How To Get Credit Good Enough To Qualify For The Best Rewards Card

  • February 05, 2019

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To land the best credit card deal, including a credit card rewards card, you’ll need to have and maintain tip-top credit.

The best credit card deals go to the folks with the best credit, that’s just the way it is.

To push your credit to the top, you’ll need to be doing a few different things at once.

You’ll need to pay your bills on-time, keep balances low and have a mix of credit beyond credit cards. A good credit history, one that’s been around for years, is a big plus as well.

The length of your credit history is another important factor in your credit score. Accounting for 15 percent of your credit score, the length of your credit history considers how long your oldest account has been open and how long your newest account has been open.

Payment history makes up 35 percent of your credit score. So paying bills on-time each and every month is a big factor in building up a strong credit score.

How much you owe, your account balances, make up 30 percent of your credit score. And the quickest way to improve a credit score is to pay down your balances. Keeping balances below 10 percent of credit lines is a good guideline for credit building.

Having a mix of credit, such as installment loans, mortgages, retail accounts, and finance company loans, makes up 10 percent of your credit score. So having a variety of credit accounts will give your credit score a boost.

It also considers how long all your credit accounts have been open and the average age of your  credit accounts.

So it’s a good idea to keep credit card and other accounts open, especially ones you’ve had for a number of years. Doing so will help your credit score.

A final factor in your score is new credit, which considers how many recent credit accounts you’ve opened.  New credit accounts for 10 percent of a credit score. Opening too many accounts at the same time isn’t good for your credit score since it will lower your average account age and nudge down your credit score. So be sure to go easy on adding new credit accounts. Stick to opening one account at a time.

To build up the best credit and be able to land the best credit card rewards deals, you’ll want to maintain an immaculate payment history, with low or no balances. You’ll want to maintain a mix of credit beyond credit cards and you’ll want to establish a lengthy credit history, with years of credit accounts on your record.  Finally, you’ll want to be smart about adding new credit, only adding a little at a time and not a bunch of accounts at once.

Do those things and the best credit card rewards cards will be within your reach before you know it.

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