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If you have fair credit, you're not out of luck when it comes to getting approved for an American Express card. In fact, American Express offers several cards that cater to people with fair credit.
These cards often come with lower credit limits and may have higher interest rates compared to cards for people with excellent credit. However, they can still provide a great opportunity to rebuild your credit and earn rewards.
One of the key benefits of American Express cards for fair credit is that they report payment history to the three major credit bureaus. This means that making on-time payments can help improve your credit score over time.
By choosing the right American Express card for your needs, you can start building a positive credit history and taking the first steps towards a stronger financial future.
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American Express Card Requirements
You'll generally need a decent credit score to get approved for any Amex card, but the specific score required varies depending on the card. For premium cards like the Amex Platinum and American Express Gold Card, you'll need good to excellent credit, usually a score of 680 at a minimum.
For entry-level and cash-back cards, you can sometimes get away with a shorter credit history and lower score, though you'll still want to aim for a decent credit score. A score of 670 or higher is probably necessary for cards like the American Express Green Card.
American Express uses FICO's scoring model, which considers a credit score between 670 and 799 to be good or very good. Anything below 670 is considered fair or poor.
If you're new to credit, your profile may be better suited to a simple, low annual fee cash-back card rather than a pricey, premium rewards card.
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Improving Credit for Approval
Improving your credit score is crucial for getting approved for an American Express card, especially if you have fair credit. You can check your credit report for free once a year through each of the major bureaus to ensure it's accurate.
Paying your bills on time and in full every month is essential, as late payments can significantly lower your credit score. You should aim for a utilization rate of less than 30% on your overall total credit outstanding, as well as on individual credit card accounts.
Reducing existing debt can also help improve your credit score. You can use a credit card payoff calculator to determine the best strategy for paying down your debt. Building an excellent credit score takes time and patience, but with consistent good credit habits, you'll see improvement eventually.
Here are the key factors that affect your credit score, based on the FICO scoring model:
FICO Score Range | Description |
---|---|
300-579 | Poor |
580-669 | Fair |
670-739 | Good |
740-799 | Very Good |
800-850 | Exceptional |
How to Improve
Improving your credit score takes time and patience, but it's worth the effort. You can start by checking your credit report for inaccuracies that might be hurting your score.
To improve your credit score, pay your bills on time and in full every month. This is the single biggest factor affecting your score, so make it a priority. Limiting your spending to what you can comfortably pay off by the end of each billing cycle is essential.
You can also lower your credit utilization by aiming for a utilization rate of less than 30% on your overall total credit outstanding, as well as on individual credit card accounts. If you have outstanding credit card debt, reducing it can significantly enhance your credit score.
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Building an excellent credit score gradually requires patience and no quick fixes. It's more akin to a marathon than a sprint. Even if you follow these tips diligently, your score may take some time to reflect your efforts.
Here are some key factors to focus on:
- Payment history: This carries the most significant weight, so make timely payments a priority.
- Credit-to-debt ratio: Aim for a utilization rate of less than 30%.
- Credit history length: Establishing a longer credit history can help improve your score.
- New accounts: Avoid opening too many new accounts, as this can negatively affect your score.
- Account diversity: Having a mix of different credit types can help improve your score.
Remember, you can obtain your credit scores directly from the websites of the three major credit bureaus: Equifax, Experian, and TransUnion.
Easiest American Express Card Approval
If you're new to credit, you might be wondering what the easiest American Express card to get approved for is. The answer is that American Express cards are primarily recommended for those with good or better credit, so there isn't a card aimed at someone whose credit doesn't fit that description.
However, if you're looking for a simple, low annual fee cash-back card, you might be able to get approved for an entry-level American Express card with no annual fees over the premium annual fee cards. These cards typically have a recommended credit score of 670 or higher.
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To increase your chances of approval, you can check your credit report for inaccuracies and pay your bills on time and in full every month. You can also reduce existing debt, which can significantly enhance your credit score.
