular kinds are consumer FICO(r) Scores. FICO(r) is an old firm and was among the first to develop credit scoring models built on the consumer credit report. The company has several variations of their scoring models that can be used with each credit bureau’s data. However, the most recent versions have the same name, like FICO(r) Score 8.
Basis FICO(r) Scores: They are developed to be used by any lender since they are designed to determine the possibility that a consumer will default on any credit obligation. The base FICO(r) Scores vary from 300-850.
Industries-specific FICO(r) scores: FICO(r) generates bankcard scores and auto scores specifically for auto lenders and card issuers. Scores for industries aim to determine the possibility that a person will be in debt on the type of account and range from 250-900.
FICO(r) specific scores for the industry are constructed upon a foundational FICO(r) Score. FICO(r) regularly launches new scores suites. For instance, the FICO(r) Score 10 Suite is one example. It was released in the early part of 2020. It comprises the base FICO(r) Score 10 and the FICO(r) Score 10T (which contains trended data) and brand new scores for specific industries.
Scores are used less often, too. For example, FICO(r) is slowly rolling out the UltraFICO(r) Score that lets consumers connect checking, savings and money market account and examines bank activities. They can also develop specific credit scoring models to meet the needs of their clients in the back of their heads.
The lenders can pick the model they wish to choose. In reality, some lenders might choose to stay with older versions due to the risk of investment associated with switching. Many mortgage lenders utilize old versions of basic FICO(r) Scores to conform to the guidelines set by mortgage companies backed by the government Fannie Mae and Freddie Mac.
There are times when you don’t know the type of credit report or score the lender will use before you apply. It’s good to know that both consumers’ FICO(r) and VantageScore credit scores are based on the same basic information. It is data from the credit reports you have to calculate your credit score. They all attempt to provide the same forecast–the probability that an individual will be 90 days overdue on a debt (either in general or particular kind) throughout the next 24-month period.
Suppose you keep track of several ratings for your credit. In that case, you may observe that your scores differ following the scoring method and the credit reports it evaluates. Over time you might notice that the scores fluctuate and rise. The same variables could affect your credit scores.
What are the reasons why having a great credit Score is Important?
Overall, having good credit will help you reach your personal and financial objectives easier. It could mean the difference between being approved or not being able to get funding, like the mortgage for your home or car loan. In addition, it could directly affect the amount you’ll be required to pay in fees or interest when you’re accepted.
For example, the cost difference between taking out a 30-year fixed-rate mortgage at $250,000 with a six-digit FICO(r) score and 730 FICO(r) score could amount to around $72 per month. That is money you could put towards your savings or for other goals. In the course of your loan, an excellent credit score can reduce your interest bill by $26,071.
Furthermore, credit scores could influence lending choices, for example, whether a landlord is willing to let you rent an apartment.
Your credit report (but the consumer score) may also affect your credit report in different ways. Employers may look over your credit reports before making the hiring or promotion decisions. In many states, insurers utilize credit-based insurance scores to calculate your monthly premiums for home, auto, and life insurance.
How to Increase Your Credit Score?
To improve your credit score, be sure to focus on the fundamental elements that impact your score. In the end, the most basic steps to follow are pretty straightforward:
You must make at least the minimum payments and pay every debt payment in time. Any late payment could affect your credit score, and it’ll remain at least seven years on the credit reports of yours. Suppose you are concerned that you might be late on a payment. In that case, you should contact your creditors as fast as possible to determine how they can help them or offer a solution for hardship.
Keep your credit card balances low. Your credit utilization ratio is a key scoring element that measures the current amount of balance and the credit limit of revolving accounts, such as credit cards. Being able to have a low utilization rate could help improve your credit score. People with good credit scores generally have an overall utilization rate of just a single number.
The accounts you open are reported to credit bureaus. If you only have limited credit accounts, make sure that any accounts you open are added to your credit file. They could be instalment accounts like a student, auto personal, home or mortgage loans or revolving accounts including credit lines and credit cards.
Make sure to only apply for credit if you require it. Making a new credit card request can result in a lengthy inquiry that could affect your credit score a bit. The effect is typically not significant, but applying for various credit or loans within a short timeframe can result in a bigger score decline.
Other elements can affect your FICO score in 2022. In particular, an increase in the average age of your accounts can boost your score. But, it’s usually more of a matter of putting off instead of making a move.
