Key findings
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Without good credit, you may not qualify for the cheapest credit cards, so be flexible in your selection.
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First, be strategic and apply for a credit card that you are likely to be approved for, as too many credit inquiries in a short period of time can cause your credit score to deteriorate.
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If you have a credit card, use it responsibly and build your credit so that you can eventually get a rewards card that offers you more.
Rewards credit cards can help you save money on every purchase by earning cash back, points or miles. However, they are also some of the hardest cards to qualify for. This is because the best rewards credit cards are geared toward consumers with good to excellent credit, or a FICO score of 670 or higher. If your credit score isn’t that great, it can be difficult to get approved.
Ideally, you should be strategic before applying, meaning you should choose cards that you qualify for with your credit limit. Every new credit application will trigger a hard inquiry on your credit report, so you should keep rejected applications to a minimum and focus on cards that are affordable for you.
Fortunately, there are credit card options with rewards you can access if you’re still working toward good credit, and ways you can improve your credit score today to make it easier to qualify for high-value cards in the future. Read on to learn what you can do to earn rewards on your credit card purchases, even if your credit score isn’t great right now.
Know what credit score you need for a rewards card
Before you apply for a new card, you should check your credit score to see where you stand and what type of credit card you qualify for. Taking this step will help you get a better idea of your options.
For the FICO score, the most popular type of consumer credit score, the ranges look like this:
- Excellent creditworthiness: 800+
- Very good credit rating: 740 to 799
- Good creditworthiness: 670 to 739
- Fair credit: 580 to 669
- Bad creditworthiness: 579 and under
While checking your credit score can be a reality check if it’s lower than you thought, rest assured that rewards credit cards are available for all credit levels.
That doesn’t mean you’ll get exactly the card you want, and it’s likely you won’t qualify for the best rewards cards without good or excellent credit. However, you may qualify for some lower-end rewards credit cards that can help you earn something on your spending. These will likely offer fewer perks and cardholder benefits. But they’re a good place to start, and you can use a card you qualify for today to build a great score that will qualify you for more rewarding cards in the future.
Choose a card you qualify for
Your credit score can say a lot about the types of cards you may be able to access.
If you have good credit
If you have average credit (any FICO score between 580 and 669), there are several rewards cards you may be approved for immediately. You may even be able to find a decent travel rewards card with just average credit.
The Capital One QuicksilverOne Rewards Credit Card is a good option in this area, offering 1.5 percent cash back on all purchases. It also has a $39 annual fee, which is reasonable considering the rewards and the fact that the card doesn’t require excellent credit.
If you have bad credit
If your credit score could use a boost, consider alternative card types, such as secured credit cards that require a cash deposit as collateral or store credit cards that allow you to earn rewards at a specific retailer. Both secured credit cards and store credit cards tend to be much easier to get compared to traditional unsecured credit cards from issuers like Chase or American Express.
If you have no credit
Even if you have no credit history at all, there are some credit card options with rewards that can help you use credit responsibly while rewarding you for your spending. With these cards, you can start to build the credit foundation you need to move on to more rewarding credit cards. In fact, rewards cards for people with no credit history often build reward structures based on on-time payments and other best practices.
For example, the Discover it® Secured Credit Card is marketed as an option for consumers who haven’t yet taken steps to get credit, so it could be available to almost anyone. This card also has a $0 annual fee and users earn cash back for every dollar spent. However, it is a secured credit card, meaning it requires a refundable cash deposit as collateral before it can be used.
Please note: If you choose one of these types of cards, be sure to maintain good credit habits that will help you improve your credit score and avoid debt. Cards designed for people with bad credit generally charge very high interest rates, which, if you’re not careful, can lead to rapidly mounting debt (and easily exceed the value of the rewards).
Be flexible about the type of rewards
Especially if your credit is mediocre or poor, you’ll need to be flexible about the types of rewards you receive. You might not earn airline miles in the exact frequent flyer program of your choice, or you might earn points in a flexible, top-tier rewards program like Chase Ultimate Rewards or American Express Membership Rewards.
Rewards credit cards for average or bad credit may only give you cash back, which is certainly better than nothing.
Check if you can get pre-qualification
Some credit cards for average and poor credit allow you to assess your credit score before you fill out a full application. This lets you see if you have a chance at a card without affecting your credit score. This can help you avoid additional inquiries that drag your credit score down.
Most cards with this option allow you to check your chances of approval by providing your name, address, email address and the last four digits of your Social Security number (SSN). While prequalification doesn’t guarantee you’ll be approved when you apply, it helps you check whether you meet the basic qualification requirements.
Build your balance to get better rewards
If you want access to the best credit cards with rewards, it’s worth investing some time in building your credit score before you apply. Some steps you can take to build your credit score include:
- Check authorized user statusBecome an authorized user of a trusted friend or family member’s credit card – provided that person has good credit habits and already has a good credit history.
- Discover apps to build credit. Use credit-building tools like Experian Boost to build credit using rent and utility payments.
- Never miss a payment again. Make sure all your bills are paid on time or early to improve your payment history.
- Pay off revolving debt. Pay off any existing debt to lower your credit utilization ratio. This can help improve your credit score.
- Keep an eye on your credit reports. Monitor your credit reports from all three credit bureaus for errors. You can do this for free with AnnualCreditReport.com.
The conclusion
You can earn credit card rewards even if your credit score still needs improvement. Just be flexible about the type of rewards and the card you apply for. While you may not qualify for the premium rewards cards, you can find a card you like and use it responsibly to build good credit over time.
After taking some time to practice responsible spending and consistently making your credit card payments on time, you may be able to qualify for the best rewards cards currently available and start maximizing your points and cash back.
