Do Credit Card Companies Use FICO Scores or Other Credit Scores for Approval

Most of the credit card companies use FICO score range to determine whether to approve your credit card application. The FICO score is used to determine the APR interest rate and credit limit for the credit card. Each credit card has different minimum credit score requirement. Credit cards with lots of perks and low interest rate usually require a good or excellent credit score. On the other hand, credit cards with a higher interest rate are suitable for people with average credit score. You can find out the minimum FICO score requirement of the credit card at a credit card comparison search engine.

You need very good or excellent credit score of 750 or higher to get approved for an American Express credit card. Credit cards from credit card companies like Bank of America, Discover, Capital One, and Chase requires an above average credit score of 680 – 749. Credit cards for excellent and very good credit scores usually offer huge signup bonus that can be exchanged for a voucher worth $500 or more. These cards also offer generous rewards program that allows you to earn cash back on your purchases. If you want to have a very good credit score, you must regularly use your credit card and promptly making repayment for at least 3 years.

If you have average FICO score, you may find it hard to get approved for a credit card but it is still possible to find a card that you can get approved. Knowing which credit cards will approve applicants with average credit score will help if you are already turned down by many credit card companies. Capital One and Credit One Bank offers a number of credit cards for people with fair and poor credit scores.

Sometimes, your credit score is higher than the minimum requirement but you are being declined for other reasons for example debt to income ratio. This can happen especially if you have a credit score that is lower than 750. The factors that can cause you to be denied on a credit card application are available credit, high debt level, lack of credit history, and other bad records on credit report.

There is a higher chance of getting approved for those with at least an average credit score above 600 and have been punctually making repayment for the past 2 years. The lesser existing debts you have, the higher chance you have in getting approved. If you plan to apply a new credit card, you must keep the credit utilization ratio of your existing credit cards to a minimum. It is advised not to apply for a credit card if you have a lot of recent late payments or large outstanding balances on the card.

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