Best Credit Cards for Good Credit

It’s possible to get just about any credit card on the market with a good credit score. Your credit score obviously matters -- card issuers weigh it heavily when you apply, and the lower your score is on the good credit spectrum, the more difficult it is to get approved. But plenty of people get approved with lower scores than you might think.

For example, it’s recommended that you have a score of at least 700 for premium travel cards like the Chase Sapphire Reserve®, but several applicants have reported approvals with scores of 650 or lower.

To choose the best credit card for yourself, you’ll need to have a specific goal in mind. Below, I’ve included the most popular financial goals consumers have and a few card recommendations for them.

If you want to stick to cash-back cards:

• The Chase Freedom® and Discover it® Cash Back have rotating bonus categories that earn bonus cash back.

• The Wells Fargo Cash Wise Visa® Card has an impressive $200 sign-up bonus for spending $1,000 in three months.

If you want your trips paid for with travel rewards:

• Chase has the Chase Sapphire Preferred® in its dynamic Ultimate Rewards program.

If you need a 0% intro APR for a big purchase or balance transfers:

• The Discover it® Balance Transfer has a long 0% intro APR for balance transfers plus rewards in one card and the Amex EveryDay® Credit Card includes a $0 balance transfer fee promo.

• The Capital One® VentureOne® Rewards Credit Card has a shorter intro period of 12 months and a 0% APR that only applies to purchases, but it’s one of the easier 0% intro APR cards to get.

Or, “What’s the secret behind how some applicants get approved with lower-than-recommended credit scores?”

There are three ways you can give yourself a better shot at the more exclusive credit cards:

• Reduce your debt-to-income ratio -- Your debt-to-income ratio is all your monthly debt payments compared to your income, and it’s best if you can keep this below 35%. While this comes into play more with mortgage applications, it can also help you when you’re applying for a credit card. Even if your credit score is a bit less than what the card issuer would like, a low debt-to-income ratio could convince them that you’d be a responsible cardholder with a good amount of disposable income.

• Minimize your credit inquiries -- Card issuers can get cautious when you already have multiple recent hard credit inquiries, as they’ll wonder why you’re trying to get all this new credit and if you’ll be able to handle it. An approval is more likely if it has been at least three to six months from your most recent credit card application.

• Be persistent -- The difference between a denial and an approval occasionally boils down to contacting the card issuer a couple times. Consumers who are willing to call the reconsideration line after a denial may see the decision reversed. Even if one representative tells you no, you could have better luck if you call again later.

• Credit utilization (debt divided by available credit) makes up 30% of your FICO credit score.

• Card issuers report your credit utilization every month so there can be a near-term impact.

• Only your current credit utilization affects your credit score.

• Avoid overspending -- Once you’ve reached a good credit score, you’ll start having access to larger credit lines. Don’t let those big numbers convince you to spend more than usual. It’s a mistake many consumers make, but if your balances get too high, it can lead to excessive credit utilization or an inability to make your payments.

• Pay everything by the due date -- Just one missed payment can undo all your hard work, and that’s a missed payment on anything, whether it’s a credit card, a cell phone bill, or an overdue library book. Organize all your bills and their due dates. I recommend setting up alerts on your phone’s calendar or putting together a spreadsheet you can use.

• Track your credit utilization -- My method for this is simple. First, add all your credit limits together to get your total available credit (services that provide your credit score will often include this information). Then, calculate 10%, 20%, and 30% of that number. This gives you guidelines on when your credit utilization is fine and when you’ll need to pay down your balances, even if it isn’t a payment due date yet.

• Keep your credit cards open -- Another common consumer mistake is closing credit cards for no reason. You’ll be losing that card’s credit line, so if you’re carrying balances on any other cards, your credit utilization will increase. While canceling cards isn’t always a bad idea, in most cases, it’s better to downgrade your card to an alternative with no annual fee.

• Don’t go on application sprees -- While one card application isn’t a big deal, one per month will keep you from making any progress on your credit score. You’ll have too many hard credit inquiries, and every time you’re approved for a card, your average account history will get lower. 

• Guard your credit -- It doesn’t get much worse than doing everything right, only to have an identity thief or an error ruin your credit. And the longer it takes you to catch any such issues, the more difficult it is to fix the problem. I use a free credit monitoring service that lets me know whenever something changes on my credit report, and I love it. I advise everyone to sign up for one, and of course, you should also check your credit reports every year.