Best credit cards in 2022 for beginners with no FICO score or credit history
| Credit card | Suitable for | APR | Rewards | Annual fee |
| Capital One Platinum | Those with fair credit | 26.99% (Variable) | None | $0 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Simple cash back | 26.99% (Variable) | Unlimited 1.5% cash back | $39 |
| Journey Student Rewards from Capital One | Students with limited credit | 26.99% (Variable) | 1% cash back, 1.25% when you pay your bill on time | $0 |
| Chase Freedom® Student credit card | Students looking to earn rewards | 14.99% Variable | 1% cash back on all purchases | $0 |
| OpenSky® Secured Visa® Credit Card | Those with no credit history | 17.39% (Variable) | None | $35 |
| Platinum Secured Credit Card from Capital One | Those looking for an easy-to-use card | 26.99% (Variable) | None | $0 |
Best Credit Cards in 2022 with Credit Score Is Under 599 (Bad Credit)
| Card | Suitable for | Initial Credit Limit | Annual Fee | APR | Secured/ Unsecured? | Features |
| Petal® 1 “No Annual Fee” Visa® Credit Card | Rebuilding low credit | $500-$5,000 | USD | 19.99 – 29.49% Variable | Unsecured | Earn 2%-10% cash back at select merchants |
| Credit One Bank® Platinum Visa® for Rebuilding Credit | Low security deposit | $300 minimum | $75 for the first year. After that, $99 annually ($8.25 per month) | 23.99% Variable | Unsecured | Cashback, $0 fraud liability, Experian credit score |
| Platinum Secured Credit Card from Capital One | No credit check | $200 | $0 | 26.99% (Variable) | Secured, requires a deposit of $49, $99, or $200 | N/A |
| OpenSky® Secured Visa® Credit Card | Cash back rewards | $200 – $3,000 | $35 | 17.39% (Variable) | Secured | There’s no credit check or bank account required to open an account. |
| Discover it® Secured | People who have a recent bankruptcy | $200 or more | $0 | See Terms | Secured, matches credit limit | Cashback, credit alerts, $0 fraud liability, free FICO score |
| Indigo® Platinum Mastercard® | People with no credit | $300 | $0 to $99 | 24.90% | Unsecured | N/A |
| Milestone® Gold Mastercard® | Everyday cash back rewards for fair credit | $300 minimum | $35 to $99 | 24.90% | Unsecured | N/A |
Best credit cards in 2022 if your FICO score is 650 to 699 ( Average FICO score)
| Card | Annual Fee | APR Range | Credit Line Increases? | Sign On Bonus Offer | Rewards |
| Capital One QuicksilverOne Cash Rewards Credit Card | $39 | 26.99% (Variable) | Yes, reviewed after six months | N/A | 1.5% unlimited cash back all purchases |
| Petal® 1 “No Annual Fee” Visa® Credit Card | USD | 19.99 – 29.49% Variable | Not available at this time | N/A | 2% – 10% cash back from select merchants |
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | USD | 12.99 – 26.99% Variable | Not available at this time | N/A | 1%-1.5% unlimited cash back on all purchases; 2%-10% from select merchants |
| Capital One Platinum Credit Card | $0 | 26.99% (Variable) | Yes, reviewed after six months | N/A | N/A |
| Indigo® Platinum Mastercard® | $0 – $99 | 24.90% | N/A | N/A | N/A |
Best Credit Cards in 2022 with FICO Score Between 700 and 749 (Good Credit score)
| Credit card | Best For | Annual Fee | APR Range | Sign-up Bonus Offer | |
| Capital One Venture Rewards Credit Card | Travel rewards | $95 | 15.99% – 23.99% (Variable) | 60,000 bonus miles when you spend $3,000 on purchases in the first 3 months from account opening | |
| Chase Sapphire Preferred® Card | $95 | 15.99%-22.99% Variable | 60,000 bonus points when you spend $4,000 on purchases in the first three months | ||
| Capital One VentureOne Rewards Credit Card | Travel rewards + no annual fee | $0 | 14.99% – 24.99% (Variable) | 20,000 bonus miles when you spend $500 on purchases in the first three months of account opening | |
| Discover it® Miles | $0 | 13.49% – 24.49% Variable | Discover will match all miles earned at the end of your first year | ||
| Wells Fargo Platinum card | Balance transfers | $0 | 16.49% – 24.49% Variable | None | |
| Citi Custom Cash℠ Card | Cash rewards and balance transfers | $0 | 13.99% – 23.99% (Variable) | $200 (or 20,000 bonus ThankYou® Points) when you spend $750 on purchases in the first three months of account opening | |
| Capital One® Savor® Cash Rewards Credit Card | Cash rewards | $0 intro for first year; $95 after that | 15.99% – 24.99% (Variable) | $300 in cash rewards after spending $3,000 on purchases within the first three months of opening their account | |
| Chase Freedom Flex℠ | $0 | 14.99 – 24.74% Variable | $200 Bonus after you spend $500 on purchases in your first 3 months from account opening | ||
| Chase Freedom Unlimited® | $0 | 14.99% – 24.74% Variable | $200 cash bonus after spending $500 in the first three months | ||
Best credit cards in 2022 if your FICO score is 750 and above (Excellent)
| Credit Cards | Suitable for | APR | Rewards | Annual fee |
| Capital One Platinum | Those with fair credit | 26.99% (Variable) | None | $0 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Simple cash back | 26.99% (Variable) | Unlimited 1.5% cash back | $39 |
| Journey Student Rewards from Capital One | Students with limited credit | 26.99% (Variable) | 1% cash back, 1.25% when you pay your bill on time | $0 |
| Chase Freedom® Student credit card | Students looking to earn rewards | 14.99% Variable | 1% cash back on all purchases | $0 |
| OpenSky® Secured Visa® Credit Card | Those with no credit history | 17.39% (Variable) | None | $35 |
| Platinum Secured Credit Card from Capital One | Those looking for an easy-to-use card | 26.99% (Variable) | None | $0 |
Best Beginners’ Tips for credit card FICO scores (Excellent/ Good/ Fair/ Poor) in 2022
It is a beginners’ guide before landing into the world of credit. If you are smart, you can make a great purchase with timely payments. If not, one loan will lead it to another, and you can never come out of it. Many folks understand just how problematic credit cards can become with one simple lapse of attention. However, the solution to this is developing sound habits that become automatic protective behaviours. Apply what you will learn from this article to make habits of protective behaviours that will help you.
