The right place to look for credit cards available for borrowers with credit scores below 600 is here. Below you'll find a list listing the best credit cards, based upon your credit score (average utilization rate) and credit activity. This information will help you choose the right card for your needs.
Average utilization rate
If you are interested in taking out a loan, then you might be curious about the average utilization rate of credit score 600. It's actually 78.2%, which is a lot higher than the national average. Using less credit can be good for your credit score, but using too much can hurt your score. The optimal utilization rate should be below 30%. It all depends on how much credit your are using and how healthy you overall financial situation.
The credit utilization, also known simply as the ratio of revolving credit use to credit, is the most important factor in a credit score. It's not particularly complicated to understand, but it can have a big impact on your credit score. High utilization rates should be considered if you want to improve your credit score.
Recent credit activity
Recent credit activity can negatively impact a 600 credit rating, making it appear that you are in serious financial trouble. Around 10% of your credit score is affected by recent credit activity. Your score will rise if your debts are paid on time. Avoid applying for credit cards, and pay off any outstanding balances.
If you're looking to borrow money for a large purchase or start your own business, improving your 600 credit rating is crucial. A high credit score will give you the ability to negotiate with lenders and make you more attractive. A good credit score will also help you to save money on interest.
The best way to improve your 600 credit score is to reduce your debt. You can do this by paying off any high interest debts first.
Best credit cards available for borrowers with 600+ credit scores
You are in the right place if your credit score is 600s or higher. A higher score can get you the best credit cards. But, those with lower credit scores still have options. The Discover it Secured card is easy to use and offers many benefits. This credit card allows unlimited 1% cashback for all purchases, a security deposit that can be refunded, and dollar-fordollar cash back matching.
The Applied Bank Secured Visa Gold Preferred Credit Card is easy-to-approve for and only has an annual fee. The card does not require a minimum credit score, which makes it an attractive option for those with bad credit. The card automatically reports to all three credit agencies, making it easy for you to be approved. The rewards program allows you to build positive credit in a very short time.