Best Cards for Good Credit of July 2021
Best Cards Summary
Chase Freedom Flex℠
Why this is one of the best credit cards for good credit: If you have good credit are looking for a rewards card with 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, this is a good choice. Chase Freedom Flex also offers 5% back on travel purchased through Chase, 3% at drugstores restaurants, including takeout delivery, 1% on other purchases year-round. See our full review.
Discover it® Cash Back
Why this is one of the best credit cards for good credit: Good credit can score you a Discover it Cash Back card, which offers 5% cash back each quarter in rotating categories, such as Amazon.com, grocery stores, restaurants, gas stations when you pay using PayPal, up to the quarterly maximum when you activate. All other purchases earn unlimited 1% cash back. Discover will match your rewards at the end of the first year. There’s no annual fee, you can take advantage of a 14-month 0% introductory APR on purchases balance transfers (then a 11.99% to 22.99% variable APR applies). See our full review.
Blue Cash Preferred® Card from American Express
Why this is one of the best credit cards for good credit: Cardholders with good credit can earn 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year, then 1%. Cardholders can also earn 3% cash back at U.S. gas stations on transit, including taxis, ride-sharing services, tolls, trains, buses parking. Cardholders can earn 20% back on Amazon.com purchases on the Card within the first six months of Card Membership, up to $200 back. Plus, earn $150 back after you spend $3,000 in purchases on the Card within the first six months of Card Membership. See our full review.
Chase Freedom Unlimited®
Why this is one of the best cards for good credit: Cardholders with good credit will access hefty rewards with Chase Freedom Unlimited. One of many perks is a $200 welcome bonus after spending $500 on the card in the first three months. Add 1.5% cash back rewards a variety of bonus categories, this card is a solid earner. See our full review.
Chase Sapphire Preferred® Card
Why this is one of the best cards for good credit: You need good credit to apply for top travel rewards cards like the Chase Sapphire Preferred Card. Score a hefty sign-up bonus of 100,000 points after spending $4,000 in the first three months. You’ll earn two points per dollar on travel dining, plus one point per dollar on other purchases. Just note the $95 annual fee. See our full review.
Hilton Honors American Express Card
Why this is one of the best cards for good credit: With good credit, the no-annual-fee Hilton Honors American Express card can be yours. Get 80,000 bonus points if you spend $1,000 in the first three months. Plus, you can earn an additional 50,000 Hilton Honors Bonus Points after you spend a total of $5,000 in purchases on the Card in the first six months. Then, rack up seven points per dollar on Hilton purchases, five points per dollar at U.S. restaurants, at U.S. supermarkets at U.S. gas stations, three points per dollar on all other eligible purchases (See Rates & Fees). See our full review.
The Platinum Card® from American Express
Why this is one of the best cards for good credit: If you have a high credit score, you’re more likely to qualify for The Platinum Card from American Express. An elite travel card, this one comes with a $550 annual fee, but also tons of VIP travel benefits. Start off with 75,000 points after spending $5,000 in the first six months, while earning 10 points on eligible purchases made at U.S. gas stations U.S. supermarkets, on up to $15,000 in combined purchases, during the first six months after opening an account. You’ll earn five points per dollar spent on flights directly booked with airlines or with American Express Travel (beginning Jan 1, 2021, bonus points in these categories will be limited to the first $500,000 in combined purchases each year). Cardholders also earn five points per dollar on prepaid hotels booked on amextravel.com (See Rates & Fees). See our full review.
Marriott Bonvoy Boundless™ Credit Card
Why this is one of the best cards for good credit: If you have good credit like staying at Marriott, SPG or Ritz-Carlton hotels, the Marriott Bonvoy Boundless Credit Card offers sizeable rewards. New cardholders will earn three free nights (each night valued up to 50,000 points) after qualifying purchases + 10X total points on eligible purchases in select categories. Cardholders will also earn one free night award (valued up to 35,000 points) every year after their account anniversary. See our full review.
IHG® Rewards Club Premier Credit Card
Why this is one of the best cards for good credit: Cardholders with good credit earn up to 25 points per dollar at IHG Hotels by combining their card benefits with their IHG Rewards Club member benefits. Spend $3,000 within the first three months for an additional 125,000 bonus points. Earn one reward night on your anniversary simply by being a cardholder. See our full review.
What Can You Expect From Credit Cards for Good Credit?
Here’s what you should know about credit cards for those with good credit:
Rewards earning: More than 80% of cards for good credit earn at least two points per dollar or 2% cash back on bonus categories.
Sign-up bonus value: Almost 11% of cards for good credit have a sign-up bonus worth more than $500.
Annual fee: You’ll pay no annual fee with 61% of cards for good credit. Only about 9% of cards for good credit have an annual fee of more than $100.
APR: About 16% of cards for good credit have a minimum APR of 14.99% or lower, 70% have a minimum APR between 15 to 18.99%.
Benefits: Cards for good credit often have valuable benefits, with most offering travel accident insurance, travel credits, priority boarding, free checked bags, hotel status other valuable cardholder perks.
What Is Good Credit?
When you have good credit, lenders will view you as less risky than consumers with fair, poor or very poor credit.
“With a good credit score, you’re likely to get into a credit card with a reasonable limit, lower fees, lower interest rates possibly better program perks,” says Paul Golden, director of media relations with the National Endowment for Financial Education.
But good credit is not as ideal as very good or excellent credit, so scores in the good credit range are not in the top tier. Where exactly you fall in the range depends on whether lenders use FICO or VantageScore, the two main credit-scoring models.
Scores on the FICO scale fall between 300 850. Within that range are different categories:
- Exceptional is 850 to 800.