17 Best practices for using a Credit card in 2022
- Everyone knows just how powerful and dangerous that credit cards can be. The temptation of massive and instant gratification is always lurking in your wallet, and it only takes one afternoon of not paying attention to slide down that slope. On the other hand, sound strategies, practised with regularity, become an effortless habit and can protect you. Free or no annual fees may not be a great idea. I will explain that in a separate section. Scroll down.
- Do not close credit card accounts until you understand the impact they may have. There are times when you close a card that can have negative effects on your next credit report. Choose to keep the accounts that you have had open the longest that make up your credit history.
- Pay your minimum payment on time each month to avoid more fees. Suppose you can afford to pay more than the minimum payment to reduce the interest fees. Just be sure to pay the minimum amount before the due date.
- Always make any credit card payments on time. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. Additionally, most companies will increase the interest rate on your credit card, which means an increase in the cost of every purchase you put on that card after that.
- One important tip for all credit card users is to make a budget. Having a budget is a great way to figure out whether or not you can afford to buy something. If you can’t afford it, charging something to your credit card is just a recipe for disaster.
- Consider unsolicited credit card offers very carefully before you accept them. If an offer that comes to you looks good, read all the fine print to make sure you understand the time limit for any introductory offers on interest rates. Also, be aware of fees that are required for transferring a balance to the account.
- It may seem unnecessary to many people, but be sure to save receipts for the purchases that you make on your credit card. Take the time each month to be sure that the receipts match up to your credit card statement. It will help you manage your charges, as well as help you catch unjust charges.
- It is important always to review the charges and credits posted to your credit card account. Whether you choose to verify your account activity online, read paper statements, or ensure that all charges and payments are reflected accurately, you can avoid costly errors or unnecessary battles with the card issuer.
- If you cannot pay your credit card balance in full, slow down how often you use it. Though it’s a problem to get on the wrong track when it comes to your credit cards, the problem will only become worse if you allow it to. Try to stop using your cards for a while, or at least slowdown, so you can avoid owing thousands and falling into financial hardship.
- Transferring a credit card balance from a high-interest credit card to a card where the rate is less can save you money every month. Credit card companies offer special introductory rates to attract new business to their credit cards. If you take advantage of one of these offers, make sure that you understand the amount of time that the introductory rate offer lasts.
- Be aware that you can still have a credit card, even if your credit is not up to par. There are two choices to pick from. You could either get yourself a secured card or sign up to be an authorized user on the credit card of a family member or partner.
- Be careful when you sign up with secured credit card companies because many of them charge high fees in exchange for issuing you a card. If you have to get this type of card, you should shop around to pay the lowest fees.
- Even if you cannot make your minimum monthly payment on a credit card, you should pay something. No matter how modest the amount, this will tell your credit card company that you are trying to deal fairly with them. If your problems continue, you will find your company more inclined to work with you if you make at least some payments.
- Try your best to use a prepaid credit card when you are making online transactions. That will help so that you do not have to worry about any thieves accessing your real credit card information. It will be much easier to bounce back if you are scammed in this type of situation.
- If your credit card is charging you a high-interest rate on your balance, consider transferring it to a lower interest rate card. That can save you a lot while you are working to pay down that balance. The key is to not charge any more on the old card once you have transferred your balance or end up in a worse financial situation.