Here's a rough guide to the credit scores needed for different American Express cards:
Card Type | Recommended Credit Score |
---|---|
Entry-level cash-back cards | 670 or higher |
Premium cards | 680 or higher |
Luxury travel cards | 800+ |
Keep in mind that these are general guidelines and that American Express may use more than one credit bureau or a different credit bureau to decide whether or not you qualify for one of their credit cards.
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Factors Affecting Approval
Credit scores aren't the only factor issuers look at when deciding to approve you for a new credit card. Banks also consider your credit history, the number of accounts open, and the status of those accounts.
Just because you were approved for a card five years ago with a certain score doesn't mean you'll be approved again with that same score. Issuers regularly update the factors they use for credit card approvals.
Cardmembers with excellent credit scores of 780+ are much more likely to be approved for a credit card, but there's never a 100% guarantee until you get a decision from the issuer.
American Express has its own set of application restrictions, including awarding just one welcome bonus for a card in a customer's lifetime. This means even those with extraordinary scores may not be approved for a card if Amex's proprietary formula determines you're not eligible.
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American Express Preapproval and Approval
You can check American Express' Check For Offers site to see if you're prequalified for any card offers without any impact to your credit score. Prequalifying is not the same as being preapproved.
Preapproval is when an issuer contacts you to extend an offer to apply for a card, typically based on your credit profile fitting specific criteria like a certain credit score or a solid history of on-time payments. This is only after performing a hard credit inquiry and taking a detailed look at your credit profile that American Express will decide if you fit their approval criteria.
American Express may use more than one credit bureau or a different credit bureau to decide whether or not you qualify for one of their credit cards. They may also use a credit score between 670 and 799 to be good or very good, anything below 670 to be fair or poor, and anything above 800 to be excellent.
Most of the time when you apply for a new line of credit, American Express will pull your most recent credit history, which is known as a hard pull and can temporarily ding your credit score.
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Credit Checks and Scores
American Express usually does a hard pull for credit checks, which can temporarily ding your credit score, but they also offer a prequalification tool that does a soft credit check, so you can see if you're likely to qualify without affecting your credit.
Prequalifying is not the same as preapproval, and you'll still have to apply for a card even if you prequalify. Applying may impact your credit score if the issuer does a hard pull of your credit.
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There's no magic credit score that will guarantee you'll be approved for a particular card, but American Express' MyCredit Guide tool uses FICO's scoring model, which considers a credit score between 670 and 799 to be good or very good.
A good credit score can vary depending on the issuer, but American Express may use more than one credit bureau or a different credit bureau to decide whether or not you qualify for one of their credit cards.
Knowing your credit score can help you determine which American Express cards you may be eligible for, and it's a good idea to check your credit report regularly to ensure it's accurate.
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Entry-Level Options
If you're looking for American Express cards with fair credit, entry-level options are worth exploring. These cards are designed for those with shorter credit histories or lower credit scores.
The Blue Cash Preferred Card and the Amex EveryDay Preferred Credit Card have a recommended credit score of 670 or higher. However, some instances of approval have been reported with scores in the lower 600s.
You might have a better chance of approval with a no-annual-fee Amex card, like the American Express Blue Cash Everyday Card, if you're new to credit or have a limited credit history.
Here are some American Express entry-level cards to consider:
Card Name | Recommended Credit Score |
---|---|
Blue Cash Preferred Card and Amex EveryDay Preferred Credit Card | 670 or higher |
Blue Cash Everyday Card | Lower 600s (approval possible) |
Sources
- https://thepointsguy.com/credit-cards/credit-score-needed-amex-cards/
- https://www.forbes.com/advisor/credit-cards/what-credit-score-do-you-need-for-an-american-express-card/
- https://thepointsparty.com/articles/credit-score-needed-for-amex-cards
- https://www.comparecards.com/credit-quality/fair
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/credit-score-for-a-credit-card/
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