What Does Good Credit Mean?

Good credit is an indication that a borrower has a relatively high credit score, and lenders prefer such borrowers due to their low credit risk. Usually, when evaluating the creditworthiness of credit applicants, lenders check the credit scores provided through credit bureaus as part of background checks.Borrowers with good credit starting from 670 or higher have the best chance of getting credit approval from a lender. They are also likely to get favorable loan terms such as attractive interest rates, 0% APR on balance transfers, longer repayment period, etc. Apart from the credit scores, lenders also consider other factors such as recent credit inquiries, length of credit history, recent credit lines used, etc. to determine the ability of a potential borrower to meet their debt obligations.

What Should I Look For in a Credit Card if I Have Good Credit?

If you have good credit, you will be spoilt for choice with the number of credit card issuers who want your business. With the different options to consider, you should take some time to find the card that suits your needs. Here is what you should look for in your credit card: Annual Fee If you are applying for your first credit card, you should consider getting a credit card that does not charge an annual fee. Without a recurring annual fee, you can keep the credit card open for a long time to help build your credit. However, if you are looking for a rewards card, you can get a credit card with an annual fee where the potential rewards outweigh the annual fee. Interest Rate Credit cards charge a higher interest rate, compared to other credit products in the financial services sector. You can expect to pay 15% to 25% APR on the outstanding balance. Also, some cards offer a 0% APR for a period of 6 to 18 months. You can take advantage of these offers to consolidate your credit card debts or make a large purchase that you can repay within the promotional period. Once this offer expires, the interest rates jump to about 15% to 25%, which can be expensive if you have a large balance. Rewards Credit cards can help you collect maximum rewards on your everyday shopping. Pick a rewards card that aligns with your interests or lifestyle such as travel rewards, gas & fuel, supermarket rewards, etc. Choose between credit cards that offer cash backs, travel rewards or even airline miles. Credit Limit If you are using a specific credit card for the first time, your initial credit limit might be below the expected credit score. In this case, find a card with a low limit, and use it to establish credit reputation. However, if you are looking for a credit card that allows large purchases, you should find credit card issuers that are willing to increase your credit limit based on your good credit and financial needs. Fees and Penalties Before signing up for a credit card, check the issuer’s terms and conditions to know all the account fees associated with the credit card. Additional fees such as foreign transaction fees, over-limit fees, balance transfer fees, and late payment fees can add up to the cost of using the credit card. Knowing these fees can help you make the most of your card without incurring additional fees.

How Long Does it Take to Build Good Credit?

Building good credit from zero requires patience, time, and dedication. Generally, you need at least one credit account that has been active for six months to get a credit score, and at least six months of on-time payments and reporting to credit agencies to build a good score. A FICO credit score requires at least 6 months of on time payments and account activity to accumulate enough credit history and a decent credit score. In comparison, a vantage score requires at least two months of credit history to establish good credit. FICO is the most common credit scoring system, and it is used in at least 90% of the market lenders. Experian discloses that the number of loans you take and how well you pay them back can determine the credit score you get.

How to Get a Good Credit Score?

If you are struggling with a poor credit score, there are things you can do to add an extra 100 or more points. Here are quick strategies to help you get a good credit score: Pay Bills on Time Payment history is one of the main factors that determine your credit score. Always pay your utility bills and credit card bills on time to help you build your credit. If you foresee a delay in making bill payments, you can ask the utility company to delay submitting the information to credit bureaus as you work on paying the bills. Don’t Close Old Credit Cards Keep your credit cards open for a long time as long it does not cost you money in annual fees. By closing your old credit card accounts, you risk losing the accumulated credit history and cause your credit score to drop. Also, closing aged credit accounts increases your credit utilization ratio. This chart created with Experian data shows that those with an average to good credit score have an average credit utilization ratio of the optimum 33%. This ratio drops significantly for those with very good and excellent scores. At the other end of the scale, the chart shows that those with poor credit scores typically have a very high credit utilization ratio, with an average of 73%. This will be a massive factor in lending decisions for those in this group. Limit New Credit Applications When you apply a new credit, the lender requests your information from credit agencies. This creates a record in your credit report, also known as a hard inquiry. Although hard inquiries fade after a few years, they reduce your chances of getting approved for a loan since lender sees you as a risky borrower. Become an Authorized User An easy way of getting a good credit score is becoming an authorized user in another person’s credit account. The person can be a friend or relative, and they must have an impeccable credit history and excellent credit scores. This option lets you get credit for their good record of paying credit on time. As an authorized user, you get a longer credit history on your report without having to use the credit card. Use a Secured Credit Card Secured credit cards provide a solution to cardholders looking to build or boost their credit scores. This card requires cardholders to make a deposit, which is equivalent to the allowed credit limit. Payments made to the secured credit card are reported to credit bureaus, and this helps build credit over time.