- Be wary of signing up for credit cards for all the wrong reasons. Yes, enough miles for an incredible vacation sounds terrific, but do you need that additional card? You may find the interest you pay on that card, especially when it is maxed out, will pay for that trip multiple times over.
- Keep a list of all your credit card information in a safe place. List all of your credit cards along with the credit card number, expiration date and phone number for each of your cards. By doing this, you will always have all of your credit card information in one place should you need it.
Best credit card tips for 2022: No annual fees is not a great idea.
The most wonderful things in life don’t always come free, even in the case of credit cards. Annual fees can be quite a hassle, but there are occasions that it’s worth the cost to get a host of cash-saving benefits and perks. Does the benefit of an individual card outweigh the cost of its own?
It would be best if you build credit or FICO score.
There are many reasons for someone to have a bad credit score. There’s just one reason for anyone in this category to select a credit card with an annual cost: it’s the best choice for them.
“Sometimes it is the case that a credit card that charges an annual cost could be the best choice.”
A few cards do not charge an annual fee that targets those with damaged or weak credit scores. Based on your financial situation (or absence of it), it is possible that you will not be eligible. Here are a few examples of instances where it may be a good idea to purchase this card.
If you don’t have a bank account, This card OpenSky(r) Secured Visa(r) Credit Card is a $35 annual fee and requires a 200 minimum initial deposit. It doesn’t need the opening of a bank account or credit check, which makes it among the most suitable alternatives for people whose credit scores may not be eligible for other credit cards. There are security-based credit cards, which don’t have annual fees. However, they will require a credit check and not allow you to apply if you’re not banked.
Your credit score is fair.
Capital One QuicksilverOne Cash Rewards Credit Card is a rewards credit card that offers 1.5 per cent cashback. It is also open to people who have fair credit scores, making it a viable option for people who may not have the opportunity to get a rewards card. It has an annual cost of $39. If you make more than $2,600 annually to the credit card, you’ll break the annual cost of $39.
You’re looking for better cashback rewards.
For people who are spending a lot of money in certain categories, it may be beneficial to pay an annual fee on a credit card if the amount you’ll earn exceeds the price of the charge. There are a few scenarios in which this is a more profitable choice is:
“It could be logical to pay the annual fee if the money you’ll earn back is greater than the cost of this fee.”
Your family consumes a lot of groceries. The card Blue Cash Preferred(r) Card from American Express has an annual cost ($0 initial for the first year, and then $95 after that) So, why would you pick it over the no-annual-fee version that is the Blue Cash every day (r) Card from American Express? It’s because this Blue Cash Preferred(r) Card from American Express earns 6% cashback in U.S. supermarkets (on up to $6,000 in purchases, and then at 1%.) Conditions will apply (see rates and charges). There are fees and rates. American Express offers blue Cash every day (r) Card. By contrast, it earns just cashback of 3% at U.S. supermarkets (on up to $6,000 annually in purchases, and then the rate is 1%.) The terms and conditions must be met (see rates and charges). Even with the annual cost, you’ll get more with the Blue Cash Preferred(r) Card from American Express if you spend a minimum of $61 per week on food. Additionally, you can earn Blue Cash Preferred(r) Card from American Express also earns 6 per cent back on selected U.S. streaming subscriptions and 3 per cent back on purchases at U.S. gas stations and the bus, as opposed to other cards like the Blue Cash every day (r) Card that comes from American Express’ 2% cashback in U.S. gas stations and some U.S. department stores (no limits for the cards for those categories). Conditions apply.
You’re a high-spending consumer who is looking for a cashback credit card that has a flat rate. People with large credit cards may be better off using this cashback Alliant Visa(r) Signature Credit Card instead of similar options with no annual fees. The card comes with an annual cost of $0. However, it earns 2.5 per cent, up to $10,000 worth of qualifying transactions per billing cycle. After the first year, when you’ve spent more than $9,900 in a calendar year, you’ll be ahead of the flat-rate 1.5 per cent card that has no annual fees. If you make more than $19,800 per year, you’ll qualify with a no-annual fee card of 2.
You’re looking at travel benefits or a massive sign-up offer.
Hotel cards
It doesn’t matter if you’re loyal to a specific brand or aim to achieve elite status and the benefits that come with it. A co-branded hotel card could be worth more than what you spend for it. Below are some instances this could be true:
“If the hotel credit card includes an annually free stay, that benefit by itself will probably equal or surpass the annual fee of the card.”
You’re sure to stay in a hotel at least once a year for a night. One of the best benefits of this World of Hyatt Credit card is it comes with an award of a free night every year following your account’s anniversary (at an eligible Category 1 to 4 Hyatt hotel). If you’re certain that you’ll be using the card, the free night could be worth more than or even exceed the annual fee of $95.
