Best Card for Average Credit and decent credit limit?

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jessicwl
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Best Card for Average Credit and decent credit limit?

Postby jessicwl » Fri Oct 14, 2016 1:38 pm

Trying to find the best credit card. Credit score is average around 674. Just got denied for Chase Sapphire without realizing it's a card for really good credit and not a card for first-timers or people who haven't built up their credit.

What would be a decent credit card (preferably with some sort of rewards), ideal for groceries, gas and dining out/travel, everyday use? Would like a credit limit of at least $3000. Trying to learn more about the credit card world. Thanks for any suggestions!


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Vattené
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Re: Best Card for Average Credit and decent credit limit?

Postby Vattené » Fri Oct 14, 2016 4:41 pm

Welcome to the forum! Are you just trying to establish your credit? And is 674 a FICO score? I think a starting limit of $3,000 is probably not realistic. Even with a great income and clean history, a thin credit profile is going to have a hard time getting a limit like that starting out. However, you could aim for a rewards card for the immediate benefits and grow the limit as your credit improves.

I'd look into Barclay's Rewards card. It's meant for fair credit and offers 2% cash back on gas, utility, and grocery (1% elsewhere). I'd guess your chances of approval are good, but this is just based on your score and no other information so take that with a grain of salt. Credit Karma gives statistics in approval odds for a given card. Be aware this is using the score they provide (VantageScore 3.0), not a FICO, and the information is based on data from CK users that were approved, but they give a mean approval score of 646 and a "typical" range of 582-697 (range from 5th percentile to 95th percentile).

If you can tolerate an annual fee, the Capital One QuicksilverOne is meant for fair credit and offers a straight 1.5% cash back on everything. It does have an annual fee of $39 (so, once you spent $2,600 a year on it you'd break even). This is the "starter" or "fair credit" version of the regular Quicksilver, which has no annual fee. My thinking is you might start with the AF version and be able to do a product change to the no-AF version once your credit improves.

You may also consider a Discover student card. I believe you don't have to be a student to get it, so it may be another option. If you apply for it and get denied, you could see if you can use the HP and get a secured card instead. You probably don't want to hear a secured card as a recommendation, but Discover's is unique in that it does earn rewards. Also, with the secured card you'd have the possibility of graduating to unsecured down the road and keeping the same card and the same great rewards. Discover can be generous with increasing credit limits over time. YMMV (Your Mileage May Vary) applies with everything credit-related, but this is especially true when it comes to Discover credit limit increases.

Chase Freedom has a similar reward structure as Discover it. You mentioned elsewhere your fiance applied for a Chase Sapphire Preferred. If they get denied for that, it would be worth trying a recon for a Freedom (or Freedom Unlimited) for the potential to transfer points to the business card, but even if they could get it I wouldn't expect a large starting limit.
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FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

jessicwl
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Re: Best Card for Average Credit and decent credit limit?

Postby jessicwl » Fri Oct 14, 2016 6:31 pm

Vatenne,

Thanks for the quick reply! And thanks for reading my other post as well. Yes, I was asking this one for my fiance. He did just get denied for the sapphire. Any idea what the credit limit could be for the quicksilver one or the freedom?

Building credit would be a top priority.

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Vattené
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Re: Best Card for Average Credit and decent credit limit?

Postby Vattené » Tue Oct 18, 2016 3:18 pm

You're welcome, sorry it's been a bit since I've been back on.

The lowest limit is probably $500, possibly a little less. A CSP is a Visa Signature card, which is a level of cards Visa has with its own perks but requires a $5,000 minimum credit limit. Unfortunately, one basically needs to have an established credit profile for something like this, but other cards that earn rewards are more feasible. I know if you got a $500 limit it wouldn't be super useful, but this is where most people have to start out. Building credit is a long, slow process. Once you get your foot in the door, paying everything off and on time will build your credit but this still takes time. You just need to be able to get approved for something in order to start.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

mountaindewvoltage
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Re: Best Card for Average Credit and decent credit limit?

Postby mountaindewvoltage » Wed Oct 19, 2016 12:19 am

jessicwl wrote:Trying to find the best credit card. Credit score is average around 674. Just got denied for Chase Sapphire without realizing it's a card for really good credit and not a card for first-timers or people who haven't built up their credit.

What would be a decent credit card (preferably with some sort of rewards), ideal for groceries, gas and dining out/travel, everyday use? Would like a credit limit of at least $3000. Trying to learn more about the credit card world. Thanks for any suggestions!


"Average" credit isn't a relative term. Your score is a factor based on risk, but lenders look deeper than that to determine whether or not they'll approve you, your starting credit line, and your interest rate.

You could have a 674 credit score, but a chapter 11 bankruptcy from two years ago in-which many lenders may deny you for their top of the line cards with that on your record. I know American Express wouldn't look kindly to something like that on anyone's report, regardless of score.

What I'm saying is you have to give us more information on your credit report.

If you want a card for groceries + gas then Bank of America has their cash rewards card which nets 2% cash back on up to $2,500 in spend per quarter. If you want dining and gas then the DiscoverIt Chrome will give you 2% back on up to $1,000 in spend every quarter. You'll have a better shot at getting approved for the Discover Card.

You're not going to get a travel card with an average credit rating no matter how long you've had a card for. Travel revolving cards are for those with good to excellent credit.

JonE
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Re: Best Card for Average Credit and decent credit limit?

Postby JonE » Wed Oct 19, 2016 10:14 am

There really isn't one particular card that's good for all those. There are straight 2 percent cash back cards, but that wouldn't be put toward travel. Barclays would be a nice place to start for an everyday spend card, but don't get too many cards at once because they are fairly quick with adverse action (as I've been told, I've never had their products).

I did get prequalified for a Chase Freedom (the 5% categories version) when my credit was 625 and all I had was store cards, but that may not apply in your case with the BK. I also had luck with Discover IT a second time after getting denied a few years earlier. Not stupendously high credit lines on either, but that'll come with time and keeping the bills paid on time.
Current Cards: Chase Freedom, Discover IT
Future: TBD



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