What are the Best Credit Cards for a 700 Credit Score?

A credit score of 700 or higher puts you in the good, very good and excellent credit score range. In this credit score range, you have more credit card options to choose from and at favorable credit terms. Here are the best credit cards if you have a 700+ credit score: Bank of America® Cash Rewards credit card This rewards card is a good option for people who want to be able to customize their credit earnings since you get to choose your own 3% cashback earning category. That means you can tailor your credit card to the kind of spending you’re most likely to need, maximizing your returns from that credit card. Blue Cash Everyday® Card from American Express This card is one of the better options for families and people who mostly stay at home instead of traveling. It’s highest cashback rates are for grocery store purchases, with the next two highest rewards tiers being gas purchases and department store purchases. That makes this an excellent option for anyone who doesn’t need a more specialized kind of card. What are the Expected Credit Card Rates for Good Credit? The expected APR for good credit varies depending on the type of credit card, borrower's creditworthiness, and the current average interest rates. Ideally, a borrower with good credit can get an APR that is below the current average interest rate. Federal Reserve data from the third quarter of 2020 shows the average interest rate was 16.43%. A good credit score above 700 can qualify you for an interest rate below the average APR of 16.43%. However, the lowest APR is given to cardholders with excellent credit scores due to their low credit risk. The different types of credit cards in the market have different APRs. For example, reward cards and business credit cards carry higher APRs than balance transfer credit cards due to the benefits and perks that they offer. Generally, issuers have a variable APR that ranges from 13% to 25%, and it changes over time depending on the prevailing interest rates.

What are the Best No-Annual-Fee Credit Cards for Good Credit?

A no-annual fee credit card is a card that does not charge an annual membership or maintenance fee. This card is a great option if you want to maximize rewards while keeping costs at a minimum. The best no-annual fee credit cards include: Chase Freedom Flex The Chase Freedom Flex earns a bonus of $200 after spending $500 in purchases in three months from the date of account opening. This card earns you 5% cash back each quarter on up to $1500 spent on purchases in bonus categories. You also earn 5% cash back on costs incurred in travel purchases, 3% incurred in restaurants and drugstores, and another 1% on other purchase categories. If you are looking to earn rewards across multiple purchase categories, Chase Freedom Flex could be a good fit for you. 2. Citi® Diamond Preferred® Card This card comes with no annual fees, as well as a 0% APR introductory rate. They also offer relatively low balance transfer rates. This card is a good option as an everyday credit card, as well as a backup credit card and line of credit.

What are the Best Cash Back Cards for Good Credit?