You’re an avid business traveller. You’re so used to staying in hotels that you’ve got the menu for room service memorized. If you’re frequently travelling, it’s a good idea to be a brand loyalist and have a compatible card. Hilton Honors American Express Surpass(r) Card Hilton Honors American Express Surpass(r) Card offers perks on the platter, an annual cost of $95. At this rate, you can enjoy 10 free visits to lounges in airports that are part of the Priority Pass Select network each year, making your wait time at the airport pleasant. You’ll need to register in Priority Pass before the deadline. This Hilton Honors American Express Surpass(r) Card also provides the status of Gold, which entitles you to advantages like breakfast at no cost, as well as other perks.
Airline cards
Co-branded airline cards usually offer benefits equal to or greater than the cost of ownership per year. The more flights you take and the more frequent you travel, the more valuable the advantages will be to you. The scenarios that could make a co-branded airline credit card worth it:
“Co-branded airline cards typically provide rewards that are greater or equal to the cost of ownership per year. The more flights you take and the more frequent you travel, the more valuable the benefits will be for you.”
If you fly at a minimum once per year with a companion, you must ensure you have your luggage checked and carry your bags. The United(sm) Explorer Card offers one bag for free for the passenger with your reservation. That can save you up to $35 for each direction which is a $140 round journey. With an annual cost of zero for the first year, and then at $95, you’ll be with a profit after only the first flight.
If you’re looking to make an annual trip with a partner If your travel plans are in Alaska Airlines’ routes, the Alaska Airlines Visa Signature(r) credit card grants you the Companion Fare every year on the anniversary of your account. It can cover the cost of a guest’s ticket for the Alaska Airlines coach flight for just $121 ($99 in addition to taxes and charges that can be as low as $22 for the entire trip). Based on the route, it could help you save hundreds or even thousands of dollars, far exceeding the card’s annual charge of $75.
General travel cards
There is no reason to be a fan of a particular airline or hotel and prefer to choose which one is best for your particular trip. Some cards could be worth the out-of-pocket cost, particularly when they offer huge bonus offers for signing up. Some of the people who may consider an annual fee to be worth it on these kinds of cards are:
“Some bonus sign-up bonuses for credit cards will cover the costs of owning a card for a number of years.”
It is a good idea to earn free travel by spending money on the Capital One Venture Rewards Credit Card earns you 2 miles per $1 spent on the most expensive purchases. Rewards can be converted into an account credit towards the cost of any hotel or flight. Additionally, the card comes with an impressive sign-up bonus. Get a one-off bonus of 60,000 miles after you have spent $3,000 in purchases within 3 months of the date of account opening. The annual cost for the card is $95. However, the bonus is enough to pay to cover ownership costs for several years. That is without even taking into account the card’s rewards regularly and flexibility.
There is a great deal of travel via plane, car or ferry, commuter train etc. A monthly charge of $550 might appear as a high price to be paid for the privilege of owning Chase Sapphire Reserve(r). However, take a look at the complete package. It comes with an annual travel credit of $300, which substantially reduces the total cost of the ownership. There are also perks, such as free Priority Pass Select lounge membership, primary coverage for rental cars, and a long list of travel partners that you can transfer points to at a 1:1 ratio.
Additionally, you’ll receive 50 per cent more value from the points you earn when you use them for travel with the Chase Ultimate Rewards(r). The card also has a significant initial bonus that gives you an additional 50,000 bonus points once you’ve spent $4,000 on purchases within the first three months after the time of account opening. It is a total of $750 towards travel expenses when you use the Chase Ultimate Rewards(r).
Why do you need to understand the concept of FICO score in 2022 as a beginner?
A score in the range of 300 to 800 is an average credit score. Again 700 or more is generally considered good. A score of over 800 on the same scale is thought to be exceptional. A majority of people possess credit scores that range between 600 to 700. In 2020 it was reported that the median FICO(r) Score for the U.S. reached 710–an increase by seven points over last year. Higher scores can make creditors more certain that you will pay off your debts in terms of your agreement. Creditors may also have their criteria of what they believe as good or bad credit scores when they evaluate customers for credit and loans cards.
In part, this is contingent on the type of borrower they wish to attract. Creditors might consider the effects of current events on their customers’ credit scores and alter their requirements to reflect this. Some lenders develop their own customized credit scoring models, but the two most frequently used credit scoring programs are those developed through FICO(r) along with VantageScore(r).
What is a good FICO(r) score?
FICO(r) produces various types of consumer credit scores for consumers. It has “base” FICO(r) scores that the company creates for lenders from a variety of sectors to use and also specific credit scores that are tailored to the industry for credit card issuers as well as auto lenders.
