Why are some credit cards "easier" to qualify for than others
Quick insights
- Cards that are easier to qualify for may have lower credit score requirements, making them accessible to a broader range of applicants.
- These cards may have less stringent income requirements, which could appeal to those with limited or variable earnings.
- Cards like student credit cards and cobranded retail store cards are tailored to help users establish a credit history with minimal barriers.
Credit scores range from a low of 300 to a high of 850, with a score of 670 or better considered “good” and a U.S. national average score of 715. But did you know that nearly 30% of Americans have a credit score below 670? Fortunately, there are credit cards designed specifically to help individuals in this category gain approval and start building credit.
What makes some cards easier to get?
Understanding why some credit cards are easier to obtain can help you navigate the application process more effectively. Let’s take a closer look at some common features of starter credit cards:
- Lower credit score requirements: Cards that are easier to qualify for often accept applicants with lower credit scores. This accessibility may help individuals with limited credit history or past credit issues be considered for approval.
- Basic features: Easy-to-qualify cards usually offer basic features and fewer perks, focusing on providing a credit-building opportunity rather than extensive rewards.
- Designed for specific groups: Many of these cards are tailored for students or those with no credit history. They are typically designed to help users build or rebuild their credit profile, providing a stepping stone to better credit options in the future.
How do requirements differ?
Credit card requirements can vary between different types of cards. Cards that are easier to qualify for typically have more relaxed criteria compared to premium cards. For example, higher-end cards may require excellent credit scores in addition to other factors like a positive credit history.
When it comes to income verification, premium cards may require proof of stable, high income, whereas other credit cards often have minimal income requirements. Additionally, some cards are specifically designed for students or individuals with limited credit history, offering a more accessible entry point into the world of credit.
Understanding these differences is key to choosing the right card for your financial situation. By selecting a card that matches your current credit profile and financial standing, you can increase your chances of approval and start building a strong credit history.
What are examples of easy-to-qualify cards?
There are several types of credit cards designed to be more accessible to a broader range of applicants. These cards provide an opportunity for individuals to establish or improve their credit history.
- Student credit cards: Specifically designed for students, these cards often have lower requirements and offer benefits tailored to young adults, such as rewards for good grades.
- Retailer cards: Store- and business-specific cards usually have more lenient approval criteria and can be a starting point for those with limited credit history.
- Entry-level credit cards: These cards are targeted at individuals new to credit, offering basic features and lower credit score requirements to help users start building their credit profile.
- Chase Freedom Rise®: The Chase Freedom Rise card is an example of a starter card designed to help individuals with limited or no credit history. With features tailored for beginners, including cash back rewards on everyday purchases, this card offers a straightforward way to manage expenses and may help build credit over time.
Additional considerations when choosing a card
When selecting a credit card, it's important to consider factors beyond ease of qualification. These considerations can help ensure you choose a card that aligns with your financial needs and goals.
- Annual fees: Some easy credit cards may charge annual fees, so it's important to weigh these costs against the benefits the card offers.
- Interest rates: Be aware of the interest rates associated with the card, especially if you plan to carry a balance. Higher rates can add up quickly.
- Credit-building potential: Consider how the card can help you build credit. Features can include regular reporting to credit bureaus and opportunities for credit limit increases.
The bottom line
Choosing the right credit card involves understanding the requirements and benefits of each option. Easy-to-qualify cards provide opportunities for individuals with limited or poor credit histories to build a solid financial foundation. By considering factors such as fees, interest rates and credit-building potential, you can select a card that meets your needs and supports your financial goals.
