What Credit Score Do You Need for a Cash Back Card?

Why Your Credit Score Matters for Cash Back Cards

Credit card issuers use your credit score as a key signal of how risky it is to lend to you. A higher score suggests you’re more likely to make payments on time, which makes you a more attractive candidate for cards with valuable rewards.

According to the Consumer Financial Protection Bureau, cash back cards are commonly offered to consumers with prime or greater credit scores, and these cards frequently have no or low annual fees and zero percent promotional APRs. That doesn’t mean you need an exceptional score, but it does mean your credit profile will be a major factor in which cards you’re approved for and what terms you receive.

Sources: Consumer Financial Protection Bureau

What Credit Score Ranges Do Issuers Look For?

Issuers typically categorize credit scores into tiers. While each issuer sets its own policies, understanding the most common score ranges can help you gauge where you stand. As of May 2024, FICO score ranges are often described as: Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Exceptional (800-850). VantageScore, another scoring model, has slightly different cutoffs: Very Poor (300-499), Poor (500-600), Fair (601-660), Good (661-780), and Excellent (781-850).

Most cash back credit cards require good to excellent credit, generally defined as a FICO Score of 670 or higher. However, requirements vary by issuer and by card. Some cash back cards may be available to applicants with poor credit, though these cards often come with lower reward rates, higher fees, or fewer benefits.

Sources: Chase, Experian, CreditCards.com

Cards by Credit Tier

Your credit score often determines which cash back card categories you can reasonably target. While issuers don’t publish exact minimums, you can expect the following general patterns based on the available evidence:

For those with good to excellent credit, a wide range of cash back cards are typically available, including flat-rate cards with no annual fee, tiered bonus category cards, and premium cards with higher rewards and additional perks.

For those with fair or poor credit, approval may be more challenging. Some cash back cards may still be available, but terms and rewards vary by issuer and card. Secured credit cards, which require a refundable security deposit, may be easier to qualify for and can offer cash back rewards. These cards can be a practical stepping stone to building or rebuilding credit.

• Fair credit (580-669 FICO): Approval possible, but you may have fewer options and receive less favorable terms.
• Poor credit (below 580 FICO): Your best bet is likely a secured card, some of which offer cash back rewards.

Sources: Federal Reserve Board, Chase, CreditCards.com

How to Check Your Credit Score

Before applying for any credit card, it’s wise to know your credit score and understand what’s influencing it. You can request free credit reports from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once per year at AnnualCreditReport.com. Many credit card issuers also provide free credit score access to their cardholders, so you may already have a way to monitor your score.

Checking your own credit score does not hurt your credit. It’s considered a soft inquiry, which doesn’t affect your score. Hard inquiries, which occur when a lender reviews your credit in response to an application, can have a small temporary impact, but checking your own score is safe.

Sources: Experian

Improving Your Approval Odds

If your credit score isn’t in the range you’d like, there are steps you can take to improve your chances of approval. First, pay your bills on time, as payment history is a major factor in credit scoring. Second, pay down credit card balances to lower your credit utilization ratio, which is the amount of credit you’re using compared to your limits. Third, avoid applying for multiple new credit cards in a short period, as each application can trigger a hard inquiry.

Issuers also consider your income and existing debts. While the evidence doesn’t specify exact income requirements, it’s reasonable to ensure your income is sufficient to repay any credit you’re applying for. Having a stable income and a low debt-to-income ratio can strengthen your application.

Sources: Experian, CreditCards.com

What to Do If Your Score Is Low

If your credit score falls in the fair or poor range, you don’t have to give up on earning cash back. Consider applying for a secured cash back card. These cards require a security deposit, but they function like a regular credit card and can help you build a positive payment history.

You might also start with a card designed for people with limited or damaged credit, even if it doesn’t offer cash back initially. After several months of on-time payments, you may be able to upgrade to a rewards card or apply for a regular cash back card with better terms. The key is to use credit responsibly and gradually improve your score.

Sources: CreditCards.com