The basic FICO(r) scores range between 300 and 850. In addition, FICO determines a “good” score as 670-739. FICO(r)’s industry-specific credit scores come with an additional range of 250 to 900. The middle categories share similar groupings, and a “good” sector-specific FICO(r) score remains 670-739.
What is a good Vantage Score?
The two first credit scoring models used ranges of 501-990. The two most recent VantageScore credit score models (VantageScore 3.0 and 4.0) utilize an 850-300 range — identical to the original FICO(r) score. In the most current versions, VantageScore sets 661 to 780 as its acceptable range.
What affects your credit scores?
Common factors can impact your credit score in all ways. They are typically divided into five categories:
History of payments: Making on-time payments to your credit account can boost your scores. However, missing payments, having accounts transferred to collections or declaring bankruptcy can hurt your score.
Credit utilization What percentage of your accounts are in balance and how much you owe, and the amount in your credit limits you’re using for revolving accounts all factor into this.
The length of your credit history The category comprises your average credit history for your credit accounts, as well as the age and status of both your newest and oldest accounts.
Account types: Also known as “credit mixture,” the concept is to consider whether or not you’re managing instalments (such as an auto loan, personal loan, mortgage or personal loan) and Revolving accounts (such as credit cards and various types of credit lines). Being able to manage both kinds of accounts responsibly generally improves your score.
Recently-occurring activity will determine whether you’ve recently applied to or opened a new account.
FICO(r) and VantageScore have different ways of explaining the importance and relative value of both categorical categories.
FICO(r) Score Factors
FICO(r) employs percentages to show the importance of each category; however, the exact breakdown of percentages used to calculate your credit score will be contingent on the specifics of your credit report. FICO(r) evaluates score factors in this order:
- History of payment The payment history is 35 per cent
- Sums due: 30%
- Credit history length The length of credit history
- A mix of credit: 10%
- New credit Credit: 10 10%
- VantageScore Factors
Vantage Score provides the various factors based on their influence in determining your credit score. However, this is also based on the specifics of your credit report. VantageScore examines the variables as follows:
- Credit utilization, available credit and balance Highly impactful
- Experience and mix of credit Influential
- Pay history: moderately influential
- The age of the history of credit: less significant
- New accounts open: More insignificant
What are the details that credit scores do Not Take into Account
FICO(r), as well as VantageScore, don’t look at the following data when calculating credit scores
Your race, color, religion, ethnicity, gender, or marital situation. (U.S. law forbids credit scoring formulas to consider these factors and also any public assistance received or exercising any rights of a consumer according to the Consumer Credit Protection Act.)
Your salary, job title, employer date of employment or work background. (Keep in mind that lenders might use this information to make their final decision to approve.)
The place you reside.
Soft inquiries. Other people typically initiate these inquiries, such as businesses that offer promotional offers of credit or your lender performing regular reviews of credit accounts. Also, soft inquiries can occur when you look up your credit report or utilize credit monitoring services offered by companies such as Experian. These inquiries do not impact your credit scores.
Why Do We Have Different Credit Scores?
Credit scores are a method that lenders employ to help make lending decisions. FICO(r), as well as Vantage Score, provide different credit scoring models to lenders. Both firms regularly make updated versions of their respective credit score models, similar to how other software companies can provide the latest operating system versions. The most recent versions could incorporate new technology or modifications in the behaviour of consumers or be more in line with the latest regulations.
For instance, Vantage Score creates a tri-bureau scoring model, which means that the same model can examine your credit report using all three main Consumer credit reporting bureaus (Experian, TransUnion and Equifax). The initial Version (VantageScore 1.0) came out in 2006 and was created in 2006. The most recent version, called VantageScore 4.0, was released in 2017 and was based in 2014-2016. The first general credit score incorporated trended information, or how people manage their credit accounts over time.
Two popular kinds are consumer FICO(r) Scores. FICO(r) is an old firm and was among the first to develop credit scoring models built on the consumer credit report. The company has several variations of their scoring models that can be used with each credit bureau’s data. However, the most recent versions have the same name, like FICO(r) Score 8.
Basis FICO(r) Scores: They are developed to be used by any lender since they are designed to determine the possibility that a consumer will default on any credit obligation. The base FICO(r) Scores vary from 300-850.
Industries-specific FICO(r) scores: FICO(r) generates bankcard scores and auto scores specifically for auto lenders and card issuers. Scores for industries aim to determine the possibility that a person will be in debt on the type of account and range from 250-900.
FICO(r) specific scores for the industry are constructed upon a foundational FICO(r) Score. FICO(r) regularly launches new scores suites. For instance, the FICO(r) Score 10 Suite is one example. It was released in the early part of 2020. It comprises the base FICO(r) Score 10 and the FICO(r) Score 10T (which contains trended data) and brand new scores for specific industries.