Cash backs are some of the best rewards you can earn when using your credit card to make purchases. Cash back rewards earn you real dollars that you can use as a statement credit or pay for purchases. Here are the best cash back credit cards for good credit: Citi® Diamond Preferred® Card This card comes with no annual fees, as well as a 0% APR introductory rate. They also offer relatively low balance transfer rates. This card is a good option as an everyday credit card, as well as a backup credit card and line of credit. High Limit Credit Cards for Good Credit When you open a new credit card account, the issuer sets a credit limit for the account based on your credit score, credit history and other factors. This limit can be anywhere from $100 to $10,000, or even higher. High limit credit cards are available to people with the highest credit scores. The best high limit credit cards for good credit include: Chase Sapphire Reserve Chase Sapphire Reserve has one of the highest credit limits. This credit card has a minimum credit limit of $10,000, and the limit can be higher if you have an excellent credit score. New sign-ups earn a bonus of 50,000 if they spend $4000 in purchases in the first 90 days. This bonus is worth $750 if you redeem your points through the Chase Ultimate Rewards. This card has a $550 annual fee. If you are looking for a good travel credit card with the highest credit limit and lots of travel perks, this card is good fit for you. Capital One Venture Rewards Card Capital One Venture has a credit limit of $5000 to $10,000, depending on your creditworthiness. If you are looking to maximize travel rewards, this card earns you 60,000 miles in sign up bonus if you spend $3000 on purchases in 3 months of account opening. You also earn 2x miles on all purchases you make. Capital One venture has a $95 annual fee, and zero foreign transaction fees. This card is a good pick for a regular traveler looking to earn reward points on every purchase that can be redeemed for airline miles.

What are the Best Rewards Cards for Good Credit?

Rewards credit cards provide an opportunity to earn cash backs, miles, or travel rewards on everyday purchases. Getting the best rewards card for good credit can help you save money on airline miles, store purchases, and travel costs. Here are the top reward cards if you have good credit: Discover It Cash Back Discover it cash back is a popular rewards card due to its rotating bonus categories and introductory cash back match in the first year. This credit card earns a 5% cash back on purchases at grocery stores, gas stations, and online stores such as Amazon.com up to $1500 every quarter. Cardholders also get cash back match on the total cash backs collected in the first year. It has a $0 annual fee. If you are looking for no-annual-fee cash back to earn cash backs on every day purchases, Discover it Cash Back card could be for you. Chase Sapphire Preferred Card This credit card earns rewards on travel purchases. This card earns 2x on every dollar spent on travel purchases and restaurant, and 1x points on other purchase categories. New sign-ups get a bonus of 60,000 for spending $4000 in the first 3 months of account opening. You can transfer these points to travel partners at the ratio of 1:1, or redeem these points through Chase Ultimate Rewards for a 25% boost in rewards value. Chase Sapphire Preferred Card is a good fit for a regular traveler looking for a high-limit credit card with the best travel rewards.

Credit Cards » Compare Credit Cards » Best Credit Cards for Good Credit of November 2024

Best Credit Cards for Good Credit of December 2024

Credit cards for good credit have attractive benefits such as long 0% APR intro, $0 annual fees, and higher rewards & credit limits.

Article update: November 26, 2024

Article update:November 26, 2024

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A credit score of over 700 puts you in the good to excellent credit score range. Credit cards for good credit have attractive features and benefits such as 0% APR for the first few months, higher rewards, $0 annual fees, and higher credit limits.

If you have good credit, you will be spoilt for choice with the number of credit card issuers who want your business. With the different options to consider, you should take some time to find the card that suits your needs.

Here are The Smart Investor Select’s picks for the best credit cards for good credit in 2024:

Card	Rewards	Bonus	Annual Fee	Best For
The Amex EveryDay® Credit Card	1X – 2X 2X points at U.S. supermarkets (up to $6,000 per year, then 1X), 2X points on prepaid rental cars booked through American Express Travel and 1X points on all other purchases	10,000 points 10,000 points after you spend $2,000 in purchases on your new card within the first 6 months	$0	Everyday Spending
Discover it® Cash Back	1-5% 5% cashback on up to $1,500 in rotating category purchases each quarter when you activate the bonus category (then 1%), as well 1% percent cash back on all other purchases	Cashback Match	$0	Cashback
U.S. Bank Altitude® Go Visa Signature®	1X – 4X 4x points at restaurants, take-outs & deliveries, 2x points at supermarkets, gas stations & streaming servicesm and 1 point for 1 dollar on all other purchases	20,000 points 20,000 bonus points when you spend $1,000 in eligible purchases within the first 90 days of account opening	$0	Point Rewards
SoFi Credit Card	1-3% 3% cash back rewards on trips booked through SoFi Travel. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi	N/A N/A	$0	Youngers
Capital One Quicksilver	1.5% – 5% 5% percent cash back on hotels and rental cars booked through Capital One Travel and 1.5% cash back on all purchases everyday.	$200 $200 cash bonus once you spend $500 on purchases within 3 months from account opening	$0	0% Intro
Chase Freedom Flex℠ Card	1-5% 5% cash back on up to $1,500 in combined purchases on selected categories each quarter and 5% cash back on travel purchased through Chase Ultimate Rewards®. Also, you can earn 3% cash back on dining at restaurants (including takeout and eligible delivery services), drugstore purchases , and 1% on all other purchases	$200 $200 bonus after you spend $500 on purchases in the first 3 months from account opening	$0	Rotating Categorie

Blue Cash Everyday® Card from American Express

Blue Cash Everyday Review

Rates & Fees, Terms Apply

Blue Cash Everyday® Card from American Express

Blue Cash Everyday Review

Reward details

Current Offer

Credit Rating

Good – Excellent

Annual Fee

0% Intro

15 months on purchases and balance transfers from the date of account opening

APR

18.49% – 29.49% Variable

Rates & Fees, Terms Apply

Overview
Features
Pros & Cons
FAQ

The Blue Cash Everyday® Card from American Express is a no-annual-fee credit card that excels in providing rewards for everyday spending. With a focus on U.S. supermarkets, gas stations, and online retailers, it offers a competitive 3% Cash Back at U.S. supermarkets / U.S. online retail purchases/ U.S. gas stations on up to $6,000 per year in purchases, then 1%.

The card provides a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Additionally, it features a 0% introductory APR for 15 months on purchases and balance transfers from the date of account opening , followed by a variable APR of 18.49% – 29.49% Variable. This card pairs this introductory APR with the Pay It Plan It program, allowing users to manage their payments efficiently.

While it stands out for its unique U.S. online retail reward category, it may not be the most lucrative option for those who spend heavily outside these specified areas.

APR: 18.49% – 29.49% Variable
Annual fee: $0
Balance Transfer Fee: 3% or $5, whichever is greater
Foreign Transaction Fee: 2.7%
Rewards Plan: 3% Cash Back at U.S. supermarkets / U.S. online retail purchases/ U.S. gas stations on up to $6,000 per year in purchases, then 1%. Terms Apply.
Welcome Bonus: $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months
0% APR Introductory Rate period: 15 months on purchases and balance transfers from the date of account opening

Competitive Rewards And Welcome Bonus
No Annual Fee
0% Intro APR
Foreign Transaction Fee
Spending Caps

Are there any restrictions on redeeming cash back for direct deposits or checks?

Yes, unlike some other cards, the Blue Cash Everyday card doesn't allow for direct deposit or check redemptions.

What is the Pay It Plan It program?

The Pay It Plan It program allows cardholders to manage payments effectively, offering upfront payment options for qualifying purchases.

Does the Blue Cash Everyday Card have any exclusive perks?

Yes, cardholders enjoy exclusive access to American Express Experiences, providing special ticket presale access and event invitations.

Does the card offer any travel-related benefits?

Yes, cardholders have access to the Global Assist Hotline for emergency assistance when traveling more than 100 miles from home.

How can I redeem the cash back rewards?

Cash back rewards, earned as Reward Dollars, can be redeemed for statement credits with no minimum redemption amount.

Discover it® Cash Back

Discover it Cash Back Review

Discover it® Cash Back

Discover it Cash Back Review

Reward details

1-5%

Current Offer

Cashback Match

Credit Rating

Good – Excellent

Annual Fee

0% Intro

15 months on purchases and balance transfers

APR

18.74% – 27.74% Variable APR

Overview
Features