- Very good is 799 to 740.
- Good is 739 to 670.
- Fair is 669 to 580.
- Very poor is 579 to 300.
Measuring with the FICO scale, 21% of Americans have a good credit score, which is considered average risk. About 8% of them will become seriously delinquent.
As with FICO, VantageScore 3.0 – the most recent version of the scoring model – assigns numerical credit ratings between 300 850. But the categories break down a bit differently:
- Excellent is 850 to 750.
- Good is 749 to 700.
- Fair is 699 to 650.
- Poor is 649 to 550.
- Very poor is 549 to 300.
Although your FICO score can be as low as 670 still qualify as good, 700 is the VantageScore cutoff. Compared with the FICO model, VantageScore 3.0 produces fewer Americans with a good credit rating: Less than 13% have a “good” rating are likely to be approved for credit at competitive rates.
How Can You Get Good Credit?
Good credit, unlike excellent credit, doesn’t call for a long credit history or an exceptionally low credit utilization ratio – the amount of available credit you use. If you pay your bills on time keep within your credit limits, good credit is possible.
While VantageScore determines whether your credit score is good based on six factors, FICO looks at five factors. VantageScore 3.0 assesses, in order of importance, payment history, age type of credit, percentage of credit limit used, total debt, recent credit behavior, available credit.
FICO weighs payment history, amounts owed, length of credit history, credit mix new credit, in that order. In the U.S., FICO scores are used in more than 90% of lending decisions, according to the credit scorer FICO research.
Both FICO VantageScore consider payment history to be the most important factor. Good credit, then, means you make most or all payments to creditors on time.
It means you don’t max out your credit cards, either. As a general rule, good credit requires using less than 30% of your available credit. Exceeding this level indicates that you may be charging more than you can easily pay off.
On a credit card with a $5,000 credit limit, aim to have a balance of no more than $1,500 reported to the credit bureaus each statement period. Achieving excellent credit may require even lower use, about 7%.
The length of your credit history also can separate good from excellent credit. You might have good credit with a short credit history. However, you’ll need to demonstrate a history of on-time bill payments to reassure lenders that you’re a low credit risk earn an excellent score.
Credit mix only makes up 10% of your FICO credit score, but showing creditors you can successfully maintain different types of credit is helpful to establish maintain good credit. Ideally, you can demonstrate an ability to stay in good standing on installment accounts, such as a mortgage, an auto loan or a student loan, on revolving accounts, including credit cards, to open credit lines for cellphones or utilities.
Similarly, new credit is not a major factor with either FICO or VantageScore, but managing it properly can be helpful for good credit. If you’re shopping for new credit, multiple card inquiries may temporarily ding your credit score. Limit credit applications to products you will use are reasonably confident in your likelihood of approval.
Overall, if you have good credit, focus on maintaining your score. “It doesn’t take much for it to fall,” Golden says. “Even one late payment can be significantly derogatory.”
What Do Cards for Good Credit Offer?
Cards for good credit provide many features of cards for excellent credit. Here is what’s in the cards for you if you have good credit:
Rewards. Because good credit offers access to most cards, expect to choose from credit cards with rewards that include cash, travel points that can be redeemed for gift cards, merchandise more. Cards for good credit commonly offer at least one point per dollar on all purchases.
Depending on the card, you may be able to earn rewards at a higher rate, such as 5% cash back on quarterly rotating bonus categories.
Other cards may earn two or more points per dollar on all purchases, or in bonus categories year-round.
About 63% of cards in the U.S. News database available to consumers with good credit offer sign-up bonuses worth at least $150, but some offer sign-up bonuses worth $500 or more.
Benefits. Often, cards for good credit come with useful cardholder benefits. Some cards offer travel credits or perks, such as free checked bags. Frequently, cards for good credit provide some form of travel insurance, whether it’s trip cancellation accident insurance or coverage for rental cars. And almost all offer purchase protection benefits, such as extended warranty coverage or cellphone insurance.
Some credit cards offer top-notch benefits, such as annual travel credits airport lounge access. Benefits available with The Platinum Card from American Express include a $200 annual airline fee credit; access to the Global Lounge Collection, which allows cardholders to use a variety of airport lounges; Uber VIP status with $15 in free rides each month.
Interest rates. Typically, cards available to consumers with good credit are rated for good to excellent credit. That means if you have good but not excellent credit, you might be approved for a card, but you shouldn’t expect to qualify for the lowest available APR.
Fees. Annual fees aren’t unusual with cards for good credit, but there are some available without an annual fee. Usually, cards for good credit have an annual fee of no more than $100.
How Can You Get Approved for a Credit Card for Good Credit?
Despite your good credit, you may not always be approved for the credit card you want. As with excellent credit, card approval depends on more than your credit rating, although it is an important factor.
In addition to your credit rating, card issuers want to see that you have the income room in your budget to support at least the standard credit line for the account. They’ll consider your debt-to-income ratio, how many other credit card accounts you’ve recently opened other factors.
“I recommend applying for credit cards for which you are likely to qualify,” says Gerri Detweiler, education director for Nav, which helps business owners build credit. “Not only is it discouraging to get a rejection, but there will be an inquiry on your credit report.”
Check whether the card issuer offers preapprovals before you apply. A preapproval can tell you whether you’re likely to be approved for the card with a soft inquiry, which has no effect on your credit rating.
When you’re confident you’ll be approved, you can submit an application, which will involve a hard credit check. A hard credit check can have a negative effect on your credit score, although it is typically small temporary. If your application is rejected, consider a different card, or try again in a few months, after you’ve improved your credit score or other factors considered for approval.