Scores are used less often, too. For example, FICO(r) is slowly rolling out the UltraFICO(r) Score that lets consumers connect checking, savings and money market account and examines bank activities. They can also develop specific credit scoring models to meet the needs of their clients in the back of their heads.
The lenders can pick the model they wish to choose. In reality, some lenders might choose to stay with older versions due to the risk of investment associated with switching. Many mortgage lenders utilize old versions of basic FICO(r) Scores to conform to the guidelines set by mortgage companies backed by the government Fannie Mae and Freddie Mac.
There are times when you don’t know the type of credit report or score the lender will use before you apply. It’s good to know that both consumers’ FICO(r) and VantageScore credit scores are based on the same basic information. It is data from the credit reports you have to calculate your credit score. They all attempt to provide the same forecast–the probability that an individual will be 90 days overdue on a debt (either in general or particular kind) throughout the next 24-month period.
Suppose you keep track of several ratings for your credit. In that case, you may observe that your scores differ following the scoring method and the credit reports it evaluates. Over time you might notice that the scores fluctuate and rise. The same variables could affect your credit scores.
What are the reasons why having a great credit Score is Important?
Overall, having good credit will help you reach your personal and financial objectives easier. It could mean the difference between being approved or not being able to get funding, like the mortgage for your home or car loan. In addition, it could directly affect the amount you’ll be required to pay in fees or interest when you’re accepted.
For example, the cost difference between taking out a 30-year fixed-rate mortgage at $250,000 with a six-digit FICO(r) score and 730 FICO(r) score could amount to around $72 per month. That is money you could put towards your savings or for other goals. In the course of your loan, an excellent credit score can reduce your interest bill by $26,071.
Furthermore, credit scores could influence lending choices, for example, whether a landlord is willing to let you rent an apartment.
Your credit report (but the consumer score) may also affect your credit report in different ways. Employers may look over your credit reports before making the hiring or promotion decisions. In many states, insurers utilize credit-based insurance scores to calculate your monthly premiums for home, auto, and life insurance.
How to Increase Your Credit Score?
To improve your credit score, be sure to focus on the fundamental elements that impact your score. In the end, the most basic steps to follow are pretty straightforward:
You must make at least the minimum payments and pay every debt payment in time. Any late payment could affect your credit score, and it’ll remain at least seven years on the credit reports of yours. Suppose you are concerned that you might be late on a payment. In that case, you should contact your creditors as fast as possible to determine how they can help them or offer a solution for hardship.
Keep your credit card balances low. Your credit utilization ratio is a key scoring element that measures the current amount of balance and the credit limit of revolving accounts, such as credit cards. Being able to have a low utilization rate could help improve your credit score. People with good credit scores generally have an overall utilization rate of just a single number.
The accounts you open are reported to credit bureaus. If you only have limited credit accounts, make sure that any accounts you open are added to your credit file. They could be instalment accounts like a student, auto personal, home or mortgage loans or revolving accounts including credit lines and credit cards.
Make sure to only apply for credit if you require it. Making a new credit card request can result in a lengthy inquiry that could affect your credit score a bit. The effect is typically not significant, but applying for various credit or loans within a short timeframe can result in a bigger score decline.
Other elements can affect your FICO score in 2022. In particular, an increase in the average age of your accounts can boost your score. But, it’s usually more of a matter of putting off instead of making a move.
