If you're looking for credit cards for borrowers with a credit score of 600, you've come to the right place. 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 allow you to choose the best card for your needs.
Average utilization rate
If you are thinking about taking out a loan, you're probably wondering what the average utilization rate for credit score 600 is. It is actually 78.2% which is much higher than the national average. Although less credit is good for credit score, excessive credit can lead to credit card debt. The optimal utilization rate should be below 30%. It depends on how much of your credit you use and how healthy your overall financial position.
The credit utilization ratio (also known by the revolving use ratio) is the most important credit score measurement. Although it's simple to understand and can have a major impact on your credit score, it is important. You should consider ways to improve credit scores if you have high utilization rates.
Recent credit activity
Recent credit activity can negatively impact a 600 credit rating, making it appear that you are in serious financial trouble. Recent credit activity usually accounts for around 10% of your credit score. You can improve your credit score if you are able pay off your debts in a timely manner. Do not apply for new credit cards. Instead, pay off all outstanding balances.
If you plan on borrowing money to finance big purchases or start a business, it is important that your 600 credit score improves. A high credit score will give you the ability to negotiate with lenders and make you more attractive. Having a good score also helps you save money on interest costs.
To improve your 600 credit score, you must reduce your debt. Paying off high-interest debts first is a good way to do this.
Best credit cards available for borrowers with 600+ credit scores
If your credit score is in the 600s or above, you are on the right track. A higher score can get you the best credit cards. But, those with lower credit scores still have options. The Discover it Secured credit card has many benefits and is easy on your wallet. 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. It also does not have a minimum credit score requirement, making it a good option for borrowers with poor credit. The card reports automatically to all three credit reporting agencies, making approval easy. You can also earn rewards points and build your credit history quickly.