When you apply for an American Express card, your credit score will be given a lot of consideration. It is clear that the American Express cards cater to the top 1%.
Credit score carries significant importance when it comes to acquiring an American Express card. However, the credit card requirements change over time depending upon the card that you want to get for yourself. Moreover, the economic conditions play a significant role as well when it comes to American Express card or any other credit card in the market.
For an American Express Green card which is one of the oldest cards operating since 1958, you will be required to have a credit score from mid 600's to the higher side of 600's. However, customer review is not the best for this one. A number of other cards such Gold card are considered over an American Express Green Card.
The average required credit score for the American Express Gold card is in high 600's. However, if you are looking for an American Express Platinum card, you should be having a minimum credit score total of 730.
Explanation of credit score ranges
It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.
A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.
Bad credit score
People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.
Good credit score
A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.
A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.
An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.
How are credit scores calculated?
The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.
The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.
The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.
Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.
Credit cards offers based on credit score
Find out the different credit cards offers based on credit score by reading the information below.
There are a lot of credit card offers today but your approval will depend on the credit score that you have. Of course, they will still check other factors that will determine your approval rating. Below are some of the credit cards offer based on credit score.
BankAmericard Travel Rewards
BankAmericard offers this card for people who have 690 to 850 credit score. They have 20,000 online bonus points if you spend at least USD 1,000 during the first 90 days of the card. It has no annual fee and an ongoing APR of 15.24% to 23.24%.
Capital One QuicksilverOne
Capital One Quicksilver is offering this card for people who have a 630 to 689. You can earn 1.5% cashback on every single purchase that you will have. They have an annual fee of USD 39 and an ongoing APR of 23.24%.
Things you can do to improve your credit score
Having a bad credit score is similar to having poor health. Therefore, you need to take measures that ensure you are continually improving on it. The most efficient way of repairing bad credit is good management over time. Improving your credit score is necessary for you to be eligible for better terms and rates for loans in the future.
Regular credit report checks
You are advised to monitor your credit report regularly to see if it has any errors. A credit report brings you up to speed on your status as a debtor. Ensure that the payments are reported correctly and the amount owed to each creditor is correct. Errors must be disputed to your credit bureau promptly.
Reduce your debt
Most people usually take loans just because they are eligible for them without considering the potential damage to their credit score. For a start, you can reduce your reliance on credit cards. Design a plan that ensures you give priority to your debts that have the highest interest rates.
If your monthly premium is not automatically debited from your account, you need to set up a payment reminder. Timely credit repayment improves your credit score over time. Some financiers usually send emails or texts to their clients to make payments.