What credit score is needed for a rewards credit card?

Quick insights

• Rewards credit cards come in many forms, including airline-specific credit cards, cash back cards and more.
• Generally, a “good” credit score may increase the chances of being approved for most rewards credit cards.
• You may be able to maximize the rewards offered by your specific credit card when you manage your credit and spending wisely.

Thinking about applying for a new rewards credit card? Whether you’re new to the application process or already have a rewards credit card, there are several important factors you may wish to consider before you apply. Let’s dive into more detail below.

Benefits of using a rewards credit card

Rewards credit cards can have many benefits when used wisely. There are several types of rewards credit cards, ranging from travel to cash back. If you’re considering applying for one, it could be helpful to think about your current lifestyle and spending habits to help determine which card is right for you. Are you a frequent flyer? Consider an airline-specific card. Do you shop frequently and consistently at certain stores? Consider a cash back card.

Additionally, it can be helpful to understand the card’s terms to make sure you are aware of any required fees, such as an annual fee.

Credit score ranges

You might hear that to qualify for a rewards credit card, you may need a "good" credit score. But what does that mean?

To help you determine which credit score range your credit score falls in, let’s review the ranges for the two main credit scoring models below.

As of May 2024, VantageScore^® ranges areftn-1:

• Excellent: 781 to 850
• Good: 661 to 780
• Fair: 601 to 660
• Poor: 500 to 600
• Very Poor: 300 to 499

As of May 2024, FICO^® score ranges areftn-1:

• Exceptional: 800+
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 and below

Improving your credit score

If you’re eyeing a rewards credit card but want to help improve your chances of approval by raising your credit score first, there are a few steps you can take.

Keep in mind the factors that affect how your credit score is calculated, as well as ways to help improve it, such as paying bills on time and reducing credit utilization.

For reference, see the factors VantageScore uses to calculate a 3.0 credit score belowftn-1:

• Payment history (40%)
• Depth of credit (21%)
• Credit utilization (20%)
• Balances (11%)
• Recent credit (5%)
• Available credit (3%)

For reference, see the factors FICO uses to calculate a credit score, and how much weight each part receivesftn-1:

• Payment history (35%)
• Credit usage (30%)
• Age of credit accounts (15%)
• Credit mix (10%)
• New credit inquiries (10%)

Keeping these factors in mind, you may want to consider taking some of the following steps to help improve your score:

• Lower your credit utilization ratio to about 30% or less.
• Make your payments on time.
• Avoid applying for several lines of credit at once.
• Lower your debt-to-income ratio.
• Avoid closing old credit card accounts to help maintain your credit utilization and credit mix/age.

Maximizing rewards and managing credit wisely

The ways in which you can maximize your rewards cards depend on the card you have and the financial goals you set. For example, let’s say you want to take a vacation in the future. It can be helpful that the rewards card you have and the points the card earns align with your future travel-related purchases. So, if you have your eye set on staying at a specific hotel, you may benefit it your rewards are eligible to be redeemed for a stay at that property.

With a cash back card, you may decide to put your cash back rewards into a savings account, rather than using them as more spending money. Or, you might choose to put that money towards an outstanding debt—doing so could help lower your debt-to-income ratio.

In conclusion

No matter what rewards credit card you choose to apply for, it can be important to review its terms so you can be prepared for fees and other requirements. If you want to improve your chances for approval, consider improving your credit score to reach the good or excellent credit score category. Finally, once you do have your rewards card, it can be beneficial to continue to manage your finances wisely. With proper credit management and responsible behaviors, you can make the most of your rewards credit card, which may help you continue to improve your financial wellness.