For years, retail store cards have been the go-to way to build your credit score. The reasoning has been that these cards are relatively easy to get, and paying the balance due in a timely manner demonstrates your creditworthiness. Often, the available credit on these cards will be increased as you prove you are responsible.
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By the time you need a healthy credit score to apply for a loan or apartment, you will have a solid history. All of this supposes you can get a card in the first place, but a lot has changed over the years. Just what credit score do you need to qualify for most retail store cards today?
FICO Credit Score Ranges
According to Experian, these are the credit ratings and their corresponding FICO scores:
- Exceptional: 800-850
- Very Good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 300-579
Implications of a Low FICO Score
The lower your rating, the more difficult it is to get credit. Those with lower scores will also be likely to receive less credit when approved. The interest rate for those with lower scores is usually higher than for those with higher credit scores, too. There are a number of factors that affect your score, according to Experian. If you have fair or poor credit, you may need to work to improve your score before you are accepted. You may also need to start with a card that requires you to pay upfront until you prove your creditworthiness.
Things To Know Before Applying
Often, a credit inquiry will count as a hard inquiry. These can hurt your credit rating if you have too many in a short span of time, so take the time to know your score before you apply. And, be sure to check out what you’ll need to have as a score to better your chances.
Amazon
- Prime Visa: 670+
- Amazon Visa: 670+
- Store Card: 580+
Amazon has several types of cards with different audiences and purposes. Their Prime VISA is for Prime members. They also offer a Visa and an Amazon Store Card. The credit requirement varies quite a bit.
Best Buy
- Credit Card: 670+
- Store Card: 580+
Best Buy has two options: The Best Buy Credit Card and the Best Buy Store Card. If you don’t qualify for the credit card, you’ll automatically be considered for the store card.
Home Depot
- Score: 580+
Home Depot has a $0 annual fee store credit card. It offers deferred interest on some purchases.
Kohl’s
- Score: 640+
Kohl’s offers a credit card. Applying will be a hard inquiry, so take the time to see if you can pre-qualify without a hard inquiry. It won’t mean you’re approved, but it will mean you have a good chance.
Lowe’s
- Score: 640+
The Lowe’s Advantage Card is a store credit card with perks for frequent shoppers.
Target
- Credit Card: 580+
Target’s Circle Card Credit Card comes in either a Target Credit Card or a Target Mastercard.
Target Mastercard: 670+
Walmart
- Score: 640+
You can apply for a Walmart credit card online easily enough.
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This article originally appeared on GOBankingRates.com: The Credit Score You Need To Qualify for Most Retail Store Cards
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