When you have a moderate credit score, you may be limited when it comes to purchases. Your credit affects your entire life, including housing and purchasing power. To improve your credit, you may need a credit card.
Many lenders won’t extend a card to someone with low credit. This makes it hard to improve your situation. Fortunately, you do have options with a 660 credit score.
What to Look for in a Credit Card with Low Credit
When you have low credit, look for the following:
- Cards without fees
- Cards with rewards
- Sign up bonuses
- 0% Interest APR Cards
- Low borrowing limits
It’s important for your card to be manageable for you. Low limits, no fees, and no interest can help. These features can help you manage and build credit.
What Is an Unsecured Credit Card?
Most normal credit cards are unsecured. This simply means that you did not offer collateral for credit. The bank only has your word that you’ll pay back the money.
By contrast, a secured loan is when a borrower puts up collateral. This can be a home, a car, and more. If the borrower can’t pay, the bank gets the collateral item.
Again, most credit cards are unsecured. Therefore, you don’t need significant assets to use your card. This helps build credit easily and safely for you.
There are several options to get a card with 660 credit. It’s important to look for options with the above criteria. This can keep you safe and help your credit.
It’s important not to spend above your means when building credit.
Best Tips for Using Credit Cards with a 660 Credit Score
It’s beneficial to build your credit from 660. Higher credit scores help you in many ways.
If you have a 660 credit score, follow these practices to improve:
- Only spend what you have. Think of your credit card as a debit card. This helps you stay within your means.
- Pay your credit card bills right away. If you only spend what’s in your account, you can pay each month. When you have the money already, it’s easy to transfer.
- Use autopay to avoid interest. Lots of cards have autopay options. This ensures you don’t miss a due date.
- Budget yourself. When you budget, you know what you can spend. This helps you say no to unnecessary purchases.
- Don’t pay loans or other debts with a credit card. This accrues more interest and makes things worse. Develop a reasonable plan to pay for any debts you have.
- Don’t push your credit limits. If your credit limit is raised, keep sticking to your budget. You may be tempted to spend more, but it’ll hurt your progress.
With these tips, you can improve your credit score safely and reliably. The process may take some time, so be patient. The effort is worth it.