A good credit score can be any FICO credit score that falls within the range of 700 to 749. FICO credit scores are commonly used by lenders to approve new loans and lines of credit. If you have a good credit score, you’re financially more trustworthy than the average American (the average FICO credit score is 695, according to the Fair Isaac Corporation).
Having good credit will increase your chances of getting loans, lower interest rates and higher credit limits. These benefits can lead to thousands of dollars in savings in the long term. With a good credit rating, you’re likely to qualify for many credit cards -- especially the credit cards that tend to offer attractive rewards and perks.
MyBankTracker experts picked the top credit cards for people with good credit:
Best for Everyday Spending
Discover it has a 5% cash back program
Discover it offers the most well-rounded cash back credit card for consumers who have good credit. With no annual fee, you get a cash back program that provides 5% cash back on certain purchase categories that change every quarter (they are typically season-appropriate categories), while all other purchases earn a flat 1% cash back. Other great card benefits include free monthly FICO credit scores, no penalty APR, no late-payment fee for the first late payment and no foreign transaction fees.
How cash back programs work
Cash back credit cards allow you to earn money back on your spending. Normally, you receive a small portion of your purchase as rewards cash back (e.g., 1% of your purchase) and you accumulate this cash back until you’re ready to redeem it.
The cash back programs can vary greatly from credit card to credit card. Some programs will allow cardmembers to earn higher cash back rates on specific types of purchases (e.g., groceries, gas, restaurants, etc.) while other programs offer a flat cash back rate on every single purchase. The high cash back categories may change from every three months or annually. Typically, the categories tend to align with the common consumer trends of the season (i.e., home improvement during the spring).
When picking the best cash back credit card for you, you should first determine your spending habits by reviewing the last 6 to 12 months of credit card activity. You’d want a credit card that will offer high amounts of cash back on your largest purchase categories.
What to redeem cash back for
Depending on the credit card, the cash back can be redeemed in different ways. Most commonly, the money can be collected in the form of a mailed check, direct deposit or statement credit (basically a deduction of your credit card balance).
You may even be allowed to redeem the cash back through gift cards or merchandise. More credit card companies are partnering with retailers so that customers can directly use their cash back to pay for purchases, such as those made on Amazon.com card.
Runner-up Credit Cards for Shopping
Read more about the specifics of rewards credit cards and learn some of the strategies for using these cards to maximize your rewards.
Best Travel Card for Airlines and Hotels
Capital One Venture Rewards offers simple travel rewards
The Capital One Venture Rewards card is a credit card for people who at least has good credit and it offers generous travel rewards on all kinds of spending. You earn 2 miles per dollar spent on every single purchase. Most notably, each mile can be redeemed at a value of 1 mile per cent for a statement credit on a recent travel purchase. Therefore, you can look for the cheapest travel option on your own (such as using a discount travel website) and use your miles to “erase” the travel purchase.
The card has an annual fee of $59 (waived for the first year). There is an introductory bonus of 40,000 miles after you spend $3,000 within the first three months. The sign-up bonus is worth $400 in free travel.
How travel rewards credit cards work
A travel rewards credit card focuses on providing cardmembers with the opportunity to receive free or low-cost travel options as a reward for their spending. Like with many frequent traveler programs operated by airlines, travel rewards programs tend to track their cardmember rewards with “miles” as the currency. The value of each mile may vary by credit card, so it is important to understand what kind of travel rewards can be redeemed with your miles.
Credit cards from major brands
With branded travel rewards credit cards, such as those offered in partnership with airlines and hotel companies, the reward may be limited to flights or hotel accommodations provided by those companies. Other credit cards may have rewards programs that offer a wider selection of travel redemptions that span several brand partners, so you can use your miles to redeem for travel rewards that will best fits your desire.
Bonus offers on travel rewards credit cards
Travel rewards credit cards often come with enticing sign-up offers that include hundreds of dollars worth of free travel. However, they will usually require you make a certain amount of purchases during the initial months of card ownership in order to earn this bonus.
If you believe that you’ll have difficulty meeting the spending requirement with regular spending, you’ll have to plan you to sign up for a credit card when you’re about to make a major purchase.
Watch for annual fees
In addition to requiring good credit for approval, travel credit cards often charge annual fees because of their beneficial rewards programs and perks. Annual fees are typically charged on your card membership anniversary and can range from around $40 to $500. Most annual fees are waived for the first year.
Before signing up for any credit card with an annual fee, you should estimate how likely you will recoup that cost of the annual fee through your card’s rewards program and perks. You can project the value of the rewards that you’ll earn with your current spending pattern, or consider how much value you’ll get from the card’s perks (e.g., free checked bags on flights).
Runner-up Travel Credit Cards
Read more about of travel credit cards and learn some of the strategies for using these cards to maximize your travel perks.
Best Card With Low Interest
Barclaycard Ring MasterCard features unlimited balance transfers
The Barclaycard Ring MasterCard is the best low-interest credit card that you can get with a good credit. The card has a regular APR of 8.25% while it also has no annual fee or foreign transaction fees (for using your card internationally). Notably, you can transfer balances from other credit cards to the Ring MasterCard for free, which allows you to move high-interest debt to this card with the purpose of reducing interest charges and saving money.
Interest is accrued differently for balance transfers
You have to pay interest charges when you use your credit card to buy things and you don’t pay off your credit card balance in full. For transactions such as balance transfers and cash advances, interest begins accruing immediately.
How interest charges are calculated
The interest charge is calculated based on your credit card’s APR, which can vary by card and by person (two people can have the same credit card but have different APRs). Furthermore, there may be different APRs that apply to the balance if portions of the balance were incurred through other ways -- interest rates can vary for purchases, balance transfers and cash advances.
Credit card companies calculate your credit card APR starting with The Wall Street Journal’s Prime Rate, which is 3.50% as of February 20, 2016. A certain percentage is added to the U.S. Prime rate depending on your creditworthiness. With a better credit score, you’re considered a less risky borrower, so a smaller amount is added to the Prime Rate when determining your APR.
What is considered a low interest rate
Generally, an interest rate of less than 10% can be considered low. Borrowers with bad credit scores can have credit card APRs that are nearly 30%.
Balance transfers are often used by borrowers to consolidate debt with the goal of paying less interest on their credit card debt. The idea is to move high-interest debt to a card with a lower interest rate. Most credit cards allow balance transfers but the typical fee for such a transaction is 3% of the transferred amount. Some credit cards may waive the fee temporarily or opt to not charge it at all.
Tip: Using a no-balance-transfer-fee credit card, you can transfer your balances from other high-interest rewards credit cards when you believe you won’t be able to pay off your balances completely. Essentially, you reap the rewards of high-interest credit cards without facing their hefty interest rates.Balance transfers are subject to approval by the credit card issuer. When you perform a balance transfer, you may not exceed your card’s credit limit.
Learn more how to maximize your savings with low interest cards or balance transfer credit cards.