Best credit cards in 2022 for beginners with no FICO score or credit history
| Credit card | Suitable for | APR | Rewards | Annual fee |
| Capital One Platinum | Those with fair credit | 26.99% (Variable) | None | $0 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Simple cash back | 26.99% (Variable) | Unlimited 1.5% cash back | $39 |
| Journey Student Rewards from Capital One | Students with limited credit | 26.99% (Variable) | 1% cash back, 1.25% when you pay your bill on time | $0 |
| Chase Freedom® Student credit card | Students looking to earn rewards | 14.99% Variable | 1% cash back on all purchases | $0 |
| OpenSky® Secured Visa® Credit Card | Those with no credit history | 17.39% (Variable) | None | $35 |
| Platinum Secured Credit Card from Capital One | Those looking for an easy-to-use card | 26.99% (Variable) | None | $0 |
Best Credit Cards in 2022 with Credit Score Is Under 599 (Bad Credit)
| Card | Suitable for | Initial Credit Limit | Annual Fee | APR | Secured/ Unsecured? | Features |
| Petal® 1 “No Annual Fee” Visa® Credit Card | Rebuilding low credit | $500-$5,000 | USD | 19.99 – 29.49% Variable | Unsecured | Earn 2%-10% cash back at select merchants |
| Credit One Bank® Platinum Visa® for Rebuilding Credit | Low security deposit | $300 minimum | $75 for the first year. After that, $99 annually ($8.25 per month) | 23.99% Variable | Unsecured | Cashback, $0 fraud liability, Experian credit score |
| Platinum Secured Credit Card from Capital One | No credit check | $200 | $0 | 26.99% (Variable) | Secured, requires a deposit of $49, $99, or $200 | N/A |
| OpenSky® Secured Visa® Credit Card | Cash back rewards | $200 – $3,000 | $35 | 17.39% (Variable) | Secured | There’s no credit check or bank account required to open an account. |
| Discover it® Secured | People who have a recent bankruptcy | $200 or more | $0 | See Terms | Secured, matches credit limit | Cashback, credit alerts, $0 fraud liability, free FICO score |
| Indigo® Platinum Mastercard® | People with no credit | $300 | $0 to $99 | 24.90% | Unsecured | N/A |
| Milestone® Gold Mastercard® | Everyday cash back rewards for fair credit | $300 minimum | $35 to $99 | 24.90% | Unsecured | N/A |
Best credit cards in 2022 if your FICO score is 650 to 699 ( Average FICO score)
| Card | Annual Fee | APR Range | Credit Line Increases? | Sign On Bonus Offer | Rewards |
| Capital One QuicksilverOne Cash Rewards Credit Card | $39 | 26.99% (Variable) | Yes, reviewed after six months | N/A | 1.5% unlimited cash back all purchases |
| Petal® 1 “No Annual Fee” Visa® Credit Card | USD | 19.99 – 29.49% Variable | Not available at this time | N/A | 2% – 10% cash back from select merchants |
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | USD | 12.99 – 26.99% Variable | Not available at this time | N/A | 1%-1.5% unlimited cash back on all purchases; 2%-10% from select merchants |
| Capital One Platinum Credit Card | $0 | 26.99% (Variable) | Yes, reviewed after six months | N/A | N/A |
| Indigo® Platinum Mastercard® | $0 – $99 | 24.90% | N/A | N/A | N/A |
Best Credit Cards in 2022 with FICO Score Between 700 and 749 (Good Credit score)
| Credit card | Best For | Annual Fee | APR Range | Sign-up Bonus Offer | |
| Capital One Venture Rewards Credit Card | Travel rewards | $95 | 15.99% – 23.99% (Variable) | 60,000 bonus miles when you spend $3,000 on purchases in the first 3 months from account opening | |
| Chase Sapphire Preferred® Card | $95 | 15.99%-22.99% Variable | 60,000 bonus points when you spend $4,000 on purchases in the first three months | ||
| Capital One VentureOne Rewards Credit Card | Travel rewards + no annual fee | $0 | 14.99% – 24.99% (Variable) | 20,000 bonus miles when you spend $500 on purchases in the first three months of account opening | |
| Discover it® Miles | $0 | 13.49% – 24.49% Variable | Discover will match all miles earned at the end of your first year | ||
| Wells Fargo Platinum card | Balance transfers | $0 | 16.49% – 24.49% Variable | None | |
| Citi Custom Cash℠ Card | Cash rewards and balance transfers | $0 | 13.99% – 23.99% (Variable) | $200 (or 20,000 bonus ThankYou® Points) when you spend $750 on purchases in the first three months of account opening | |
| Capital One® Savor® Cash Rewards Credit Card | Cash rewards | $0 intro for first year; $95 after that | 15.99% – 24.99% (Variable) | $300 in cash rewards after spending $3,000 on purchases within the first three months of opening their account | |
| Chase Freedom Flex℠ | $0 | 14.99 – 24.74% Variable | $200 Bonus after you spend $500 on purchases in your first 3 months from account opening | ||
| Chase Freedom Unlimited® | $0 | 14.99% – 24.74% Variable | $200 cash bonus after spending $500 in the first three months | ||
Best credit cards in 2022 if your FICO score is 750 and above (Excellent)
| Credit Cards | Suitable for | APR | Rewards | Annual fee |
| Capital One Platinum | Those with fair credit | 26.99% (Variable) | None | $0 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Simple cash back | 26.99% (Variable) | Unlimited 1.5% cash back | $39 |
| Journey Student Rewards from Capital One | Students with limited credit | 26.99% (Variable) | 1% cash back, 1.25% when you pay your bill on time | $0 |
| Chase Freedom® Student credit card | Students looking to earn rewards | 14.99% Variable | 1% cash back on all purchases | $0 |
| OpenSky® Secured Visa® Credit Card | Those with no credit history | 17.39% (Variable) | None | $35 |
| Platinum Secured Credit Card from Capital One | Those looking for an easy-to-use card | 26.99% (Variable) | None | $0 |
